ANNUAL REPORT 2016 :17Ethics & Professionalism for the Finanzplatzswiss.cfa

CFA Switzerland aims to be the leader in fostering the highest standards of

knowledge, professionalism, and integrity in the investment management business

in Switzerland.

It represents more than 3’000 Members to promote the values represented by

the CFA® designation, provide continuing education, support CFA candidates, and

strengthen the network between Members.

3 SPONSORSHIP

CFA Switzerland proudly acknowledges sponsorship from the following partners. They give us the means to do what we do. Please consider them, we are happy to make introductions.

CONFERENCE SPONSORS: SPONSORING PARTNERS:

4 TABLE OFCONTENTS

The Annual Report has three parts – the Activity Report, the Society Financialsand the Ballot Materials.

ACTIVITY REPORT

The Big Picture

Message from the President

Board of Directors

Advocacy

Society Volunteers Hall of Fame

135 Volunteers

Public Awareness & Communication

Conferences

Continuing Education

Membership

Candidates

University Relations

Social Events

Society Outlook

SOCIETY FINANCIALS

Treasurer’s Report

Auditor’s Report

Investment Report

BALLOT MATERIALS

Notice of Annual General Meeting

Ballot Form

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ACTIVITY REPORT

THE BIG PICTURE

CFA Switzerland is the alumni organisation of CFA Institute in Switzerland, representing everything that CFA stands for in the Swiss market.

CFA Institute rests on three pillars: the Board of Governors, manage­ment and member societies. Societies keep their autonomous struc­tures even after the merger in 1990 of its precursor institutions into what is now known as CFA Institute.

It is important to know that CFA Switzerland – like all 149 local socie­ties – is a separate entity of CFA Institute, which shares visions with CFA Institute, while at the same time ensuring that there is true local content & flavour. CFA Institute now has over 142’000 Members and cannot reach its vision and missions without the support of local societies.

Societies and CFA Institute have principles that are common to both. For instance, CFA Institute and CFA Switzerland share a primary obli­gation to serve the lifelong professional needs of our collective mem­bership by delivering products and services of the highest quality and communicating directly with our respective Members. Further, CFA Institute and CFA Switzerland strive collectively and individually to maintain and advance the standards of ethics and professional conduct in the investment community globally, regionally and locally in Switzerland.

At the same time, it is important not to forget the differences. Primarily, CFA Institute is global and is responsible for the CFA® programme as well as other certifications and credentials (e.g. CIPM and CFA Insti­tute Investment Foundations). CFA Switzerland on the other hand fo­cuses on the local market, local Members and educational products and services that place the emphasis on local issues, regulations and needs and provides local Members an opportunity to volunteer to develop their skills further and to network.

CFA Societies by Members exclusive of Society specific membership categories, such as Candidate Members

Global Pioneers: First three Societies ad mitted to CFA Institute outside of Americas by year of admission

Society Members

1 New York 9,922

2 UK 9,915

3 Toronto 9,584

4 Hong Kong 6,604

5 Boston 5,610

6 Chicago 4,469

7 San Franciso 3,451

8 Singapore 3,373

9 Switzerland 2,894

10 Montreal 2,577

Society Year

1 Bermuda 1989

2 Hong Kong 1994

3 Switzerland 1997

6 MESSAGE FROM THE PRESIDENT

Peter Neumann CFAPresident

Dear Members,

We are closing another successful year for CFA Society Switzerland. We continue to extend our reach with candidates, Members as well as the broader community. For candidates we offered info events, supported them in their exam preparation with 4 day intensive review courses and mock exams plus we celebrated with them at the traditional post exam refreshments and award ceremonies. We also continued to work closely with Switzerland’s key Universities and the Global Research Challenge broke a new record with 29 teams participating. Our Members continued to join and rate our regular CE events highly and enjoyed 24 fun social events that included runs, after work drinks, wine tastings, summer barbecue, etc. and our flagship event, the forecast dinner. We extended our advocacy reach via a review of the Minder initiative, active participation in European advocacy workshops and a comment letter to the Swiss government regarding the Fintech sector opportunity. And last but not least, we received excellent press coverage, especially since we conduct the Switzerland Financial Market Survey (CS­CFA indicator) jointly with Credit Suisse. Not to forget, we managed to do all this while achieving a small profit, something that is really appreciated after some years of losses. Thanks a lot to all of you for active participation!

Good news is as well that we are reaching new records regarding the number of Members in CFA Society Switzerland. End of July we had already 2865 regular membership renewals (up 6% vs last year). Including candidate Members. This means we will pass 3000 Members early in the new FY. This new membership record goes hand­in­hand with better outreach to our Members. In the 2017 Annual Membership survey we managed to get a high response rate (11% vs 8% last year and 9% compared to the rest of the world) and maintain high overall satisfaction values in line with the past two year results and satisfaction in the rest of the world. We really value this survey as it gives us broad based feedback and helps us to improve our value propositions. Thanks a lot to everyone who participated!

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As of January we have established a new partnership with Credit Suisse to jointly conduct the Switzerland Financial Market Survey (CS­CFA indicator). The independent monthly survey covers the economic expectations of a broad group of financial analysts and represents a widely used Swiss market sentiment indicator. Financial and non­Financial press coverage has been outstanding with 20­30 articles quoting the CS­CFA indicator every month since its inception including all key publications in the German, French and Italian speaking parts of Switzerland. For CFA Switzerland, this is an excellent tool to further drive broader brand awareness regarding the CFA designation in line with our strategy to get a bolder voice in the Swiss market.

Over the past year we have strengthened collaboration with the Swiss authorities with the objective of intensifying cooperation for the benefit of fair and transparent markets. For example we joined the annual workshop of the investigative teams of SIX Exchange Regulation and FINMA for discussions, presentations and case studies for the first time. This year’s conference was special in that outsiders were invited to contribute for the first time and Rhodri Preece CFA of CFA Institute and Florian Esterer CFA, Past President of CFA Switzerland and Head of AM Equities at Bank J. Safra Sarasin joined as our representatives. Rhodri talked about European regulation covering market communication and introduced the CFA Institute Code & Standards, which binds all Members and CFA candidates in Switzerland and worldwide. Florian shared his experience gained through frequent interactions with company management teams. The presentation triggered a lively discussion of current market practices in Switzerland, which sometimes deviate from best practice.

Some words on Continuing Education (CE): We all agree that to build a profession and improve outcomes for investors, it is a responsibility for us in the profession to stay current and demonstrate a measure of competence, which is part of the CFA Institute Code of Ethics. We plan to move from a pure input­based model (counting credits) to an outcome­based approach where Members define a learning objective and structure a learning program accordingly. This change together with technical advancement should make CE easier and more attractive for Members. Personally, I think it is just a question of time until regulators will make continuous professional development a mandatory element, so let us as CFA community facilitate this move and make it a competitive advantage for CFA Charterholders.

From an organisational standpoint we have made significant progress to move to ONE CFA community which plays the global scale of CFA Institute and delivers locally through our CFA society to serve Members in the Swiss market. Paul Smith CFA as CFA Institute CEO has embarked on this journey on his arrival and in the course of last year, we really saw it come alive and deliver benefits. Working as one team to deliver member value, foster market integrity and develop future finance professionals makes a significant difference. The ever closer cooperation with CFA Institute also helped to put the Society on a more solid financial foundation going forward by confirming a significant four year financial support from CFA Institute plus contingent funding. Contingent funding provides us with risk taking capacity from CFA Institute by covering potential losses of new society initiatives (e.g. limited participation in our recently created intense CFA exam preparation course or if a conference were to fall through). This overall agreement will ensure that we can continue building new value propositions while at the same time remaining financially sound as per our status as a non­profit organization.

Last but not least. I want to use the opportunity to thank our society and institute volunteers. You are the backbone of the Society day in, day out thanks to your initiative, energy, passion and valuable time commitments! None of our propositions would be possible without your hard and dedicated work. The list of volunteers is long and the variety of ongoing activities really large. One of them – Geneva based volunteer Frederic Lebel CFA – is just about to end his term as Chair of the Board of Governors of CFA Institute, working closely with the leadership team of CFA Institute to shape the future of our global community. Switzerland and the Swiss CFA community needs to continue to play it’s important role among the top ten CFA societies globally!

I am looking forward to another exciting year with the CFA Society of Switzerland.

Yours,

Peter Neumann CFA President

8 BOARD OF DIRECTORS

The Board guides the Society’s strategy in pursuit of its mission. It is composed of volunteers serving for a term of one year. Re­election is possible without limits except for the President and the Vice President, whose tenures are limited to two consecutive terms.

PETER NEUMANN CFA, PRESIDENT

Peter is Global Director Financial Planning & Analysis at Markem­Imaje in Geneva. Previously he has been regional CFO at Ansell in Brussels leading the EMEA & APAC Finance & Accounting organization. Before,

he held various senior finance positions at Procter & Gamble, including managing the global supply chain Finance team, the business planning group for one region, the finance team for one major luxury brand, the M&A strategy for P&G’s luxury business and global controlling of the packaging purchasing organization. He started his career at J.P. Morgan in 1994 where he completed a banking training program leading to the German banking degree “Bankkaufmann”. Peter also holds two degrees from the University of Passau: an MBA as well as a Master of Computer Science. He is a German citizen and has two daughters. Peter serves on the Board since March 2011.

