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Investment Banking March 26, 2019 Sustainable Impact Investing – Investing for a better world MSCI World IMI Select Sustainable Impact Top 20 Index

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  • Investment Banking

    March 26, 2019

    Sustainable Impact Investing –Investing for a better world

    MSCI World IMI Select Sustainable Impact Top 20 Index

  • 2

    Executive Summary MSCI World IMI Select Sustainable Impact Top 20 Index

    – Strong growth seen in the last three years is expected to accelerate further in ESG and sustainability related financial products.

    – Profound market studies show that investors do not have to give up financial returns but could even generate higher returns when investing based on ESG criteria.

    – Impact investing goes further than ESG. Impact investments provide capital to address social and/or environmental issues.

    – Target 10 global environmental and social challenges as defined by the UN Sustainable Development Goals with a single investment.

    – The “MSCI World IMI Select Sustainable Impact Top 20 Index” is a MSCI index and its methodology is built upon the company’s 30 years of experience in ESG research and sustainability investments.

    – Index constituents are selected using MSCI’s research to diligently apply ESG ratings, industry exclusions, controversy scores and proven financial quality scores.

    – The custom index outperforms its parent index YTD as well as over a five, three, two and one year time horizon

  • 3

    Sustainable InvestingIs moving mainstream and is on the rise

    Global SRI Market:SRI market estimated worth 2018:22.8 trillion US Dollars2

    Blackrock: ESG ETF AuM to grow from $25bn.in 2018 to $400 bn. by 20283

    Sustainable Investing (Socially Responsible Investing - SRI) refers to investments which seek to consider social and environmental aspects and with the aim to generate satisfactory returns for investors

    In the US: SRI investing rose 33% between 2014 - 2016 to $8.72 trillion4

    Source: 1 www.jpmorgan.com; 2 The Forum for Sustainable and Responsible Investment: «2016 Report on U.S. Sustainable, Responsible and Impact Investing Trends»3 www.blackrock.com/file/Index

    PresenterPresentation NotesBaby Boomers: 60-Generation X: 40-60Generation Y / Millenials : 20-40 Generation Z: < 20

    Grafik: Global 3 auf 11 Mrd, 120 ETF

    ESG Grosser Teil (65%) in BondsBlackrock: innerhalb 10 Jahren -> 16 faches AuM

    http://www.jpmorgan.com/http://ir.blackrock.com/file/Index?KeyFile=395440107

  • 4

    Sustainable InvestingReasons for the growth and future regulatory catalyst

    Regulatory Changes

    • The promotion of sustainable investments has been picked up in the European Union with the first legislative proposals

    • In May 2018, the European Commission published proposals for an initial legislative package, and in June 2018, a group of experts set up for operational implementation.

    • Objective: Diversion of private capital into sustainable investments (180 - 270 billion euros investment requirement p. a.)

    Significant uptick in growth of new ESG themed ETF’s and AuM is not just spurred by macroeconomic trends and millennials but also by regulatory changes

    Reasons for the growth in Sustainable investments

    1 2 3

    Macro Economic Trends (e.g. Population growth, demand for food, water,

    infrastructure)5

    86% of millennials feel sustainable investing is more important to them

    than 5 years ago1

    Millennials are poised to receive more than $30

    trillion of inheritable wealth5

    Source: 1 www.ey.com2 Schroders Global Investor Study «Global perspectives on sustainable investing 2017»

    http://www.ey.com/

  • 5

    Sustainable InvestingContribution to financial performance

    1: Khan, Serafeim and Yoon (2015). “Corporate Sustainability: First Evidence on Materiality”2: Boston Consulting Group (2017). “Total Societal Impact: A New Lens For Strategy”3: Deutsche Bank (2012). Sustainable Investing: Establishing Long-Term value and performance4: www.msci.com/esg-investing

    Firms that invest and in improve their performance on environmental, social and governance (ESG) issues exhibit better stock market performance and profitability in the future.1

    Investors make use of ESG to manage risk and to achieve long-term financial performance.4

    Companies outperforming in industry-relevant ESG areas experience higher valuation multiples and margins.2

    Companies with high ESG scores have a lower cost of capital in terms of debt and equity – meaning they bear lower risk.3

    “Impact investing is not charity – investing for good does not mean sacrificing returns” Sustainability factors can be used to

    identify better managed companies with business models that are likely to face headwinds or tailwinds by regulatory, environmental and technological trends.4

    https://www.msci.com/esg-investing

  • 6

    Impact InvestingInvesting for a better world

    What is Impact Investing?1

    • Impact investing refers to investments made into companies with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return.

