Product Information for Investors. quirion The intelligent way to invest

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1 Product Information for Investors quirion The intelligent way to invest

2 Tailored precisely to ones needs, convenient and commission-free: digital asset management from quirion 2 Professional asset management for anybody get digital with quirion 3 quirion offers the perfect solution for investors with little time or who lack expertise in continually adjusting their portfolio to developments in the capital markets. Optimal returns We offer a system of tailored solutions whose carefully balanced risk-return ratios cater to the individual investing personality of our clients. The resulting ratio of stocks and bonds may vary from 0 to 100 %. If you decide to change your risk tolerance later on, the strategy can be easily adjusted. Investing without the hassle We continually monitor your investments, optimise opportunities, and limit risks associated with your investment account, so you benefit from quirion s digital asset management on a daily basis. Fair costs We reimburse 100% of all commissions, sales incentives, and so-called kickbacks to our clients. This guarantees that our independence in selecting investments that best suit you! We offer a balanced system of tailored investment strategies Cost Benefits The cost benefits of your investment account at quirion at a glance: 0Investment account fees Issuing Premium Performance fees Costs for adjustments to the investment account Only 0.48 % p. a. of the amount invested for asset management As a result, we offer our customers one of the most cost-efficient solutions in the German market when it comes to digital asset management. quirion is a brand of the quirin bank, offering transparent asset management for everyone, by not relying on specific products. To date, asset management in Germany has only been possible at higher investment volumes. Now, thanks to quirion, any investorwith an initial investment volume of 10,000 can have his or her assets managed by a professional. Investments in over 9,000 stocks around the world quirion s approach involves offering its client s broadly diversified investments for their assets. In connection with its range of investment strategies, quirion indirectly invests in over 9,000 (!) stocks and other product groups. In addition, quirion also chooses from hundreds of bonds issued by countries, established companies and supranational organisations such as the European Union or the International Monetary Fund (IMF). This ensures that your investment is diversified among the two liquid investment classes of stocks and bonds. quirion was created for investors, who would like to profit from the opportunities offered by international capital markets pursue the goal of long-term asset growth are in search of professional management for their investment quirion is not for investors who want to trade on the stock exchange on their own want to engage in short-term speculation on the capital market demand guaranteed interest rates or returns at all times Rebalancing Anything off kilter is quickly brought back on course thanks to rebalancing. We perform automatically rebalancing at least anually, in order to restore original investment ratios. If the ratio of the investment classes varies by more than 10 % from its target value we restore the investment ratios.

3 Advantages of the asset management Prevention of irrational behaviour 4 Invest intelligently by focusing on attractive ETFs 5 Instead of making a rational decision and adopting a reliable strategy, this investor psychology leads to excessively impulsive, premature and procyclical behaviour. During upswings, the tendency to first view things with scepticism and follow the common trend prevails. So investors then become all the more careless once they convince themselves that the market is on the way up in most cases too late in the game and at great cost! A sudden decline ends up catching them off guard. If the period of decline endures, financial and most of all psychological stamina are quickly depleted. The investment is then sold out of utter frustration oftentimes at its low point. An emotional investor exhibits pro-cyclical behaviour buying at high price levels and then, frustrated and anxious, selling low. In the long run, this results in a great deal of money being wasted! Instead of impulsive, short-term, pro-cyclical behaviour that drives investors to chase every trend, our approach embodies a calm, cool-headed strategy. This means that you have the chance to invest in a well balanced portfolio and take part in the long-term positive trend of the entire market. In so doing, you benefit from adequate risk spread via diversification across different regions, industries and sectors. Every one of our investment strategies has been devised in a competent manner using broadly diversified ETF and asset class fund portfolios. ETFs or exchange-traded funds replicate the performance of a specific index such as the DAX. By investing in an ETF, you as investor share in the performance of an entire market. In connection with our investment strategies, we select the most affordable ETFs from the indexes we deem to be the best. We concentrate exclusively on indexes compiled with care and that exhibit adequate diversification as well as an attractive risk-return ratio. We evaluate all relevant ETF providers in terms of safety. Our issuer rating allows us to achieve an analytical depth that private investors not to mention many institutional investors are unable to achieve. Opt for rational decision-making by adopting a sensible strategy All relevant ETF providers are verified in terms of safety

