Investment Regulations

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1 Independent Pension Foundation 3a Zurich Investment Regulations Independent Pension Foundation 3a Zurich

2 Table of Contents Art. 1 Art. 2 Art. 3 Art. 4 Art. 5 Art. 6 Art. 7 Art. 8 Art. 9 Art. 10 Art. 11 Art. 12 Art. 13 Art. 14 Purpose General Asset management and investment principles Extended investments Authorised extended investments Extended investment limits per category Investment guideline compliance and monitoring Model portfolios Individual investment strategies for asset management mandates Accounting principles Authoritative language Omissions Amendments Validity Page 2 of 9

3 Investment Regulations Based on Article 6 of the statutes of the Independent Pension Foundation 3a Zurich ( Foundation ), the Foundation Board enacts the following investment regulation. Art. 1 Purpose risk profile and is consistent with his capacity and tolerance for risk. These Regulations set out the rules and principles to be observed in the management and investment of pension assets and regulate the organisation of asset management. The Foundation shall comply with these Regulations at all times. These Regulations shall be reviewed at least once a year and adapted as necessary. 3. Diversification: Risk diversification rules shall be observed at all times and compliance shall be conclusively demonstrated and documented. The debtor risk in collective investments shall correspond to risk of the base value of the collective investment. Art. 2 General Art. 4 Extended investments 1. In addition to account solutions, the Foundation offers the following types of securities solutions: a. "Execution-only": The client invests his pension assets in fund shares or in investment foundation claims. b. "Advisory": The client invests his pension assets in fund shares or in investment foundation claims. The foundation or an affiliated asset manager provides the relevant investment advisory services. The client decides on the implementation of investment recommendations either actively by consent or passively by not objecting. It shall be noted in the benefits agreement whether consent has to be active or passive. c. "Asset management mandate": Pension assets are managed on a discretionary basis by the foundation or by an asset manager pursuant to the provisions of the benefits agreement and those set out in the Annex to these Investment Regulations. 2. Currently available securities are listed (in a nonexhaustive list) in the Annex to these Investment Regulations. The foundation reserves the right to change the selection of securities offered at any time. 3. Compensation for the safekeeping and management of asset investments is presented transparently in the benefits agreement. Feeds are calculated based on a fee schedule. 4. The persons and institutions entrusted with asset management shall meet the requirements stipulated in Art. 48f (2) BVV 2. The foundation requires an annual statement from the persons involved in asset management confirming that the regulations governing the integrity and loyalty of responsible parties have been complied with pursuant to Art. 48f 48l BVV 2. Art. 3 Asset management and investment principles 1. Liquidity: The Foundation must be capable of disbursing promised benefits punctually and at all times. 2. Security: In consultation with the Foundation, the advisor or the asset manager, the client shall decide on an investment strategy which is based on his risk check and 1. Based on Art. 50(4) BVV 2, the Foundation offers the client extended investment options in accordance with Art. 5 and 6 of these Investment Regulations 2. The principles for extended investments shall be defined by the Foundation in agreement with the client, consultant or asset manager within the framework of the client s chosen investment strategy 3. If a client avails himself of the extended investment options, the Foundation, consultant or asset manager shall make him aware of the specific risks inherent in the extended investments and shall also provide advice and guidance. 4. The Foundation shall demonstrate compliance in its financial statements (prepared in accordance with Article 50(4) BVV 2) with the security and risk diversification requirements pursuant to 50(1) to (3) BVV 2. Art. 5 Authorised extended investments The following extended investments are available, subject to compliance with diversification principles, provided that the client s investment strategy and capacity for risk has been established in writing and secured. An assessment of the capacity for risk shall be repeated periodically. 1. Investments in money-market funds in foreign currency without currency hedging: Investments are allowed in Euros, US dollars, Japanese yen, British pounds, Canadian dollars, Australian dollars, New Zealand dollars, Swedish krona and Danish krone. 2. Investments in bond funds in foreign currency without currency hedging: Investments are allowed in Euros, US Dollars, Japanese Yen, British Pounds, Canadian Dollars, Australian Dollars, New Zealand Dollars, Swedish Krona and Danish Crowns. 3. Investments in equity funds without currency hedging: Investments are allowed in Euros, US Dollars, Japanese Yen, British Pounds, Canadian Dollars, Australian Dollars, New Zealand Dollars, Swedish Krona or Danish Crowns. Page 3 of 9