    • Impact investments provide capital to address social and/or environmental issues.

    PhilanthropyESG InvestingImpactInvesting

    TraditionalInvestments

    1 www.wikipedia.org/impactinvestingIllustration: www.credit-suisse.com/impactinvesting

    www.gsam.com

    Market Return Return + Impact No Financial Return

    Purely profit-oriented Investment Purely socialFinancial aid

    PresenterPresentation NotesImpact investors want to enhance the ESG alignment of their investments

    https://www.investopedia.com/terms/s/sri.asphttps://www.credit-suisse.com/corporate/de/articles/news-and-expertise/impact-investing-a-strategic-choice-201810.htmlhttp://www.gsam.com/

  • 7

    Impact InvestingGrowth of different strategies

    Source: Global Sustainable Investment Review 2016, www.gsi-alliance.org

    PresenterPresentation Noteswww.gsi-alliance.org

  • 8

    Impact InvestingESG Investing

    Impact InvestingMore than ESG

    Using Environmental, Social and Governance factors to evaluate companies on how far advanced there are with sustainability

    Used to enhance traditional financial analysis by identifying potential risks and opportunities to the investor’s possible return

    Objective

    Concerned with the products and services the company produces and its impact to society and the environment

    In addition seeking out investments where a positive impact is of utmost importance

    Objective

    Positive Impact on specific sustainability goals

    Source: www.sustainablefinance.chwww.investopedia.com

    Used to enhance traditional financial analysis by identifying potential risks and opportunities to the investor’s possible return

    Main objective remains the financial performanceMain objective remains the financial performance

    Using Environmental, Social and Governance factors to evaluate companies on how far advanced there are with sustainability

    https://www.investopedia.com/financial-advisor/esg-sri-impact-investing-explaining-difference-clients/

  • 9

    United Nations Sustainable Development Goals (SDG)More than ESG – a better and more sustainable future for all

    Source: www.un.orgwww.msci.com

    • In 2015 the UN set 17 global Sustainable Development Goals to be achieved until 2030 to transform our world.

    • The Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face.

    http://www.un.org/https://www.msci.com/esg-sustainable-impact-metrics

  • 10

    Impact InvestingInvesting for a better world

    More than just ESG, targeted investments

    for a better and sustainable future

    MSCI World IMI Select

    Sustainable Impact Top 20

    Index

    Giving investors the opportunity to

    actively make an impact

    Tackling specific goals that add to a sustainable world

    With a single investment,

    investors support global sustainable development goals

    Research Data by MSCI world leading

    ESG research

    Combining impact investing with

    financial returns

  • 11

    MSCI ResearchWorld leading ESG and sustainability research

    Over 7000 clients worldwide use MSCI ESG Research

    46 of the 50 biggest Asset Managers use MSCI ESG Research (incl. Blackrock)

    - Over 30 years of ESG analysis experience- Over four decades experience as index provider

    Over 100 metrics measuring exposure to ESG-relevant factors

    MSCI ESG Research

    MSCI ESG Metrics

    Global Reach

    Experience

  • 12

    MSCI World IMI Select Sustainable Impact Top 20 IndexA rules-based index for efficient impact investing

  • 13

    HAL

    F-YE

    ARLY

    ADJU

    STM

    ENTS

    Index conceptMSCI World IMI Select Sustainable Impact Top 20 Index

    Half-yearly review of index composition with subsequent rebalancing

    1 Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, South Korea, Netherlands, Norway, New Zealand, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, United States of AmericaSource: MSCI Index Methodology; illustration: Vontobel

    UNIVERSE

    FILTER

    PARENT INDEX: MSCI WORLD INVESTABLE MARKET INDEX

    LIQUIDITY FILTER− Free-float adjusted market cap ≥ USD 500mn − Average daily trading volume ≥ USD 2 million (over the past three months)