PABLO AMUCHASTEGUI CFA,VICE PRESIDENT

Pablo is a Financial Analyst for the World Trading Group of Cargill International SA. In the past he worked as a research analyst in the construction of glo bal equity indices for MSCI, both in the USA and Switzerland.

Pablo started his career at Ford Credit Argentina’s Finance department. He holds a bachelor degree in Business Administration from University of Buenos Aires, a Master Degree in International Management from HEC Lausanne and a Quantitative Finance Certifi cate (CQF). Pablo is a Swiss from abroad and Argentine citizen, and has two children. A Charterholder since 2007, Pablo is serving the Society as a volunteer since 2009 and joined the Board in 2013.

FLORIAN ESTERER CFA,PAST PRESIDENT

Florian Esterer CFA is Head Asset Manage­ment Equities at Bank J. Safra Sarasin where he is responsible for a team managing sus­tainable equity strategies for insti tutional clients and funds. Previously he was a senior

portfolio manager at MainFirst, responsible for quantitative invest ment strategies, and he was a member of senior management at Swisscanto Asset Management as Head of Global Equities. Before joining Swisscanto, he worked as a consultant for Boston Consulting Group, established

two technology enterprises, worked as a ven ture capitalist and as a portfolio manager for small cap European technology companies at an independent asset management firm in Switzerland. Florian joined the Board in 2009 and served as President from 2014, after being Vice­President. Also, he served as Head of the University Relations Committee and initiated the CFA Investment Research Challenge in Switzerland.

PATRICK RANZIJN CFA,SECRETARY

Patrick is Managing Partner at Orange Cherry Venture Capital, a boutique VC with an active role in its portfolio companies, e.g. Patrick is CEO/CFO of several companies, as well as actively engaged with numerous

other investments. He was global co­ lead of products and finance education at UBS (authoring their books for several business divisions and programs). He previously served as MD, CEO and senior trader at All Options Helvetia AG with over two decades of trading and capital markets experience. Patrick is Vice President of the Dutch Business Round Table, chair of the CAIA Switzerland chapter, member of the Education Advisory Committee of CFA Institute and chair of its Standards & Advocacy subcommittee. He is active in other foundations too. His main areas of interest include: equity derivatives, alternative investments, high frequency trading, transfer pricing and big data. He serves on the Board since 2014. 

ULRIKE KAISER-BOEING CFA,TREASURER

Ulrike Kaiser­Boeing CFA is in charge of Client Relations at Carnegie Fund Services Limited in Geneva. Prior to this, she worked at Bank SYZ as product specialist for alternative funds and covered UK­based global distributors for

the long­only and alternative funds of SYZ. Before joining SYZ Group she was heading the Swiss Branch of Candriam (formerly Dexia AM), in charge of the business development for institutional and wholesale clients. Prior to this, she worked as an equity analyst and later as a relationship and project manager in the institutional business at Lombard Odier. She started her career as a project manager in the International Finance and Commodities Institute (IFCI) in Geneva. Ulrike holds a degree in Business Administration from the University of Cologne and is a CFA Charterholder since 2003. She previously served on the Board of CFA Switzerland from 2005 to 2011 and joined the Board again in 2014. From 2009 to 2015 she was a member of the Standards of Practice Council of CFA Institute and holds the CAIA (Chartered Alternative Investments Analyst) designation.

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RAFAELA BICHUETTE CFA

Rafaela is a Senior Investment Advisor for the Latin American and Iberian clientele at CA Indosuez Wealth Management in Geneva, where she is responsible for multi­asset class advisory. Previously, she held the same position at Lloyds TSB Private Banking. Rafaela

also worked at the Latin American Commercial Team at Société Generale Private Banking and as a Fund Analyst at Ferrier Lullin S.A. Rafaela, a Brazilian national, moved to Switzerland to complete a Master’s degree in International Economics at the Graduate Institute of International and Development Studies. Rafaela is a CFA Charterholder since 2010. She started to volunteer for the CFA Society Switzerland in 2014 and is currently Co­Head of the Continuing Education Committee. She is married with two boys. She joined the Board in 2016.

ANTHONY CAGIATI CFA

Anthony Cagiati CFA is a Partner at Sound Capital Ltd., Zürich, and a Member of the Exe cutive Board at Alliance of Swiss Wealth Managers. Anthony has in­depth know­how in the area of private banking in Switzerland as he served for many years in senior posi­

tions at Bank Leu / Clariden Leu. In 2012 he played a crucial role in the set­up of Metropol Partners / Sound Capital Ltd., an independent asset manager. Anthony was engaged with CFA Society Switzerland and CFA Institute in various functions including founding member of the board of and later President of CFA Society Switzerland and Member of the Board of Governors at CFA Institute. Anthony holds an MBA from Babson College. He joined the Board in 2016.

SHEILA OHLUND CFA

Sheila Ohlund CFA is the Founder and Mana ­ging Director of Grove Financial Services GmbH, an independent asset management and finan cial coaching firm. Previously, she  was a Partner at SBC Brinson, and fol­lowing its merger with UBS, was a Director

of Portfolio Management and Research. Prior to this, she was Executive Director and Head of Research at Rothschild Bank. She had earlier been a member of the global equity thematic investment team at American Express’ international asset manage ment in London. Sheila began her career at Price Waterhouse as a Certified Public Accountant (CPA). Sheila received a Master’s degree in Economics from the London School of Economics and a Master’s

degree in Finance at the Sloan School of Management at the Massachusetts Institute of Technology (MIT). She is currently com­pleting her PhD in Finance at the University of St Gallen. She serves on the Board since 2014.

DANIEL RITZ CFA

Daniel Ritz CFA is a director in the institutional clients department of Unigestion since 2011. Daniel began his career in 1991 as assistant in the asset management department of UBS in Zürich. In 1993, he became Sales and Relation ship Manager for Swiss institutional

clients. In 1998, he joined Bank Leu as Head of Asset Management before becoming Head of Institutional Clients in 2003, a position he kept after Clariden Leu was formed. Daniel is Swiss, married and has three children. He graduated in Economics from the University of St. Gallen and completed an MBA at the University of Rochester NY. He has been a CFA Charterholder since 1996. He has served as a volunteer since 2010 and joined the Board in 2013.

PHILLIP SUNDQUIST CFA

Phillip Sundquist CFA is the founder and Ma na ging Director of SUNDQUIST ADVISORY Sàrl, an asset management consultancy pro viding invest ment advisory and manage­ment consulting. Phillip has over two de­cades of experience in asset management

and finance both in Europe and the US. He previously held exe­cutive investment management roles at leading private banks and worked as fund manager and financial analyst at the Credit Suisse Group. Phillip earned an MBA from the Michael G. Foster School of Business of the University of Washington in Seattle. He has been a Charterholder since 2000 and is on the Board since 2012.

10 ADVOCACY

ADVOCACY:

CFA Institute defines Advocacy at the society’s level by three levels of activity:

1) Member education and information distribution in areas like ethics, standards or research2) Industry and Media Outreach3) Policy Maker Engagement and Advocacy

CFA Switzerland’s Advocacy Committee is composed of volunteers from diverse backgrounds to reflect the different areas of expertise required in this space. Some highlights the Advocacy Committee has worked on during the last 12 months included:

ADVOCACY WORKSHOP IN BUDAPEST:

In October 2016 CFA Institute organized a one day workshop in Budapest to discuss advocacy trends and the latest developments, like the chances a European Capital Markets Union offers for the EU, with fellow members from other local societies in the EMEA region.

A REVIEW OF THE MINDER INITIATIVE:

During the 4th quarter 2016 our advocacy committee reviewed the consequences of the “Minder Initiative” and we asked Swiss pension funds about their opinion. Our findings included that:

­ a majority of the pension funds that have participated in our survey criticized the relationship between cost and benefit.­ the initiative could have led to more switches from direct stock holdings (where pensions funds have to execute their voting rights for Swiss Equities) to mutual funds (where pension funds don’t have to execute votes).­ an unbroken trend towards passive investment solution. But the trend seems to be even stronger in the German speaking part of Switzerland than in the French speaking part.

ADVOCACY WORKSHOP IN READINGS (UK):

In January 2017 CFA Institute organized in cooperation with Henley Business School at the University of Reading (UK) an exciting two day’s workshop on Policy­Making, Advocacy and Ethics. The workshop included topics such as “key aspects of regulatory policy­making in practice”, “Behavioural Finance”, “Articulating your policy position to others”, “Managing conflicts of interest or ethical dilemmas”, “Advocacy vs Lobbying”, followed by discussion groups and case studies. This workshop offered a fantastic opportunity to network with other advocacy members from other societies from the USA, Canada, Brazil, UK, Germany, Singapore, Hong­Kong, Australia and to discuss how each Society works in its local market and how they can benefit from the global network CFA Institute offers to its local societies.

FINTECH CONSULTATION:

It was the first time the advocacy groups of CFA Switzerland and the Swiss Finance & Technology Association, SFTA have convened a project group to leverage their knowledge and to coordinate a joint response to a consultation of the Swiss Government about FINTECH. The project groups deeply believe that Switzerland has today a unique chance to position herself in the Fintech sector as a source of future innovation and economic growth. But we

concluded that the Swiss Govern­ment does not do enough to posi­tion the country as a world­class Fintech hub. The link below leads to our article in the Charter with fur­ther information about our position: https://goo.gl/jjQH5J

UCITS FUNDS AUTHORISATION PROCESSBENCHMARKING IN EUROPE:

A dedicated team of members from different European countries and CFA Institute started this project. They will gather data from different jurisdictions in Europe how regulators fare in terms of effectiveness, cost and meaningfulness, etc. Afterwards they will compare the data across different jurisdictions.

