DuraWealth Active systematic investing since 2007 Systematic Global Equity Strategies DW Transformative & Disruptive Innovation Tracker March 2017
Executive Summary Launching the Julius Baer Actively Managed Certificate (AMC) on the DW Global Disruptive Innovation Index (Equity Strategy) This Certificate is to be listed and daily priced on the Swiss Stock Exchange (SIX) The Lead Manager is Bank Julius Baer www.juliusbaer.com The initial subscription period is till mid-march 2017 under ISIN number CH0328482945 For more information, please see Julius Bär Termsheet DuraWealth 2 of 10
Executive Summary Why to invest in the DW Equity Tracker Certificate (AMC) It uses the technology skills of the DW team to classify transformative technologies It replicates the actively managed DW Global Disruptive Innovation Index It employs index methods developed in 2007 with real track records It replicates strategies that adds alpha (excess return) in bull and bear markets DW Research Insights: Nov 2016 It reflects long horizon societal trends with high market growth prospects of > 8% p.a. It acts as portfolio diversifiers in global portfolios DuraWealth 3 of 10
Performance of the DW Global Disruptive Innovation Index Longer Horizon Greater Outperformance vs. MSCI World and Index Peers (since 2010) DW Global Disruptive Innovation Index (TR) Ann. Return (top bars) Ann. Risk (bottom bars): 01//2010 - present [USD] 14.9% 18.1% USD MSCI Global Environment Index (P) FTSE Environ. Opportunities 100 Index MSCI World Equity AC Index (NTR) 3.8% 5.3% 7.2% 14.1% 16.2% 18.0% DW Global Disruptive Innovation Index (TR) CHF Ann. Return (top bars) Ann. Risk (bottom bars): 01//2010 - present [CHF] 17.3% 0% 5% 10% 15% 20% 18.5% DW Global Disruptive Innovation Index (TR) EUR Ann. Return (top bars) Ann. Risk (bottom bars): 01//2010 - present [EUR] 17.1% 23.0% MSCI Global Environment Index (P) 3.6% MSCI Global Environment Index (P) 8.5% 19.7% FTSE Environ. Opportunities 100 Index 5.1% 19.0% FTSE Environ. Opportunities 100 Index 10.0% 18.0% MSCI World Equity AC Index (NTR) 7.0% 17.9% MSCI World Equity AC Index (NTR) 12.0% 16.5% Source: FIS, DuraWealth (rounded data as of 31.01.2017) 0% 5% 10% 15% 20% 0% 5% 10% 15% 20% 25% DuraWealth active 4 of 10
DW Global Disruptive Innovation Index Extracting Value from Global Equities through Innovation and Technology Screening Systematic Investment Process Step 1: Selection of multi-sector markets Transformative & Disruptive Innovation Step 2: Sector allocation in related markets Selection of transformative technologies Step 3: Systematic screening of companies with exposure to selected technologies & sectors Step 4: Quant Factor Filter to select 30 stocks Step 5: Index DuraWealth 5 of 10
DW Systematic Screening of transformative products Extracting Value from Global Equities through Innovation and Technology Screening Companies producing transformative technologies are included in the DW Global Disruptive Innovation Certificate Portfolio These technologies allow for saving of ± 30% in electricity, water, heating and natural resources Efficient Use of Resources Positive Societal Impact 5 sectors 20+ application areas (A1 ) 30+ transformative technologies 55+ companies 1 Environment Smart Home Connected appliances Smart fridges, lights 2 Materials Wearables Composites Smart glasses, watches 3 4 5 A1 Life Science Connected Health Genomics Non-invasive cures Inf. Technology 2D/3D IT-architectures Quantum computing Tools Electron Microscopes Photolithography Automation. Industrial Internet Remote asset & car control 3D printing A2 Smart Grids & City Smart metering Smart environ. mgmt. Time 2010-2020+ Source: IEA, OECD, IoT Analytics, industry data DuraWealth 6 of 10
Meeting Future Needs with DuraWealth equity indexes Key Drivers: Meeting Future Needs Growing population & demand for better life: Targeted health care and drug delivery Resource imbalance: 1.3 bn people without electricity, 0.8 bn people undernourished Smart cities & technologies: Smart materials, buildings, grids, clean tech, big data, IoT DW Systematic Screening of transformative products in related sectors to build enhanced investment portfolios Life science Targeted drug delivery Materials with smart functionalities Tools for automation, smart engineering IT & smart devices, connected world Environment & smart cities & clean tech Actively managed DW Global Disruptive Innovation Index DW Global Disruptive Innovation Tracker Certificate Source: UN, OECD, McKinsey, DuraWealth DuraWealth 7 of 10