    Listed on a stock exchange of a developed country1

  • 14

    United Nations Sustainable Development Goals (SDG)More than ESG

    Source: www.un.orgwww.msci.com

    The UN SDG’s serve as the framework for the selection of the impact themes

    MSCI Research

    - Bundling 17 UN SDG’s into 10 actionable impact themes

    http://www.un.org/https://www.msci.com/esg-sustainable-impact-metrics

  • 15

    MSCI World IMI Select Sustainable Impact Top 20 Index

    MSCI World IMI Select Sustainable Impact Top 20 IndexTargeted impact investing

    Selecting companies that generate ≥ 50% of their revenues from one of the 10 sustainable impact themes

    Source: MSCI ESG ResearchEnvironmental Metrics based on MSCI ESG Research CleanTechMetrics

    Social ImpactEnvironmental Impact

    Actionable Impact Themes

    EmpowermentClimateImpact

    Environment

    Alternative Energy

    Energy Efficiency

    GreenBuilding

    Pollution Prevention

    Sustainable WaterNutrition

    Major Disease Treatment

    Sanitation

    Education

    SME Finance

    Poverty & Health

    Identifying companies that address major social & environmental challenges as defined by the UN Sustainable Development Goals

  • 16

    HAL

    F-YE

    ARLY

    ADJU

    STM

    ENTS

    Index conceptMSCI World IMI Select Sustainable Impact Top 20 Index

    Half-yearly review of index composition with subsequent rebalancing

    1 Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, South Korea, Netherlands, Norway, New Zealand, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, United States of AmericaSource: MSCI Index Methodology; illustration: Vontobel

    UNIVERSE

    FILTER

    SUSTAINABLEIMPACT

    THEMES

    PARENT INDEX: MSCI WORLD INVESTABLE MARKET INDEX

    LIQUIDITY FILTER− Free-float adjusted market cap ≥ USD 500mn − Average daily trading volume ≥ USD 2 million (over the past three months)

    Sustainable Water

    SME Finance

    Sanitation Alternative Energy

    Pollution Prevention

    Energy Efficiency

    Nutrition

    Green Building

    Major Disease treatment

    Education

    ESG CRITERIA

    &CONTROVERSIES

    Listed on a stock exchange of a developed country1

    Each company generates at least 50% of revenue in one of the 10 sustainable impact themes

    MSCI ESG Rating ≥ A

    MSCI ESG controversies: Excluding companies that are involved in at least one major

    controversy

    Business Involvement : Excluding Excluding non-ESG

    conform industries

  • 17

    Business Involvement ExclusionsMSCI Controversies

    MSCI ESG Controversies and ExclusionsScreening & Filtering

    Excluding non-ESG conform industries

    Covering five categories of stakeholder impact

    Environment Customer Human Rights

    Labor Rights & Supply Chain

    Governance

    Animal Testing

    Oil & Gas

    Thermal Coal

    Fossil Fuel Reserves

    GMOs

    Nuclear Power

    PredatoryLending

    Alcohol &Tobacco

    NuclearWeapons

    Conventional Weapons

    CivilianFirearms

    Controversial Weapons

    Source: MSCI Index Methodology

    Excluding companies that are involved in at least one major controversy

  • 18

    HAL

    F-YE

    ARLY

    ADJU

    STM

    ENTS

    Index conceptMSCI World IMI Select Sustainable Impact Top 20 Index

    Half-yearly review of index composition with subsequent rebalancing

    1 After deduction of country-specific withholding taxes; 2 Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, South Korea, Netherlands, Norway, New Zealand, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, United States of AmericaSource: MSCI Index Methodology; illustration: Vontobel

    UNIVERSE

    FILTER

    SUSTAINABLEIMPACT

    THEMES

    INDEX

    PARENT INDEX: MSCI WORLD INVESTABLE MARKET INDEX

    LIQUIDITY FILTER− Free-float adjusted market cap ≥ USD 500mn − Average daily trading volume ≥ USD 2 million (over the past three months)

    QUALITY FILTER

    Sustainable Water

    SME Finance

    Sanitation Alternative Energy

    Pollution Prevention

    Energy Efficiency

    Nutrition

    Green Building

    Major Disease treatment

    Education

    ESG CRITERIA

    &CONTROVERSIES

    Listed on a stock exchange of a developed country2

    Each company generates at least 50% of revenue in one of the 10 sustainable impact themes

    MSCI ESG Rating ≥ A

    MSCI ESG controversies: Excluding companies that are involved in at least one major

    controversy

    Statistical method by MSCI to identify companies with a high quality score based on three financial variables

