¹ Any party who establishes or operates a collective investment scheme or is responsible for the safekeeping of the assets held in it requires authorisation from FINMA.³⁰

² The following must apply for authorisation:

a.³¹

...

b.

SICAVs;

c.

limited partnerships for collective investment;

d.

SICAFs;

e.³²

the custodian bank;

f. und g.³³ ...

h.

representatives of foreign collective investment schemes.

³ Representatives who are already subject to other equivalent official supervision may be granted exemption from the duty to obtain authorisation by the Federal Council.³⁴

⁴ ...³⁵

⁵ The persons cited in paragraph 2 letters b-d may only be entered in the Commercial Register once authorisation has been granted by FINMA.³⁶

¹ Authorisation is granted if:

a.³⁷

the persons under Article 13 paragraph 2 and the persons responsible for the administration and management provide the guarantee of irreproachable business conduct;

a^bis.³⁸

the persons responsible for the administration and management enjoy a good reputation and possess the specialist qualifications required for the function;

b.

the significant equity holders have a good reputation and do not exert their influence to the detriment of prudent and sound business practice;

c.

compliance with the duties stemming from this Act is assured by internal regulations and an appropriate organisational structure;

d.

sufficient financial guarantees are available;

e.

the additional authorisation conditions listed in the relevant provisions of the Act are met.

^1bis Insofar as the financial guarantees are used to meet minimal capital requirements, the Federal Council may stipulate higher capital requirements than required by the Code of Obligations³⁹.⁴⁰

^1ter The Federal Council may stipulate additional authorisation conditions if this is consistent with recognised international standards.⁴¹

² ...⁴²

³ The following are deemed to be significant equity holders, provided they directly or indirectly control at least 10 percent of the capital or votes in the persons specified in Article 13 paragraph 2 or can materially influence their business activities in another way:

a.

natural and legal persons;

b.

general and limited partnerships;

c.

financially related parties which meet this criterion on a combined basis.⁴³

¹ The following documents are required for obtaining the approval of FINMA:

a.

for investment fund, the collective investment contract (Art. 25);

b.

for SICAVs, the articles of association and investment regulations;

c.

for limited partnerships for collective investment, the company agreement;

d.

SICAFs, the articles of association and investment regulations;

e.⁴⁴

the relevant documents of foreign collective investment schemes which are offered to non-qualified investors.

² If an investment fund or SICAV is structured as an open-ended collective invest- ment scheme with subfunds (Art. 92 et seq.), each subfund or category of shares requires individual approval.

If there is a change in the circumstances underlying the authorisation or approval, FINMA's authorisation or approval must be sought prior to the continuation of activity.

The Federal Council may specify a simplified authorisation and approval procedure process for collective investment schemes.

¹ Persons who manage or represent collective investment schemes or hold the assets of these schemes in safekeeping, as well as their agents must fulfil the following duties in particular:⁴⁸

a.

duty of loyalty: they act independently and exclusively in the interests of the investors;

b.

due diligence: they implement the organisational measures that are necessary for irreproachable business conduct;

c.⁴⁹

duty to provide information: They shall render account of the collective investment schemes which they manage and represent and the assets of these schemes which they hold in safekeeping, and provide information on all of the fees and costs incurred directly or indirectly by investors as well as compensation from third parties, particularly commissions, discounts or other financial benefits.

² ...⁵⁰

³ Persons who manage or represent collective investment schemes or hold their assets in safekeeping, as well as their agents, shall take all necessary precautions to ensure that all duties in relation to all their business activities are performed properly.⁵¹

¹ Persons who manage or represent collective investment schemes or hold their assets in safekeeping, as well as their agents shall pursue an investment policy that at all times corresponds with the investment characteristics of the collective investment scheme as set out in the relevant documents.⁵²

² In respect of the purchase and sale of assets and rights on their own behalf as well as that of third parties, they are only entitled to receive the fees specified in the relevant documents. Compensation in accordance with Article 26 FinSA⁵³ must be credited to the collective investment scheme.⁵⁴

³ Assets acquired for their own account may only be purchased at market price, while any sale of own-account assets must also be at market price.

¹ The membership and creditors' rights associated with the investments must be exercised independently and exclusively in the interests of the investors.

² Article 685d paragraph 2 of the Code of Obligations⁵⁶ does not apply to investment funds.

³ If a fund management company manages several investment funds, the level of the participation with respect to the percentage limit set out in Article 685d paragraph 1 of the Code of Obligations is calculated individually for each investment fund.

