lgt asset allocation strategy · pdf file · 2015-09-21i. lgt asset allocation...

LGT Asset Allocation Strategy 4th quarter 2015

Market outlook and tactical positioning of LGT GIM Balanced/Growth and LGT Strategy 3-5 Years

4th quarter 2015 Disclaimer for outside Europe: This Product as defined hereunder is intended exclusively for, and may only be distributed to qualified investors/professional clients or type of investors as defined in the legislation of the country of origin of a potential investor. This Product is not for retail investors. This marketing material is provided for information purposes only, does not constitute an offer or a recommendation to buy or sell financial products or services, is personal to each recipient and may only be used by those persons to whom it has been handed out.

Please refer to the appendix for the applicable legal information © LGT Capital Partners 2015

Table of contents

2

I. LGT Asset Allocation Strategy − At a glance − Overview of investment policy − Comments on investment decisions − Economic outlook − Equities − Bonds − Hedge funds, private equity and real assets − Foreign exchange

Legal information

Please refer to the appendix for the applicable legal information © LGT Capital Partners 2015 3

LGT Asset Allocation Strategy Summary

At a glance Economic outlook Markets

Global

USA

Europe

EM

Global equity positioning sti ll sl ightly above neutral Traditional government bonds and EM bonds underweight; HY bonds neutral; IG overweight Commodities underweight; hedge funds and l isted private equity neutral; REITs overweight USD overweight; euro and EM currencies underweight

Liquidity Equities Bonds HF, PE and Real Assets

Equity component still slightly above neutral

General growth prospects in the emerging markets remain gloomy Due to the ongoing currency depreciation pressure, monetary

easing can only be expected in China and India

Cyclical prospects in the eurozone have brightened somewhat, due to the weaker EUR, low oil price and demand bottleneck Unlike the US Fed, the ECB seems more accommodative than

ever, thanks to its bond-buying program

World economy is increasingly fragile but should stay on course – China turmoil & EM weakness more significant than geopolitics The inflation potential is mitigated by overcapacity, high debts

and low commodities prices

According to leading indicators, the United States should sti ll (just about) be able to take on the role of global economic driver Despite satisfactory labor market figures, the Fed is sti l l very

hesitant about normalizing its monetary policy

Equities

Bonds

Currencies

Hedge funds, private equity and real assets

An intact economy and impending rate tightening cycle l imit the potential of US government bonds The fall in commodities, widespread fears regarding China,

and strong USD are all weighing on emerging market bonds

Within alternative equity, flexible strategies are attractive and the climate for stock-picking remains intact In the case of oil , geopolitical risks are offset by EM weakness

and a strong supply side

The relatively better economy and the monetary decoupling currently underway should bolster the USD The CHF seems to have stabil ized against the EUR between

parity and 1.10 (around 10% above PPP)

Equity market valuations can no longer be considered attractive, but are sti l l reasonably fair The ageing bull market will l ikely suffer from fatigue and

mood swings more often in the future

- - - - - - o + ++ +++0 0 0 1 0 00 1 1 0 0 00 0 0 0 0 00 0 0 1 0 0

Source: LGT Capital Partners



4

Overview of investment policy

Equity component still slightly above neutral Change since 15 June 2015

Previous positioning Equities Bonds Liquidity HF, PE, Real Assets

Forex

Asset classes Current position as of 14 September 2015 - - - - - - o + ++ +++

Equity Markets USA 0 0 0 0 0 0Europe 0 0 0 1 0 0Japan 0 0 0 1 0 0Asia / Pacific 0 0 0 0 0 0Emerging Markets 0 1 1 0 0 0

Bond Markets Developed Markets 0 1 1 0 0 0Emerging Markets 0 0 1 0 0 0Inflation Linked 0 0 1 0 0 0Investment Grade 0 0 0 1 0 0High Yield 0 0 0 0 0 0Convertibles 0 0 0 0 0 0

HF, PE & Real Assets Hedge Funds 0 0 0 0 0 0Listed Private Equity 0 0 0 0 0 0Commodities 0 0 1 0 0 0Precious Metals 0 0 0 0 0 0REITS 1 0 0