4 4. Investments in real estate: Investment in real estate is restricted to collective investment funds with a net asset value (NAV) calculated on a weekly basis (at least). 5. Alternative investments without additional payment obligations: Alternative investments include hedge funds, commodities, and private equity. Alternative investments are restricted to collective investment funds with a net asset value (NAV) calculated on a weekly basis (at least). Non-diversified collective investments (e.g. gold ETF) may not exceed 50% of a client s assets. strategies offered by the Foundation. The model portfolio shall be checked by the Foundation beforehand with regard to compliance with statutory provisions and with the investment limits defined in these Investment Regulations, and must be approved by the Foundation prior to implementation. Modifications to the model portfolio (including the substitution of securities) also require the prior approval of the Foundation. 2. Client deposits are invested in accordance with the respective current model portfolio, and not according to the value of the respective securities account. 3. Rebalancing is assessed on a quarterly basis and then carried out as necessary. Art. 6 Extended investment limits per category Art. 9 Individual investment strategies for asset management mandates For individual categories of extended investments, the following limits apply, in relation to the available pension assets 1. Investments in diversified foreign currencies (without currency hedging) 50% max. 30% in US dollars and/or Euros; others max. 10% 2. Investments in equity funds, similar shares and other investments a. For asset management mandats 70% b. Otherwise 100% 3. Investments in real estate funds 30 % of which max. one third abroad 4. Alternative investments 20% max. 5% per non-diversified investment 1. If the benefits agreement permits individual investment strategies for asset management mandates, the client may deviate from the model portfolio laid down in the respective investment strategy within the framework of the provisions set out in the benefits agreement (individual portfolio). Model portfolio securities may only be substituted by securities approved for the respective strategy by the Foundation. The Annex to these Regulations contains a (non-exhaustive) list of securities approved by the Foundation. 2. Individual portfolios must adhere to the investment limits stipulated for the respective investment strategy in these Investment Regulations. 3. In the case of individual portfolios, deposits are made in accordance with the individual portfolio, not according to the value of the respective securities account. 4. Rebalancing is assessed on a quarterly basis and then carried out as necessary. Art. 7 Investment guideline compliance and monitoring Art. 10 Accounting principles 1. The Foundation shall ascertain that all investment options offered to the client are consistent with the investment guidelines stipulated in Art. 71(1) BVG, Articles BVV 2 and Art. 5 BVV 3, with the proviso of possible modifications pursuant to Art. 4 ff. of these Investment Regulations. 2. On behalf of the Foundation Board, the persons entrusted with asset management shall ensure that the investment strategies agreed with the client are respected and comply with applicable investment regulations, The Foundation ensures that compliance is periodically checked. If the guidelines are not complied with for any reason, the persons entrusted with asset management shall, of their own accord, promptly restore due legal and contractual compliance. Moreover, the Foundation shall undertake to make any necessary adjustments to the respective portfolio. Art. 8 Model portfolios 1. Cash, time deposits and claims are stated at nominal value; all other investments are stated at market value. 2. The Foundation decides on the price, rate and NAV providers for evaluating securities deposits. Art. 11 Art. 12 Authoritative language Should variations occur between language versions of this regulation, the German language version is considered authoritative. Omissions In the event that this regulation lacks provisions on a specific point, the Foundation Board will adopt a regulation that is appropriate to the purposes of the Foundation. 1. The persons entrusted with asset management shall maintain a model portfolio for each of the investment Page 4 of 9

5 Art. 13 Amendments The Foundation Board may amend this investment regulation at any time. The currently valid version of the regulation is freely available to clients at or can be requested from the Foundation. Art. 14 Validity These regulations enter into force on 1 July 2017 and replaces that of Octobre Zurich, July 2017 Foundation Board, Independent Pension Foundation 3a Zurich Page 5 of 9