By Henrik Grethe CFA

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2009

2010

2011

2012

2013

2014

2015

2016

Tanweer Ali CFA

Geneviève Lincourt-Gheyssens CFA

Mary Cait McCarthy CFA

Olivier Müller CFA

Christian Dreyer CFA

Agata Kozerska

Pablo Amuchastegui CFA

Elaine Kassanos CFA

Sheila Ohlund CFA

Jian Shi Cortesi CFA (volunteer of the year)

Fabrice Moore CFA (nominated)

Eugene Skrynnyk (nominated)

Christian Takushi (nominated)

Nevil de Tscharner CFA (nominated)

Olivier P. Müller CFA (volunteer of the year)

Alison Arthurs CFA (nominated)

Peter Blum CFA (nominated)

Christian Nauer CFA (nominated)

Leonor Vereda CFA (nominated)

Anne-Katrin Scherer CFA

SOCIETY VOLUNTEERSHALL OF FAME

CFA Switzerland’s Annual Volunteer Award has been granted to the following Members for their outstanding contributions to the Society as volunteers:

Anne-Katrin Scherer CFA has been pioneer­ing the CFA designation in Switzerland from the very beginning. She was a founding Member of the Society in 1996 and held too many different roles both at the Society as well as at the CFA Institute level to enumerate. Most notably, she was the Society’s first Executive Director and is now ending her second and last term as Presi­dent’s Council Representative for EMEA West, a CFA Institute role representing the interests of the CFA Societies in all of the EMEA West region to the CFA Institute Board of Governors. As she has decided to step back from volun­teering (for now …), the board thought it was high time to fill the gap in her Palmarès by naming her Volunteer of the Year 2016. If any­one ever deserved that accolade, it is Anne­Katrin – thank you for everything you’ve done for the CFA in Switzerland!

12 135 VOLUNTEERS

BOARD (*INVESTMENT COMMITTEE)Pablo Amuchastegui CFARafaela Bichuette CFAAnthony Cagiati CFAFlorian Esterer CFAUlrike Kaiser­Boeing CFAPeter Neumann CFAPatrick Ranzijn CFA *Daniel Ritz CFASheila Ohlund CFAPhillip Sundquist CFA *

JUDGESPeter BänzigerFlorian Esterer CFAChristoph Gretler CFAOlivier P. Müller CFAPeter A. Romanzina CFAThomas Schneckenburger CFA

GRADERSDessislava Boneva CFAPascale Boyer Barresi CFAAdrien Brossard CFAMidge Brown CFAAndré Dietlin CFAAlexandre Evéquoz CFADominic Faber CFASteven Frey CFAWillem Glorie CFAIvan Guidotti CFAAmy Ils CFATimothy Laing CFAMaurice Martignier CFAMarkus Matuszek CFAClaudia A. Meier CFAPierre C. Moser CFAChristophe Ollier CFAAndreas Plattner CFALaura Prina Cerai CFAGrégoire Serre CFAFelix Stadelmann CFAFrederik von Ameln CFAReinhard Zimmermann CFA

MENTORSBettina Baur CFAFabio Bertoni CFABurcu Burcu CFAAlfi Catalano CFATobias Crettenand CFARaquel Feito CFASimon Fuhrer CFAPhilipp Gast CFAChristina Ghosh CFACyrill Haenni CFACédric Hurteau CFACharles Isaac CFAJean­Paul Jeckelmann CFAAlex Klopfer CFADominique Lachal CFAMaxence Lüthi CFADenis Maillat CFAAlex Marc CFAMartin Moeller CFAAlain Oberhuber CFAAngela Palacin CFAJacqueline Ruedin Rüsch CFARobert Schuchna CFAPatrick Schüepp CFAIvo E. Staijen CFAMiroslava Subenikova CFARicardo Tancini CFAMatthias Teig CFANicolas Vialis CFA

SPC17 ZURICHWalter Bareiss CFAPeter Blum CFASinikka Demaré CFAMichael Frei CFAMichael Haene CFAMarek Ondraschek CFAJan­Ulrich Salchow CFAJürg Schiller CFAAndré Siegrist CFA

THE GENERATIONS CONFERENCEBeatrice Anton CFANicholas Bernard Peter CingrosRaimondo del Balzo di Presenzano CFAThomas FischerMarius Holzer CFAChristian Lepple CFAJürg Schiller CFAEugene Skrynnyk

AUDITORSAlessandro Farsaci CFADimitri Senik CFA

Society Governance Stakeholders

UNIVERSITY RELATIONS / RESEARCH CHALLENGE

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ADVOCACYJames Burgunder CFA Alessandro Farsaci CFAHenrik Grethe CFAKarin Jans CFAChristian Nauer CFABenjamin Schoch CFAChang Solèr CFAChristian Takushi

SPC17 GENEVAPablo Amuchastegui CFAPascal Frei CFADominique Grandchamp CFAAdrien Viellard CFAChristian von Roten CFA

SOCIAL EVENTSPablo Amuchastegui CFAJian Shi Cortesi CFARens Götz CFALei Gong CFADaniel Hofmann CFAPeter HristovJesse Ng CFAPhillip Sundquist CFAMatthias Teig CFA

CONTINUING EDUCATIONPablo Amuchastegui CFAJérôme Arthur CFAThomas Bender CFARafaela Bichuette CFADessislava Boneva CFAReinhard Furchner CFAFlorian Gerosa CFAAlex Klopfer CFAKim Kühnel CFAChristophe Künzler CFAChristian Mathis CFAMary Cait McCarthy CFAGeorg Merholz CFASheila Ohlund CFAJacqueline Rüsch CFAPurnur Agiacai Schneider CFAPhillip Sundquist CFAMatthias Teig CFAHelen Tschümperlin Moggi CFAGergana YanchevaShanshan Zhang

MARKETING & COMMUNICATIONSJan Hartmann CFADaniel Jaedig CFAThomas Trauth CFA

CANDIDATESAdrian Cachinero Vasilievic CFAJakub Lesniowski CFAAdam Lorincz CFASamuel Weissen CFA

MEMBERSHIP CHAIRJan Hartmann CFA

EDITORS OF THE CHARTERMarcus Bain CFAHeikki Luoma CFALeonor Vereda CFA

CFA INSTITUTE ROLESGiuseppe Ballocchi CFAWalter Bareiss CFAEelco Fiole CFAChristian Gattiker CFAFrederic Lebel CFAOlivier Müller CFAPatrick Ranzijn CFAAnne­Katrin Scherer CFADimitri Senik CFA

CAREERS Frederic Guibaud CFAGuillaume Legendre CFADekin O’Sullivan CFALaura Prina Cerai CFARuslan Tenev CFA

PENSIONS COMMITTEEWalter Bareiss CFA Peter Blum CFAHenrik Grethe CFAOliver Grimm CFADaniel Hutter CFA Jürg Schiller CFAAndré Siegrist CFA

Members

Volunteering isnetworking

with a purpose

UNIVERSITY RELATIONS / RESEARCH CHALLENGE

14 PUBLIC AWARENESS & COMMUNICATION

FULL PAGE CONGRATULATION ADS

On the occasion of the Society’s 20th anniversary, CFA Institute provided the funding to scale up the traditional congratulations ad campaign from the habitual half page ad in two newspapers to five full page ads in five papers, namely BILAN (French), BILANZ (German), Finanz und Wirtschaft (German), Le Temps (French) and Neue Zürcher Zeitung (German). The ads received a lot of attention and were highly appreciated both by the new Charterholders for reflecting their personal success as well as by existing Charterholders for promoting the brand in a high­profile way.

COOPERATION WITH CREDIT SUISSE

Credit Suisse and CFA Switzerland have entered into a cooperation to publish the Credit Suisse ­ CFA Switzerland Financial Market Report every month. The report is based on a monthly survey of financial analysts’ expectations covering the Swiss market, conducted by CFA Switzerland. The resulting analysis written by Credit Suisse is available to all Members free­of­charge.

Swiss Economics

Swiss economy on trackFinancial analysts are optimistic about the Swiss economy.

The majority of those surveyed does not expect the inflation rate to increase in 2017.

Sascha JuckerEconomist – Swiss Macro & Strategy

Our partner

High economic expectations for SwitzerlandThe Credit Suisse CFA Society Switzerland Indicator measur-ing the expectations of financial analysts for the Swiss econo-my in the next six months rose to 34.7 points in July (see Fig-ure 1). The survey participants were last so optimistic overthree years ago when the EUR/CHF exchange rate was still at1.20. The reason for the prevailing optimism is the positive as-sessment of the expected economic situation of important trad-ing partners: Almost a third of those surveyed considers the fu-ture economic situation of the Eurozone to be good and only8% anticipates a deterioration of the underlying economic con-ditions in the Eurozone. The assessment of the US economyfor the rest of 2017 is similarly positive to that for the Euro-zone, although the euphoria concerning the US economy wasconsiderably more pronounced at the end of 2016 (immediate-ly after the US presidential elections).

Inflation should not yet pick up sharply in 2017At 54%, the majority of the financial analysts surveyed doesnot expect the inflation rate to pick up in the further course ofthe year. This is set to force the central banks to continue theirexpansive monetary policy in the near future. At around 8% ofsurvey participants, virtually nobody anticipates a flattening ofthe inflation rate.