DW Global Disruptive Innovation Tracker (AMC) - Summary The DW Global Disruptive Innovation Index tracks performance of 30 listed stocks, with established quantitative methods since 06/2007. The Index is focused on firms operating in the areas of transformative technologies, regrouped in five sectors: life sciences, tools, materials, environment and IT This Index weighting is UCITS-compliant, reviewed quarterly, rebalanced twice a year. The Tracker replicates the Index by direct investing in the thirty selected companies An achieved outperformance over Key index peers incl. MSCI, S&P, SGI Indexes Key asset classes incl. MSCI World Equity, Bloomberg Commodity, HFRX Hedge Funds, S&P Private Equity The Index is calculated since 07/2013 Country allocation Currency allocation Sector (ICB) allocation Stock selection top 5 USA Japan Germany UK Taiwan 33.5% 26.1% 13.4% 10.4% 6.8% USD JPY EUR 20.3% 26.1% 43.4% Health Care Technology Consumer Goods 30.4% 26.7% 16.5% Tesla Hitachi High-Tech Asml Holding 3.7% 3.6% 3.6% South Korea Netherlands Denmark 3.4% 3.3% 3.2% GBP DKK 6.8% 3.4% Basic Materials Industrials 16.6% 9.9% Mobileye Alexion 3.5% 3.5% 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50% 0% 25% 50% 3.0% 3.3% 3.5% 3.8% 4.0% Source: FIS (USD, as of 30.12.2016), DuraWealth DuraWealth 8 of 10
Team Miroslav Durana, Partner, Investor Relations & Wealth Management 2005-2013: Head of index development at Credit Suisse 1997-2005: Senior portfolio manager & Research analyst at LODH, UBP and a pension fund, managed portfolios of over CHF 1 bn in assets MSc., PhD in Physics (ETH Zurich, Lausanne), MBA (HEC Lausanne) Wayne Cawood, Partner, Chief Technology Officer (CTO) & Internal Controlling 1995-2015: Senior business consultant & IT manager at WCT Consulting, Orange Communications SA (Suisse) and a South African electricity company M.Com. in Business Management (University of Johannesburg) Jean de Skowronski, Partner, Investor Relations & Wealth Management 2013-2015: UHNWI coverage at Credit Suisse 2009-2013: Head Swiss Financial Institutions and Public Sector at BNP Paribas 1988-2008: Head DCM Origination at CSFB & Credit Suisse Master in Law (University of Fribourg), Attorney-at-Law (Geneva bar), MBA (INSEAD) Pierre Montezin, Partner, Risk Management & Compliance 2013-today: Risk Manager at Osiris 1990-2007: Senior portfolio & fund manager and broker at various asset management companies incl. EIM, Swiss Capital Alternative Investments, MAN Investments and Société Générale Master of Business Law (Université de Paris II), Master of Economy and Finance (SciencesPo Paris) with a team of investment professionals from S&P Dow Jones, Julius Baer, LLB AG and PwC AG DuraWealth 9 of 10
Incorporation data DuraWealth Ltd. is an asset management company in Schaan (FL), supervised by the FMA Main office: Fanalwegle 1, FL-9494 Schaan, Contact: info@durawealth.com Website: www.durawealth.com DISCLAIMER This document was produced by DuraWealth and is dedicated for informational purposes only. It is dedicated for internal use only of the receiver and shall not be partly or fully copied, reproduced or distributed externally conform to Swiss, Liechtenstein and any applicable foreign law. The information in this document is based on sources considered to be reliable, but its accuracy and completeness is not guaranteed. The information is subject to change at any time and without obligation to notify the investors. Unless otherwise indicated, some figures are unaudited. Any action derived from this information is always at the investors own risk. This document is not an official confirmation of terms. Past performance is no indication of future performance, and some performance data do not take account of the commissions and costs incurred on the issue and redemption of shares or fund units. The information does not release the recipient from making his / her own assessment. In particular, the recipient is advised to assess the information, with the assistance of an advisor if necessary, with regard to its compatibility with his/her own circumstances in view of any legal, regulatory, tax and other implications. This document is expressly not intended for persons who, due to their nationality / place of residence or their investor s profile, are not permitted to access to such information under Swiss, Liechtenstein and any applicable foreign law. DW Global Resource Efficiency Index (the "Index") is the exclusive property of DWM affiliated with DuraWealth (hereafter: Licensee), which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ( S&P Dow Jones Indices ) to calculate and maintain the Index. S&P is a registered trademark of Standard & Poor s Financial Services LLC ( SPFS ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and, these trademarks have been licensed to S&P Dow Jones Indices. Calculated by S&P Dow Jones Indices and its related stylized mark(s) have been licensed for use by Licensee. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