    Return on equity Debt-to-equity EarningsVariability

    Business Involvement : Excluding Excluding non-ESG

    conform industries

    For each impact theme the two companies with the highest quality scores are chosen

    20 constituents in the index; equally weighted at 5% each

  • 19

    Back Casting MSCI World IMI Index vs. Sustainable Impact Top 20 Index

    MSCI World IMI Index

    MSCI World IMI Select Sustainable Impact Top 20 Index

    Total Return* (%) 7.4 10.3Total Risk (%) 11.2 12.1Sharpe Ratio 0.59 0.78Historical Beta 1.00 0.91No of Stocks** 5928 20

    Key Metrics

    Source: MSCI Inc. March 2019* gross returns annualized in USD** Monthly Averages

    MSCI World IMI Index

    MSCI World IMI Select Sustainable Impact Top 20 Index

    YTD 11.5 12.71 Yr 0.8 7.83Yr 13.2 13.85Yr 7.0 9.9

    Performance (%)

    80.00

    90.00

    100.00

    110.00

    120.00

    130.00

    140.00

    150.00

    160.00

    170.00

    180.00

    26. Nov 13 26. Nov 14 26. Nov 15 26. Nov 16 26. Nov 17 26. Nov 18

    MSCI World IMI Select Sustainable Impact Top 20 Index (USD)MSCI World IMI (USD)

    USD

    Legal Notice: Past performance is not a reliable indicator of future performance

  • 20

    Indicative Initial CompositionMSCI World IMI Select Sustainable Impact Top 20 Index

    Sources: MSCI & Bloomberg, 8 March 2019

    COMPANY SECTOR COUNTRY CURRENCY WEIGHTING

    First Solar Inc Alternative Energy US USD 5%

    Benesse Holdings Inc. Education JP JPY 5%

    Pearson PLC Education UK GBP 5%

    Ormat Technologies Inc Energy Efficiency US USD 5%

    Rockwell Automation Inc Energy Efficiency US USD 5%

    Vmware Inc Energy Efficiency US USD 5%

    Berkeley Group Holdings PLC Green Building UK GBP 5%

    Crest Nicholson Holdings PLC Green Building UK GBP 5%

    Amgen Inc. Major Disease Treatment US USD 5%

    CSL Limited Major Disease Treatment AU AUD 5%

    Novo Nordisk A/S Major Disease Treatment DK DKK 5%

    Shionogi & Co Ltd Major Disease Treatment JP JPY 5%

    Hormel Foods Corp. Nutrition US USD 5%

    Mowi ASA Nutrition NO NOK 5%

    Johnson Matthey PLC Pollution Prevention UK GBP 5%

    Tenneco Inc. Pollution Prevention US USD 5%

    Procter & Gamble Co. Sanitation US USD 5%

    TOTO Ltd Sanitation JP JPY 5%

    Badger Meter Inc. Sustainable Water US USD 5%

    Franklin Electric Co. Sustainable Water US USD 5%

    PresenterPresentation NotesKeine: SME Finance - funding of small and medium-sized enterprises

  • 21

    Index CompositionMSCI World IMI Select Sustainable Impact Top 20 Index

    ENVIRONMENTAL IMPACT

    In FY 2017, FIRST SOLAR, INC. derived an estimated 100.0 percent of revenues from supplying alternative energy or providing products or services that support alternative energy. First Solar provides solar technology and services such as equipment, construction, design, and maintenance of solar plants.

    SOCIAL IMPACT

    In FY 2017, Benesse Holdings, Inc. derived an estimated 67.06 percent of revenues from education services and related products. The company is primarily involved in the business of education, language and global leadership training.

    ENVIRONMENTAL IMPACT

    Ormat Technologies generates power from geothermal facilities and implements energy recovery technologies that convert waste heat from the exhaust of natural gas turbine-driven compressors. In addition, the company manufactures products for photovoltaic and energy recovery systems. It generates approximately 84% of its revenue in alternative energy solutions.

    SOCIAL IMPACT

    In FY 2017, PEARSON PLC derived an estimated 100.0 percent of revenues from education services and related products. The company offers educational courses.

    Benesse Holdings Inc.First Solar Inc. Ormat Technologies Inc.