⁴ Paragraph 3 also applies to each subfund of an open-ended collective investment scheme as defined in Article 92 et seq.

¹ The contractual fund (investment fund) is based on a collective investment agree- ment (fund contract) under which the fund management company commits itself to:

a.

involving investors in accordance with the number and type of units which they have acquired in the investment fund;

b.

managing the fund's assets in accordance with the provisions of the fund contract at its own discretion and for its own account.

² The custodian bank is a party to the contract in accordance with the tasks conferred on it by the law and by the fund contract.

³ The investment fund must have the stipulated minimum assets. The Federal Coun- cil determines the level thereof, and the period in which it must be accumulated.

¹ The fund management company draws up the fund contract and, with the consent of the custodian bank, submits it to FINMA for approval.

² The fund contract sets out the rights and duties of the investors, the fund manage- ment company and the custodian bank.

³ The Federal Council determines the minimum contents.⁵⁸

¹ Amendments to the fund contract must be submitted by the fund management company, with the consent of the custodian bank, to FINMA.

² If the fund management company amends the fund contract, it must publish a summary of the significant amendments in advance, in which reference is made to the locations where the full wording of the contractual amendments may be obtained free of charge.

³ These publications must inform investors of their right to lodge objections with FINMA within 30 days of their publication. The procedure is based on the Federal Act on Administrative Procedure of 20 December 1968⁵⁹. Investors must further- more be made aware that they may request the repayment of their units in cash, while observing the contractual or regulatory notice period.⁶⁰

⁴ FINMA publishes its decision in the media of publication.

¹ SICAV is a company:

a.

whose capital and number of shares are not specified in advance;

b.

whose capital is divided into company and investor shares;

c.

for whose liabilities only the company's assets are liable;

d.

whose sole object is collective capital investment.

² A SICAV shall have a minimum level of assets. The Federal Council determines the level and the period within which it must be accumulated.

³ The SICAV may delegate investment decisions only to persons who hold the authorisation required for this activity. Articles 14 and 35 of the Financial Institutions Act of 15 June 2018⁶³ (FinIA) apply mutatis mutandis.⁶⁴

¹ The formation of a SICAV is based on the provisions of the Code of Obligations⁶⁵ regarding the formation of companies limited by shares, with the exception of the provisions regarding contributions in kind, acquisitions in kind and special privileges.

² The Federal Council specifies the minimum investment amount for a SICAV on its formation.⁶⁶

³ ...⁶⁷

¹ The company name must contain a description of the legal status or the abbrevia- tion thereof (SICAV).

² In all other respects, the provisions of the Code of Obligations⁶⁸ regarding the name of companies limited by shares apply.

¹ There must be an appropriate relationship between the holdings of the company shareholders and the total assets of the SICAV. The Federal Council regulates this relationship.

² In special cases, FINMA may grant a relaxation of the requirements or may order a tightening thereof.

¹ The company shares are registered.

² The company and investor shares have no nominal value and must be fully paid up in cash.

³ The shares are freely transferable. The articles of association may restrict investor eligibility to qualified investors if the shares of the SICAV are not listed on an exchange. If the SICAV withholds its consent to a transfer of the shares, Article 82 applies.

⁴ The articles of association may specify different categories of shares, to which different rights are assigned.

⁵ The issuing of participation certificates, dividend right certificates and preference shares is prohibited.

¹ The company shareholders contribute the minimum holding necessary for the formation of the SICAV.

² They resolve the dissolution of the SICAV and its subfunds in accordance with Article 96 paragraphs 2 and 3.⁶⁹

³ In all other respects, the provisions regarding the rights of the shareholders (Art. 46 et seq.) apply.

⁴ The rights and duties of the company shareholders pass to the purchaser on the transfer of the shares.

¹ Unless the law and articles of association provide otherwise, a SICAV may at any time issue new shares at the net asset value and must, if requested by a shareholder, at any time redeem issued shares at the net asset value. This requires neither an amendment to the articles of association nor an entry in the Commercial Register.

² A SICAV may not hold treasury shares, whether directly or indirectly.

³ The shareholders have no entitlement to the portion of newly issued shares corresponding to their previous holding. In the case of real estate funds, this is subject to Article 66 paragraph 1.

⁴ In all other respects, the issue and redemption of shares is conducted in accordance with Articles 78-82.