Liquidity Cash 0 0 0 1 0 0

Forex USD bloc 0 0 0 1 1 1EUR bloc 0 0 1 0 0 0GBP 0 0 0 0 0 0CHF 0 0 0 0 0 0JPY 0 0 0 0 0 0Others 0 1 1 0 0 0

No change

Underweight commodities

Reduction of EM bonds and increase in HY and IG bonds

Reduction of Japanese equities

No change


Comments on investment decisions

Equity component still slightly above neutral


Commodities

Commodities are below neutral. The oil market is well served on the supply side, and OPEC has no intention of reducing production in the medium

term. Falling drilling activity and investment are supporting price stabilization. Global monetary policy is supporting gold. The ECB and SNB are pushing real interest rates further into the negative

zone, which is making precious metals an alternative to the money market.

Equities

The equity positioning is still slightly above neutral. Japan and Europa remain overweight, while the USA and Asia/Pacific ex Japan are close to neutral and the emerging

countries significantly underweight. The valuation of the equity markets is no longer attractive, but is reasonably fair. Monetary policy divergences call for

regional differentiation.

Bonds

Bonds are significantly below neutral overall. Nominal and inflation-linked sovereigns and now also EM countries are underweight. Convertible and high-yield

bonds are close to neutral, while corporate bonds are now overweight. Despite pleasing labor market figures, the Fed is very hesitant about interest rate hikes. The monetary happy hour will

end extremely gently with a very careful interest rate tightening cycle.

USD

The USD remains overweight. The greenback, which was for decades the world's no. 1 weak currency, has been leading the currency hit parade

again for several quarters. Fundamentally, almost everything favors the USA, thanks to the improved economy and numerous geopolitical

hotspots, although the Fed's hesitancy is gradually trimming down its lead.


Economic outlook

Baseline and risk scenario – global perspective1

Global baseline scenario

Global risk scenario

Source: LGT Capital Partners 1 The macroeconomic landscape has a time horizon of 3-6 months

Expansion Contraction Growth

Inflation

Classic boom

Globalization

Stagflation

Deflationary depression

Inflation

Deflation

Dis- inflation /


Economic outlook

Old world displays some zest; EMs not at their best


Emerging markets

Europe

USA

Since the typical seasonal weakness in the first quarter was ironed out again, as expected, the US economy has been making good progress. According to the relevant leading indicators, the conditions are still (just about) in place for the USA to play the role of global economic driver.

The expansive monetary conditions and deflationary pressure caused by overcapacity continue to balance each other out, leading to a sideways trend in inflation.

Based on labor market figures, a more restrictive monetary policy must be anticipated. Nonetheless, we will probably see the most careful and gentle interest rate tightening cycle of all times.

Due to the weaker euro, low oil prices and a substantial demand bottleneck, the economic outlook in the eurozone has brightened somewhat. But there is still a large regional growth divide between the north (where GDP is again reaching pre-crisis levels) and the south (where it is still 10% lower).

Inflation rates are above zero again and the specter of deflation has probably been banished. However, a return to the ECB's stability objective ("close, but below 2%") is still far off.

Since January, Draghi has been fulfilling his "whatever it takes" promise in order to support economic recovery and stave off inflation.

Many emerging countries are suffering from specific structural problems, the low commodities prices and the slowing Chinese growth. Conversely, the cheap commodities prices are giving Poland and India a pleasing level of momentum.

Due to the weak economy and the low commodities prices, inflationary pressure is limited in many places. The exceptions are countries with strong currency depreciation (e.g. Brazil, Russia).

Due to the falling inflationary pressure, China and India will likely loosen their monetary policy further. Other countries' central banks have their hands tied by the depreciation pressure on their currencies.


Equities

Fruitful land in Europe & Japan due to monetary fertilizer USA

Europe

Japan

Emerging markets

US growth is roughly back in line with the normal trend growth rate, but there are no signs of overheating anywhere on the horizon.

Not least due to the increasing headwind caused by the Fed, the ageing bull market will probably suffer more from fatigue and mood swings in the future.

The trend is flat – a volatile sideways trend can be expected.

