The Swiss Funds & Asset Management Association SFAMA (SFAMA), which was established in 1992 and has its registered office in Basel, is the representative association of the Swiss fund and asset management industry. Its members include all the major Swiss fund management companies, many asset managers, and representatives of foreign collective investment schemes, as well as service providers active in the asset management sector. SFAMA is an active member of the Brussels-based European Fund and Asset Management Association (EFAMA) and the International Investment Funds Association (IIFA) in Montreal. For further information, please see www.sfama.ch. You can also follow us on Twitter: @SFAMAinfo
Contents Foreword 2018 – a year full of milestones Fund markets Market environment Swiss fund market European fund market Global fund market Asset management markets Global wealth Asset management in Switzerland National environment International environment SFAMA activities SFAMA members Financial Market Strategy Financial Services Act, Financial Institutions Act Asset Management Platform Switzerland Global Investment Performance Standards (GIPS®) Sustainability and environmental, social, and governance (ESG) Anti-Money Laundering Act (AMLA) Swiss Financial Market Supervisory Authority FINMA Tax issues Swiss Fund Data (SFD) Relations with authorities and associations in Switzerland At the level of the EU and EU countries Beyond the EU European Fund and Asset Management Association EFAMA Other international activities Portrait Work program in 2018 A review of events Specialist committees Communication Board of Directors Executive Board Membership Appendix List of abbreviations 4 6 8 15 16 19 21 22 23 24 25 25 26 26 27 27 28 29 31 32 32 33 34 35 36 37 39 40 41 42
Foreword 2018 – a year full of milestones Dear members, ladies and gentlemen Five years of SFAMA Following on from its 25th anniversary in December 2017, our association had another reason to celebrate on 1 July 2018: five years under the name SFAMA. The new name reflects the extension of its strategic focus and tasks, which increasingly concern asset management for institutional clients in addition to the fund business. The fund is without doubt the most important type of vehicle for providing investors with asset management services. However, there are others, including life insurance, foundations, and mandates. We represent the interests of all companies operating in asset management on the Swiss financial market. Clarifying the function of asset management and its importance is SFAMA’s goal, our ambition, and our motivation for the future. Challenges for asset management The asset management industry has to be able to do a lot of things at once. It plays a key role in providing security and stability for pension schemes, helping people to achieve their savings goals, and ensuring that the economy is funded efficiently, but it needs to change in order to perform these functions. It has to move away from thinking purely in terms of portfolios and products and devote itself systematically to serving investors and the real economy. Asset managers must align their objectives and risk analysis with their clients’ needs. This focus on the individual gives rise to a number of challenges: reducing complexity, producing understand- able information, improving transparency, and unraveling the dense mesh of regulation to make sure that asset managers can genuinely provide their clients with bespoke advice. 4 Felix Haldner Markus Fuchs Approval of FinSA/FinIA In the final vote on 15 June 2018, the two chambers of Switzerland’s parliament adopted the draft Financial Services Act (FinSA) and Financial Institutions Act (FinIA), marking a successful end to some two and a half years of intensive parliamentary debate. SFAMA was actively involved in this process and played an important part in ensuring that the extensive regulatory project was brought to fruition. We regard the adopted texts as a fair compromise that takes due account of both the desire for more client protection and the aim of enhancing the Swiss financial center’s competitiveness. Consultation on ordinances After a short break over the summer, the consultation process for the Federal Council’s Financial Services Ordinance (FinSO) and Financial Institutions Ordinance (FinIO) as well as the revised Collective Investment Schemes Ordinance (CISO) was begun in October 2018. It was scheduled to run until the start of February 2019, and SFAMA participated to defend the interests of the fund and asset management industry. As things stand at present, the two acts and their ordinances are expected to enter into force on 1 January 2020. Dynamic environment SFAMA can look back on a busy year in which it faced a considerable workload on both national and international fronts. Besides the success achieved with FinSA and FinIA, we were pleased to hear that the Federal Council wishes to enhance Switzerland’s appeal as a fund location. The Federal Department of Finance (FDF) was tasked in the fall of 2018 with drafting a revision of the corresponding legislation in order to make it easier
Foreword to bring innovative products to the marketplace. As a financial center of global importance, Switzerland could do more to make the most of its potential when it comes to collective investment schemes. The introduction of the limited qualified investor fund (L-QIF), which does not require FINMA approval, could make the process of launching innovative products quicker and more cost- effective. We have been involved here too and will play an active part in the continued efforts going forward. SFAMA is also represented in various international organizations. This engagement is very important to us as planned legislative changes often affect the Swiss financial sector and investment industry, examples being the EU’s Markets in Financial Instruments Directive II (MiFID II), which entered into force at the start of this year and is relevant for asset managers with inter- national operations. SFAMA’s numerous working groups and specialist committees perform vital groundwork for the association’s national and international efforts, and we would like to take this opportunity to thank them most sincerely for their valuable contribution. Changes At the Annual General Meeting in March 2018, Michael Kehl, Managing Director at UBS Global Wealth Manage- ment, and Patrick Tschumper, Managing Director at Credit Suisse Investor Services, were elected to the SFAMA Board of Directors. They replace Martin Thom- men and Petra Reinhard Keller, who both stepped down in 2017. In addition, Martin Jufer, member of the Group Management Board and Region Head Continental Europe at GAM Holding, was named Vice-President. Thomas Zimmerli left SFAMA at the end of May 2018. Diana Imbach Haumüller, Senior Legal Counsel, became Deputy Managing Director with effect from 1 June 2018. Katja Brunner, a proven specialist in regulatory and governance issues, joined our association as Senior Legal Counsel on the same date. Delphine Calonne, Senior Legal Counsel, stopped working for SFAMA at the end of December 2018. Focal points for 2019 The following themes will be at the forefront for SFAMA in 2019: • Strengthening SFAMA’s position as the leading body representing the interests of asset management in Switzerland and taking the lead with regard to the Asset Management Platform Switzerland and the focused implementation of individual projects • Providing evaluation and support in the case of innovative fund solutions and establishing best practice standards and self-regulation in the fields of asset management and risk management (in the form of guidelines, specialist information factsheets, and model documents) in the interests of the asset management industry • Representing the industry’s interests with regard to current and upcoming legislative projects (on regulatory and tax matters), in particular FinSA/FinIA • Extending SFAMA’s function as a forum and bolstering communication activities (events, specialist committees, members, general public) • Building on our relationships with political represen- tatives in the federal capital of Bern We wish you and your friends and families every success for 2019. Sincerely yours Felix Haldner President Managing Director Markus Fuchs 5
Fund markets Investors had been able to make money almost everywhere in 2017, but virtually the opposite was true in 2018. The US stock market was breaking records up until the fall, when sentiment took a turn for the worse amid fears that economic momentum might ease. Market environment First up, then down As the year began, all signs pointed to a continuation of the previous year’s trend. Experts were more or less unanimously positive, particularly in view of economic growth across all regions simultaneously. Forecasters had singled out the USA as a driving force due to tax breaks that helped companies to achieve exceptionally strong earnings growth. The US stock market was reaching record levels until the fall, when the situation worsened, and fears grew that economic momentum would start to ease sooner and more sharply than had previously been thought. Uncertainty across a broad front Global stock markets lost around 10% in the fourth quarter of 2018. December was one of the US market’s worst months since 1931. The source of the current, all-pervading uncertainty is quite clear: politics. A whole raft of (geo)political risks – some new, some familiar – have arisen since last spring. Conflicts and Brexit Forecasters had paid too little attention (or none at all) to the geopolitical tensions increasingly preoccupying the mar- kets, foremost among them the trade dispute between the USA and China. This caused problems for lots of companies, leading to the downward correction of some macroeconomic projections. If things continue to get worse, the global economy could be slowed down noticeably. The UK’s exit from the European Union (EU) is of similar importance, and it still faces some major hurdles. There are also bilateral conflicts between the USA and Turkey, Iran, and North Korea and challenges in Italy. On top of all this, the oil price has been highly volatile, first showing a sharp rise and then falling just as abruptly. Investor sentiment started to worsen dramatically at the latest during the fall, when the International Monetary Fund lowered its growth forecasts. Tech sector facing up to responsibility Wall Street’s enthusiasm for Silicon Valley also waned as the view took hold that the geeks need to finally grow up. Consumer electronics is no longer all about harmless apps. Progress in the field of artificial intelligence has significantly increased its reach. This opens up huge sales potential, of course, but it also means that the technology sector has to face up to a lot more responsibility. A good illustration of how the world’s leading firms are facing greater scrutiny is the fact that Apple became the first trillion-dollar company in history at the beginning of August 2018 but then lost 10% of its value in December solely due to a revenue warning. No impressive returns on equities Swiss investors, who tend to bet on rising prices and thus invest primarily in equities and bonds from industrialized nations, had little to be thankful for in 2018. It was one of the worst years for the stock markets in the past two decades. The average return across all asset classes was well into negative territory, comparable with those in the years from 2000 to 2002, when the technology bubble burst. That said, it was much higher than in 2008, when the financial crisis broke out. In contrast to earlier years, however, not a single asset class was able to show a significantly positive return. In 2000, for example, commodity prices rallied, whereas European government bonds gained almost 9% in 2008. 6