4 Invest intelligently by focussing on attractive ETFs 6 Performance overview of the investment strategies of quirin bank AG 7 Risk Tolerance Low (Conservative) Very high (Aggressive) 20 shares 100 %, bonds 0 % Investment objective I want to invest in the capital market while keeping risks to a minimum. Price fluctuations make me nervous. I want to earn a moderate return, and can withstand price fluctuations. I want to earn above-average returns, and am aware that prices fluctuate. I want to earn high returns, and accept higher fluctuations. I want a very high return. I have good nerves, and am not intimidated by significant price fluctuations shares 0 %, bonds 100 % Ratio 0% stocks 100% bonds 10% stocks 90% bonds 20% stocks 80% bonds 30% stocks 70% bonds 40% stocks 60% bonds 50% stocks 50% bonds 60% stocks 40% bonds 70% stocks 30% bonds 80% stocks 20% bonds 90% stocks 10% bonds 100% stocks 0% bonds 0 5 Global stocks 0.00 % 8.60 % % % % % % % % % % EM stocks 0.00 % 1.40 % 2.80 % 4.20 % 5.60 % 7.00 % 8.40 % 9.80 % % % % All data after deduction of costs amounting to 0.48 % p.a. and before taxes. Previous performance, simulations or forecasts are not a reliable indicator of future performance. Corporate bonds % % % % % % % % 8.65 % 3.58 % 0.00 % Allocation 0% stocks 100% bonds 10% stocks 90% bonds 20% stocks 80% bonds 30% stocks 70% bonds 40% stocks 60% bonds 50% stocks 50% bonds 60% stocks 40% bonds 70% stocks 30% bonds 80% stocks 20% bonds 90% stocks 10% bonds 100% stocks 0% bonds Government bonds % % % % % % % % 8.65 % 3.58 % 0.00 % % 2.04 % 0.81 % 0.01 % % % % % % % % Liquidity 1.50 % 1.65 % 1.80 % 1.95 % 2.10 % 2.25 % 2.40 % 2.55 % 2.70 % 2.85 % 3.00 % % 2.27 % 3.67 % 5.39 % 7.02 % 8.88 % % % % % % % 3.85 % 5.69 % 7.51 % 9.32 % % % % % % % Investment term 1 3 years 1 3 years 3 5 years 5 7 years > 7 years Stand: % 0.42 % 1.90 % 3.35 % 4.83 % 6.29 % 7.79 % 9.29 % % % % 5.56 % 2.94 % 2.24 % 1.48 % 0.72 % % % % % % % Stand: 2016/07/01

5 Continual investment building your wealth one step at a time 8 Facts and data that speak for themselves 9 A savings plan allows you to steadily build wealth. Once it s been set up, you don t have to worry about anything else. We regularly withdraw the agreed amount from your bank account and invest it for you - a simple and convenient solution. Based on your personal risk tolerance, you can choose from one of the following versions: Savings Account 30 Savings Account 50 Savings Account 70 Open a managed investment account with an initial investment volume of 10,000. Subsequent deposits or withdrawals in increments of 2,000 can be made at any time, providing the minimum investment volume is adhered to. With your online banking portal you can set up savings plans for your investment account starting at 100 a month. The quirion investment account is managed online: Access performance reports and account statements in your online inbox. Attractive price model: You pay only one percentage-based fee for investment management: 0.04 % per month (0.48 % p. a., billed monthly) (30 % stocks/70 % bonds) (50 % stocks/50 % bonds) (70 % stocks/30 % bonds) Please refer to the current pricing and service information on quirion.de. All specified amounts include VAT. You can deposit or withdraw funds any time you like. Steadily building your wealth with a savings plan The benefits of the quirion savings account at a glance: regular savings instalments starting at in order fees 0 for changes to or suspension of payments Flexible deposit or withdrawals possible The savings account is an add-on product offered by quirion, and is only available to existing customers. We offer you asset management from an initial investment volume of 10,000