    Pearson PLC

    Source: MSCI Research

    ALTERNATIVEENERGY

    EDUCATIONEDUCATION ENERGY EFFICIENCY

  • 22

    Index CompositionMSCI World IMI Select Sustainable Impact Top 20 Index

    ENVIRONMENTAL IMPACT

    In FY 2017, ROCKWELL AUTOMATION, INC. derived an estimated 62.78 percent of its revenues from products or services that help reduce energy consumption. Rockwell Automation provides automation solutions for various manufacturing industries. These products can be found under the Architecture & Software and Control Products & Solutions segments.

    ENVIRONMENTAL IMPACT

    In FY 2017, VMWARE, INC. derived an estimated 46.15 percent of its revenues from products or services that help reduce energy consumption. The company engages in the development and application of technologies providing cloud, compute, mobility, networking, and security infrastructure software.87.7% of revenues are derived from activities within the impact theme energy efficiency.

    ENVIRONMENTAL IMPACT

    In FY 2017, CREST NICHOLSON HOLDINGS PLC derived an estimated 49.0 percent of revenues from the operation, management, development, or construction of green-certified properties. Crest Nicholson Holding owns and develops properties with ecological enhancements or protection. Approximately 60% of revenues are generated in the impact theme category green building.

    SOCIAL IMPACT

    The Berkeley Group Holdings plc engages in the residential-led and mixed-use property development activities in the UK. Our research uncovered evidence indicating the company has at least some minimal involvement in affordable real estate but its disclosure regarding this activity was very limited. We have therefore estimated FY 2017 revenue at a default minimum level of 0.05%.The company generates around 52% of revenue in the impact theme category green building

    VMware Inc.Rockwell Automation Inc.

    Crest Nicholson Holdings PLC

    Berkeley Group Holdings PLC

    Source: MSCI Research

    ENERGY EFFICIENCY GREEN BUILDINGENERGY EFFICIENCY GREEN BUILDING

  • 23

    Index CompositionMSCI World IMI Select Sustainable Impact Top 20 Index

    SOCIAL IMPACT

    Amgen is a biotechnology company focused on developing and manufacturing drugs primarily for the treatment of cancer and kidney diseases. In FY 2017, the company derived approximately 74.79% of its revenue from drugs used for the treatment of chronic heart failure, which is among the major diseases of the world. The company derived approximately USD 16,936 million from orphan drugs used for the treatment of diseases such as juvenile rheumatoid arthritis

    SOCIAL IMPACT

    In FY 2018, CSL LIMITED derived an estimated 60.23 percent of its revenues from products for the treatment or diagnosis of major diseases of the world. This includes drugs used for the treatment of diseases such as autoimmune disorders, blood disorders, and influenza.

    SOCIAL IMPACT

    Shionogi & Co., Ltd. engages in the research, development, manufacture, and marketing of pharmaceuticals, diagnostic reagents, and medical devices. In FY 2016, the company derived approximately 59.23% of its revenues from drugs for the treatment of diseases such as hypertension, HIV and respiratory infections. The company derived approximately USD 684.14 million of its revenues from orphan drug for the treatment of hypercholesterolemia.

    SOCIAL IMPACT

    Novo Nordisk A/S is a healthcare company that engages in the discovery, development, manufacture, and marketing of pharmaceutical products worldwide. In FY 2017, the company derived approximately 91.22% of its revenue from the sale of drugs for the treatment of diseases such as diabetes and hemophilia. The company derived approximately USD 1,480.79 million from orphan drugs used to treat hemophilia and Noonan syndrome.

    CSL LimitedAmgen Inc. Shionogi & Co. Ltd.Novo Nordisk A/S

    Source: MSCI Research

    MAJOR DISEASE TREATMENT MAJOR DISEASE TREATMENTMAJOR DISEASE TREATMENT MAJOR DISEASE TREATMENT

  • 24

    Index CompositionMSCI World IMI Select Sustainable Impact Top 20 Index

    SOCIAL IMPACT

    Hormel Foods Corporation is an American company that sells meat and food products. In FY 2017, the company derived approximately 78.15% of its total revenues from the sale of basic food products such as microwaveable meals, meat and poultry products.

    SOCIAL IMPACT

    In FY 2017, MARINE HARVEST ASA derived an estimated 95.66 percent of its revenues from the sale of basic food products. This includes products such as smoked salmon, whole salmon and fresh fish prepared meals.

