This publication is a marketing communication. This publication is intended only for your information purposes. It is not intended as an offer, solicitation of an offer, or public advertisement or recommendation to buy or sell any investment or other specific product. The publication addresses solely the recipient and may not be multiplied or published to third parties in electronic or any other form. The content of this publication has been developed by the staff of the bank and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its correctness, completeness and up-to-date nature. The circumstances and principles to which the information contained in this publication relates may change at any time. Once published information is therefore not to be interpreted in a manner implying that since its publication no changes have taken place or that the information is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax or other matters of consultation, nor should any investment decisions or other decisions be made solely on the basis of this information. Advice from a qualified expert is recommended. Investors should be aware of the fact that the value of investments can decrease as well as increase. Therefore, a positive performance in the past is no reliable indicator of a positive performance in the future. The risk of exchange rate and foreign currency losses due to an unfavorable exchange rate development for the investor cannot be excluded. There is a risk that investors will not receive back the full amount they originally invested. Forecasts are not a reliable indicator of future performance. In the case of simulations the figures refer to simulated past performance and that past performance is not a reliable indicator of future performance.
This publication is not intended for persons subject to a legislation that prohibits its distribution or makes its distribution contingent upon an approval. Persons in whose possession this publication comes, as well as potential investors, must inform themselves in their home country, country of residence or country of domicile about the legal requirements and any tax consequences, foreign currency restrictions or controls and other aspects relevant to the decision to tender, acquire, hold, exchange, redeem or otherwise act in respect of such investments, obtain appropriate advice and comply with any restrictions. In line with internal guidelines, persons responsible for compiling this publication are free to buy, hold and sell the securities referred to in this publication. For any financial instruments mentioned, we will be happy to provide you with additional documents at any time and free of charge, such as a key information document pursuant to Art. 58 et seq. of the Financial Services Act, a prospectus pursuant to Art. 35 et seq. of the Financial Services Act or an equivalent foreign product information sheet, e.g. a basic information sheet pursuant to Regulation EU 1286/2014 for packaged investment products for retail investors and insurance investment products (PRIIPS KID).
- LGT Group Holding Ltd., Herrengasse 12, 9490 Vaduz, Liechtenstein is responsible for compilation and distribution of this publication on behalf of the following financial services institutions:
- LGT Bank Ltd., Herrengasse 12, 9490 Vaduz, Liechtenstein. Responsible supervisory authority: Liechtenstein Financial Market Authority (FMA) Landstr. 109, P.O. Box 279, 9490 Vaduz, Liechtenstein;
- LGT Bank AG, Zweigniederlassung Österreich, Bankgasse 9, 1010 Vienna, Austria. Responsible supervisory authorities: Liechtenstein Financial Market Authority (FMA), Landstr. 109, P.O. Box 279, 9490 Vaduz, Liechtenstein; Austrian Financial Market Authority (FMA), Otto-Wagner-Platz 5, 1090 Vienna, Austria;
- LGT Bank AG, Zweigniederlassung Deutschland, Maximilianstr. 13, 80539 Munich, Germany. Responsible supervisory authorities: Liechtenstein Financial Market Authority (FMA), Landstr. 109, P.O. Box 279, 9490 Vaduz, Liechtenstein; German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht BaFin), Graurheindorfer Str. 108, 53117 Bonn, Germany, Marie-Curie-Str. 24-28, 60439 Frankfurt am Main, Germany;
- LGT Bank AG, UK Branch, 14 Cornhill, London EC3V 3NR, United Kingdom; Responsible supervisory authorities: Liechtenstein Financial Market Authority (FMA), Landstr. 109, P.O. Box 279, 9490 Vaduz, Liechtenstein; Financial Conduct Authority (FCA), 12 Endeavour Square, London E20 1JN, United Kingdom; in the United Kingdom (UK), LGT Bank AG (FRN 959424) is solely authorised and regulated by the Financial Conduct Authority (FCA) as a wealth management firm. LGT Bank AG is not a dual-regulated firm, and therefore is not authorised by the Prudential Regulation Authority (PRA) and does not have permissions in the UK to accept deposits;
- LGT Bank (Switzerland) Ltd., Lange Gasse 15, 4002 Basel, Switzerland. Responsible supervisory authority: Swiss Financial Market Supervisory Authority FINMA, Laupenstr. 27, 3003 Berne, Switzerland;
- LGT (Middle East) Ltd., The Gate Building (East), Level 4, P.O. Box 506793, Dubai, United Arab Emirates, in the Dubai International Financial Centre (Registered No. 1308) is regulated by the Dubai Financial Services Authority (DFSA), Level 13, West Wing, The Gate, P.O. Box 75850, Dubai, UAE, in the Dubai International Financial Centre.