Figure 1Indicators for Switzerland (balances)

52.2

69.3

3.9

44.0

34.6

30.8

40.7

62.1

-6.9

27.6

31.0

20.7

62.5

42.4

16.0

30.8

34.6

34.7

-50 -40 -30 -20 -10 0 10 20 30 40 50 60 70 80

Stock market

Long-term interest rates

CHF vs. EUR

Inflation rate

Economic situation

Economic expectations(CS-CFA Society Switzerland Indicator)

July 2017 June 2017 May 2017

Source: CFA Society Switzerland, Credit Suisse

INVESTMENT SOLUTIONS & PRODUCTS

Financial Market Survey Switzerland

26/07/2017

Important InformationThis report represents the views of the Investment Strategy Department of CS and has not been prepared in accordance with the legal requirements designed to promote the inde-pendence of investment research. It is not a product of the Credit Suisse Research Department even if it contains published research recommendations. CS has policies in placeto manage conflicts of interest including policies relating to dealing ahead of the dissemination of investment research. These policies do not apply to the views of InvestmentStrategists contained in this report.

CONGRATULATIONS TO THE 238 NEW SWISS CFA® CHARTERHOLDERS.

#CFAdifference

Raphael Georg Adank, CFA | Pedro Almeida E Silva, CFA | Ibrahim M. A. Alqaisi, CFA | Roger Jürg Ammann, CFA | Michal Anderle, CFA | Beatrice Anton, CFA | Silvan Roland Arpagaus, CFA | Vladimir Astakhov, CFA | Joshua Kevin Bachmann, CFA | Niccolo’ Badoglio di Addis Abeba, CFA | Natalie Mirjam Baki, CFA | Frédéric Balet, CFA | Evaldas Balkys, CFA | Sean Bannon, CFA | Raphael Franz Bannwart, CFA | Beat Baumgartner, CFA | Karim Belghit, CFA | Diane Marie Berkovits, CFA | Anne Berner, CFA | Nicolas François Berthoud, CFA | Pascal Beuter, CFA | Dominik Bienek, CFA | Björn Oliver Bierfreund, CFA | Matthias Blank, CFA | Francois Alain Jean-Pierre Botta, CFA | Johanna Franziska Braun, CFA | Cornel Brunner, CFA | Jan Christian Leo Brunner, CFA | Jalna Buguet, CFA | Sandra Liselotte Burgstaller, CFA | Paul Bésanger, CFA | Ivo Blättler, CFA | Mathieu Bühler, CFA | Michael Andreas Büttiker, CFA | Adrian Vasiljevic Cachinero, CFA | Matthieu Florent Calandra, CFA | Anca Maria Calin, CFA | Laurent Cattin, CFA | Moshe Mor Chasson, CFA | Maximilian Cornelius Pietro Christ, CFA | Hao Duc Chung, CFA | Sofia Silvia Cipriani, CFA | Joël François Clivaz, CFA | Marcos Costantini, CFA | Céline Cuttelod, CFA | Maxime Daragon, CFA | Suzana De Boni, CFA | Rahel Diener, CFA | Julien Dillon, CFA | Alina Donets, CFA | Arnaud Dralants Sr., CFA | Ramona Alina Dumitrescu, CFA | Cuong Nhut Duong, CFA | Patrice Edelmann, CFA | Marc Olivier Engel, CFA | Stefan Konrad Eppenberger, CFA | Adrien Thomas Fehr, CFA | Qimin Fei, CFA | Ruben Gabriel Feldman, CFA | Livio Pius Fischbach, CFA | Martin Fischer, CFA | Marco Freiermuth, CFA | Marco Freihofer, CFA | Sascha Pascal Fritsche, CFA | Benoit Galloro, CFA | Luis Fernando Gamonal Reina, CFA | Daniel Garcia Pardo, CFA | Beat Gartmann, CFA | Alexander Dominik Gehrig, CFA | Andre Getzmann, CFA | Grigory Gevorgizov, CFA | Sirus Fabrice Andrea Ghazivakili, CFA | Jonathan Gisler, CFA | Alberto Gomez Justo, CFA | Sergej Goriatchev, CFA | Maja Grbovic, CFA | Oliver Rainer Grimm, CFA | Tomasz Grzelak, CFA | Ivan Guidotti, CFA | Mehmet Gungormez, CFA | Brigitta Gyoerfi, CFA | Mario Haidacher, CFA | Jan Heinrich Peter Hannappel, CFA | Christine Hauser, CFA | Reto Thomas Hausmann, CFA | David Liam Hayes, CFA | Remo Hedinger, CFA | Oliver Leo Hegglin, CFA | Michael Sebastian Hein, CFA | Frank Lorenz Heiniger, CFA | Martin Hirzel, CFA | Tobias Robert Hofer, CFA | Daniel Pascal Hoffmann, CFA | Nolan Daniel Michel Hoffmeyer, CFA | Kevin Holzer, CFA | Jonathan Nicolo Orion Horlacher, CFA | Sanja Houche, CFA | Shu Min Hu, CFA | Simon Hunziker, CFA | Marc Jerome Häfliger, CFA | Mathis Hungerbühler, CFA | Petar Ilic, CFA | Lorenz Joachim Imfeld, CFA | Marco Erwin Inderwildi, CFA | Sebastian Andres Jeck, CFA | Jingyao Jin, CFA | Daniel Tim Jöcker-Dalla Vecchia, CFA | Necmettin Kadi, CFA | Rustem Kalmagambetov, CFA | Michael Kaufmann, CFA | Jose Alfredo Kiehnle Mendez, CFA | Ernő Kiss, CFA | David Martin Klingenbeck, CFA | Darius Leonhard Kny, CFA | Petr Kobelevskiy, CFA | Matthias Kohlhaus, CFA | Gian Korner, CFA | Claudia Johanna Kovácsovics, CFA | Nicole Marie Krieger, CFA | Jacek Andrzej Kulakowski, CFA | Pawel Kamil Kulczuga, CFA | Nidhish Kumar, CFA | Chi Tâm Le, CFA | Thomas Le Forestier, CFA | Albane Lecarpentier, CFA | Jakub Lesniowski, CFA | Nicolas André Norbert Liegeois, CFA | Jiayin Liu, CFA | Christian Luchsinger, CFA | Ralph Ludwig, CFA | Pablo Andrés Luengas Rivero, CFA | Adam Lörincz, CFA | Alexander Maess, CFA | Lionel Tarik Maitre Forrer, CFA | Stefano Manco, CFA | Thibault Philippe Michel Martignon, CFA | Jonathan Martin, CFA | Filipe Martinho da Cruz, CFA | Daniele Masciarelli, CFA | Marcel Thomas Masshardt, CFA | Aikaterini Mastoraki, CFA | Aurélien Mauguin, CFA | Roman Mayer, CFA | Lukas Meier, CFA | Lukas Andreas Meier, CFA | Erik Mermet, CFA | Markus Messerer, CFA | Marko Miodrag Milic, CFA | Romano Andrea Monsch, CFA | Marina Montemurro, CFA | Matthias Felix Mueller, CFA | Peter Felix Nabholz, CFA | Benjamin Christopher Naegele, CFA | Máté Sándor Nemes, CFA | Nisha Maria Nicotra, CFA | Aurelie Agnes Nordlinger Bierbaum, CFA | Herbert Oberholzer, CFA | Kay Olschewski, CFA | Yoko Otsuka, CFA | Rainer Ott, CFA | Augustin Virgil Paveleanu, CFA | Victor Perez Mouzo, CFA | Allan Edward Perk, CFA | Antoine Pierre Marie Petit, CFA | Monica Pino, CFA | Gian Arard Plebani, CFA | Tarmo Ploom, CFA | Mirco René Protner, CFA | Stela Rakipaj, CFA | Ignacio Ramirez Moreno, CFA | Sara Razmpa, CFA | Aaron Micheal Re’em, CFA | Christian Rochus August Reichlin, CFA | Andrew Michael Renn, CFA | David Rey López, CFA | Robert Scott Richards, CFA | Raphael A Roettgen, CFA | Pavel Ruban, CFA | Laura Ruzzante, CFA | Andranik Safaryan, CFA | Adrian Kurt Sauter, CFA | Marc Schlaepfer, CFA | Patrick Schleiffer, CFA | Mick Branco Morris Schneider, CFA | Marc Cyrill Schreier, CFA | Niki Schuler, CFA | Holger Daniel Schwaerzler, CFA | Andreas Walter Schwarz, CFA | Michael Schwarz, CFA | Satoshi Gabriel Segawa, CFA | Grégoire Serre, CFA | Danzhu Shi, CFA | Benjamin Simon, CFA | Thomas James Skelton, CFA | Maciej Skoczek, CFA | Gabrielle Slavik, CFA | Jan Christian Stamer, CFA | Marietta Stieger, CFA | Marie-Theres Stohldreier, CFA | Andreas Markus Stoller, CFA | David Noah Straumann, CFA | Miroslava Subenikova, CFA | Simon Subiaz, CFA | Jan Strässle, CFA | Dominik Schönenberger, CFA | Stefan Spörndli, CFA | Christopher Alexander Schütz, CFA | Bernardo Favio Tavera Rojas, CFA | Daniel Thum, CFA | Nils Trebing, CFA | Edward Philip Enzio Turner, CFA | Markus Wilhelmus Maria van Deelen, CFA | Adrian Wilhelm Guido Vogt, CFA | Geraldine Vollenweider, CFA | Benjamin Johannes von Haase, CFA | Raeto Gion von Sprecher, CFA | Thomas Waldemer, CFA | Hao Wang-Huang, CFA | Michael Jeffrey Weeks, CFA | Christian Andreas Wegmann, CFA | Alexandre William Weill, CFA | Samuel Weissen, CFA | Roman Michael Wenger, CFA | Timothy Richard West, CFA | Tobias Westermaier, CFA | David Adrian Wetter, CFA | Rupert Wimmer, CFA | Michel Wirth, CFA | Da Ye Wu, CFA, CIPM | Roman Wyss, CFA | Enzo Wälchli, CFA | Marco Zamberletti, CFA | Jingchao Zhu, CFA | Daniel John Cyrus Ziaei, CFA | Joris Simon Zimmermann, CFA | Lea Zingg, CFA | Alessio Manuel Zolesi, CFA | Johannes Zoller, CFA

You are now part of a global community of more than 136’000 CFA charterholders. Join with your local network and visit CFA Society Switzerland at swiss.cfa.