    ENVIRONMENTAL IMPACT

    Tenneco manufactures emissions control products under its Clean Air products & systems segment.

    The firm generates approximately 70.3% of revenue within the pollution prevention category.

    ENVIRONMENTAL IMPACT

    Johnson Matthey manufactures catalysts deployed in emission control systems, as well as components for batteries and fuel cells under new businesses.

    The company generates revenue of approximately 62.5% in pollution prevention activities and around 4.2% in the energy efficiency category.

    Mowi ASAHormel Foods Corp. Tenneco Inc.Johnson Matthey PLC

    Source: MSCI Research

    NUTRITION POLLUTION PREVENTION

    NUTRITION POLLUTION PREVENTION

  • 25

    Index CompositionMSCI World IMI Select Sustainable Impact Top 20 Index

    SOCIAL IMPACT

    In FY 2018, THE PROCTER & GAMBLE COMPANY derived an estimated 50.08 percent of its revenues from the sale of basic sanitary products. The Procter & Gamble Company manufactures personal care and household products. In FY 2018, the company derived approximately 50.08% of its revenue from the sale of sanitation products such as toothbrush, shampoo, and detergents.

    SOCIAL IMPACT

    Toto is a manufacturer of sanitary ware with products such as toilets, washbasins, urinals, and showers. In FY 2016, the company generated an estimated 60% of revenues from sanitation related products.

    ENVIRONMENTAL IMPACT

    In FY 2017, FRANKLIN ELECTRIC CO., INC. derived 66.55 percent of its revenues from products or services that resolve water quality and supply issues. The company manufactures water pumping systems.

    ENVIRONMENTAL IMPACT

    In FY 2017, BADGER METER, INC. derived an estimated 77.84 percent of its revenues from products or services that resolve water quality and supply issues. The company manufactures smart metering devices under its Municipal Water segment and flow instrumentation products for waste water treatment.

    TOTO Ltd.Procter & Gamble Co. Franklin Electric Co., Inc.

    Badger Meter Inc.

    Source: MSCI Research

    SANITATION SUSTAINABLEWATER

    SANITATION SUSTAINABLE WATER

  • 26

    Initial weightings by currencies and categoriesMSCI World IMI Select Sustainable Impact Top 20 Index

    Weightings by sectorWeightings by currency

    Sources: Vontobel & Bloomberg, 8 March 2019

    15.00%

    15.00%

    5.00%

    15.00%5.00%

    5.00%5.00%

    5.00%

    5.00%

    25.00%

    Consumer Staples Health Care

    Pharmaceuticals Industrials

    Technology Communications

    Materials Energy

    Utilities Consumer Discretionary

    50%

    15%

    5%

    5%

    20%

    5%

    USD JPY AUD NOK GBP DKK

  • 27

    Product detailsMSCI World IMI Select Sustainable Impact Top 20 Index

    Term sheets with the legally binding information and other details can be downloaded at any time from www.derinet.ch. All information is indicative and subject to change.Please note: The MSCI World IMI Select Sustainable Impact Top 20 Index provided and calculated by MSCI.

    Details page

    Index currency USD

    SSPA product type Tracker Certificate (1300)

    Underlying MSCI World IMI Select Sustainable Impact Top 20 Index (Index currency USD)

    Initial fixing / payment date 22 March 2019 / 29 March 2019

    Maturity Open end

    Management fee 1.20% p.a.

    Issuer Vontobel Financial Products Ltd., DIFC Dubai(is not subject to any prudential supervision and has no rating)

    Guarantor Vontobel Holding AG, Zurich (Moody’s A3)

    PRODUCT DETAILS

    Currency CHF USD EURISIN / symbol CH0464684916 / ZMSCCV CH0464685178/ ZMSCUV CH0464685160/ ZMSCEV

    Issue price CHF 101.50(CHF 1.50 front-load fee included)

    USD 101.50(USD 1.50 front-load fee included)

    EUR 101.50(EUR 1.50 front-load fee included)