Risk information for single stock/single bond recommendations
Responsibilities
Responsible for distribution in Liechtenstein within the meaning of Art. 36 and 37 of the Delegated Regulation (EU) 2017/565: LGT Bank Ltd., Herrengasse 12, 9490 Vaduz, Liechtenstein. Responsible supervisory authority: Liechtenstein Financial Market Authority (FMA), Landstr. 109, P.O. Box 279, 9490 Vaduz, Liechtenstein.
Responsible for distribution in Switzerland within the meaning of the Directives on the Independence of Financial Research from the Swiss Bankers Association (SBA): LGT Bank (Switzerland) Ltd., Lange Gasse 15, 4002 Basel, Switzerland. Responsible supervisory authority: Swiss Financial Market Supervisory Authority FINMA, Laupenstr. 27, 3003 Berne, Switzerland.
Responsible for distribution in Austria within the meaning of § 54 WAG 2018 (Securities Supervisory Act 2018): LGT Bank AG, Zweigniederlassung Österreich, Bankgasse 9, 1010 Vienna, Austria. Responsible supervisory authorities: Liechtenstein Financial Market Authority (FMA), Landstr. 109, P.O. Box 279, 9490 Vaduz, Liechtenstein; Austrian Financial Market Authority (FMA), Otto-Wagner-Platz 5, 1090 Vienna, Austria.
Responsible for distribution in Germany within the meaning of § 85 WpHG: LGT Bank AG, Zweigniederlassung Deutschland, Maximilianstr. 13, 80539 Munich, Germany. Responsible supervisory authorities: Liechtenstein Financial Market Authority (FMA), Landstr. 109, P.O. Box 279, 9490 Vaduz, Liechtenstein; German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht BaFin), Graurheindorfer Str. 108, 53117 Bonn, Germany, Marie-Curie-Str. 24-28, 60439 Frankfurt am Main, Germany.
Precautions for avoiding and dealing with conflicts of interest
Employees of LGT Capital Partners Ltd., Pfäffikon, LGT Bank Ltd., Vaduz, LGT Bank (Switzerland) Ltd., LGT Bank AG, Zweigniederlassung Deutschland and LGT Bank AG, Zweigniederlassung Österreich, who are responsible for distributing financial analyses, are subject to the applicable regulations as prescribed by law and supervisory legislation. In particular, measures were taken to avoid conflicts of interest (e.g. checking information exchanged with other employees, independence of the remuneration of the employees concerned, preventing the exertion of influence on these employees, compliance with rules on employee transactions, etc.). Adherence to the regulations and organizational instructions is monitored by a Compliance Officer.
Essential sources of information
The analyses we forward are based on publicly available information that we consider to be reliable. For the compilation of the analysis, publications by domestic and foreign media and news services (e.g. Reuters, Bloomberg, Vereinigte Wirtschaftsdienste (VWD) etc.), business publications, trade publications, statistics and rating agencies were used, together with information from the issuers of the analyzed securities – mainly via the Internet, but also in writing or by telephone. We also procure information from investment banks (sell-side research and primary research).