6 Annex to the Investment Regulations The following investment funds or investment groups can be offered (non-exhaustive list): Investment foundation/investment fund (short name) Investment funds or investment groups Anlagestiftung Swiss Life (Swiss Life) BVG-Mix 15 BVG-Mix 25 BVG-Mix 35 BVG-Mix 45 BVG-Mix 25 P BVG-Mix 35 P BVG-Mix 45 P Anlagestiftung der UBS für Personalvorsorge (UBS) UBS AST BVG-12 Aktiv I-A1 UBS AST BVG-25 Aktiv I-A1 UBS AST BVG-25 Aktiv IA2 UBS AST BVG-40 Aktiv I-A1 UBS AST BVG-12 Indexiert (hedged in CHF) I-A1 UBS AST BVG-25 Indexiert (hedged in CHF) I-A1 UBS AST BVG-40 Indexiert (hedged in CHF) I-A1 Anlagestiftung Winterthur (AWi) AWi BVG 25 andante AWi BVG 35 allegro AWi BVG 45 vivace Bâloise-Anlagestiftung für Personalvorsorge (Bâloise) BVG-Mix 15 Plus R BVG-Mix 25 Plus R BVG-Mix 40 Plus R Credit Suisse Anlagestiftung (CSA) CSA Mixta-BVG CSA Mixta-BVG Basic CSA Mixta-BVG Basic L2 CSA Mixta-BVG Basic L3 CSA Mixta-BVG Defensiv CSA Mixta-BVG Maxi CSA Mixta-BVG Index 25 CSA Mixta-BVG Index 35 CSA Mixta-BVG Index 45 CSA BVG Dynamic Credit Suisse PLF Lienhardt & Partner Core Strategy Fund I - CHF IST Investmentstiftung (IST Mixta) IST2 Mixta Optima 30 J. Safra Sarasin Anlagestiftung (SAST) BVG-Ertrag BVG-Rendite BVG-Wachstum BVG-Zukunft BVG-Nachhaltigkeit BVG-Nachhaltigkeit Rendite Pictet (Pictet) LPP 25 LPP 40 Pictet Structured Fund Optimal Allocation Raiffeisen Anlagestiftung (Raiffeisen) Raiffeisen Pension Invest Futura Balanced Raiffeisen Pension Invest Futura Yield Raiffeisen Index Fonds - Pension Growth Swisscanto Anlagestiftung (Swisscanto) BVG 3 PORTFOLIO 10 BVG 3 PORTFOLIO 25 BVG 3 PORTFOLIO 45 BVG 3 OEKO 45 BVG 3 INDEX 45 BVG 3 DYNAMIC 0-50 BVG 3 LIFE CYCLE 2015 BVG 3 LIFE CYCLE 2020 BVG 3 LIFE CYCLE 2025 BVG PORTFOLIO 10 WT BVG PORTFOLIO25 WT BVG PORTFOLIO 45 WT UBS Vitainvest (UBS) UBS Vitainvest 12 World UBS Vitainvest 25 World UBS Vitainvest 40 World UBS Vitainvest 50 World UBS Vitainvest 75 World Page 6 of 9

7 ZKB Swisscanto Anlagestiftung (ZKB Swisscanto) UBS Vitainvest 25 Swiss UBS Vitainvest 50 Swiss UBS Vitainvest 75 Swiss ZKB Swisscanto Vorsorge Fonds 20 passiv ZKB Swisscanto Vorsorge Fonds 45 passiv ZKB Swisscanto BVG 3 Index 45 The following Exchange Traded Funds ( ETF ) can be offered (non-exhaustive list): Provider Investment groups Deutsche Bank db x-trackers SICAV db x-trackers DAX UCITS ETF db x-trackers SICAV db x-trackers MSCI EM ASIA INDEX UCITS ETF Fidelity Fidelity Funds SICAV Asian Bond Fund ishares ishares ETF (CH) ishares Swiss Domestic Government Bond 3-7 ishares ETF (CH) ishares Swiss Domestic Government Bond 7-15 ishares ETF (CH) ishares Core CHF Corporate Bond ishares PLC ishares Core MSCI EM IMI UCITS ETF ishares PLC ishares MSCI EM UCITS ETF USD Lyxor Lyxor Commodities Thomson Reuters/CoreCommodity CRB TR UCITS ETF FCP Powershares PowerShares Global Funds Ireland PLC PowerShares EQQQ Nasdaq-100 UCITS ETF Raiffeisen Raiffeisen ETF Solid Gold Ounces A USD Source Source Markets PLC Source Industrials S&P US Select Source Markets PLC Source Consumer Staples S&P US Select Source Markets PLC Source Energy S&P US Select Source Markets PLC Source Health Care S&P US Select Source Markets PLC Source Financials S&P US Select Source Markets PLC Source Consumer Discretionary S&P US Select Source Markets PLC Source Materials S&P US Select Source Markets PLC Source Technology S&P US Select Swisscanto SWISSCANTO (LU) MONEY MARKET FUND FCP CHF SWISSCANTO (LU) Bond Fund Global Corporate DTH CHF UBS UBS ETF SICAV UBS ETF SBI Foreign AAA-BBB 1-5 UCITS ETF UBS ETF SICAV UBS ETF SBI Foreign AAA-BBB 5-10 UCITS ETF UBS ETF (CH) SLI (R) A UBS ETF (CH) SMIM (R) A UBS ETF SICAV UBS ETF MSCI EMU hedged to CHF UCITS ETF UBS ETF SICAV UBS ETF - FTSE 100 UCITS ETF A UBS ETF SICAV UBS ETF MSCI USA UCITS ETF A UBS (CH) Property Fund Swiss Mixed SIMA UBS ETF (CH) SXI Real Estate (R) Funds Page 7 of 9