© 20

16 C

FA Institute. All rights reserved.

CFA Switzerland SocietyMem_BilanzFull Page Ad_205x275_w_names AW.indd 1 14/11/2016 15:51

CFA Switzerland continues to receive disproportionate attention in the media.

15

MEDIA ATTENTION

As part of CFA Institute’s global move to Ogilvy Public Relations, the Society has changed its PR agency to Zurich based Weber­Thedy AG. Nevertheless, media attention has developed favourably over the year, thanks to a diverse range of contributions. The monthly Credit Suisse ­ CFA Switzerland Index launched in January 2017 receives steady media attention throughout the year.

NEWSLETTER

The Charter is the Society’s monthly newsletter, produced by a vol­unteer team of editors who can be reached on editors@swiss.cfa for suggestions and feedback.

SOCIAL MEDIA

The Twitter handle CFA_CH currently has 2515 followers (+26%), whereas 1679 people follow the LinkedIn page (+10%). The Society’s Youtube channel currently has 187 videos which were viewed 8878 times (­14.2%) for 6:36 minutes (­24.2%) on average.

ARTICLES BY MEDIA TIER

TIER 1NEUE ZÜRCHER ZEITUNG, FINANZ UND WIRTSCHAFT ETC.

TIER 2FINEWS.CH,HANDELSZEITUNG ETC.

TIER 3ROMANDIE.CH,ADVISORWORLD.CH ETC.

0

20

40

60

80

100

Q3 16 prior Q4 16 1 17 prior Q2 17 priorprior Q

16 CONFERENCES

The motto of the Swiss Pensions Conference 2017 edition (SPC17) was The Value of Risk. As usual, two teams of pensions specialists took on the task of creating two fascinating events around that theme with plenty of relevant content for their peer audience to get their teeth into. The former President of EPFL Patrick Aebischer explained at SPC Geneva how pension funds can increase their contribution to innovation, while Prof. Zimmermann expounded his views on risk culture in the Swiss pensions scene at SPC Rüschlikon.

The new setup of one of the parallel work streams as a cooperative case study between Platinum sponsors and a reference client was a well received innovation that will probably be carried forward.

Reviewing both participation and satisfaction by delegates, it is evident that both events have found their niche as a top rated forum of exchange for pension fund decision makers.

Building on the success of the Swiss Pensions Conference, another team of volunteer subject matter experts have started work on a new conference project due on 5 March 2018, namely a conference for finance professionals working at private investment / family offices. Watch this space for launch information forthcoming shortly!

SPC AUDIENCE ANALYSIS

SPEAKERS, SPONSORS, MEMBERS

PF DECISION MAKERS, ADVISORS

SPC SATISFACTION ANALYSISER 1

COMING BACK

NET PROMOTER SCORE

0

40

80

120

160

2011 ZH 2012 ZH 2014 ZH 2014 GE 2015 ZH 2016 GE 2016 ZH 2017 GE 2017 ZH

2012 ZH 2014 ZH 2014 GE 2015 ZH 2016 GE 2016 ZH 2017 GE 2017 ZH

44%

39%

37%

92,9% 93,9% 100% 97,2% 83,9% 97,4% 100% 100%

100

75

50

25

0

17

By Rafaela Bichuette CFA

CONTINUING EDUCATION

The Continuing Education (CE) offering is one of the most valuable benefits of Society membership and the CE Committee strives to provide Members a broad range of topics and formats to allow them to deepen and broaden their knowledge while networking with other Members having similar interests. Since the Committee tries to reach as many Members as possible, it is co­chaired by a Zurich representative, Mary Cait McCarthy CFA and a Geneva representative, Rafaela Bichuette CFA. In both locations, a number of active Committee Members contribute to the offering.

When asked how important it is that CFA Institute and societies focus resources on a range of topics, then providing live, local CE events and delivering CE remotely continue to appear among the most important subjects selected by the participants in the annual Member Survey conducted by CFA Institute in 2017.

During the 16/17 year, we held a total of 41 CE events (excluding the Forecast Dinners and Swiss Pension Conferences with notable speakers such as Peter Kurer and Andrew Lo): 21 events took place in Zurich, 16 in Geneva, 3 in Lausanne and 1 in St. Gallen. These events continue to be well attended, with an average of 40 participants registered in Zurich, 30 in Geneva, 22 in Lausanne and 13 in St. Gallen.

The Society has started to participate in a series of events planned by the CFA Institute, as part of the global “Putting Investors First” initiative. As the investment management industry is facing many disruptive forces that will likely result in rapid and profound change, the topics to be covered consider the future state of the Investment Management profession. The topic of the first of these events was Blockchain Technology, for which the Institute has covered the costs of the speakers’ fees, travel and accommodation.

We are still working on developing the Distinguished Speakers Series with the goal of inviting well­recognized speakers in order to attract a larger audience to the events.

4

3

2

1

ALTERNATIVE INVESTMENTS

ECONOMICS

FINANCIAL STATEMENT ANALYSIS

LEADERSHIP, MANAGEMENT AND COMMUNICATION SKILLS

PORTFOLIO MANAGEMENT

PRIVATE WEALTH MANAGEMENT

QUANTITATIVE METHODS

RISK MANAGEMENT

STANDARDS, ETHICS AND REGULATIONS

BEHAVIOURAL FINANCE

EQUITY INVESTMENTS

Geneva Lausanne Zurich St. Gallen

EVENT SUBJECTS BY VENUE

EVENT SUBJECTS

18 MEMBERSHIP

The main driver of membership growth continued to be the success of the CFA Charter in Switzerland. The Society’s compound annual growth rate of membership for the last five years stands at 5.9% p.a.. Candidate Members tend to be cyclical by nature, as they would hopefully mature into regular Members upon completing Level III and their work experience requirements.

Last year’s renewal cycle has seen a 93% (92% previous year) mem­bership retention, compared to 91% (91%) in EMEA West. There are 471 (387) members of CFA Institute living in Switzerland who are not affili­ated with CFA Switzerland, who we will pay particular attention to try­ing to convince of the benefits of membership this year. The number of Candidates who have successfully completed all three levels, but do not yet have the required work experience (“Charters pending”) stands at 293 (278).

CFA Institute polls Members annually for their satisfaction with their membership experience. On a scale from 1 to 10 (best), Members responding this year returned an average satisfaction of 6.8 (7.2),

compared to a global average of 6.9. The Net Promoter Score de­creased to +11% (+16%). 59% (59%) of Members report paying mem­bership dues from their own pockets. Interestingly, participation in the AGM grew significantly over the last few years, which can be interpreted as a proxy of perceived ownership of the Society by its Members.

The total share of Members employed by the top 10 employers has remained stable at just shy of 39% of total membership. The biggest change in the Top 10 ranking was for Vontobel, which added 24% more Members compared to last year.

The Membership Value Pack available to Members has been improved significantly by moving the servicing of collective supplemental health insurance plans to insurance bro­ker Anivo. Anivo maintains a dedicated web page on which the CFA community can learn about the specific benefits available to them immediately.

PROXIES SENTAND VOTES RECEIVED

PROXIES SENT

VOTES RECEIVED

PARTICIPATION %

TOP 10 EMPLOYERS OF MEMBERS 2017 (2016)

UBS 358 (341)

CREDIT SUISSE 300 (271)

PICTET & CIE 91 (80)

JULIUS BAER 67 (69)

ZKB 64 (63)

LODH 63 (57)

VONTOBEL 62 (50)

ZURICH FS 50 (50)

LGT GROUP 46 (41)

SAFRA GROUP 45 0

200

400

600

800

1000

1200

2014 2015 2016 2017

19 CANDIDATES

CFA candidates are the next generation of Society members and therefore of vital importance and interest to the Society. Yet, we are struggling to develop an offering that is of relevance to more than just the 10% of the most engaged candidates. The Candidates Committee is developing a range of easily identifiable candidate profiles to whom specific offerings can be tailored. This development happens in cooperation with CFA Institute as the required granular candidate data is not readily available to societies out of the box.

The membership category tailored for candidates constantly hovers at around 100 members. The Society is happy to draw some of its most engaged volunteers from that population already.

We have continued to provide Live Mock Exams five and two weeks prior to exam days on 3 December and 3 June in both Geneva and Zurich. The rationale for providing two mock exams per session is

that candidates can discover their gaps sitting the first and gaining confidence in having filled them sitting the second mock. All four mock exams were using exam papers provided by Fitch Learning.