¹ The articles of association must contain provisions concerning:

a.

the company name and its registered office;

b.

the objects;

c.

the minimum investment amount;

d.

the convening of general meetings;

e.

the executive and governing bodies;

f.

the media of publication.

² To be effective, the articles of association must include provisions on the following:

a.

the term;

b.

the restriction of shareholder eligibility to qualified investors and associated limitation of the transferability of shares (Art. 40, Para. 3);

c.

the categories of shares and rights associated therewith;

d.

the delegation of management and representation, and the attendant procedural details (Art. 51);

e.

the passing of resolutions by means of correspondence.

A SICAV shall produce a set of investment regulations. Its contents are based on the provisions regarding the fund contract, unless the law and articles of association provide otherwise.

¹ The SICAV must appoint a custodian bank in accordance with Articles 72-74.

² FINMA may grant exemptions from this duty if justified, provided:

a.

the SICAV is exclusively open to qualified investors;

b.

one or more institutions which are subject to equivalent supervision execute the transactions related to settlement and specialise in such transactions (prime broker); and

c.

it is ensured that the prime broker or the foreign supervisory authority responsible for the prime broker will provide FINMA with all the information and documents that it requires to carry out its duties.

The provisions on public takeover offers (Arts. 125 to 141 of the Financial Market Infrastructure Act of 19 June 2015⁷²) do not apply to SICAVs.

¹ Any person recognised as a shareholder by the SICAV may exercise membership rights.

² The shareholders may represent their shares at a general meeting in person or be represented by a third party. Unless the articles of association provide otherwise, the third party need not be a shareholder.

³ A SICAV shall keep a register of the shares, in which the names and addresses of company shareholders are recorded. It shall also keep a register under Article 697l of the Code of Obligations⁷⁴ of the beneficial owners of the shares held by company shareholders.⁷⁵

⁴ The articles of association may specify that the company shareholders and investor shareholders are both entitled to at least one seat on the board of directors in the case of self-managed as well as externally managed SICAVs.⁷⁶

¹ Company shareholders whose shares are not listed on a stock exchange are subject to the obligation to give notice under Article 697j of the Code of Obligations⁷⁸.

² The consequences of failure to comply with obligation to give notice are governed by Article 697m of the Code of Obligations.

¹ Each share carries one vote.

² The Federal Council may authorise FINMA to order the splitting or merging of shares in a share class.

Inspection rights are based on the provisions of the Code of Obligations⁸⁰ regarding the shareholders' inspection rights unless this Act provides otherwise.

In all other respects, Articles 78 et seq. apply.

¹ The supreme governing body of the SICAV is the general meeting of shareholders.

² The general meeting is held every year within four months of the close of the business year.

³ Unless otherwise provided for by the Federal Council, in all other respects, the provisions of the Code of Obligations⁸¹ regarding the general meetings of companies limited by shares apply.⁸²

¹ The board of directors consists of at least three but no more than seven members.

² The articles of association may authorise the board of directors to transfer management and representation in full or in part to individual members or third parties in accordance with the organizational regulations.

³ The persons holding executive powers at the SICAV and custodian bank must be independent of the other party.

⁴ The board of directors fulfils the duties associated with the offering of financial instruments under Title 3 of the FinSA⁸³.⁸⁴

⁵ The administration of a SICAV may be delegated only to an authorised fund management company in accordance with Article 32 FinIA⁸⁵ that has authorisation.⁸⁶

⁶ Unless otherwise provided for by the Federal Council, in all other respects, the provisions of the Code of Obligations⁸⁷ regarding the board of directors of companies limited by shares apply.⁸⁸

A SICAV shall appoint an audit company (Art. 126 et seq.).

Securities funds are open-ended collective investment schemes which invest their assets in securities and comply with the laws of the European Communities.

¹ Securities funds may invest in transferable securities issued on a large scale and in non-securitised rights having the same function (uncertified securities) and which are traded on a stock exchange or another regulated market that is open to the public, in addition to other liquid financial assets.

² The fund management company may also hold a limited volume of other securities and rights, as well as adequate liquidity.

¹ The fund management company and the SICAV may employ the following in- vestment techniques for the purpose of efficient management:

a.

securities lending;

b.

repurchase agreements;

c.

borrowing of funds, though only on a temporary basis and up to a certain percentage;

d.

pledging or transferring the ownership of collateral, however, only up to a certain percentage.

² The Federal Council may permit other investment techniques such as short selling and the granting of loans.

³ It defines the percentage limits. FINMA regulates the details.