8 Shown below is a representation of the target values and margins that apply for the available products. Compliance therewith shall be monitored by the foundation on a regular basis. Insofar as no alternative regulations are expressly stipulated for the target values and/or margins, the following values apply for all products listed below: Investment category minimum maximum Real estate 0% 30 % Alternative investments 0% 15% (commodities, hedge funds, private equity) Foreign currencies 0% 30 % Product category Execution only Only investment funds or investment are used, which is why only the equity share laid down in the prospectus is referenced. Investment category Conservative Balanced 0 35% 0 50% Investment category Dynamic Growth 0 60% 0 100% Product category Advisory Implementation of investment proposals with active client consent Only investment funds or investment are used, which is why only the equity share laid down in the prospectus is referenced. Investment category Conservative Balanced 0 35% Strategic: 15 35% 0 50% Strategic: 30 50% Implementation of investment proposals with passive client consent Only investment funds or investment are used, which is why only the equity share laid down in the prospectus is referenced. Investment category Conservative Balanced 0 35% Strategic: 15 35% 0 50% Strategic: 30 50% Product category Asset Management Mandate Management by the Foundation Only investment funds or investment are used, which is why only the equity share laid down in the prospectus is referenced. Investment category Defensive Balanced Growth "Defensive" "Balanced" "Growth" 0 20% Strategic: 15% 0 35% Strategic: 30 % 0 50% Strategic: 45% Page 8 of 9

9 Management by asset manager Only investment categories that are explicitly mentioned are permissible. The proportion of the investment portfolio held in foreign currencies is 30% for all strategies. Investment strategies may be covered by collective investments or, if permissible, by direct investments. Conservative Margins BVG restrictions Strategic Min. Target Max. 1. Liquidity Bonds 10% per debtor Shares 5% per investment Commodities Only collective investments without additional payment obligations Non-diversified investments max. 5% per fund Real estate max. 10% realty abroad Only collective investments or listed investment companies with NAV Total Balanced Margins BVG restrictions Strategic Min. Target Max. 1. Liquidity Bonds 10% per debtor Shares 5% per investment Commodities Only collective investments without additional payment obligations Non-diversified investments max. 5% per fund Real estate max. 10% realty abroad Only collective investments or listed investment companies with NAV Total Dynamic Margins BVG restrictions Strategic Min. Target Max. 1. Liquidity Bonds 10% per debtor Shares 5% per investment Commodities Only collective investments without additional payment obligations Non-diversified investments max. 5% per fund Real estate max. 10% realty abroad Only collective investments or listed investment companies with NAV Foreign currencies Total Page 9 of 9

Investment Regulations

Independent Pension Foundation 3a Zurich Investment Regulations Independent Pension Foundation 3a Zurich Table of Contents Art. 1 Art. 2 Art. 3 Art. 4 Art. 5 Art. 6 Art. 7 Art. 8 Art. 9 Art. 10 Art. 11