The 4­day intense CFA Review Course was on offer again for both exam cycles during the reporting period. Two Level I candidates took advantage of it ahead of the December cycle and another two Level I candidates took the course for the June cycle, along with 5 Level III candidates.

Without a doubt the most appealing candidate offering of all is the Post­Exam Refreshments (formerly known as Beer Bash) which the Society offers to all candidates participating in the June cycle in Geneva and Zurich.

The Geneva CFA class of 2016 Post­Exam Refreshments (formerly known as Beer Bash)

The Zurich CFA class of 2016

20 UNIVERSITY RELATIONS

By Olivier P. Müller CFA, Chair University Relations

CFA is a well-established element of the educational landscape

In Switzerland, CFA is well established at the two target groups being the professors and the students, especially at universities but increasingly also at universities of applied sciences. Indeed, CFA Institute is a well­known institute and there is a high demand from students to register for the examinations already shortly after graduation. Therefore, our activities are less branding­related but more content related.

CFA Institute Research Challenge as the main activity

Switzerland’s University Relations activities are centred around the CFA Institute Research Challenge. This challenge which is part of the global challenge has developed to quite a large and resource­intensive activity in Switzerland. For the 2016/2017 challenge, there were a record number of 29 teams which had to analyse Ascom, a global solutions provider focused on healthcare ICT and mobile workflow solutions. This time we had 23 graders, 29 mentors and 7 judges contributing to the success of the challenge. Since 2009, the CFA Challenge has developed towards quite an important element of the academic year for finance students. Indeed, many universities are participating regularly such as Universities of Zürich, Lausanne, Neuchâtel, St. Gallen, Lugano, Basel, and we had occasional participation of University of Fribourg, EPFL and University of Liechtenstein. This year, the finalist team from University of Zürich delivered the best presentation and the best report and travelled to Prague, Czech Republic to attend the EMEA Regionals as Swiss champion, together with their Professor. Over the course of the years, this challenge allowed us to establish valuable contacts to universities and universities of applied sciences; moreover, the challenge developed towards a long­term strategic partnership with the Swiss Universities of Lausanne, Neuchâtel and especially Zürich which traditionally hosts the challenge. Strategic relationship means that we are well positioned towards those universities as practitioner organisation and occasionally get requests for guest lectures which allows us to position our values of professionality and increasingly also ethics. Credit Suisse has been sponsoring the CFA Institute Research Challenge from the beginning and Finanz + Wirtschaft has been a long­standing media partner.

University Affiliation Program

CFA Institute announced a new University affiliation program which is replacing the former system with two layers, Partner University and recognized University. So far CFA Institute has accepted EPFL, Neuchâtel and Lausanne and another few are currently in process of being accepted. Our goal is to expand the number of affiliated universities to about half a dozen and to have affiliated universities in all regions.

Jury of the CFA Institute Research Challenge in Switzerland 2016/2017: Peter Bänziger, Peter Romanzina CFA, Christoph Gretler CFA, Olivier P. Müller CFA, Bianka Wilson (CFO of Ascom) with her daughter, Florian Esterer CFA, Dr. Thomas Schneckenburger CFA and Christian Dreyer CFA

Winner of the CFA Institute Research Challenge in Switzer-land 2016/2017: Moritz Itan, Chiphong Vu and Tobias Habetha, (Ivan Kraljevic not in the picture) together with Prof. Dr. Michel Habib and Dr. Christoph Wenk Bernasconi (University of Zürich)

21 SOCIAL EVENTS

By Jian Shi Cortesi CFA

The Society organises various social networking events to bring Society Members together to share a fun experience and spend enjoyable time together outside work. In the reporting period, the Social Events Committee has hosted 24 social events (4 Basel, 12 Geneva, 2 Lausanne, 1 Lugano, 5 Zürich) with 655 overall participants. The flagship events included the Forecast Dinners in Zurich and Geneva (sponsored by Vanguard) with approximately 150 participants, as well as the Award Ceremonies for successful new Charterholders. In addition, a number of local events were hosted in various cities throughout the year, including After Work drinks, Networking Luncheons and summer barbecue. The society also organized a visit to CERN, which many members found highly interesting. Among the many memorable moments …

Visit at CERN

Forecast Dinner in Zurich ...

... and Geneva

sponsored by

22 SOCIETY OUTLOOK

To boldly go where no-one has gone before …

By Christian Dreyer CFA

Working for and with CFA Switzerland and all its stakeholders every day feels a bit like playing the role of James T. Kirk on USS Enterprise, or sometimes more befitting, like Scotty who keeps the engines run­ning below deck. This will be particularly true for the new fiscal year which we are in the middle of at the time of this writing. Why? With more than 3’000 Members in Switzerland, we have now become the largest and most recognisable association of finance professionals in Switzerland. This comes with an important responsibility to all pre­sent and future CFA Charterholders in Switzerland and every finance professional who subscribes to what the CFA designation stands for: Ethics & Professionalism for the Finanzplatz.

That means that we will be held accountable for the proper conduct of Members, who vouch no less than to live by the Code & Standards, simply by being CFA Charterholders. Some may not take that obliga­tion quite as seriously as the overwhelming majority of Members. In order to uphold our standards, we will work with the Swiss authori­ties to establish a modus operandi ensuring that the CFA Institute Professional Conduct Program remains in sync with what happens in the Swiss market. We have a lot to offer to our fellow stakeholders and partners!

CFA Institute always was and will be our primary partner with which we work in the closest of symbiotic relationships. Ample evidence of that is the second funding round that we have concluded towards the end of the FY 2016:17 lasting into 2020. CFA Switzerland has made the case that it lacks the resources required to maintain sufficient execution capabilities on its own for the projects envisioned, and the risk capacity to carry potential losses arising from such projects. Con­sequently CFA Institute has committed to a dual funding approach in favour of CFA Switzerland. It will provide the additional resources required to build out the Society’s project management capacity.

Included in that build out is funding for some technology spend to bring us up to warp speed, namely the construction of a new web­site. This new site integrates functionalities of our current website cfalive.ch and swiss.cfa into one and leverages the new CFA Institute data backbone which is based on the CRM industry leader Salesforce. Users should experience a much more integrated workflow, while the Society stands to gain significant intelligence about Member prefer­ences and interests. Work on this project has already begun.

Work on the upcoming new conference format for private invest­ment / family office professionals is naturally already in high gear ­ block star date 5 March 2018 in your calendar! This is one of the major new projects that the CFA Institute contingent funding enables us to execute even though Society reserves do not currently have the capacity to shoulder potential losses should they fall through. Such contingent funding will not result in an up front cash flow to fund any specific activities. It is more like a promise by CFA Institute to cover losses up to a certain limit if said projects don’t go according to plan. CFA Switzerland is the first CFA society to take advantage of this new funding instrument devised by CFA Institute to support societies in their initiatives.

I hope you understand now why I think your Society boldly goes where no Swiss finance association has gone before. In closing, no Trekkie reference would be complete without the Vulcan salute: Live long and prosper!

Chris Dreyer CFA

23 SOCIETY FINANCIALS

TREASURER’S REPORT

By Ulrike Kaiser­Boeing CFA

CFA Switzerland’s financial objective as a professional non­profit organisation is to use revenues to fund activities offering the greatest benefit to current and future Members. We strive to maintain a strong financial position in order to provide value­added activities to Members and to ensure the Society’s long­term financial and operational health.

The 2016/17 results present our activities from an economic perspective and show the Society’s financial position as a going concern in accordance with the Swiss Code of Obligations. As last year, we are reporting a full set of financials with balance sheet, profit & loss accounts and cash flow statement. Given our positive experience, we continued to work with an external accounting firm.

We finished the year ending June 30th 2017 with a profit of CHF 17’402. Total revenues remained stable at CHF 736’344. Higher membership dues compensated the decrease of 28% in sponsorship contributions from CHF 262’082 to CHF 189’276, due to lower marketing budgets and merger situations with our sponsors. The increase in Members and the higher membership fee for CFA Switzerland were the reasons for the increase in Membership Dues. CFA Institute contributions were inflated by the compensation of CHF 64’727 for the CFA Institute’s branding campaign in Switzerland, where we acted as a pass­through.

Total Expenses decreased by 6% from CHF 771’770 to CHF 726’614. Lower speaker fees for the Swiss Pensions Conferences contributed mainly to the decrease of event related fees. Other administrative expenses were higher due to the expenses linked to the CFA Institute’s branding campaign. Earnings Before Taxes (EBT) came to a profit of CHF 17’412 and the Net Period Result posted a profit of CHF 17’402 compared to a loss of CHF 52’934 for the previous period.

The Society’s balance sheet remains strong. With Cash and Cash Equivalents of CHF 242’499 and Marketable Securities of CHF 303’163, which together represent 89% of Total Assets. The Equity position is also healthy with Net Equity Capital of CHF 448’652. Given our solid financial position, we remain favourably positioned to provide increasing value to our members and to make further strides in the professionalization of the Society.

Growing the Member base is a key success factor for the Society since Member Dues generate stable revenue both directly as well as indirectly through CFA Institute support and represent a reliable source of income for budgeting purposes.