Fund markets Among the few asset classes posting mostly small gains or at least no pronounced losses last year were bonds from governments with high credit ratings. Marked rise in volatility Looking at the situation on the equity and bond markets at the moment, there is no cause for concern, but things are hardly rosy. Negative factors include high equity volatility, which suggests falling prices – going down faster than up – and an inverted yield curve, indicating massive economic pessimism on the bond markets. At present, this inversion is pronounced but not yet extreme. The volatility, on the other hand, is remaining within a normal range, although the trend is pointing upward. Developments in Switzerland The Swiss economy expanded in the first half of 2018 more quickly than that of the neighboring eurozone as well as that of the USA, but gross domestic product fell by 0.2% in the third quarter. Six of the stocks in the Swiss Market Index (SMI) at least posted gains over the year as a whole if dividends are factored in. Insurance stocks that pay high dividends and defensive heavyweights fared comparatively well. The latter in particular helped the SMI, which contains the 20 largest companies in Switzerland, to outperform the broader Swiss Performance Index (SPI), which features a larger proportion of cyclically sensitive industrial firms. The year was especially disappointing for banking stocks due to the absence of a sustained rise in interest rates and the conflict between Italy and the EU over the former’s budget. Swiss equities nevertheless performed relatively well in comparison with other markets. The leading barometer, the SMI, lost just over 7% (including dividends). Selective approach Forecasters are looking ahead to 2019 with less optimism than they had a year ago. The risks emanating from geopolitical troubles and slowing economic growth dominate the banks’ outlooks. With growth still above trend, no one is really expecting a bear market, but weak figures mean that a less favorable environment is now priced in, leaving some scope for upside surprises. This year is sure to be a difficult one for investors due to political uncertainty alone. There is also a question mark over just how willing central banks are to tighten the monetary policy reins as this would risk choking the economy in the current environment. It would certainly make sense to check at this stage whether the portfolio risk chosen still tallies with the investment horizon and personal risk tolerance. 7
Fund markets Performance of the key stock markets in 2018 Europe Switzerland (SMI) France (CAC 40) UK (FTSE 100) Netherlands (AEX) Sweden (OMX) Europe (Euro-Stoxx-50) Spain (IBEX 35) Italy (MIB) Germany (DAX) -20 North and Latin America Brazil (Bovespa) USA (NASDAQ Composite) USA (Dow Jones) USA (S&P 500) Canada (S&P/TSX Composite) Mexico (IPC) Asia/Pacific Australia (S&P/ASX 200) Japan (Nikkei 225) Hong Kong (Hang Seng) China (CSI 300) -10 0 10 20 -7.1% -8.1% -8.8% -10.4% -10.7% -11.3% -15.0% -16.1% -18.3% 12.8% -2.8% -3.5% -4.4% -11.6% -15.6% -6.9% -10.4% -13.7% -22.0% Return in % (local currency) Sources: NZZ, Onvista Swiss fund market Fund market down year-on-year According to the statistics on the Swiss fund market, the total volume at the end of December 2018 was CHF 1,041.3 billion, down around CHF 54.0 billion or 4.6% year-on-year. The figures are based on the Swiss Financial Market Supervisory Authority FINMA’s approvals list and cover all funds under Swiss law as well as all foreign funds approved for distribution in Switzerland, including unit classes for qualified investors. This negative showing was primarily attributable to equity funds, which posted only minimal outflows but lost CHF 50.4 billion in value. Asset allocation and commodity funds also contributed to the decline in volume, as did alternative investments. Gross changes in value totaling CHF 16.1 billion for bond and money market funds did very little to improve the overall result. 8
Fund markets Development of the fund categories Fund category Assets as Assets as Market performance- at end-2017 at end-2018 outflows in 2018 related changes in 2018 Inflows/ Equity funds Bond funds Asset allocation funds Money market funds 465.7 340.5 129.6 76.1 Real estate funds 32.6 Commodity funds 23.5 Alternative investments 21.0 Others 3.0 413.3 341.1 119.4 91.6 35.2 22.4 16.0 2.3 Total Swiss market 1,092.0 1,041.3 -2.0 5.8 4.7 -3.6 0.5 0.7 -2.2 -0.6 3.3 -50.4 -5.3 -14.9 19.1 2.1 -1.7 -2.8 -0.1 -54.0 Source: Swiss Fund Data (SFD) (in CHF bn) Hefty losses for equity funds After a very strong start to 2018, various factors caused the markets to remain nervous as the year went on, making for highly volatile stock prices. Fears of inflation and related concerns over interest rates caused a setback in February. The major stock markets suffered losses of more than 10%, and the specter of recession began to loom. The economic fundamentals, however, remained solid. Political risks increased sharply in the months that followed, and some of them could potentially have serious economic implications. Under President Trump, for instance, a trade conflict broke out between the USA and China. What started as a unilateral provocation by the USA turned into a spiral of retaliation by both sides over the summer, unsettling the stock markets. Added to this, political imponderables and fears of an economic slowdown created a toxic mixture for equities. The financial market jitters are entirely understandable on closer inspection. While the S&P 500 only just avoided a 20% correction on Christmas Eve, the US market was among the top performers worldwide over the year as a whole with a total return of -4.4% in USD terms. Europe also faced a lot of problems in 2018: the upcoming Brexit, the budget debate in Italy, the threat of trade barriers in the USA for the German car industry, and the “yellow vest” movement in France. This was reflected in weak performance, with a total return of -11% in EUR terms. Even the emerging markets were unable to escape the heightened uncertainty over the trade conflict and fears of a broad-based economic downturn. Far Eastern equities came under greater pressure than those in Latin America, which gained some support from hopes of a political turning point in Brazil. States with high balance of payments deficits such as Argentina (and Turkey) were severely punished. The Swiss stock market showed its strength during the second half of the year, staging a recovery thanks to its defensive heavyweights. Nevertheless, it also closed the year in negative territory, with the SPI down 8.6% and the SMI showing a total return of -7.1%. Looking at fund volumes, the total figure fell from CHF 465.7 billion to CHF 413.3 billion (down CHF 52.4 billion or 11.25%), primarily due to changes in value (particularly in October and December). Net outflows only amounted to CHF 2 billion. 9
Fund markets Slightly increased market share for bond funds While the US Federal Reserve began its tightening cycle some three years ago, the European Central Bank (ECB) has merely raised the vague prospect of ending its ultra-expansionary monetary policy with a first rate hike in the second half of 2019. Yield spreads on corporate bonds increased following the ECB’s decision to stop buying bonds at the end of 2018, and this trend was exacerbated by concerns over the negative effects of a potential trade war. At the end of 2017, market participants were still expecting no more than two Fed hikes throughout 2018, but resurging inflation fears in January prompted a dramatic revision of this expectation to three or four hikes. This caused USD yields to shoot up. Bond investments thus suffered primarily due to low interest rates and a slight rise in yields during the first half of the year. The months that followed lacked a clear trend as a result of a slew of political headlines concerning Brexit, the Italian budget, and President Trump’s trade policy, all of which provoked mixed feelings among investors. When this uncertainty was joined by concerns over the global economy, investors sought refuge in safe government bonds. The political issues – including the USA’s tussles with North Korea, Iran, and Iraq – unsettled market players, causing corporate bond spreads to rise sharply. The rise was especially pronounced for BBB-rated bonds, with their spreads climbing to a level last seen when the ECB announced that it would extend quantitative easing to corporate bonds back in spring 2016. There was a rally among US Treasuries in November and December 2018, but they closed the year with a meager gain of 0.9%. Hardly anyone would have thought it possible that short-term money market investments in USD would outperform most other asset classes worldwide last year. This is an atypical phenomenon, having last occurred in 1992. When the asset class with the lowest risk yields the highest return, this says rather a lot about investors’ risk appetites. Investors became acutely aware of risks once again, and this was only reinforced by the rapid price falls for issuers with troubled credit profiles. Increased risk aversion generally caused corporate bonds to under-perform highly secure government paper. High-yield bonds in particular lost a lot of value in the final quarter of 2018, ending the year in negative territory. It is normal for money to be taken out of riskier assets and placed in safer ones, such as government bonds, when economic momentum starts to wane, but there was hardly any evidence of this happening last year. Safe bonds at times lost value in tandem with equities. The situation normalized again somewhat in December. Bond investments did not post a loss for the year as a whole. The CHF bond market, as measured by the SBI AAA-A, was down slightly year-on-year. Higher credit spreads also affected emerging market bonds, which lost 4.7%. Thanks to net inflows, bond funds (volume: CHF 341.1 billion) were able to increase their market share slightly by 1.5 percentage points to 32.7%. Asset allocation fund volumes lower People who invest in asset allocation funds are to some extent delegating day-to-day investment decisions. That said, there is no generally applicable classification for this category. There are funds that can only adjust weightings within a narrow bandwidth, for example, while others have a lot of leeway. As a rule of thumb, aggressively invested funds hold around 70% of their assets in equities, whereas conservative funds invest around 80% of their money in bonds. This naturally leads to marked differences in earnings within this category. Asset allocation fund managers had a hard time staying in the black in 2018. With equities, bonds, commodities, and alternative investments all performing negatively, never before had so many asset classes made a loss in the same year. There was no benefit whatsoever in diversification. The average fund with a low equity weighting may have lost 4% of its value, whereas a more aggressively biased product could have lost more than 10%. The theory that high risk equals high return was borne out, but in the sense of negative returns – this possibility is all too often overlooked. Despite net inflows of CHF 4.7 billion, the total value of all asset allocation funds dropped by CHF 10.2 billion to end the year at CHF 119.4 billion as a result of capital losses. Their market share thus fell by around 0.3 of a percentage point to 11.5%. Money market funds up despite net outflows Money market funds had to contend with net outflows in 2018. In the first half alone, when geopolitical issues held sway over the market, some CHF 4.5 billion was taken out and moved into other assets. The situation stabilized somewhat over the summer. More than CHF 2 billion was withdrawn in November, but December brought a net inflow of CHF 1.6 billion. Money market funds reliably reflect market sentiment by dint of their status as short-term tactical investments. Over the year as a whole, the category suffered net outflows totaling CHF 3.6 billion. Meanwhile, significant currency 10