    Spot reference price (index level) USD 100.00 USD 100.00 USD 100.00

    Details page Details page

    Blog postIndex Guidelines

    Termsheet Termsheet Termsheet

    http://www.derinet.ch/https://derinet.vontobel.com/CH/EN/Product/CH0464684916https://derinet.vontobel.com/CH/EN/Product/CH0464685178https://derinet.vontobel.com/CH/EN/Product/CH0464685160https://derinet.vontobel.com/CH/EN/blog/article/impact-investing-social-ecological-and-financial-returns-in-onehttps://derinet.vontobel.com/CH/Download/AssetStore/bce2811e-5b4f-4259-bb67-b0a1928c427b/Index_Methodology_MSCI%20World%20IMI%20Select%20Sustainable%20Impact%20Top%2020.pdfhttps://derinet.vontobel.ch/pdf_ts/CH0464684916e.pdfhttps://derinet.vontobel.ch/pdf_ts/CH0464685178e.pdfhttps://derinet.vontobel.ch/pdf_ts/CH0464685160e.pdf

  • 28

    VontobelA leader in governance and sustainability

    Sustainability is an integral part of Vontobel’s corporate culture:

    …in 2018 achieved “Prime Status” by the ISS-oekom in the international sustainability ranking

    … is a founding member of the Swiss Sustainable Finance (SSF) association and won numerous international awards

    for your sustainable investment solutions

    …is climate neutral since 2009 and the founding member of the Swiss Climate Foundation

    …is a member of the Corporate Support Group of the International Committee of the Red Cross (ICRC)

    Vontobel…

    Learn more: vontobel.com/sustainability-report

    PresenterPresentation NotesIn the international sustainability rating of the agency ISS-oekom in 2018Vontobel ranks among the top 6% in the peer group of 44 asset managers worldwide.

  • 29

    Efficient way to invest in a better and sustainable worldMSCI World IMI Select Sustainable Impact Top 20 Index

    – The global ESG investment industry is growing at a rapid pace but is still at an early stage

    – Impact investing takes ESG one step further by seeking investments that have a specific positive impact and differentiates itself from simple ESG investment offerings.

    – Impact investing is not charity – investing for good does not mean sacrificing returns

    – 11 years to go for the 17 UN SDG’s to be achieved. Meeting them will not be possible without the significant capabilities of and capital from the private sector – it is time to make an impact now

    – The MSCI World IMI Select Sustainable Impact Top 20 Index contain only companies that are generating at least 50% of revenues in one sustainable impact theme.

    – The dynamic Index ensures that the theme is replicated in a diversified, transparent and strictly rule-based manner at all times.

    By investing in the certificate on the index investors make an impact in a better and sustainable world while aiming to generate satisfactory returns

    Source: www.gettyimages.ch

  • 30

    Legal information

    This publication is for information purposes only and does not represent an investment recommendation or advice and contains neither an offer nor aninvitation to make an offer. It does not replace the qualified advice necessary before any purchase decision, in particular as regards all associated risks.

    This publication was drawn up by our Financial Products & Distribution organizational unit and is not the result of financial analysis. The Directives on theIndependence of Financial Research issued by the Swiss Bankers Association do not apply to this publication. Any content in this publication originating fromother organizational units at Vontobel or third parties is marked as such with reference to the source. The legally applicable product documentation (listingprospectus) consists of the definitive term sheet with the final terms and the issue program registered with SIX Swiss Exchange. These documents and thebrochure “Special Risks in Securities Trading” may be obtained free of charge at www.derinet.ch or from Bank Vontobel AG, Financial Products, CH-8022Zurich (tel. +41 58 283 78 88). Past performance must not be taken as an indication or guarantee of future performance. Structured products are not deemedcollective investment schemes within the meaning of the Federal Act on Collective Investment Schemes (CISA) and are therefore not subject to the approvalor supervision of the Swiss Financial Market Supervisory Authority FINMA. The value of structured products may depend not only on the performance of theunderlying, but also on the creditworthiness of the issuer. The investor is exposed to the risk of the issuer / guarantor defaulting. This publication and thefinancial products outlined herein are not intended for persons subject to a jurisdiction which limits or prohibits the sale of financial products or thedissemination of this publication and/or the information contained herein. All information is provided without a guarantee.

    March 2019 ©Bank Vontobel AG. All rights reserved.

    A VONCERT [SSPA product type: tracker certificate (1300)] essentially tracks the performance of the underlying. When investing in a VONCERT, the samerisks must largely be taken into account as for a direct investment in the underlying, in particular the related foreign currency, market and price risks.VONCERTs do not yield current income and have no capital protection.

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