24 TREASURER’S REPORT

Balance Sheet

BALANCE SHEET per 30 June 2017

Notes 30.06.17 30.06.16 % Change

ASSETSCurrent assets

Cash and Cash Equivalents CHF 242’499 CHF 231’701 4,7%

Marketable securities 1 CHF 303’163 CHF 293’671 3,2%

Recoverable withholding tax CHF 378 CHF 378 0,0%

Accounts receivable CHF 56’884 CHF 70’081 ­18,8%

Deferred assets & accruals CHF 321 CHF 83’225 ­99,6%

Total current assets CHF 603’245 CHF 679’056 -11,2%

Non-current assets

Equipment CHF 2’575 CHF 3’300 ­22,0%

Rent Deposit CHF 5’000 CHF 5’000 0,0%

Total non-current assets CHF 7’575 CHF 8’300 -8,7%

Total assets CHF 610’820 CHF 687’356 -11,1%

LIABILITIESCurrent liabilities

Accounts payable CHF 2’070 CHF 101’312 ­98,0%

Deferred liabilities & accruals 2 CHF 160’098 CHF 154’795 3,4%

Total current liabilities CHF 162’168 CHF 256’107 -36,7%

Non-current liabilities

Long­term provisions CHF 0 CHF 0 0,0%

Total non-current liabilities CHF 0 CHF 0 0,0%

Total net assets CHF 448’652 CHF 431’250 4,0%

EQUITY

Equity at beginning of period CHF 431’250 CHF 484’187 ­10,9%

Period result CHF 17’402 CHF ­52’934 N.M.

Equity at end of period CHF 448’652 CHF 431’253 4,0%

25

Profit & Loss Statement

PROFIT & LOSS STATEMENT

Notes 2016/17 2015/16 % Change

Member dues CHF 296’669 CHF 195’365 51,9%

Delegate fees CHF 50’248 CHF 59’242 ­15,2%

Sponsorship contributions CHF 189’276 CHF 262’082 ­27,8%

Candidate education CHF 26’663 CHF 37’656 ­29,2%

CFA Institute support 3 CHF 173’488 CHF 180’649 ­4,0%

Total revenue CHF

736’344 CHF

734’994 0,2%

Event rents & catering CHF ­211’007 CHF ­308’528 ­31,6%

Total event expenses CHF

-211’007 CHF

-308’528 -31,6%

Staff salaries CHF ­357’444 CHF ­365’350 ­2,2%

Total staff expenses CHF

-357’444 CHF

-365’350 -2,2%

Marketing 4 CHF ­85’842 CHF ­30’405 182,3%

Administration CHF ­57’189 CHF ­56’319 1,5%

Charges, premiums CHF ­6’408 CHF ­3’169 102,2%

Board expenses CHF ­8’723 CHF ­8’000 9,0%

Total other admin expenses CHF

-158’163 CHF

-97’892 61,6%

EBITDA CHF 9’731 CHF -36’777 N.M.

Depreciation & amortisation CHF ­1’587 CHF ­2’011 ­21,1%

EBIT CHF 8’144 CHF -38’787 N.M.

Return on investments CHF 9’953 CHF 2’052 385,0%

Investment expenses CHF ­685 CHF ­525 30,4%

Net investment return CHF 9’268 CHF 1’527 506,9%

EBT CHF 17’412 CHF -37’260 N.M.

Extraordinary profit CHF 292 CHF 0 N.M.

Extraordinary loss CHF 0 CHF ­15’540 ­100,0%

Direct taxes CHF ­302 CHF ­134 126,1%

Net period result CHF 17’402 CHF -52’934 N.M.

26 TREASURER’S REPORT

Cash-Flow Statement

CASH FLOW STATEMENT

12-Month Cash Flow 1.7.16–30.6.17 1.7.15 – 30.6.16 % ChangeCash at Beginning of Period CHF 525’372 CHF 579’410 ­9,3%

Cash at End of Period CHF 545’662 CHF 525’372 3,9%

Net Cash Flow CHF 20’291 CHF -54’038 N.M.

OPERATIONSCash receipts from Member dues CHF 296’669 CHF 134’366 120,8%

Delegate fees CHF 51’048 CHF 57’221 ­10,8%

Sponsorship contributions CHF 206’638 CHF 236’650 ­12,7%

Candidate education CHF 26’663 CHF 37’551 ­29,0%

CFA Institute support CHF 252’488 CHF 191’244 32,0%

Cash paid for Event rents & catering CHF ­299’950 CHF ­287’757 4,2%

Staff salaries CHF ­358’381 CHF ­320’431 11,8%

Office & Infrastructure CHF ­15’459 CHF ­15’600 ­0,9%

Insurances CHF ­642 CHF ­642 0,1%

Administrative cost CHF ­25’915 CHF ­20’610 25,7%

IT / communications cost CHF ­5’766 CHF ­2’573 124,1%

Marketing and advertising cost CHF ­94’629 CHF ­23’811 297,4%

Expenses Board / CEO CHF ­21’732 CHF ­24’077 ­9,7%

Net Cash Flow from Operations

CHF 11’032 CHF -38’470 N.M.

INVESTING ACTIVITIESCash receipts from Sale of investment securities CHF 0 CHF 2’450 ­100,0%

Cash paid for Purchase of investment securities CHF 0 CHF ­1’732 ­100,0%

Net Cash Flow from Investing Activities

CHF 0 CHF 718 -100,0%

FINANCING ACTIVITIESCash receipts from return on investments CHF 10’065 CHF 613 1’541,9%

Cash paid for investment expenses CHF ­796 CHF ­1’225 ­35,0%

Net Cash Flow from Financing Activities

CHF 9’269 CHF -612 N.M.

NON-OPERATING ACTIVITIESCash receipts from non­operating income CHF 292 CHF 0 N.M.

Cash paid for non­operating expenses CHF 0 CHF ­15’540 ­100,0%

taxes CHF ­302 CHF ­134 125,4%

Net Cash Flow from Non-Op. Activities

CHF -10 CHF -15’674 -99,9%

Net Cash Flow CHF 20’291 CHF -54’038 N.M.

Not reviewed

27

NOTES TO THE FINANCIAL STATEMENTS 2016/17

Reporting Entity

CFA Society Switzerland has been founded as the Swiss Society of Investment Professionals on 8 March 1996 in Zurich, Switzerland. It is incorporated as an Association under Swiss law and is domiciled in Zug, Switzerland. The Association is registered in the commercial register voluntarily since 17 March 2006 with Enterprise ID CHE­112.828.176. The average count of full­time employees is below 10 for the reporting period. CFA Society Switzerland holds no material direct or indirect shares in other entities. The provisions on own shares are not applicable to CFA Society Switzerland. CFA Society Switzerland is not party to any material leasing contracts. For its retirement obligations CFA Society Switzerland has joined VZ LPP Collective Foundation effective 1 January 2016, which maintains a separate pension scheme. The total of assets used to collateralise third parties’ claims is CHF 5’000. No assets are encumbered by any property reservations (« Eigentumsvorbehalt »). There are no conditional liabilities (« Eventualverbindlichkeiten »). The provision regarding share rights and options granted to management is not applicable.

Summary of Significant Accounting Policies

The present accounts have been prepared in accordance with Swiss law, in particular with the Swiss Code of Obligations. They are based on an economic perspective to adequately represent the Society’s true financial situation as going concern. There are no hidden reserves, nor have there been any created or released. These accounts forgo segment reporting. The Society does not export any goods or services. It is a member society of CFA Institute, headquartered in Charlottesville VA, USA and operates under a Member Society License Agreement, which is renewed annually. Assets are recorded at historic cost with adequate consideration of amortisation and value adjustments. Marketable securities are recorded at their period closing price. Liabilities are recorded at par and comprise operationally required positions only. Provisions are recorded for all positions recognisably at risk.

Notes on Individual Line Items

1. Marketable securities are held in broadly diversified collective investment schemes. For details see the Investment Report.

2. Deferred liabilities are : ­ Prepaid member dues : CHF 99’390 ­ Expected invoices not yet received : CHF 28’708 ­ Accrued staff compensation : CHF 32’000

3. CFA Institute supports its member societies financially in several ways : Operational funding is versed as a function of the number of society members and candidates. In addition, Growth Support is granted on the basis of specific project applications. Included in this position is the financing of the CFA Institute branding campaign in Switzerland of CHF 64’727.

4. Marketing expenses include the cost of the CFA Institute branding campaign in Switzerland of CHF 64’727.

Notes

28 AUDITOR’S REPORT

By Alessandro Farsaci CFA and Dimitri Senik CFA

Alessandro Farsaci Dimitri Senik Hardturmstrasse 5 Seestrasse 1013 8005 Zürich 8706 Meilen Review report to the General Assembly of the CFA Society Switzerland, Zug We have reviewed the financial statements (balance sheet, profit and loss statement and notes, with the exception of cash flow statement) for the the financial year ending 30 June 2017. These financial statements are the responsibility of the society’s board. Our responsibility is to issue a report on these financial statements based on our review. We conducted our review in accordance with the Swiss Auditing Standard 910 on Review Engagements. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. Based on our review, nothing has come to our attention that causes us to believe that the accompanying financial statements are not in accordance with Swiss law and the society’s bylaws. Furthermore, as per article 8 of the Society’s bylaws, we propose to the General Assembly exoneration of the Treasurer. Zurich, 18 August 2017 Alessandro Farsaci Dimitri Senik

29 INVESTMENT REPORT

By Phillip Sundquist CFA

For the fiscal year ending 30 June 2017, the investment portfolio achieved a total return of +3.23%. This positive performance is attributed to the decision to maintain a balanced asset allocation strategy with a combined weighting of 35% in equities

and alternatives during a period when these asset classes outperformed. Indeed, equities represented the best performing asset with a positive return of 17.73% during the year. We retained no exposure to foreign currencies.