¹ The fund management company and the SICAV may conduct transactions in derivatives provided:

a.

such transactions do not result in a change to the investment characteristics of the securities fund;

b.

they have an appropriate organisational structure and adequate risk management;

c.

the persons entrusted with processing and monitoring are qualified to do so, and can at all times comprehend and track the effect of the derivatives used.

² The overall exposure to transactions involving derivatives may not exceed a certain percentage of the fund's net assets. Exposure to transactions involving derivatives must be calculated in relation to the statutory and regulatory limits, specifically with regard to risk diversification.

³ The Federal Council determines the percentage rate. FINMA regulates the details.

¹ In relation to their investments, the fund management company and SICAV must comply with the principles of risk diversification. As a rule, they may invest only a certain percentage of the fund's assets in the same debt issuer or company.

² The voting rights acquired through the purchase of securities or rights in a single debt issuer or company may not exceed a certain percentage.

³ The Federal Council decides the percentage rates. FINMA regulates the details.

Real estate funds are open-ended collective investment schemes which invest their assets in real estate.

¹ Real estate funds may invest their assets in:

a.

property, including fixtures and fittings;

b.

investments in and claims on real estate companies whose sole objective is the purchase and sale and/or the rental and lease of their own property, provided that at least two thirds of their capital and voting rights are incorporated in the investment fund;

c.

units in other real estate investment funds and listed real estate investment companies amounting to no more than 25% of the fund's total assets;

d.

foreign real estate securities whose value can be adequately valued.

² Co-ownership of property is permitted only if the fund management company or the SICAV can exert a dominant influence.

In order to secure their liabilities, the fund management company and SICAV must maintain an adequate proportion of the fund's assets in short-term fixed-interest securities or in funds available at short notice.

The fund management company and SICAV may conduct derivative transactions provided they comply with the investment policy. The provisions concerning the use of derivatives for securities funds (Art. 56) shall apply accordingly.

Investments must be diversified by type of property, purpose of use, age, building fabric and location.

¹ The fund management company shall bear responsibility with regard to the investors for ensuring that the real estate companies belonging to the real estate fund comply with this Act and with the fund regulations.

² The fund management company, custodian bank and its agents, as well as closely related natural and legal persons, may not acquire real estate assets from real estate funds or assign any such assets to them.

³ A SICAV may not acquire any real estate assets from the company shareholders, their agents, or closely connected natural or legal persons, nor may it assign such assets to them.

⁴ If justified, individual situations may arise where FINMA may grant an exemption from the ban on transactions with closely related persons as defined in paragraphs 2 and 3 if this is in the interest of the investors. The Federal Council regulates the exemption criteria.⁸⁹

¹ The fund management company and the SICAV shall appoint at least two natural persons or one legal person as valuation experts. Appointments require the approval of FINMA.⁹¹

² Approval is granted if the valuation experts:⁹²

a.

possess the necessary qualifications;

b.

are independent;

c.⁹³

...

³ The valuation experts must conduct their valuations with the due diligence and expertise required of a valuation expert.⁹⁴

⁴ FINMA may make recognition dependent on the conclusion of professional indemnity insurance or on the evidence of financial guarantees.⁹⁵

⁵ It may stipulate additional requirements for the valuation experts and describe the valuation methods to be adopted.⁹⁶

¹ The fund management company and the SICAV may commission the construction of buildings provided the fund regulations explicitly permit the purchase of building land and the execution of construction projects.

² They may pledge land and cede the rights of lien as collateral; however, the en- cumbrance may not exceed on average a certain percentage of the market value of all real estate assets.

³ The Federal Council defines the percentage rate. FINMA regulates the details.

¹ The fund management company and the SICAV must offer new units first to existing investors.

² The investors may request the redemption of their units at the end of a financial year provided they give twelve months' prior notice.

The fund management company and the SICAV ensure that real estate fund units are regularly traded via a bank or a securities dealer on a stock exchange or over the counter.

Other funds for traditional and alternative investments are open-ended collective investment schemes that are neither securities funds nor real estate funds.

¹ In particular, investments in securities, precious metals, real estate, commodities, derivatives, units of other collective investment schemes, as well as other assets and rights, are permitted for other funds for traditional and alternative investments.

² The following investments in particular may be conducted for these funds:

a.

those that have only limited marketability;

b.

those that are subject to strong price fluctuations;

c.

those that exhibit limited risk diversification;

d.

those that are difficult to value.