In terms of economic momentum, the eurozone cannot yet keep up with the USA, but even here national economies have gained momentum despite months of uncertainties regarding Greece.

Additional support for European equities is provided by the ECB. With its bond-buying program, it pumps EUR 60 billion into the markets every month.

The trend has flattened – but, thanks to the ECB, the uptrend should gain momentum again.

A "flash-in-the-pan" diagnosis for Japan's economy would be premature, as there is a good chance that it will pick up even more momentum in the coming quarters.

It will be bolstered by the low yen, which is supporting exports, and by domestic consumption, which is benefiting from the low energy prices.

The trend is slightly positive – a continuation of the uptrend can be expected.

The growth outlook for the emerging markets remains disappointing overall. Commodity-producing countries and Asian countries are suffering from the slowing growth in China.

Due to the ongoing depreciation pressure, many countries will be denied much-needed monetary easing. Sentiment remains tense.

The trend is negative – a reversal seems unlikely.

600

1,200

1,800

2,400

9/10

9/11

9/12

9/13

9/14

9/15

S&P 500 (USD)

6,000

12,000

18,000

24,000

9/10

9/11

9/12

9/13

9/14

9/15

NIKKEI 225 (JPY)

1,500

2,500

3,500

4,500

9/10

9/11

9/12

9/13

9/14

9/15

Euro STOXX50 (EUR)

400

800

1,200

1,600

9/10

9/11

9/12

9/13

9/14

9/15

MSCI EM (USD)

Source: LGT Capital Partners, Datastream Past performance is not a guarantee, nor an indication of current or future performance.


Bonds

Is Yellen about to create rate hike ripples?

Despite pleasing labor market figures, the Fed appears very hesitant about interest rate hikes. The monetary happy hour will likely end very gently with a very careful interest rate tightening cycle.

The expansionary monetary conditions and deflationary pressure are balancing each other out. However, it is likely that CPI inflation has now bottomed out and is heading toward the Fed target value of 2%.

The trend is slightly positive – but the looming interest rate tightening cycle points to a trend reversal.

US

In the case of sovereign bonds, hope for success from the QE stimulus has temporarily resulted in rising yields, but the primary effect of the bond buying still prevails.

Although inflation rates are positive again, the ECB bond-buying program will undoubtedly run until September 2016 and at least until inflationary expectations are close to 2%.

The trend is slightly positive – however, a flattening should be expected.

Europe

Recent global economic worries and the price collapse on the commodities markets have had a disinflationary effect and have thus dented trends in inflation-linked bonds.

The relatively low inflation expectations remain dictated by oil prices for the time being. Inflation-linked bonds remain attractively valued compared with nominal bonds.

Inflation-linked

US interest rates and break-even inflation rates European interest rates and break-even inflation rates

200

400

600

800

9/10

9/11

9/12

9/13

9/14

9/15

US Gov 10y (Index)

200

400

600

800

9/10

9/11

9/12

9/13

9/14

9/15

GER Gov 10y (Index)

100

200

300

400

9/10

9/11

9/12

9/13

9/14

9/15

BC IL 1-10y (Index)

0.0

1.0

2.0

3.0

4.0

9/10

9/11

9/12

9/13

9/14

9/15

US Gov 10y BEI

0.0

1.0

2.0

3.0

4.0

9/10

9/11

9/12

9/13

9/14

9/15

FRA Gov 10y BEI


1.0

2.0

3.0

4.0

5.0

9/10

9/11

9/12

9/13

9/14

9/15

US Gov10y Yield

0.0

1.0

2.0

3.0

4.0

9/10

9/11

9/12

9/13

9/14

9/15

FRA Gov 10y Yield


Bonds

Commodities malaise veils attractive valuations

In the US market, the lively M&A activity and shareholder-friendly distribution policy are pushing up issuers' debt by considerable amounts, which is reflected in rising yield premiums.

As US companies continue to have an extremely high interest coverage ratio, the valuation of the US market can be considered attractive, while in Europe it is merely fair.

The trend is still slightly negative – but a slight uptrend can be expected.

Investment grade

The investment class high-yield bonds is currently suffering from the trends in the energy and metal/mining sectors, which have both been hit hard by the ongoing fall in commodities.