Reference regarding valuation rates
Unless otherwise stated or specified, the rates used in the analysis are normally the share prices provided by the news agencies Reuters and/or Bloomberg at the close of the stock exchange of the domestic market of the analyzed security or the relevant principal market of this security on the respective local stock exchange on the eve of the day of compilation.
Explanation of investment recommendations for stocks
We obtain our investment recommendations for stocks from an external provider of independent research, CFRA. The analyses are prepared by CFRA and are not the result of analysis by LGT Bank (Switzerland) Ltd. LGT Bank (Switzerland) Ltd. is licensed by CFRA to pass on the analyses to its clients and accepts no liability for the content of the analyses. The analyses produced by CFRA follow a fundamental or a quantitative model. Recommendations based on a fundamental analysis are prepared by a CFRA analyst on the basis of CFRA’s STARS (Stock Appreciation Ranking System) approach. This approach assesses the investment potential of a stock at the time the investment recommendation is made. Quantitative-based recommendations are determined by measuring several factors from large amounts of data from various sources. This multi-factor approach considers financial information, key performance indicators, market data and assessments in order to determine the financial health and management quality of a company, the valuation, the market sentiment and the price momentum. The securities are then compared to their sector peers and rated, resulting in the investment recommendation. The analyses are provided to clients for information purposes and do not take into account the investment objectives and financial situation or other individual requirements of the recipient. Potential investors should therefore always obtain individual advice from their relationship manager based on their personal circumstances.
Explanation of investment recommendations for bonds
We use quantitative methods to create our investment universe. The methods applied include the use of classification algorithms, such as a bagged decision tree for evaluating the accuracy of issuer ratings and hidden Markov chains for evaluating the issuer’s transition probabilities and probabilities of default. The suitability of the issues for admission to the universe is determined by combining the quantitative evaluation of the issuer with the evaluation of the price/spread attractiveness of the issues. The “on list” attribute is based on a purely quantitative approach that factors in the market price of the credit risk, the valuation of the equities and associated instruments, the company’s gearing, the structure of the liabilities, the size and the rating by the rating agency. You can find more information on the quantitative selection procedure in the relevant document on our website: www.lgt.com/fixed-income-methodology
This publication does not constitute an issue prospectus, listing prospectus, or any other kind of prospectus. Furthermore, this publication does not constitute an offer to subscribe or any other transaction or obligation.
Criteria for selecting the “top pick” bonds
The selection of the top picks is based on quantitative and qualitative methods that are described in detail in the relevant document from page 15 onwards on our website http://www.lgt.com/fixed-income-methodology. This publication does not constitute an issue prospectus, listing prospectus, or any other kind of prospectus.
Risk information for fund recommendations
No guarantee is provided that the publications and information are up to date. Investment decisions should therefore always be made on the basis of the current prospectus and/or the complete documentation and publication of the third party/fund issuer (in particular the key investor information/PRIIPs KID (packaged retail and insurance-based investment products key information documents)) and following consultation with an expert. This fund recommendation does not meet all the statutory requirements for guaranteeing the impartiality of financial research. The Swiss Bankers Association Directives on the Independence of Financial Research do not apply to this recommendation. It does not constitute financial analysis within the meaning of the Liechtenstein Ordinance on the Preparation of Financial Analysis according to the Law against Market Abuse in the Trading of Financial Instruments. LGT Bank (Switzerland) Ltd. and/or its affiliated companies are not subject to any prohibition of trading prior to the publication of financial research with regard to the recommended funds. The research can form the basis for the investment decisions of LGT Bank (Switzerland) Ltd. itself and/or those of its affiliated companies. It is possible that LGT Bank (Switzerland) Ltd. and/or its affiliated companies might receive retrocessions from the issuers of the funds dealt with here.
All selected third-party funds are subjected to a thorough quantitative and qualitative analysis process prior to inclusion in the LGT FundGuide. Selected third-party funds are also subject to a continuous monitoring process.