effects were repeatedly discernible, and this is reflected in the pronounced differences in the yields of these products. This factor was instrumental in the category as a whole posting a gain in value. All in all, the total volume of money market funds rose by CHF 15.5 billion to CHF 91.6 billion in 2018, with their market share thus increasing by an impressive two percentage points to 8.8%. Anyone contemplating purchasing money market funds in other currencies rather than simply “parking” their money in their home currency must be aware that they are thus essentially engaging in currency speculation. Parallel trends in other categories The remaining fund categories – “commodity funds”, “alter- native investments”, and “other funds” – followed parallel trends in 2018. Commodity funds suffered outflows mainly in the first half of the year. The final balance was CHF 676 million. The volumes invested in this asset class fell from CHF 23.5 billion to CHF 22.4 billion. There are many reasons behind this development. The oil price was rising up to September, but then it fell sharply as the economic outlook worsened. The flight into gold as a safe haven did not help in this unfavorable environment. The gold price in fact fell by almost 3%. The same was true for silver and platinum, but not for palladium, which made strong gains over the year. Another key factor influencing commodity markets, geopolitics, had a clear impact on industrial metals. The ongoing trade dispute caused them to post losses across the board, mostly in the double-digit percentage range. The pronounced and protracted dry spell caused a spike in cereal prices (e.g. wheat) last year. The price of cocoa also went up. There were many more losers than winners among new energy stocks (wind, solar, hydro, etc.), but the picture was not quite as bad as for conventional commodity firms. Alternative invest- ments largely failed to meet expectations in 2018. Long/ short strategies, which can be an alternative to traditional long-only strategies, generally made a loss. Liquid strategies were also dragged lower for the year as a whole by losses in the fourth quarter. Even market-neutral equity funds lost almost 5%, and managed futures also failed to live up to their reputation as a means of diversification in times of crisis. Only foreign exchange strategies escaped the market turmoil relatively unscathed with a loss of around 1%. In an environment where fundamentals played a stronger role once again and volatility rose sharply, hedge fund managers enjoyed greater room for maneuver. However, many appeared to be overwhelmed by the sheer number of political factors. Trading opportunities went
Fund markets largely unexploited, causing the segment’s volume to fall from CHF 21 billion to CHF 16 billion. The market share of the three fund categories taken together fell slightly from 4.3% to 3.9%. Real estate funds up thanks to net inflows and value growth Last year was a challenging one for the real estate sector. Interest rates stagnating at low levels led to high demand for real estate as a high-yielding investment, but some segments (e.g. industrial properties) suffered amid political confusion. The e-commerce boom ensured that specialist segments such as warehousing were very popular. Things were not so good for investment properties, in which pension funds are heavily invested. The construction boom in condominiums that has been under way for years has resulted in a rather high vacancy rate of more than 2% and thus rental income shortfalls. These in turn have depressed rental yields on investment properties. In addition, price growth stagnated after the Swiss National Bank (SNB) warned that this segment could overheat. It is therefore of pivotal importance for investors to take a discerning look at the individual sectors (residential, commercial and industrial, and offices and retail), while taking into account the significant impact that location, amenities, and the standard of finish can have on prices. This asset class posted an increase in volumes of CHF 2.6 billion year-on-year, including net inflows of CHF 471 million. That said, dividend yields were still clearly higher than yields on long-term government bonds. With a volume of CHF 35.2 billion, real estate funds ranked among the smaller categories, their market share rose slightly to 3.4%. SFA ARI® – indicator for real estate funds In April 2012, SFAMA launched the SFA ARI® investment yield indicator with a view to making it possible to compare the actual yields of listed real estate funds at the product level. The SFA ARI® is based on the investment yield statistics and is calculated quarterly (January, April, July, October) by SFD on the basis of the respective annual reports. The fund universe comprises the real estate funds listed on the SIX Swiss Exchange (SIX) that make direct real estate investments in Switzerland, with Switzerland being their sole investment country. Funds of funds and Swiss funds that invest directly outside Switzerland are excluded. In June 2018, the investment yield as measured by the SFA ARI® stood at 5.37%. In all, 30 real estate funds with net assets totaling CHF 33.4 billion were included in calculating the figure. Development of the SFA ARI ® since 2013 7 % 6 % 5 % 4 % 2013 2014 2015 2016 2017 2018 Source: SFD 12
Fund markets Increase of 422 funds At the end of 2018, there were 9,824 funds approved for distribution in Switzerland, an increase of 422. They break down as follows: • • 1,726 Swiss-law products (+84) and 8,098 products established under foreign law (+338). Luxembourg-law funds make up the bulk of these with 5,409 products (+193) The revised Collective Investment Schemes Act (CISA) is continuing to bolster the market activities of many providers, which resulted in a net increase of 422 funds. Over the course of the year, 344 foreign collective investment schemes were newly approved, while six were removed from the register. A total of 165 Swiss-law products were newly approved, with 81 removed from the register. Of the 1,726 Swiss-law funds, 769 were approved by FINMA exclusively for distribution to qualified investors. Constant ratio The ratio of foreign funds to collective investment schemes under Swiss law has remained fairly constant at around 4:1 over recent years. Luxembourg and Ireland are by far the largest foreign domiciles of funds approved in Switzerland. With a total of 7,266 products, their market share had increased by one percentage point to 90% at the end of 2018. France remained in third spot, followed by Liechtenstein and Germany. Development in the number of funds by fund type / fund domicile Fund type/ fund domicile as of end- December 2017 December 2018 as of end- Change in 2018 Swiss funds Ltd. partnership for coll. inv. Securities funds Other funds for trad. inv. Other funds for altern. inv. Real estate funds 1,642 (715) 18 (18) 137 (0) (657) 1,382 (17) 45 60 (23) 1,726 (769) 19 (19) 136 (0) (702) 1,455 (21) 50 66 (27) + 84 (54) (1) + 1 - 1 (0) (45) + 73 (4) + 5 + 6 (4) Foreign funds Luxembourg Ireland Other countries 7,760 5,216 1,684 860 8,098 5,409 1,857 832 +338 +193 +173 - 28 Total Switzerland and abroad (in brackets: funds for qualified investors) 9,402 (715) 9,824 (769) +422 (54) Source: FINMA Funds in demand as an investment instrument It is pleasing to note that funds have been able to hold their own as essential asset management components in good times and more difficult periods alike. Funds have not been “dying out” of late, nor has there been a drop in the penetration rate due to switching or redemptions by unsettled investors. 13
Fund markets Development of the proportion of investment funds in the custody accounts of the respective customer segments Customer segment Resident private customers Resident institutional investors December 2016 39% 45% December 2017 40% 46% November 2018 41% 46% Total resident customers Non-resident private customers Non-resident institutional investors Total non-resident customers Total of all customers 42% 43% 24% 27% 34% 43% 44% 25% 28% 36% 44% 44% 26% 29% 36% Source: SNB Fall in turnover for exchange-traded funds (ETFs) The turnover of exchange-traded index funds was curbed slightly for the first time in 2012, but ETFs quickly resumed their success story the following year. Their turnover was down 13.7% year-on-year at CHF 100.5 billion in 2018 due to the low level of stock market activity, but this is still a respectable level. At the end of the year, there were 1,450 different ETFs listed on SIX, spread across 25 issuers. In terms of investment focus, products covering traditional equity markets were still out in front with a 61.2% share. Bond ETFs had a 22.1% share of the market with 321 products. ETFs for commodities and precious metals increased in number by five products to 99, but they still only make up 6.8% of the market. As regards trade sizes, the median is still very low at CHF 15,500. Development of the ETF segment on SIX Number of ETFs Turnover in CHF million Turnover on SIX ETFs as of year-end 1,500 1,400 1,200 1,000 800 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 14 150,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Source: SIX
Fund markets European fund market UCITS increased in value until September 2018 Having already risen by a total of 12.2% in 2017, the volume of assets invested in Undertakings for Collective Invest- ment in Transferable Securities (UCITS) increased yet further in the first nine months of 2018. At the end of September 2018, the overall total stood at almost EUR 10 trillion, up 2.6%. Developments varied from quarter to quarter. While there was a fall of 0.6% in the first quarter, volumes rose by 1.5% in Q2 and 1.1% in Q3. Luxembourg remained the undisputed leader in the fall. As regards fund volumes, there was only one change in the first twelve positions between January and September 2018: Belgium joined the list, replacing Finland. All high-volume countries apart from France posted single-digit percentage gains. As in 2017, Norway recorded a particularly strong increase, its growth of 8.6% being the highest of any of the countries listed in the table. Belgium also fared rather well with 8.3%. Switzerland posted an increase of 4.9% in the first three quarters of the year, above the average of 2.6%. Alternative Investment Funds (AIFs) up 2.6% The AIF market grew by EUR 155 billion to EUR 6,064 billion in the first nine months of 2018. A large part of these assets – around 34% – are held in the “Others” category, which features the special funds that are offered primarily in Germany and are restricted to institutional investors. Overall, the multi-asset segment had a 24% share of the market. Bond products and real estate funds followed some way behind (16% and 11% respectively), while equity vehicles continued to account for 13%. Money market products and guarantee funds (both around 1%) made up the remainder.