Total % Return (CHF) after Cost

Note: CFA Switzerland changed its fiscal year­end to June 30th beginning with Fiscal Year 2013­14. For this one­time 18­month reporting cycle (January 2013 to June 2014), results are split up into two separate periods: 1H 2013 (January to June 2013) and 2013­14 (July 2013 to June 2014).

Weighting in % Cash Bonds Equities Non-Trad*

FX non-CHF

FX non-CHF/EUR

Minimum 0 30 15 15

Long-Term Strategy 0 50 25 25 30 20

Maximum 100 70 35 35

Current portfolio 30 30 23 17 0 0

Asset Allocation

* Non­traditional assets represent Precious Metals and Alternatives.

­6 %

­4,5 %

­3 %

­1,5 %

0 %

1,5 %

3 %

4,5 %

6 %

2008 2009 2010 2011 2013­14 2014­15 2015­16 2016­172012 1H 2013

30 BALLOT MATERIALS

NOTICE OF ANNUAL GENERAL MEETING

AD I

The Minutes of the 2016 Annual General Meeting are available on the Society website.

AD II

The Board of Directors responsible during the reporting period consisted of the following Members:

• PABLO AMUCHASTEGUI CFA • RAFAELA BICHUETTE CFA• ANTHONY CAGIATI CFA• FLORIAN ESTERER CFA • ULRIKE KAISER-BOEING CFA • PETER NEUMANN CFA • SHEILA OHLUND CFA • PATRICK RANZIJN CFA • DANIEL RITZ CFA • PHILLIP SUNDQUIST CFA

DATE: Wednesday, 20 September 2017, 1630h VENUE: Auditorium Hoffmann La Roche, Basel (entry through gate 21), Grenzacherstrasse 21, Basel

PURPOSE:

I. To approve the Minutes of the 2016 Annual General Meeting.

II. To exonerate the Board of Directors of CFA Society Switzerland based on this annual report and financial results.

III. To approve the budget of the Society for 2017 / 18.

IV. To elect the Board of Directors for a one (1) year term beginning 21 September 2017 and ending the day of the 2018 Annual General Meeting.

V. To elect an internal auditor for a two (2) year term beginning 1 July 2017 and ending the day of the 2019 Annual General Meeting.

VI. To transact such other business as may properly come before the meeting or any adjournment thereof.

This Notice was sent to all Members on 20 August 2017.

31

AD III

For a discussion of the Society strategy represented by the below projections, please refer to outlook section.

AD IV

ELECTIONS:

The Nominating Committee (NC), consisting of Daniel Jaedig CFA, Florian Esterer CFA and Julien Froidevaux CFA proposes no change to the current composition of the board. The new composition of the Board is thus as follows: • PRESIDENT: PETER NEUMANN CFA • VICE PRESIDENT: PABLO AMUCHASTEGUI CFA• SECRETARY: PATRICK RANZIJN CFA• TREASURER: ULRIKE KAISER-BOEING CFA • PAST PRESIDENT: FLORIAN ESTERER CFA • MEMBER: SHEILA OHLUND CFA • MEMBER: DANIEL RITZ CFA • MEMBER: PHILLIP SUNDQUIST CFA • MEMBER: ANTHONY CAGIATI CFA• MEMBER: RAFAELA BICHUETTE CFA

Please refer to the section “Board of Directors” for the biographies and pictures of all proposed board members.

AD V

Art. 8 of the Bylaws of CFA Switzerland states that there are two internal auditors, who must be Regular Members and who serve for a term of two years commencing at the beginning of the fiscal year and until their successors are chosen and qualified. The board proposes Laura Prina Cerai CFA for a two year term, beginning on 1 July 2017.

LAURA PRINA CERAI CFA is a senior portfolio manager and equity analyst at Altrafin AG in Zurich. Ms. Prina Cerai has 11 years investment experience in managing discretionary and advisory mandates for institutional and private clients. Prior to joining Altrafin, Ms Prina Cerai held the position of Senior Investment Advisor at Rothschild in Zurich for 5 years. Ms Prina Cerai started her investment career in 2006 as equity analyst at Financiere de L’Echiquier Asset Management in Paris and Salt Lake City, Utah. Ms Prina Cerai holds a Master Degree in International Business from The Rotterdam School of Management (2006) and a Bachelor Degree in Economics & Finance from the Bocconi University in Milan (2004). Ms Prina Cerai is a CFA charterholder.

AD VI

Please inform the Secretary in writing of any other business you wish to discuss no later than 15 September 2017, noon.

Revenues k CHF

Member dues 310

Continuing Education 40

Social Events 35

Conferences 280

Candidate Education 75

CFA Institute 257

Other 20

Total Revenue 1017

Expenses k CHF

Overhead 585

Continuing Education 72

Social Events 55

Conferences 172

Candidate Education 72

Other 62

Total Expenses 1018

Profit / Loss ­1

32 BALLOT FORM

All Regular Members of CFA Society Switzerland on record as of 4 August 2017 have received an emailed ballot to cast their votes online. If you have opted out of Society surveys via Surveymonkey earlier, or if you prefer to cast your vote using this form or in person at the AGM, you are free to do so. Note that the confidentiality of the vote can only be sustained by voting online.

This form needs to reach the Society offices before 1200h on 18 September 2017.

NAME:

CFA INSTITUTE PERSON ID:

Annual General Meeting 2017

You receive this ballot as a Regular Member of CFA Society Switzerland on record as of 4 August 2017.

Please do not forward the link to this ballot as this is for your personal use only. Note also that by submitting

your vote on this ballot, you are deemed to have voted at the AGM. In order to maintain the confidentiality of

the vote, there is no way to change your vote once the online ballot closes (19 September 2017, noon).

However, you can change your vote at any time until the ballot closes by using the link you have followed to

arrive on this form.

ONLY REGULAR MEMBERS WHO DO NOT VOTE THIS BALLOT WILL BE ABLE TO CAST THEIR VOTE

AT THE AGM.

If you would like to attend the AGM in person (irrespective of whether you've voted already or not), please

register following this link: https://en.xing-events.com/20170920BS

1. Do you approve the Minutes of the 2016 Annual General Meeting?*

Yes No Abstain

2. Do you exonerate the Board of Directors of CFA Society Switzerland?*

Yes No Abstain

3. Do you approve the budget for the current fiscal year 2017/18?*

Yes No Abstain

33

Yes No Abstain

Peter Neumann CFA,

President

Pablo Amuchastegui

CFA, Vice President

Patrick Ranzijn CFA,

Secretary

Ulrike Kaiser-Boeing

CFA,Treasurer

Florian Esterer CFA,

Past President

Sheila Ohlund CFA,

Member

Daniel Ritz CFA,

Member

Phillip Sundquist CFA,

Member

Rafaela Bichuette

CFA, Member

Anthony Cagiati CFA,

Member

4. Do you elect the nominated Board Members for a one year term, beginning 21 September 2017

and ending on the day of the 2018 AGM?

*

5. Do you elect Laura Prina Cerai CFA as internal auditor for a term of two years?*

Yes No Abstain

Annual General Meeting 2017

You receive this ballot as a Regular Member of CFA Society Switzerland on record as of 4 August 2017.

Please do not forward the link to this ballot as this is for your personal use only. Note also that by submitting

your vote on this ballot, you are deemed to have voted at the AGM. In order to maintain the confidentiality of

the vote, there is no way to change your vote once the online ballot closes (19 September 2017, noon).

However, you can change your vote at any time until the ballot closes by using the link you have followed to

arrive on this form.

ONLY REGULAR MEMBERS WHO DO NOT VOTE THIS BALLOT WILL BE ABLE TO CAST THEIR VOTE

AT THE AGM.

If you would like to attend the AGM in person (irrespective of whether you've voted already or not), please

register following this link: https://en.xing-events.com/20170920BS

1. Do you approve the Minutes of the 2016 Annual General Meeting?*

Yes No Abstain

2. Do you exonerate the Board of Directors of CFA Society Switzerland?*

Yes No Abstain

3. Do you approve the budget for the current fiscal year 2017/18?*

Yes No Abstain

34 OBITUARIES

Yifan Qin CFA

Yifan Qin CFA passed away on 12 August 2016 at the age of 43 years.

For many years, Eve was a senior M&A banker with UBS AG in Zurich, first with UBS Warburg in Zurich and Singapore, later for UBS Group. Highly proficient, she led many low­ and high­profile projects and transactions for FIG­clients and later various divisions of the bank globally. Before joining UBS, Eve was with ING Barings and Credit Agricole Indosuez, both in Shanghai.

She studied International Finance at the Shanghai University of Finance and Economics, followed by an MBA in Finance from RSM Erasmus University Rotterdam. Besides holding CAIA­ and FRM­ designations, she received her CFA Charter in 2006.

Soft­spoken and well­appreciated by clients and colleagues, Eve leaves a husband and one young son behind, to whom CFA Switzer­land offers their deepest condolences.

35

Pictures in this report were taken at events of CFA Switzerland. They are courtesy of Nevil de Tscharner CFA, Carole Fleischmann and others.

Editing was completed and believed correct on 18 August.

CFA SOCIETY SWITZERLANDPO BOX 3437

CHAMERSTRASSE 796303 ZUG

SWITZERLAND

+41 41 741 00 74CFALIVE.CH | SWISS.CFA