The valuation of this investment class can be described as fair to attractive. However, caution is advisable in this relatively illiquid market due to the ongoing weakness of the commodities markets.

The trend is slightly negative – we expect a volatile sideways trend.

High yield

Global new issues are likely to remain high thanks to strong demand, M&A activity and a robust equity market.

Convertible bonds are fairly valued. The performance of this asset class going forward is largely dependent on trends in the equity markets.

The trend is neutral – a sideways trend is to be expected.

Convertible bonds

The fall in commodities, fears regarding China, and the strong USD are all weighing on EM bonds. Local currency bonds will probably remain exposed to headwinds from the strong greenback for the time

being. Conversely, hard currency bonds from sovereign issuers are benefiting from the increased yield premiums, which significantly overcompensate for default risks at the moment.

The trend is negative – we only expect to see stabilization in hard currency bonds.

Emerging markets

40

80

120

160

9/10

9/11

9/12

9/13

9/14

9/15

BC Corp. Credit (USD)

100

200

300

400

9/10

9/11

9/12

9/13

9/14

9/15

ML High Yield (USD)

150

300

450

600

9/10

9/11

9/12

9/13

9/14

9/15

ML Conv. Bond (USD)


250

500

750

1,000

9/10

9/11

9/12

9/13

9/14

9/15

JPM EMBI+ (USD)


Hedge funds, private equity and real assets

Energy commodities still weak

Global divergences and volatility offer good opportunities for liquid and flexible managers, and especially Global Macro and systematic strategies.

In the alternative equity space, flexible strategies are attractive; the environment for stock picking remains intact.

The structural changes in the credit market continue to offer attractive opportunities.

Hedge funds

Listed private equity

Commodities

Real estate (REITs)

The investment class is continuing to benefit from record-high realizations of holdings, which are often above the valuation contained in the NAV.

The recent market turmoil has increased the discounts on the investment class to more attractive values. Overall, a moderate, volatile performance is to be expected. Prices may be driven further by NAV

performance as well as by narrowing of discounts.

The looming interest rate tightening cycle in the USA and the generally more negative sentiment on the equity market led to a correction in REITS in Q2.

US and HK REITs have traded with the largest discount to the NAV since the correction. Driven by the cyclical recovery in the Western countries, rental income and occupancy rates continue to

grow. This is confirmed by transactions at higher prices in the private real estate market.

Global monetary policy is supporting gold. The ECB and SNB are pushing real interest rates further into the negative zone, which is making precious metals an alternative to the money market.

Falling drilling activity and investment are supporting oil price stabilization. The market is still well served on the supply side and in the medium term we only see limited upward potential.

Agricultural and metal commodities are increasingly trading below their production costs, which will lead to capacity reductions in the medium term. The decrease in arable land is supporting agricultural prices.

200

400

600

800

9/10

9/11

9/12

9/13

9/14

9/15

CSFB Tremont (USD)

100

250

400

550

9/10

9/11

9/12

9/13

9/14

9/15

LPX MMI (USD)

2,500

4,000

5,500

7,000

9/10

9/11

9/12

9/13

9/14

9/15

NAREIT all (USD)

150

300

450

600

9/10

9/11

9/12

9/13

9/14

9/15

Bloomberg Com Index (USD)



Currencies

Between indebted "Hellen-ache" state and "draghic" suppression

The greenback, which was for decades the world's no. 1 weak currency, has been leading the currency hit parade again for several quarters.

Fundamentally, almost everything favors the USA, thanks to the improved economy and numerous geopolitical hotspots, although the Fed's hesitancy is gradually trimming down its lead.

The USD's trend is positive.

USD

EUR The structurally struggling euro may have begun a bottom phase with the latest crisis deescalation in Greece.

However, ECB President Mario Draghi himself is trying to push the euro downward with his unorthodox monetary policy. Thus the byword "Don't fight the ECB" must be weighted more heavily for the time being.

The trend versus the CHF is negative.

CHF

JPY

The "storm in a teacup" subsided surprisingly quickly after the exchange rate floor of 1.20 against the euro was abolished in January 2015.