Fund markets Market share As regards UCITS, equity products were able to profit from the developments on the stock markets between January and September 2018, and their market share stood at 39%, one percentage point higher than at the start of the year. At the end of September 2018, bond funds still had the second-largest market share at 26%, having eased back slightly by one percentage point over the course of the year. Due to low interest rates and the search for investment alternatives, money market funds lost some ground in 2018. Their market share fell by one percentage point to 12%. Meanwhile, the market share of mixed funds rose further by one percentage point to 19%. Development of investment fund assets in Europe Fund domicile Luxembourg Ireland UK France Switzerland Germany Sweden Italy Spain Denmark Belgium Norway Various Total UCITS Total AIFs Total (in EUR bn) Assets as at end- 2016 3,116 1,579 1,084 Assets as at end- 2017 3,486 1,831 1,225 796 438 330 283 234 193 117 81 86 297 874 451 372 313 256 225 129 120 116 316 8,661 5,502 14,164 9,714 5,909 15,623 Assets as at end-Sept. 2018 3,574 1,908 1,236 856 473 382 335 250 238 131 130 126 329 9,968 6,064 16,032 Source: EFAMA Global fund market EUR 46.6 trillion in 129,980 funds At the end of September 2018, global fund volumes had reached an all-time high of EUR 46.6 trillion, with funds of funds accounting for EUR 3.4 trillion. This translated into an increase of EUR 2.3 trillion or 5.3% compared with the beginning of the year. At 129,980 products, the number of funds is higher than ever before. International mix stays the same Comparing the figures ascertained by EFAMA, the US’s share of global fund assets at the end of September 2018 remained well below the 50% mark at 47.1%. Australia (3.9%) remained in third spot after Europe (33.4%), albeit with a respectable lead over the next two countries on the list – this year China and Japan with 3.4% each. Looking at global fund assets by fund domicile, the US is followed by Luxembourg (9.2%), Ireland (5.4%), Germany (4.5%), and France (4.1%). 16
Fund markets Breakdown of global fund assets by region and country USA 47.1% Others 2.4% Brazil 3.2% Australia 3.9% Japan 3.4% Canada 3.2% China 3.4% Source: EFAMA Europe 33.4% Slight shifts in the breakdown by fund category Some changes in the weightings of the individual fund categories have been discernible over the past four years. Bond funds increased their share for a while but then fell back to where they were at the end of 2015. Rising stock markets led to a higher share for equity funds thanks to capital gains as well as investors switching out of money market funds. The “Others” category fluctuated between 8% and 9%. Breakdown of global fund assets by category Fund category Equity funds Bond funds Mixed funds Money market funds Others Q4 2015 40% 20% 18% 13% 9% Q4 2016 40% 22% 18% 12% 8% Q4 2018 42% 21% 18% 11% 8% Q3 2018 43% 20% 17% 11% 9% Source: EFAMA 17
asset management markets The asset management industry’s assets under management increased up to the middle of 2018 both internationally and in Switzerland. The main driver behind this trend was the continued upbeat mood on the financial markets. However, this turned sour in the second half of the year. Global wealth Pronounced growth The Credit Suisse 2018 Global Wealth Report estimates that wealth worldwide was up 4.6% year-on-year in the middle of 2018 at USD 317 trillion (USD 317,000 billion). Whereas financial markets were no longer contributing very much to this growth, non-financial assets posted another sharp increase in value. North American assets once again posted the strongest growth with 6.5%, followed by those in Europe with 5.5% and China with 4.6%. North America accounts for 33.6% of global wealth, followed by Europe (26.7%) and the Asia-Pacific region (17.8%). China ranks next with 16.3%, whereas Switzerland has a 1.1% share. While average per capita wealth worldwide hit new heights, wealth inequality remains very high. Assets fell in Brazil and Turkey in particular due to those countries’ economic crises and sharply depreciating currencies. Global wealth in 2018 2% 1% 3% 16% 33% North America: USD 106,513 billion Europe: USD 85,402 USD billion Asia-Pacific: USD 56,715 billion China: USD 51,874 billion Latin America: USD 8,055 billion India: USD 5,972 billion Africa: USD 2,553 billion 18% 27% Source: SFAMA 19
asset management markets China establishing itself as number 2 behind USA China consolidated its second place behind the USA in the list of countries with the most assets. It now has considerably more millionaires than Japan, from which it took over as “best of the rest” back in 2011. However, average wealth per capita in China, at USD 47,810, is still well below the Japanese level (USD 227,240). Global market for asset management Since real assets largely comprise direct real estate holdings and private company stakes, financial assets make up the lion’s share of the wealth managed by asset managers. They accounted for 53% of the overall total in 2018, or USD 168 trillion. Around 27% (USD 44.5 trillion) of these were bank deposits, with securities making up 42% (USD 70.7 trillion), and retirement savings and insurance products 29% (USD 48.5 trillion). Based on an estimate of two thirds of the wealth held in securities, pension funds, and insurance products being managed by asset managers, the total volume of the global asset management market can be put at around USD 82 trillion. Higher return on equity According to the estimates in the Boston Consulting Group Global Asset Management study for 2017, earnings in the asset management industry worldwide rose to a new record high of USD 113 billion as a result of growth in assets under management and slightly higher margins. Average revenues on assets under management fell further from 26.7 basis points in 2016 to 26.5 basis points, but a sharper fall in relative costs caused the profit margin to increase from 35% to 37%, only just falling short of the 2007 record of 38%. Global asset management market in 2018 Real assets USD 149 trn Financial assets USD 168 trn Bank deposits USD 45 trn Other: USD 4 trn Retirement savings and insurance products 2/3 USD 49 trn Securities USD 71 trn 20 Asset Management USD 82 trn Source: SFAMA
asset management markets Asset management in Switzerland Large volumes Extrapolating the figures, the volume of assets managed by asset managers in Switzerland totaled around CHF 2,208 billion at the end of 2017. Discretionary mandates for Swiss and foreign institutional clients accounted for CHF 947 billion of this amount, with collective investment schemes under Swiss and foreign law making up a further CHF 1,261 billion. This marks a 12% year-on-year increase in the assets managed by asset managers in Switzerland to a level almost equaling the cross-border private banking business. High diversity Switzerland boasts a highly diverse range of asset management providers. Most of these manage less than CHF 15 billion and have fewer than 250 staff. Overall, asset management firms in Switzerland directly employ 9,600 people and are responsible for a further 44,500 jobs at companies providing ancillary services to asset managers. The industry is thus a key source of employ- ment for highly qualified workers on the Swiss market. The majority of assets are managed by a relatively small number of large market participants, especially in the institutional mandate business. Swiss asset managers stand out internationally through the large number of products they offer in the area of alternative investments (real estate, private equity, private debt, infrastructure, hedge funds, commodities, and insurance-linked securi- ties). As well as offering higher margins, this segment is also growing faster than the overall market. In the top 5 in Europe The total volume of assets under management in Europe amounted to around USD 22.2 trillion in 2017. The UK is out in front by a distance, followed by France and Germany. With USD 2.2 trillion, Switzerland ranks fourth among the largest asset management locations in Europe.
national environment Various initiatives to strengthen the Swiss financial sector were planned in 2018, some of which were implemented during the year. The adoption of FinSA and FinIA represented an important milestone. The Federal Council’s planned revision of legislation to enhance Switzerland’s appeal as a location for funds is also to be welcomed. Financial Market Strategy Future of the Financial Center Advisory Board Switzerland The Federal Council set up the Future of the Financial Center Advisory Board Switzerland at the end of 2014 to assess the challenges and future prospects for the financial center from a strategic perspective and provide it with recommendations as appropriate. Headed by Professor Aymo Brunetti, it comprises representatives of the private sector, authorities, and academia. The Advisory Board has a fixed-term mandate for the time being, through to the end of the legislature in 2019. Its annual report was presented to the Federal Council on 10 January 2018. Key topics it addressed included cyber security, the impact of low interest rates on the pension system, and the regulatory process in financial market policy. The Federal Council acknowledged the Advisory Board’s recommendations for a rapid reform of withholding tax on 8 June 2018. The idea behind these recommendations is to provide much-needed impetus for the underdeveloped Swiss capital market. Financial Market Policy Forum On 9 May 2018, the Federal Council received an update on the work of the Financial Market Policy Forum, an information and consultation body bringing together authorities and the private sector under the leadership of the State Secretariat for International Finance (SIF). The Forum analyzed the general conditions in Switzerland, such as taxation, the job market, and education, all of which are of central importance to the financial sector’s competitiveness. In addition, the industry was able to contribute many financial market-specific ideas for action with regard to regulation and supervision, the capital market, asset management, pensions, and future markets. Blockchain/Initial Coin Offering (ICO) working group The Blockchain/ICO working group was set up at the start of 2018. During the year, it looked at civil and financial market law to assess the extent to which amendments are needed in view of developments in blockchain technology. A consultation took place between 31 August and 20 September on its work to date and the thinking behind its recommendations. The Federal Council received a report on this consultation at the end of the year, on the basis of which it will decide whether to pursue any legal amendments. In addition, the Federal Council invited representatives of the financial sector and academia to a third fintech roundtable on 15 October 2018. Regtech On 27 June 2018, the Federal Council signed off the report on “Use of innovative technologies in financial market supervision and regulation (RegTech)”, drawn up by SIF in response to a motion by National Councilor Martin Landolt. The report outlines the current situation and planned measures to promote regtech, in particular with reference to other countries. It also states that the continual evolution of supervision and regulation is vital to ensuring that the Swiss financial center remains competitive. Implementing provisions for fintech license The Federal Council adopted the implementing provisions for the fintech license on 30 November 2018. Companies operating outside the core activities characteristic of banks can thus accept deposits from the public up to a maximum of CHF 100 million with effect from 1 January 2019 under simplified requirements. In addition, crowd- lending is to be made possible for private consumption within an unlicensed “sandbox”. 22