6 A common sense approach to investment opportunities and risks 10 Risks unique to exchange-traded funds (ETFs) 11 A wide range of different factors can determine which investments you make. One such factor is the risk you are prepared to take when making an investment. That s why it is important for us to explain these risks to you. Due to the wide range of different financial instruments available in the capital markets, we have limited ourselves to the most significant ones and describe the most important general and specific risks below. We recommend that you take time to review the topic of risks (as well as opportunities for generating returns). Inflation risk Investments whose risks are limited also tend to offer limited prospects with respect to returns. Returns may even be so low that the rate of inflation is greater than the interest generated. Relatively safe investments still carry the risk of loss even if your funds are returned to you with interest as agreed. Bond risk Bonds also carry risks that depend highly on the credit rating (solvency) of the party responsible for its repayment. This may be, for example, a bank, country or company. Bonds do, however, tend to be classified as relatively low-to-moderate in terms of risk. In many cases, this excludes bonds from small and medium-sized business, as well as those issued by emerging markets. Stock risk Investments in stocks generally tend to be classified as higher risk. This is due to the fact that investments in stocks are subject to substantial and abrupt fluctuations. Currency risk Investments abroad also carry risks and/or opportunities associated with the respective currency. The euro may also fluctuate significantly with respect to the currency you invest in. This will in turn affect the resulting value of your investment. Replication risk: Changes or adjustments in the replication may lead to - in most cases temporary - fluctuations between the underlying value and the market value of the ETF. In general, there are two types of replication risk: Risk of ETFs with physical replication: The performance of physical ETFs may fluctuate to a greater extent than the underlying values (e.g., due to reweighting of an index or capital measures of companies or dividend payments). Many physical ETFs (such as active funds) also engage in securities lending. This practice creates a similar counter-party risk to that of synthetic ETFs. Risk of ETFs with synthetic replication: ETFs with synthetic replication carry counter-party risk; that is, the risk that the swap counterparty fails to fulfill their payment obligations. This may result in a substantial decline in the price of the ETF. Counter-party risk is, however, limited by law: the value of a swap may not account for more than 10 % of a fund s assets. However, many issuers have already committed to staying well under this limit or allocating securities as collateral for the swap value. (The replication risk is, however, less substantial compared to the risk associated with asset allocation.) Eliminating and/or at least reducing risks The broad diversification across various investments practiced by quirion eliminates the risk of a total loss, and also reduces the risks of general losses. However, your intended term of investment is significant in this respect: For example, the risk of investments in equity funds as the term of the investment decreases. In the event of broad diversification in stocks or equity funds carrying a moderate risk, it is generally recommended that you invest your money for at least five years, without needing to access it. We explain the risks Eliminating and/or reducing risks

7 More information about quirion you find here: Questions? Phone +49 (0) Mail Advertising material/informational material This document is based on the considerations of quirion (a brand of quirin bank AG), and has no legally binding-effect. All statements made are exclusively for informational and promotional purposes and have no legally-binding effect; and they are not a substitute for individual investment advice. All strategies must be evaluated conclusively as prescribed by legally-binding guidelines as well as those of fiscal law. This document is protected by copyright. It may only be duplicated in full or in part, edited, or shared with third parties following the prior consultation and consent of quirion. With respect to strategies described in this document, quirion is entitled to amend them without advance notification hereof. Likewise, quirion shall not be obligated in any way to act in accordance with this document in the sense of a market standard. Disclaimer The statements herein do not constitute a financial analysis within the meaning of paragraph 34b German Securities Trading Act (WpHG) nor do they constitute investment advice, an investment recommendation, or invitation to purchase financial instruments. This information serves solely the purpose of discussion. Furthermore, it is no substitute for legal, tax, or financial advice. Stand: 2016/07/01