The CHF seems to have stabilized against the EUR between parity and 1.10 (around 10% above PPP) for the time being, without any intervention from the SNB.

The trend versus the USD is sideways.

Pressure on the JPY has significantly decreased, as further expansion of the QE program has become unlikely.

However, Japan's trump cards, such as its current account surplus and low foreign debt, have not been able to have their full effect as yet.

JPY's trend versus the USD is negative.

0.80

1.00

1.20

1.40

1.60

9/10

9/11

9/12

9/13

9/14

9/15

EURUSD

0.80

1.00

1.20

1.40

1.60

9/10

9/11

9/12

9/13

9/14

9/15

EURCHF

0.60

0.80

1.00

1.20

1.40

9/10

9/11

9/12

9/13

9/14

9/15

USDCHF

60

80

100

120

140

9/10

9/11

9/12

9/13

9/14

9/15

USDJPY



Currencies

Will the Brexit debate end with a sterling surprise?


Relatively strong economic data, healthy state finances and high current account surpluses favor the Norwegian krone.

However, the Norwegian krone is also suffering from the low oil prices. To cushion the negative impact on the real economy, the central bank will have to further loosen the monetary reins.

The trend versus the EUR is negative.

NOK

GBP All relevant factors – better fundamentals, an interest rate hike in the foreseeable future and a still constructive valuation – continue to favor GBP.

This is all the truer given the unexpectedly clear election victory by the Tories – if it wasn't for widespread BREXIT fears in the run-up to the definitively promised referendum on an exit from the EU (2016).

GBP's trend versus the USD is sideways.

SGD

CNY

In trade-weighted terms, the SGD lies at the lower edge of the central bank's appreciation band. It remains undervalued versus the USD.

Due to the limited inflation potential and the new Chinese exchange rate regime, the central bank will likely aim for a slightly flatter appreciation band in the future.

The trend versus the USD is negative.

Growth continues to slow in China. The latest leading indicators suggest that it will be difficult for China to reach its growth target of 7%.

This is probably one of the key reasons why the Chinese central bank has loosened its links to the dollar, which is putting the CNY under constant pressure, despite continually high current account surpluses.

The trend versus the USD is negative.

6.0

8.0

10.0

12.0

14.0

9/10

9/11

9/12

9/13

9/14

9/15

EURNOK

1.20

1.40

1.60

1.80

2.00

9/10

9/11

9/12

9/13

9/14

9/15

GBPUSD

1.00

1.20

1.40

1.60

1.80

9/10

9/11

9/12

9/13

9/14

9/15

USDSGD

5.00

6.00

7.00

8.00

9.00

9/10

9/11

9/12

9/13

9/14

9/15

USDCNY


Contact details

14

www.lgtcp.com / [email protected]

Pfaeffikon (Switzerland) LGT Capital Partners Ltd. Schuetzenstrasse 6 CH-8808 Pfaeffikon Phone +41 55 415 96 00

New York LGT Capital Partners (USA) Inc. 1133 Avenue of the Americas New York, NY 10036 Phone +1 212 336 06 50

Dublin LGT Capital Partners (Ireland) Ltd. Third Floor, 30 Herbert Street, Dublin 2 Phone +353 1 433 74 20

London LGT Capital Partners (U.K.) Ltd. 35 Dover Street London W1S 4NQ Phone +44 20 7529 0960

Vaduz (Liechtenstein) LGT Capital Partners (FL) AG Herrengasse 12 FL-9490 Vaduz Phone +423 235 25 25 Fax +423 235 25 00

Sydney LGT Capital Partners (Australia) Pty. Ltd. Level 36 Governor Phil l ip Tower 1 Farrer Place Sydney NSW 2000 Phone +61 414 375 513

Dubai LGT Capital Partners (Dubai) Ltd. DIFC, The Gate Building (West), Level 2 P.O. Box 506793 Dubai, United Arab Emirates Phone +971 4 436 7175

Beijing LGT Investment Consulting (Beijing) Ltd. 1516 China World Tower 1 1 Jianguomenwai Ave Chaoyang District Beijing 100004 Phone +86 10 6505 82250