national environment toward strengthening important step the Swiss financial sector as a whole and making it more competitive. The idea of a Swiss fund that does not require approval (L-QIF) can be traced back to a SFAMA initiative. The Swiss financial sector plays a key role globally, but Switzerland is at an unfair disadvantage as a fund domicile. Obtaining product approval is such a time-consuming and costly process that many Swiss investors have up to now tended to favor foreign collective investment schemes over their Swiss counterparts. The L-QIF, an innovative and original Swiss concept, is designed to change this. Financial Services Act, Financial Institutions Act FinSA/FinIA adopted In their final vote on 15 June 2018, the two chambers of Switzerland’s parliament voted in favor of adopting the proposed FinSA and FinIA. This marked a successful end to some two and a half years of at times heated parliamentary debate. SFAMA played a key role in this process. It believes that the texts adopted represent a fair compromise that takes account of both the desire for more client protection and the aim of safeguarding the Swiss financial sector’s competitive- ness. Consultation on ordinances On 24 October 2018, the Federal Council opened a consultation on FinSO and FinIO as well as the CISO revision required by the annexes of the two ordinances. The consultation documents also include a draft Supervisory Organization Ordinance (SOO), which governs the authorization requirements and activities for the newly introduced supervisory organizations (SOs) for managers of individual client portfolios. The consultation was scheduled to run until 6 February 2019. industry SFAMA’s consultation response SFAMA also represented the interests of the fund and asset management this process. The Executive Board drew up a response to the consultation with the support of various working groups involving SFAMA members. This work proved very time-consuming for the Executive Board and member institutions alike and had to be completed in Investments by pension funds in future technologies The Federal Council wants to make it easier for pension funds to invest more in promising future technologies in Switzerland, given that these can help them to perform their long-term pension provision function. It will look into creating a new category for Swiss venture capital (limited to roughly 5% of total assets) in the investment guidelines for occupational pensions. The Federal Council signed off a report on this subject on 30 November 2018. It also intends to improve transparency with regard to the relevant investment opportunities. it Enhancing Switzerland’s appeal as a fund location The Federal Council wishes to enhance Switzerland’s appeal as a location for investment funds and tasked the FDF on 5 September 2018 with drawing up a proposal for a revision of the corresponding legislation by mid-2019. The proposed new provisions are intended to make it easier to bring innovative products to the marketplace. The Council of States adopted a motion with the same aim on 24 September 2018. Put forward by Councilor Ruedi Noser, is entitled “Enable internationally competitive collective investment schemes. Adapt the CISA in the interests of Swiss investors”. The aim of Noser’s motion is to create a flexible form of collective investment scheme under Swiss law that is not subject to FINMA approval and can thus be launched much more quickly and cost-effectively. At the same time, this innovative new fund product, which would only be available to qualified investors such as pension funds and insurers, should guarantee the usual levels of quality and security. The asset manager of a fund organized under company law (limited partnership for collective investment or investment company with variable capital, SICAV) or the fund management company of a contractual fund would have to be an institution supervised by FINMA. This proposed indirect supervision takes due account of qualified investors’ need for protection. SFAMA’s role SFAMA actively follows developments and work within the various bodies and authorities, contributing suggestions of its own and defending the interests of the fund and asset management industry wherever possible. It welcomes the intention to enhance Switzer- land’s appeal as a fund location and views this as an 23
under severe time pressure. The Executive Board held two specific information events in Zurich and two in Geneva during the consultation process to keep the members not involved in the working groups up to date. Timetable As things stand at present, the two acts and their ordinances are expected to enter into force on 1 January 2020. Asset Management Platform Switzerland Background The Swiss financial sector is seen internationally first and foremost as a location for private banking, and asset management has thus far attracted relatively little attention in Switzerland and abroad. The reason for this is that, although the majority of banks in Switzerland have in-house asset management operations, these are seldom regarded as autonomous areas in their own right. Objectives, organization, priorities Switzerland is to become a leading location for asset management in the coming years, establishing this business area as a key mainstay for the Swiss financial sector and thus giving the latter a broader base, supplementing existing business areas, and offsetting declines elsewhere. The Asset Management Platform Switzerland was officially set up in February 2017, with SFAMA Senior Counsel Lorenz Arnet in charge of operational management. The steering committee comprises executive board members of the major Swiss asset managers. The platform serves as a provider of ideas, a source of information, and a partner in political and regulatory dialog. Its priorities currently center on improving the exportability of Swiss asset management as well as on regulation, pensions, the digital transform- ation, and branding. The focus in the coming years will be on positioning Swiss asset management as a financial sector discipline in its own right, the long-term goal being to make it synonymous with the investment industry in Switzerland.
Activities in 2018 A number of milestones were achieved in 2018. The platform’s website, for example, went live. It is hoped that this will become a first point of entry for the asset management industry as well as anyone outside the financial sector who has an interest in asset management. The first comprehensive study on asset management in Switzerland was produced in the summer in conjunction with the Institute of Financial Services Zug (IFZ), part of Lucerne University of Applied Sciences and Arts. The Asset Management Platform also gained valuable exposure and helped to raise the asset management industry’s profile at the end of October with its guest appearance at the NZZ Swiss International Finance Forum, Switzerland’s leading financial industry event. The Asset Management Greenhouse Events series launched by the platform proved highly popular again last year. The Asset Management Platform was also seen in a positive light thanks to a wide range of articles in the media, its presence at key asset management events, and intensive interaction with SFAMA members. Global Investment Performance Standards (GIPS®) Background The GIPS standards are internationally used and recognized principles for calculating and presenting the performance of investments. SFAMA is their Country Sponsor in Switzerland. With the aid of its group of experts – comprising representatives of fund manage- ment companies, asset managers, banks, and audit firms – SFAMA promotes the use of the GIPS standards in Switzerland, organizes seminars and workshops, and coordinates the positions of Swiss GIPS users with regard to the further development and interpretations of the standards. It also serves as the link for cooperation with the international GIPS bodies and the CFA Institute. The number of companies using the standards worldwide reached 1,653 at the end of 2017, up 2.8% year-on-year. national environment GIPS 2020 The 2020 GIPS standards will ensure their continued value and relevance as well as their acceptance among additional target groups. Progress in 2018 was on track to meet the following schedule: • • • • • 31 August 2018: 2020 GIPS Standards Exposure Draft released for public comment 31 October 2018: 2020 GIPS Standards for Verifiers Exposure Draft released for public comment 31 December 2018: end of public comment period for both Exposure Drafts 30 June 2019: final 2020 GIPS standards to be published January 2020: 2020 GIPS standards to enter into force New management Karyn Vincent became Head of Global Industry Standards on 4 September 2018 and is also Executive Director of GIPS. She has over 28 years’ experience in the relevant fields and has previously chaired the GIPS Interpretations Subcommittee and the Verification/ Practitioner Subcommittee. Activities in the year under review In 2018, SFAMA published five position papers on the Exposure Drafts for the GIPS Guidance Statement on Benchmarks, the 2020 GIPS standards, and the 2020 GIPS standards for verifiers. It also held a GIPS Day in Zurich on 22 October 2018 with workshops for newcomers and experts alike. Sustainability and environmental, social, and governance (ESG) Background Sustainable economic development is one of the most important growth and innovation drivers in the Swiss financial sector. Banks, asset managers, and insurers see a great deal of potential in this field, which has built up considerable momentum around the world. The question is no longer whether the sector should embrace sustainability, but how. Shifting to a sustainable economy is now a priority, with more and more action being taken to make it happen. In the international context, Switzer- land has committed to the UN’s 2030 Agenda for 25
national environment Sustainable Development and its 17 Sustainable Development Goals (SDGs). It also ratified the Paris Agreement on climate change in 2017. SIF and representatives of the financial sector drew up a concept through various working groups outlining how the Swiss financial center is to develop sustainably going forward. The focus is on a voluntary approach rather than state regulation. This topic has also taken on considerable importance with the EU, which is currently working on a detailed implementation and regulation concept based on the action plan drawn up by the European Commission’s expert group on climate change policy. SFAMA’s position The association regards sustainability as essential to the future competitiveness of Switzerland’s financial center. Many SFAMA members are addressing the issue and have already begun to take steps. SFAMA will set up a working group including experts with practical experience to ensure that it can face up to the challenges that lie ahead. The working group is to produce guidelines for sustainable asset management by the end of 2019. In addition, SFAMA is in close contact with other national and international associations (e.g. EFAMA). Anti-Money Laundering Act (AMLA) Consultation on amendments The Federal Council opened a consultation on amend- ments to the AMLA on 1 June 2018. The proposal takes account of the key recommendations put forward by the Financial Action Task Force (FATF) in its Mutual Evaluation Report on Switzerland with a view to increasing the integrity of the financial sector. The FATF carried out its fourth mutual evaluation of Switzerland in 2016. Its report acknowledged the good overall quality of Switzer- land’s apparatus for combating money laundering and terrorist financing. At the same time, however, it identified some weaknesses and made recommendations on how these could be rectified. The consultation ran until 21 September 2018. 26 Coordinating group report The interdepartmental coordinating group on combating money laundering and the financing of terrorism also published its report on risks of money laundering in relation to legal entities on 1 June 2018. The report analyzes the risks associated with various legal forms in Switzerland and abroad and underscores the proposed measures concerning services for companies and trusts. Swiss Financial Market Supervisory Authority FINMA ICO guidelines FINMA published guidelines in February 2018 outlining how it will handle enquiries regarding the regulatory framework for initial coin offerings (ICOs) on the basis of current financial market law, defining the minimum information required to process enquiries, and setting out the principles according to which FINMA will respond. Circular “Video and online identification” FINMA updated the due diligence requirements for entering into business relationships via digital channels in line with technological advancements. A hearing on the amendments ended on 28 March 2018. Partially revised Financial Market Infrastructure Ordinance (FMIO) FINMA published its partially revised FMIO on 16 May 2018. It introduced a clearing obligation for certain standardized over-the-counter interest rate and credit derivatives. The corresponding annex entered into force on 1 September 2018. Fintech license The new fintech license can be applied for as of the start of 2019. FINMA is responsible for granting the license and supervising licensees. It published guidelines to aid the application process on 3 December 2018. Prospective applicants also have the option of presenting their project to FINMA during a meeting before submitting their application.