Country-specific information
LGT funds: The current complete prospectus, the key investor information/PRIIPs KID and the relevant annual and half-year reports can be obtained from the relevant fund managers or their local representatives, from LGT banks or electronically at www.lafv.li.
Risk information for recommendations concerning structured products
This recommendation was prepared by LGT Bank (Switzerland) Ltd and not by an independent financial analysis department. Therefore, this recommendation does not meet all the statutory requirements for guaranteeing the impartiality of financial research. The Swiss Bankers Association Directives on the Independence of Financial Research do not apply to this recommendation. Investments in structured products entail a wide range of risks. Investment decisions should therefore only be made on the basis of the valid prospectus or complete documentation following consultation with an expert. This is not a financial analysis within the meaning of the Delegated Regulation (EU) 2017/565 in conjunction with MiFID II.
Risk information in connection with foreign currencies
Information about foreign currencies were produced by LGT Bank (Switzerland) Ltd. and not by an independent financial analysis department. Therefore, forecasts, observations and price information are subject to change at any time and there is no guarantee that the information is complete. Investment decisions should accordingly be made in consideration of the investor’s personal risk tolerance and within the overall context of the portfolio. The Swiss Bankers Association Directives on the Independence of Financial Research do not apply to currency analysis. This is not a financial analysis within the meaning of the Delegated Regulation (EU) 2017/565 in conjunction with MiFID II.
Risk information on LGT Sustainability Rating
To determine the LGT Sustainability Rating, the companies, countries and supranational organizations underlying the investment vehicles are assessed according to criteria defined by LGT with respect to the areas of environment (E), social issues (S) and corporate governance (G). Corporate and country-specific sustainability data (raw data) of external data providers feed into this rating. The LGT Sustainability Rating is a result based on criteria and calculation methods determined by LGT. It does not claim to be exhaustive, accurate or up to date. The LGT Sustainability Rating is not substantiated by LGT. Any liability of LGT is excluded. The LGT Sustainability Rating does not constitute advice, an offer, a solicitation or invitation to submit an offer; it is neither a basis for a decision nor a recommendation to buy or sell investment vehicles or other specific products and does not constitute advertising for products or services. Advice from a qualified specialist before making an investment decision is recommended. Investments may be subject to fluctuations. A high LGT Sustainability Rating and a high ESG score do not guarantee a good or better performance of the investment vehicle or other products, in particular in comparison with an investment with a lower LGT Sustainability Rating. The LGT Sustainability Rating must be strictly separated from other analyses and assessments. The ESG criteria applied may differ from individual ideas of the client.
Risk information for US assets
This investment proposal might contain US assets located in the USA (known as “US situs assets”) which might trigger US estate tax consequences. This means, for example, that the estate of the decedent neither domiciled in the USA nor with US citizenship might become liable for tax payment to the US tax authority. Certain estate and gift tax agreements with the USA (see homepage of the US Internal Revenue Service, IRS), however, provide for increased tax allowances or more extensive exemptions, some of which do not apply automatically but require the filing of a tax return or approval by the IRS. LGT recommends that clients consult a qualified tax advisor for further information on US estate tax and the associated reporting obligations and tax liabilities in the USA. LGT does not automatically report tax liabilities to the IRS, the US tax authority.
Information related to LGT (Middle East) Ltd.
Where this publication has been distributed by LGT (Middle East) Ltd., related financial products or services are only available to professional investors as defined by the Dubai Financial Services Authority (DFSA). LGT (Middle East) Ltd. is regulated by the DFSA. LGT (Middle East) Ltd. may only undertake the financial services activities that fall within the scope of its existing DFSA license. Principal place of business: The Gate Building (East), Level 4, P.O. Box 506793, Dubai, United Arab Emirates, in the Dubai International Financial Centre (Registered No. 1308).