Hong Kong LGT Capital Partners (Asia-Pacific) Ltd. Suite 4203 Two Exchange Square 8 Connaught Place P.O. Box 13398 Central Hong Kong, HK Phone +852 2522 2900

Tokyo LGT Capital Partners (Japan) Co., Ltd. 17th Floor Stage Building 2-7-2 Fujimi, Chiyoda-ku 102-0071 Tokyo Phone +81 3 6272 6442

Hong Kong

New York Tokyo

Dublin

London

Beijing

Dubai

Vaduz Pfaeffikon

Headquarters

Sydney


Legal information

15

This marketing material constitutes marketing communication and was produced by LGT Capital Partners Ltd. on behalf of Undertakings for Collective Investment in Transferable Securities (UCITS) management company LGT Capital Partners (FL) Ltd. (hereafter “LGT CP”) with the greatest of care and to the best of its knowledge and belief. This marketing material relates to LGT Global Investable Markets Fund – LGT GIM Balanced, LGT Global Investable Markets Fund - LGT GIM Growth, LGT Strategy 3 Years, LGT Strategy 4 Years and LGT Strategy 5 Years (further referred to as the „Product“). The Product mentioned in this marketing material is domiciled in Liechtenstein. However, LGT CP provides no guarantee with regard to its content and completeness and does not accept any liability for losses which might arise from making use of this marketing material. The opinions expressed in this marketing material are those of LGT CP at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are unaudited. This marketing material is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or services or to adopt any specific investment strategy and does not release the recipient from exercising his/her own judgment. The recipient is in particular recommended to check that the information provided is in line with his/her own circumstances with regard to any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. This marketing material may not be copied, reproduced or redistributed either in part or in full without the written permission of LGT CP. 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As of 22 April 2014, LGT Capital Partners Ltd. and LGT Capital Management Ltd., have merged and the name of the new company is LGT Capital Partners Ltd. LGT Capital Partners Ltd. claims compliance with the Global Investment Performance Standards (GIPS®) for all institutional mandates and traditional investment funds managed in Liechtenstein and Switzerland and all private equity programs managed in Switzerland and Ireland. GIPS compliant presentations and the list of composite descriptions can be obtained from LGT Capital Partners Ltd. GIPS® is a registered trademark of CFA Institute. CFA Institute has not been involved in the review or preparation of this marketing material. Subscriptions are only valid on the basis of the current sales prospectus, the Key Investor Information Document, the bylaws and/or contractual terms and conditions and the most recent annual report (or semi-annual report, if more recent) (further referred to collectively as the “Sales Documents”). 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Legal information