national environment of legal amendments. Thereafter, the following work was on the agenda: • • • constructing multiple interfaces to existing and new clients for delivering data and documents changes required due to the EU’s General Data Protection Regulation (GDPR) creating a fully automated process to record and update master data The last category of data that was still being handled manually for the most part has thus been automated. SFD’s Client Services Team engages in an active and direct dialog with clients, always working with them on developing the system. Change of IT provider Following the successful IT migration from Rolotec AG to ti&m in Zurich at the end of 2017/start of 2018, system operation began without any problems. The year was used to consolidate the working relationship with the new IT provider, build up the relevant know-how, and define communication processes and project workflows. Marked increase in web access There has been a sharp increase in the number of users accessing the SFD website over the past five years, as shown by the following statistics: • • • • average number of users per month: +243% average number of page views per month: +264% average number of pages visited per month: +242% average share of smartphone/tablet users: +562% These figures make it clear that the investments made in the website and its responsive design in recent years have produced a positive response from the market. The website is a key source of information for investors who are interested in funds. SFD conducted a survey of website users in the first quarter of 2018, which yielded valuable feedback on how its services are used. Over 70% of users are in Switzerland, followed by Germany, Luxembourg, and the USA. Some 52% of users are professional investors (asset managers, banks, pension funds, insurers), the rest retail investors. Due diligence requirements in relation to money laundering The newly created licensing category for fintech firms, like all financial intermediaries, is subject to the AMLA. FINMA published its revised Anti-Money Laundering Ordinance, which sets out the corresponding due diligence requirements, on 10 December 2018. The amendments took effect from 1 January 2019. With regard to combating money laundering, all financial institutions should in principle remain bound by comparable due diligence requirements. However, since the amendments to the Banking Act affect small institutions in particular, FINMA has allowed for a simpler organization where both risks and gross revenue are low. Tax issues Various topics SFAMA was in contact with the relevant federal authorities (FDF, SIF, Federal Tax Administration FTA) in relation to various dossiers in 2018. This direct exchange with the tax authority is a welcome opportunity for the fund and asset management industry to discuss some highly complex matters in depth and express its particular concerns. The following topics were on the agenda: • Tax Proposal 17 • measures to strengthen the financial center – abolition • of stamp duty economic partial liquidation in the event of large redemption volumes reform of withholding tax – paying agent principle • • Federal Act on Tax Reform and AHV Financing (TRAF) • Ordinance on the flat-rate tax credit – equal treatment of investment funds • FATCA certifications Swiss Fund Data (SFD) Expanding the range of services In the first quarter of 2018, the expansion of the system focused on changes to tax data as a result 27
Other authorities and associations In 2018, SFAMA had extensive contact with SIF, the Occupational Pension Supervisory Commission (OPSC), and the Swiss Bankers Association (SBA). The Executive Board was also in contact with other associations in Switzerland, including: • Multichain Asset Managers Association (MAMA), Zug • Swiss Pension Fund Association (ASIP), Zurich • Swiss Insurance Association (SIA), Zurich • Swiss Private Equity & Corporate Finance Association (SECA), Zug • Swiss Sustainable Finance (SSF), Zurich • Association of Foreign Banks in Switzerland (AFBS), Zurich • Swiss Association of Asset Managers (SAAM), Zurich national environment Fees unchanged The number of funds published on the platform www.swissfunddata.ch increased by 6.5% in 2018. A large number of fund providers made use of SFD’s services for the first time, either as a publication medium or as a marketing platform. Thanks to this pleasing growth and SFD’s non-profit status, its range of services can be continually expanded withoutincreasing the fees charged. Relations with authorities and associations in Switzerland FINMA FINMA was one of SFAMA’s most important partners in 2018, with extensive bilateral contact and various meetings providing a platform for constructively discussing various topics with the supervisory authority’s specialists. FTA Ad-hoc discussions were held with the tax authority in 2018, during which SFAMA was able to address a number of issues, some of them highly complex, and express its concerns. economiesuisse Representatives of SFAMA’s Executive Board sat on the legal affairs committee of the Swiss business federation economiesuisse in 2018, as well as its working group on financial market legislation, putting across the interests of SFAMA’s members directly. 28
international environment The main focus areas in 2018 were the impact of various EU rules being implemented, including MiFID II and the PRIIPs Regulation, and Brexit. There is still a lack of clarity in many respects regarding the UK’s exit from the EU, so market participants are preparing for a variety of scenarios. it will happen at all. Various authorities, including ESMA and the UK’s Financial Conduct Authority, have been preparing for a disorderly Brexit. No further decisions were made with respect to the ESMA Opinion published in May 2017, which caused a stir both within the EU and beyond, particularly with regard to delegation options for asset management. One of the key questions relates to which tasks can be delegated to non-EU countries by funds and asset managers under EU law. Luxembourg and Ireland as key fund domiciles are against any restriction of delegation options, and so too are Switzer- land and the UK as asset management locations. SFAMA is in close contact with representatives of the UK asset management industry and keeping a careful watch on developments. Capital Markets Union (CMU) The CMU is an EU initiative aimed at improving the depth and integration of the 28 Member States’ capital markets. To this end, the European Commission proposed an action plan in 2015 for gradually expanding the CMU. The Council of the EU agreed a standpointon a pan- European personal pension product on 19 June 2018. As well as giving EU citizens more choice, this would lend a boost to the private pension market. The Commission reported on 28 November 2018 that ten of the 13 proposals for the components of the CMU were still under discussion by EU legislators. It called on the Parliament and Council to ensure that all key CMU components were finalized before the parliamentary elections. At the level of the EU and EU countries AIFs, Alternative Investment Fund Managers Directive (AIFMD) The European Securities and Markets Authority (ESMA) published its first report on trends, risks, and vulnerabilities of AIFs on 4 April 2018, revealing that the market is heavily concentrated on a small number of large participants and asset classes. In addition, the vast majority of European AIFs are managed on a cross-border basis. On 25 July 2018, ESMA responded to questions raised by the European Insurance and Occupational Pensions Authority (EIOPA) concerning the definition of AIFs and their leverage. On 4 October 2018, it published an updated Q&A on the application of the AIFMD. New questions were added covering the application of notification requirements in relation to the cross-border management of fund-of-funds AIFs. Supervision of securities firms The European Commission wants large European securities firms to be given the status of credit institutions in future, which would bring them under the supervision of the European Central Bank just like systemically important banks. This is the proposal put forward in a draft EU directive presented by the Commission on 20 December 2017. The rules vary according to company size. To ensure that supervisory law can draw greater distinctions by risk and business model, the European Parliament went a step further in April 2018, calling for additional simplification for investment advisers, portfolio managers, and smaller securities firms. Brexit Brexit is edging ever closer, with the UK set to leave the EU on 29 March 2019, but the process of negotiating a divorce deal moved forward very slowly during 2018. It was agreed in March that there would be a transition period up to 31 December 2020. However, it remains unclear exactly what form Brexit will take or even whether 29
international environment European Systemic Risk Board (ESRB) The ESRB published its EU Shadow Banking Monitor on 10 September 2018. According to the data as at the end of 2017, shadow banks made up around 40% of the EU financial system. The report identifies a series of key risks and vulnerabilities: • • • liquidity risks and risks associated with leverage among some types of investment funds interconnectedness and the risk of contagion across sectors and within the shadow banking system isolated vulnerabilities where significant data gaps prevent a definitive risk assessment • monitoring Money Market Funds Regulation On 20 July 2018, ESMA asked the European Commission to provide market participants and investors with clarity regarding the compatibility of the reverse distribution mechanism (RDM) with the Money Market Funds Regulation (MMFR). This, it noted, was essential to ensuring the proper and consistent interpretation and implementation of the MMFR. ESMA opened a public consultation on 28 September 2018 on how European money market funds should conduct their internal stress testing. Responses had to be submitted by 1 December 2018. ESMA will publish corresponding guidelines in the first quarter of 2019. From the end of the first quarter of 2020, European money market funds must disclose certain information to their national competent authorities under the MMFR. ESMA opened a public consultation on 13 November 2018 on draft guidelines providing further specifications on how to fill in the reporting template. The consultation was scheduled to end on 14 February 2019. MiFID II, Markets in Financial Instruments Regulation (MiFIR) ESMA updated its Q&A documents on investor protection and transparency under MiFID II and MiFIR on 7 Februa- ry, 23 and 28 March, 25 May, and 12 July 2018. Topics addressed include inducements, suitability, provision of investment services and activities by third-country firms, best execution, record keeping, information on charges and costs, and client categorization. On 28 May 2018, ESMA published its Final Report on guidelines and certain aspects of the MiFID II suitability require- ments. The assessment of suitability is one of the key requirements for investor protection in the MiFID II framework. It applies to the provision of any kind of investment advice and portfolio management. ESMA published an updated version of its supervisory briefing on the suitability requirements on 13 November 2018. 30
international environment the national regulators need to improve their supervision of UCITS that use efficient portfolio management techniques after a peer review it conducted found a number of shortcomings in this area. Beyond the EU International Organization of Securities Commissions (IOSCO) IOSCO issued its recommendations on liquidity risk management for open-ended collective investment schemes on 1 February 2018. Its aim is to protect investors, ensure efficient financial markets, and reduce systemic risks. IOSCO’s Final Report, published on the same day, contains information, examples, and best practices relating to liquidity risk management for open-ended funds and builds on the recommendations. IOSCO conducted a consultation from 14 November 2018 to 1 February 2019 on its proposed framework for measuring leverage in investment funds, which in some circumstances could pose financial stability risks. The proposed framework comprises a two-step process aimed at achieving a meaningful and consistent assessment of global leverage. The first step indicates how regulators could exclude from consideration funds that are unlikely to create stability risks to the financial system while filtering and selecting a subset of other funds for further analysis. The second step calls for regulators to conduct a risk-based analysis of the subset of investment funds identified in the first step. European Fund and Asset Management Association EFAMA Important association EFAMA, which was set up in 1974, brings together associations and companies from 24 EU countries as well as Switzerland, Liechtenstein, Norway, and Turkey. It comprises 28 associations and 62 corporate members. As at the end of 2018, these had assets under manage- ment totaling more than EUR 25 trillion. Packaged Retail and Insurance-Based Investment Products (PRIIPs) On 1 October 2018, the European Supervisory Authorities (ESAs) informed the European Commission about their concerns regarding duplicated disclosure requirements for investment funds with effect from 1 January 2020. The ESAs intend to propose amendments to the PRIIPs Regulation and conducted a consultation on the Key Information Document (KID) for PRIIPs from 8 November to 6 December 2018. The focus was on information about performance scenarios for investment products. The ESAs planned to put forward their definitive amendment proposals at the start of 2019. In December 2018, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) adopted a draft agenda for its plenary meeting postponing two key deadlines: fund providers will be allowed to keep the tried-and- tested Key Investor Information Document longer than previously planned, and the deadline for the planned review of PRIIPs rules has been pushed back by a year to the end of 2019. Supervisory Convergence Work Programme (SCWP) ESMA published its SCWP on 7 February 2018, detailing the activities and tasks it will carry out to promote efficient and consistent supervision across the EU. It set the following priorities for 2018: • • • • ensuring that MiFID II/MiFIR are applied in a consistent manner across the EU improving data quality to ensure reporting under various requirements set by EU legislation ensuring supervisory convergence in the context of Brexit safeguarding the free movement of services in the EU through adequate investor protection in the context of cross-border provision of services • monitoring developments in financial innovation Undertakings for Collective Investment in Transferable Securities (UCITS), UCITS V Directive ESMA updated its Q&A on the application of UCITS V on 25 May and 23 July 2018. The document contains new questions and answers on remuneration disclosure requirements, supervisory issues, investments in other UCITS with different investment policies, calculation of issuer concentration limits, and reuse of assets by a UCITS depositary. On 30 July 2018, ESMA noted that 31