01/2010 05/2010 09/2010 01/2011 05/2011 09/2011 01/2012 05/2012 09/2012 01/2013 05/2013 09/2013 01/2014 05/2014 09/2014 01/2015 05/2015 09/2015 01/2016 05/2016 09/2016 01/2017 01/2010 05/2010 09/2010 01/2011 05/2011 09/2011 01/2012 05/2012 09/2012 01/2013 05/2013 09/2013 01/2014 05/2014 09/2014 01/2015 05/2015 09/2015 01/2016 05/2016 09/2016 01/2017 01/2010 05/2010 09/2010 01/2011 05/2011 09/2011 01/2012 05/2012 09/2012 01/2013 05/2013 09/2013 01/2014 05/2014 09/2014 01/2015 05/2015 09/2015 01/2016 05/2016 09/2016 01/2017 Annex 1: Performance Longer Horizon Greater Value vs. MSCI World and Index Peers (since 2010) 350 300 250 200 150 100 Performance since 01/2010 [USD] USD 50 350 300 250 200 150 100 DW Global Disruptive Innovation Index (TR) MSCI Global Environment Index (P) CHF Performance since 01/2010 [CHF] MSCI World Equity AC Index (NTR) FTSE Environ. Opportunities 100 Index EUR Performance since 01/2010 [EUR] 450 350 250 150 50 50 DW Global Disruptive Innovation Index (TR) MSCI World Equity AC Index (NTR) MSCI Global Environment Index (P) FTSE Environ. Opportunities 100 Index Source: FIS, DuraWealth (data as of 31.01.2017) DW Global Disruptive Innovation Index (TR) MSCI Global Environment Index (P) MSCI World Equity AC Index (NTR) FTSE Environ. Opportunities 100 Index DuraWealth 1 of 3
12/2009 04/2010 08/2010 12/2010 04/2011 08/2011 12/2011 04/2012 08/2012 12/2012 04/2013 08/2013 12/2013 04/2014 08/2014 12/2014 04/2015 08/2015 12/2015 04/2016 08/2016 12/2016 Annex 2: Proven Track Record and Outperformance Systematic responsible investments offer an alpha In 6 out of 7 years, the DW Index beat global benchmarks incl. MSCI World AC DW Global Disruptive Innovation Index vs MSCI World AC and MSCI World AC & Nasdaq Composite 70/30 Returns* Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD MSCI World AC Excess MSCI World AC Excess Return Nasdaq Comp. Return 2010-1.9% 1.0% 7.1% 0.3% -9.9% -1.8% 7.2% -6.6% 11.1% 5.0% 1.8% 7.3% 20.2% 12.7% 7.5% 14.3% 5.9% 2011 1.4% 1.9% 0.3% 3.7% -0.4% -0.3% -1.4% -7.4% -5.0% 8.2% -1.4% -0.4% -1.6% -7.3% 5.7% -5.4% 3.8% 2012 9.0% 6.2% 2.3% -2.5% -9.0% 4.3% 0.5% 1.7% 3.4% -1.5% 3.6% 3.2% 22.1% 16.1% 6.0% 16.6% 5.5% 2013 9.1% 1.5% 4.5% 3.6% 5.8% -1.0% 5.7% -3.2% 8.6% 3.8% 4.4% 2.9% 55.4% 22.5% 33.0% 27.6% 27.9% 2014-0.9% 5.5% -1.2% -2.4% 3.3% 4.5% -2.0% 3.3% -0.9% 3.3% 6.1% -1.8% 17.6% 4.4% 13.2% 7.5% 10.1% 2015 1.6% 5.9% 1.5% 0.6% 2.8% -3.7% -0.1% -6.9% -5.5% 8.9% 1.3% 0.2% 5.6% -2.4% 8.0% 0.4% 5.3% 2016-9.8% -1.1% 8.9% -0.4% 2.3% 0.9% 9.0% 1.0% 1.2% -3.3% -2.8% 3.3% 8.1% 7.9% 0.2% 8.2% -0.1% 2017 6.9% 6.9% 2.7% 4.2% 3.2% 3.7% Note: monthly returns, USD (rounded) 222.3% 67.8% 154.6% 93.8% 128.6% 225% Cumulative returns since 01/2010 DWNI Index MSCI World AC MSCI & Nasdaq Comp. Total return 222.3% 67.8% 93.8% Sharpe ratio 1.10 0.48 0.64 Ann. Return 18.0% 7.6% 9.8% Ann. Risk 15.6% 13.8% 13.9% Note: * MSCI AC & Nasdaq Composite 70/30 175% 125% 75% 25% -25% Source: FIS, DuraWealth (table in USD, net total return index data as of 31.01.2017) DW Global Disruptive Innovation Index (TR) MSCI World Equity AC Index (TR) MSCI World AC Nasdaq Comp. 70/30 (TR) DuraWealth 2 of 3
Annex 3: We do systematic investing since 2007 DuraWealth is a pioneer in Active Systematic Equity Investing Dr. Durana et al. managed the 1 st alternative energy index (DAXglobal ) for Deutsche Börse and the 1 st resource efficiency and frontier markets indexes in cooperation with S&P Dow Jones (AuM of over CHF 2 bn 2007-2013) Managing the DW Global Resource Efficiency Index (Bloomberg Ticker: DWREUTR Index) in cooperation with S&P Dow Jones and the DW Global Disruptive Innovation Index 1 (2013 onwards) DuraWealth cooperates with S&P Dow Jones, Bank Julius Baer, LLB AG 1 Note: before named DW Global Equity Innovation Index (until June 30, 2016) DuraWealth 3 of 3