16

Singapore: The offer or invitation of the shares (the “Shares”) of the Product which is the subject of this marketing material, does not relate to a collective investment scheme which is authorised under Section 286 of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”) or recognised under Section 287 of the SFA. The Product is not authorised or recognised by the Monetary Authority of Singapore (the “MAS”) and the Shares are not allowed to be offered to the retail public. This marketing material and any other document or material issued in connection with the offer or sale is not a prospectus as defined in the SFA and accordingly, statutory liability under the SFA in relation to the content of prospectuses does not apply, and you should consider carefully whether the investment is suitable for you. This marketing material has not been registered as a prospectus with the MAS. Accordingly, this marketing material and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of Shares may not be circulated or distributed, nor may Shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 304 of the SFA, (ii) to a relevant person pursuant to Section 305(1), or any person pursuant to Section 305(2), and in accordance with the conditions specified in Section 305 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. Where Shares are subscribed or purchased under Section 305 of the SFA by a relevant person which is: (a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or (b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor, securities (as defined in Section 239(1) of the SFA) of that corporation or the beneficiaries’ rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the Shares pursuant to an offer made under Section 305 of the SFA except: (1) to an institutional investor or to a relevant person defined in Section 305(5) of the SFA, or to any person arising from an offer referred to in Section 275(1A) or Section 305A(3)(i)(B) of the SFA; (2) where no consideration is or will be given for the transfer; (3) where the transfer is by operation of law; (4) as specified in Section 305A(5) of the SFA; or (5) as specified in Regulation 36 of the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005 of Singapore. DIFC: This marketing material relates to the Product which is not subject to any form of regulation or approval by the Dubai Financial Services Authority ("DFSA"). The DFSA has no responsibility for reviewing or verifying any marketing material or other documents in connection with the Product. Accordingly, the DFSA has not approved this marketing material or any other associated documents nor taken any steps to verify the information set out in this marketing material, and has no responsibility for it. The units in the Product may be illiquid and/or subject to restrictions on their resale. Prospective purchasers should conduct their own due diligence on the units in the Product. If you do not understand the contents of this marketing material you should consult an authorised financial adviser. Oman: LGT CP neither has a registered business presence nor a representative office in Oman and does not undertake banking business, or provide financial services, in Oman. Consequently, LGT CP is not regulated by either the Central Bank of Oman or Oman’s Capital Market Authority. As mentioned above, the marketing material contained in this document is provided for information purposes only and does not constitute an offer concerning the sale or purchase of securities in Oman. This marketing material is not a prospectus and neither constitutes a public offer of securities in the Sultanate of Oman as contemplated by the Commercial Companies Law of Oman (Royal Decree 4/74) or the Capital Market Law of Oman (Royal Decree 80/98) nor does it constitute an offer to sell, or the solicitation of any offer to buy Non-Omani securities in the Sultanate of Oman as contemplated by Article 139 of the Executive Regulations to the Capital Market Law (issued vide CMA Decision 1/2009). Additionally, this marketing material is not intended to lead to the conclusion of any contract of whatsoever nature within the territory of the Sultanate of Oman. LGT CP does not solicit business in Oman and the only circumstances in which LGT CP sends information or material describing financial products or financial services to recipients in Oman, is where such information or material has been requested from LGT CP, which does so, on the basis that the person or entity requesting the information understands, acknowledges and agrees that this marketing material has not been approved by the Central Bank of Oman, the Capital Market Authority or any other regulatory body or authority in Oman. Qatar/QFC: This marketing material is provided on an exclusive basis to the specifically intended recipient thereof, upon that person´s request and initiative, and for the recipient́ s personal use only. Nothing in this marketing material constitutes, is intended to constitute, shall be treated as constituting or shall be deemed to constitute, any offer or sale of securities in the State of Qatar or in the Qatar Financial Centre or in the inward marketing of an investment fund or an attempt to do business, as a bank, an investment company or otherwise in the State of Qatar or in the Qatar Financial Centre. This marketing material and the underlying instruments have not been approved, registered or licensed by the Qatar Central Bank, the Qatar Financial Centre Regulatory Authority, the Qatar Financial Markets Authority or any other regulator in the State of Qatar. This marketing material and any related documents have not been reviewed or approved by the Qatar Financial Centre Regulatory Authority or the Qatar Central Bank. Recourse against the Product and those involved with it, may be limited or difficult and may have to be pursued in a jurisdiction outside Qatar and the Qatar Financial Centre. Any distribution of this marketing material by the recipient to third parties in Qatar or the Qatar Financial Centre beyond the terms hereof is not authorised and shall be at the liability of such recipient. United Arab Emirates: The offering of the Product has not been approved or licensed by the United Arab Emirates Central Bank, the UAE Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA) or any other relevant licensing authorities in the United Arab Emirates (UAE), and accordingly does not constitute a public offer of securities in the UAE in accordance with the commercial companies law, Federal Law No. 8 of 1984 (as amended), SCA Resolution No.(37) of 2012 (as amended) or otherwise. Accordingly, the Product may not be offered to the public in the UAE (including the Dubai International Financial Centre). This marketing material is strictly private and confidential and is being issued to a limited number of institutional and individual investors: (a) who fall within the exceptions to SCA Resolution No. (37) of 2012 (as amended) or who otherwise qualify as sophisticated investors; (b) upon their request and confirmation that they understand that the Product and the interests have not been approved or licensed by or registered with the UAE Central Bank, the SCA, DFSA or any other relevant licensing authorities or governmental agencies in the UAE; and (c) must not be provided to any person other than the original recipient, and may not be reproduced or used for any other purpose. Copyright © 2015 LGT Capital Partners. All rights reserved.