Other international activities Relations with authorities and associations abroad SFAMA had a wide range of contact with foreign super- visory authorities in 2018, namely: • Autorité des Marchés Financiers (AMF), Paris • Federal Financial Supervisory Authority (BAFin), Frankfurt • Commission de Surveillance du Secteur Financier (CSSF), Luxembourg • European Securities and Markets Authority (ESMA), • • Paris Liechtenstein Financial Market Authority (FMA), Vaduz International Organization of Securities Commissions (IOSCO), Madrid • Austrian Financial Market Authority (FMA), Vienna • Securities and Futures Commission (SFC), Hong Kong In addition to EFAMA, SFAMA enjoyed close relationships in 2018 with the international umbrella organization IIFA and various national fund associations, in particular: • Alternative Investment Management Association (AIMA), London • French Asset Management Association (AFG), Paris • Association of the Luxembourg Fund Industry (ALFI), Luxembourg (BVI), Investment Funds Association • German Frankfurt Investment Association (IA), London Liechtenstein Investment Fund Association (LAFV), Vaduz • • • Association of Austrian Investment Companies (VÖIG), Vienna international environment SFAMA’s role As the industry representative of a non-EU state, SFAMA uses its close cooperation with EFAMA to make its voice heard indirectly at EU level. It also ensures that key rules and regulations in its own market remain compatible with European practices. Furthermore, SFAMA is able to benefit from the experience gained by its European counterpart in specific areas. SFAMA is represented on the Board of Directors of EFAMA by the Managing Director. He and other Executive Board colleagues as well as employees of SFAMA member institutions are frequently active in various specialist bodies. New Director General Tanguy van de Werve took charge of the European association on 1 January 2019. He succeeds Peter De Proft, who served as EFAMA’s Director General for 11 years. De Proft remains Honorary Director General and will advise his successor until the end of June 2019. Van de Werve previously headed the Brussels office of the Association for Financial Markets in Europe (AFME) for three years and before that was Director General of Eurofinas and Leaseurope for almost a decade. Report on automation and standardization EFAMA published its fifth Standardization of Funds Processing in Europe report on 15 October 2018. It contains recommendations relating to automation and standardization. The report first appeared in 2005. This latest edition includes additional suggestions aimed at improving efficiency in fund processing. European Fund Categorization (EFC) Forum The EFC Forum, an EFAMA task force, launched an indicative classification on 16 October 2018 to address the market need for stronger coverage of the EFC. Growth in cross-border fund distribution has made a classification system of this kind all the more essential in order to facilitate consistent peer-group analysis throughout Europe and support the development of the internal fund market. In the first phase, funds offered in the Nordic countries, Switzerland, and/or Germany will be classified. 32
sFama aCtivities Major domestic issues were on the agenda for SFAMA in 2018, with the two legislative projects FinSA/FinIA and the work relating to the Asset Management Platform Switzerland. As regards international matters, the focus was on the EU dossiers and Brexit. Portrait Clear objectives SFAMA: • • • • is committed to ensuring optimal frameworks for asset management and for the production and distribution of investment funds actively represents the interests of its members vis-à-vis the authorities, other associations, politicians, the media, and the general public as an expert and representative point of contact promotes the standing of and trust in the fund and asset management industry and actively commu- nicates the value of asset management and the philosophy of fund investing takes a leading role with regard to self-regulation and establishing best practice standards and exerts its influence on regulation Focused strategy SFAMA works independently and proactively to support efforts to further strengthen the fund and asset manage- ment sector in Switzerland. Our activities are geared to the three elements of the value chain for Swiss and foreign collective investment schemes: administration, asset management, and distribution. The focus is on increasing the appeal of Switzerland as a location for • • • the production of collective investment schemes asset management the distribution of Swiss and foreign investment products in Switzerland and abroad SFAMA seeks to work together constructively with the federal administration and the authorities, our activities being centered on the interests of our members. Efficient organization SFAMA has a streamlined organization and a flat hierarchy. The specialist committees do the groundwork in the decision-making process. The Board of Directors also sets up ad-hoc working groups to support the Executive Board and deal with clearly defined tasks. The structure shown below ensures a high degree of efficiency and allows SFAMA to make the best possible use of the limited resources available. SFAMA’s organization General meeting Strategic/ conceptual level Board of Directors (10 members) Operational level Executive Board Specialist commitees Preparing decision-making basis Ad-hoc working groups (project related) 33
Membership as a hallmark SFAMA is open to all fund management companies, asset managers, representatives of foreign collective invest- ment schemes, and service providers active in the asset management area, regardless of their domicile or sector. Unlike most of the other national fund associations in Europe, SFAMA also accepts representatives of foreign collective investment schemes as full members. By their presence on the market, these institutions also make a significant contribution to the importance and good reputation of the Swiss fund and asset management center. Work program in 2018 Overview of main activities Major domestic issues on the agenda for SFAMA in 2018 were the two legislative projects FinSA/FinIA and the Asset Management Platform Switzerland. Internationally, the focus was once again on the EU dossiers and Brexit. Further tasks We also dealt with other matters in 2018, including: • • • drawing up statements and position papers submitted to FINMA, the FTA, SIF, and the FDF, as well as EFAMA and ESMA participating in various working groups of the federal authorities providing information on a wide range of specialist questions
sFama aCtivities A review of events A successful program SFAMA staged numerous events again in 2018, which attracted over 700 participants in total. The focus was on the current challenges and developments in the fund and asset management industry. SFAMA also participated in various other information and training events organized by third parties, such as Swiss Fund Day and the Friends of Funds network. SFAMA events in 2018 7 February 2018, Zurich SFAMA Roundtable “FinTech – impact on the fund and asset management industry” 8 February 2018, Geneva SFAMA Roundtable “FinTech – impact on the fund and asset management industry” 16 March 2018, Bern 2018 Annual General Meeting 16 March 2018, Bern Swiss Funds & Asset Management Forum 27 March 2018, Zurich Asset Management Greenhouse Event “Sustainable investments – doing good without sacrificing returns?“ 28 March 2018, Geneva Asset Management Greenhouse Event “Sustainable investments – doing good without sacrificing returns?” 5 June 2018, Zurich SFAMA Information Event 7 June 2018, Geneva SFAMA Information Event 21 August 2018, Sempachersee 8th Swiss Fund Golf Cup (in conjunction with State Street Global Exchange) 28 August 2018, Zurich SFAMA Information Event 30 August 2018, Geneva SFAMA Information Event 19 September 2018, Zurich Asset Management Greenhouse Event “Factor investing: How should it be implemented – if at all?” 22 October 2018, Zurich GIPS Day 2018 6 November 2018, Zurich SFAMA Special Information Event on FinSO/FinIO 8 November 2018, Geneva SFAMA Special Information Event on FinSO/FinIO 35
sFama aCtivities Specialist committees Areas of activity The specialist committees undertake the preparatory work for decisions relating to their specific areas, which they then submit to the Board of Directors and the Executive Board. Such commitment and active support for SFAMA’s activities are not taken for granted, and we would like to express our thanks to all involved. SFAMA currently has the following specialist committees: • Alternative Investments • ETF & Indexed Investments • Real Estate Funds • Processes & Operations • • • Risk Management • Taxes • Distribution & Marketing Legal & Compliance Legal & Compliance Asset Management Alternative Investments specialist committee Chair: Régis Martin This specialist committee aims to promote understanding of and thus trust in alternative investments. It is busi- ness-oriented and analyzes regulatory developments primarily with regard to potential new fields of business and the need to adapt existing ones. It also looked at different business models for providers of alternative investments (boutique approach versus multi-asset management) and special topics including co-invest- ments, commodities, private equity, private debt, and private infrastructure. ETF & Indexed Investments specialist committee Chair: Markus Götschi In 2018, the specialist committee focused primarily on improving the statistical basis for ETFs and indexed investments in collaboration with SFD and Morningstar. It held a media event in March. Other topics under discussion were the potential risks of indexed invest- ments (including liquidity and fees) and the listing of unit classes in Switzerland. 36 Real Estate Funds specialist committee Chair: Roger Hennig As in 2017, the specialist committee followed develop- ments relating to the revision of Lex Koller. All activities were coordinated with the “For a modern Lex Koller” alliance. The committee also analyzed the possible national and cantonal consequences of Tax Proposal 17 (formerly Corporate Tax Reform III) for real estate funds and real estate companies and revised the SFAMA specialist information factsheet on the issuance of real estate fund units based on experience gained with issues in recent years. Other focus areas were preparatory work with a view to adding a section on legal entities as valuation experts to the SFAMA Guidelines for Real Estate Funds and FINMA’s Annual Report for 2017. Processes & Operations specialist committee Chair: Daniel Lüdin As regards Swiss issues, the specialist committee dealt with legal updates in respect of FinSA/FinIA. It also discussed the documentation on IOSCO’s Recommen- dations for Liquidity Risk Management for Collective Investment Schemes and drew up a position statement on the work of the Blockchain/ICO working group and the specialist recommendation “Valuation of collective investment schemes over the year-end 2018/2019”. Another key topic was a “hard Brexit” and its potential impact. Legal & Compliance specialist committee Chair: Diana Imbach Haumüller (ad interim) The focus in 2018 was on the FinSA/FinIA legislative project. The specialist committee discussed the reper- cussions for the self-regulatory regime and its revision as well as the consultation procedure for FinSO/FinIO/ CISO. Other topics included the ongoing revision of the FINMA Circular “Auditing”, SFAMA’s model fund contract for stand-alone funds, how to deal with class actions in relation to the liquidation of a fund, the ongoing revision of the Civil Procedure Code in connection with the planned expansion of collective legal protection, handling clean unit classes and platform fees, and ESG issues.
sFama aCtivities Legal & Compliance Asset Management specialist committee Chair: Jasmin Djalali Among the matters the specialist committee covered in 2018 were questions relating to the implementation of MiFID II, the development of crypto funds, the GDPR, and base erosion and profit shifting (BEPS). Other key issues were experience with SFAMA’s model declaration pursuant to OPO2 (loyalty declaration), the L-QIF concept, and changes in practice regarding the publication obligations of representatives. Also under discussion were the latest situation with regard to FinSA/FinIA, exchange equivalence, Brexit, and the ESA reform as well as their potential impact on Switzerland. Risk Management specialist committee Chair: Martin Jufer Discussions in 2018 focused on the risk management approaches at individual institutions and determining best practice. The specialist committee also produced a specialist recommendation on risk management for asset managers, which was published in the fall, and drafted a concept for a specialist risk management event. Taxes specialist committee Chair: Hanspeter Kurz The specialist committee’s activities in 2018 included work on Tax Proposal 17 to reform withholding tax (paying agent principle) and measures to strengthen the financial center (abolition of stamp duty). Other topics were the Federal Act on Tax Reform and AHV Financing (TRAF), the ordinance on the flat-rate tax credit (equal treatment of investment funds), the Financial Transaction Tax (FTT), and FATCA certifications. Distribution & Marketing specialist committee Chair: Markus Signer An area of focus in 2018 was analyzing the expected changes in the area of distribution due to FinSA/FinIA. The current CISA definition of distribution will cease to apply, replaced in FinSA with the term “offering”. This will also affect SFAMA’s self-regulation regime and the wording of distribution agreements. The specialist committee also continued to develop and flesh out the “investment funds for everyone” communication concept. The related Twitter activity, centered on current invest- ment fund topics, began in the middle of the year. 37 Communication SFAMA News The quarterly SFAMA News is used by a broad readership in Switzerland and abroad as a source of well-founded information on the fund and asset management business. SFAMA website The SFAMA website is an established instrument for communication with members and other stakeholders. A new section called “FinSA/FinIA Center” was added in 2018. It contains key information on the two financial acts and their ordinances. SFAMA Annual Report The SFAMA Annual Report is a popular reference document containing the most important information on the year in question. It is available to all interested readers as an e-paper and PDF in English, German, and French. Social media SFAMA also has a Twitter account @SFAMAinfo featuring news, views, and comment on Switzerland as a fund and asset management location as well as important developments in Switzerland and abroad. The tweets are in German and English. In addition, SFAMA can be found on LinkedIn. Expert point of contact In keeping with their importance for the Swiss financial center and for investors, asset management and collective investment schemes receive regular coverage in the media. Accordingly, there was a rise in the number of enquiries from various sides once again in 2018. Key points of interest were Switzerland as an asset management location, the draft financial legisla- tion, and the development of individual fund categories. SFAMA positioned itself as an expert point of contact on these and other issues. Public affairs SFAMA representatives had extensive contact with national authorities, politicians, and associations in 2018, with the aim of ensuring optimal frameworks for the Swiss fund and asset management industry. The association was supported in this by an external public affairs specialist.
sFama aCtivities Media work SFAMA’s media relations activities in 2018 included: • • • six communiqués on current issues and SFAMA’s position as well as 12 media releases on the monthly fund market statistics 22 articles and interviews in the print media a media conference on the topic “25 years of ETFs – a financial innovation now firmly established” various statements in electronic media • • meetings with selected journalists • answering a large number of enquiries from media representatives These resulted in SFAMA being mentioned in around 200 articles in the national and international press and on electronic platforms over the course of the year.
sFama aCtivities Board of Directors Changes Michael Kehl of UBS Global Wealth Management was officially voted onto the Board of Directors at the 2018 Annual General Meeting, having been co-opted to replace Martin Thommen in June 2017. In addition, Patrick Tschumper of Credit Suisse Investor Services was elected to replace Petra Reinhard Keller. Martin Jufer, member of the Group Management Board and Region Head Continental Europe at GAM Holding, was named Vice-President of the Board of Directors. Felix Haldner President Partner Partners Group, Baar, Zug Martin Jufer Vice-President Member of the Group Management Board and Region Head Continental Europe GAM Holding, Zurich André Bantli Managing Director and Head Continental Europe EMEA Retail, BlackRock Asset Management Switzerland AG, Zurich Hans Frey CEO Swisscanto Fund Management Company AG, Zurich Michael Kehl Managing Director and Head IPS GMIC Fund Investment Solutions, UBS Global Wealth Management, Zurich Christoph Ledergerber Managing Director, Vontobel Asset Management AG, Zurich Markus Steiner Managing Director State Street Bank International GmbH, Munich, Zurich branch Nicolas Tschopp General Counsel Pictet Asset Management, Geneva Patrick Tschumper Managing Director, Credit Suisse Investor Services, Zurich André Ullmann Country Head and COO, AXA Investment Managers Switzerland, Zurich 39
sFama aCtivities Executive Board Appointment At its spring meeting, the SFAMA Board of Directors appointed Dr. Diana Imbach Haumüller, Senior Legal Counsel, to the position of Deputy Managing Director with effect from 1 June 2018. Members joining Katja Brunner joined SFAMA as Senior Legal Counsel in June 2018. She is a proven specialist in regulatory and governance issues with a comprehensive track record in legal matters relating to the financial markets. Members leaving Thomas Zimmerli, Senior Legal Counsel and Deputy Managing Director, and Delphine Calonne, Senior Legal Counsel, left the association in 2018. We would like to take this opportunity to thank them for their hard work on behalf of the financial industry and wish them every success in their future endeavors. Markus Fuchs Managing Director Diana Imbach Haumüller Senior Legal Counsel, Deputy Managing Director Lorenz Arnet Senior Counsel Katja Brunner Senior Legal Counsel Stephan Heckendorn Senior Counsel Annina Brusil Support Eva De Matteis Communications Jasmin Fraefel Assistant 40
sFama members Membership 187 members SFAMA’s membership has more than doubled since 2004 and stood at 187 at the end of 2018. This trend shows that SFAMA membership is appreciated and has become established as a hallmark. New associate members • Caerus Investment Management (UK) Ltd • Nahmani Grunder & Cie Ltd • Northern Trust Switzerland Inc. New active members • BlueStar Investment Managers SA • Banca Zarattini & Co. SA • Baloise Real Estate Management Ltd • Franklin Templeton Switzerland Ltd • Mont-Fort Funds AG • Quantica Capital Ltd • Systematic Investment Management AG Membership structure The breakdown of SFAMA’s members is as follows: Membership structure as at end-2018 Status Fund management companies of Swiss collective investment schemes Investment companies with variable capital (SICAVs) Representatives of foreign collective investment schemes Asset managers Number 35 2 58 63 8 55 Custodian banks Associate members Double counts Source: SFAMA 41
appendix List of abbreviations Alternative investment fund Alternative Investment Fund Managers Directive Collective Investment Schemes Ordinance Capital Markets Union European Central Bank European Fund and Asset Management Association EFAMA European Supervisory Authorities European Securities and Markets Authority Exchange-traded fund European Union Federal Council Federal Department of Finance Financial Institutions Act Financial Institutions Ordinance Swiss Financial Market Supervisory Authority FINMA Financial Services Act Financial Services Ordinance Financial Market Infrastructure Ordinance Swiss Federal Tax Administration General Data Protection Regulation Global Investment Performance Standards Initial coin offering International Organization of Securities Commissions Key Information Document Limited qualified investor fund Markets in Financial Instruments Directive Markets in Financial Instruments Regulation Packaged Retail Investment and Insurance-based Investment Products Questions & answers SFA investment yield indicator Swiss Funds & Asset Management Association SFAMA Swiss Fund Data AG State Secretariat for International Finance SIF SIX Swiss Exchange Swiss National Bank Supervisory organization Undertakings for Collective Investment in Transferable Securities AIF AIFMD CISO CMU ECB EFAMA ESAs ESMA ETF EU FC FDF FinIA FinIO FINMA FinSA FinSO FMIO FTA GDPR GIPS® ICO IOSCO KID L-QIF MiFID MiFIR PRIIPs Q&A SFA ARI® SFAMA SFD SIF SIX SNB SO UCITS 42
The present English version is a translation of the original document in German. Publisher Swiss Funds & Asset Management Association SFAMA Dufourstrasse 49 P.O. Box CH-4002 Basel Phone +41 61 278 98 00 www.sfama.ch email@example.com Editorial team PR-Box GmbH Seraina Conrad Sonnmattstrasse 1 CH-5304 Endingen Phone +41 56 544 71 90 www.pr-box.ch firstname.lastname@example.org R-Consult Markus Röthlisberger Bibersteinerstrasse 4 CH-5022 Rombach Phone +41 62 827 37 47 email@example.com Layout Dieter Aegerter Kettenackerweg 17 CH-4125 Riehen Phone +41 79 653 13 92 firstname.lastname@example.org Print Druckerei Bloch AG Talstrasse 40 4144 Arlesheim Phone +41 61 701 19 00 www.blo.ch email@example.com 43