¹ Other funds for traditional investments include open-ended collective investment schemes which in terms of their investments, investment techniques and investment restrictions exhibit a risk profile that is typical for traditional investments.

² Other funds for traditional investments are subject to the provisions concerning the use of investment techniques and derivatives for securities funds.

¹ Other funds for alternative investments include open-ended collective investment schemes whose investments, structure, investment techniques (short-selling, borrowing of funds, etc.) and investment restrictions exhibit a risk profile that is typical for alternative investments.

² Leverage is permitted only up to a certain percentage of the fund's net assets. The Federal Council determines the percentage rate. FINMA regulates the details.

³ Reference must be made in the fund name and in the prospectus and key information document in accordance with Title 3 of the FinSA⁹⁷, as well as in advertising material, to the special risks involved in alternative investments.⁹⁸

⁴ ...⁹⁹

⁵ FINMA may allow the transaction-related settlement services of a directly invest- ing other fund for alternative investments to be provided by a regulated institution specializing in such transactions (prime broker). It may specify which monitoring functions must be undertaken by the fund management company and the SICAV.

¹ The custodian bank must be a bank pursuant to the Federal Act on Banks and Savings Banks of 8 November 1934¹⁰⁰ and have an appropriate organisational structure to act as custodian bank to collective investment schemes.¹⁰¹

² In addition to the persons entrusted with the management, the persons entrusted with the tasks of custodian bank activity must also comply with the requirements laid down in Article 14 paragraph 1 letter a.

¹ The custodian bank is responsible for the safekeeping of the investment fund's assets, the issue and redemption of units, as well as payment transfers on behalf of the investment fund.

² It may transfer the responsibility for the safekeeping of the investment fund's assets to third-party custodians and central securities depositories in Switzerland or abroad, provided this is in the interest of efficient safekeeping. Investors must be informed in the prospectus and key information document in accordance with Title 3 of the FinSA¹⁰² about the risks associated with such transfers.¹⁰³

^2bis Financial instruments may only be transferred (paragraph 2) to regulated third-party custodians and central securities depositories. This does not apply to mandatory safekeeping at a location where the transfer to regulated third-party custodians and collective securities depositories is not possible, in particular due to mandatory legal provisions or to the investment product's modalities. Investors must be informed in the product documentation of safekeeping by non-regulated third-party custodians or collective securities depositories.¹⁰⁴

³ The custodian bank ensures that the fund management company or the SICAV complies with this Act and with the fund regulations. It verifies whether:¹⁰⁵

a.

the calculation of the net asset value and of the issue and redemption prices of the units is in compliance with this Act and with the fund regulations;

b.

the investment decisions are in compliance with this Act and with the fund regulations;

c.

the income is appropriated in accordance with the fund regulations.

⁴ The Federal Council regulates the requirements for acting as a custodian bank and may specify parameters for the protection of the securities investments.¹⁰⁶

¹ In the case of investment funds, the provisions concerning a change of fund management company (Art. 39 FinIA¹⁰⁷) also apply accordingly to a change of custodian bank.¹⁰⁸

² In the case of a SICAV, a change of custodian bank requires a contract in writing or in another form demonstrable via text, and must be approved in advance by FINMA.¹⁰⁹

³ FINMA shall publish its decision in the media of publication.

¹ On concluding a contract, or subscribing and paying in cash, investors acquire:

a.

in the case of an investment fund, a claim against the fund management company to participate in the assets and income of the investment fund in accordance with the fund units they acquire;

b.

in the case of a SICAV, an interest in the company and its unappropriated net earnings in accordance with the shares they acquire.

² They are, in principle, entitled at all times to request the redemption of their units and payment of the redemption amount in cash. Unit certificates must be returned for cancellation purposes.

³ In the case of collective investment schemes with various unit classes, the Federal Council regulates the details.

⁴ FINMA may allow a derogation from the duty to make payments in and out of the fund in cash.

⁵ In the case of collective investment schemes with subfunds, the asset entitlements are based on Article 93 paragraph 2 and Article 94 paragraph 2.

¹ In accordance with the investment provisions (Art. 54 et seq., Art. 59 et seq. and Art. 69 et seq.), the Federal Council may in the case of collective investment schemes whose value is difficult to ascertain, or which have limited marketability, specify exemptions from the right to redeem at any time.

² However, it may only suspend the right to redeem at any time for a maximum period of five years.

The issue and redemption prices of the units are based on the net asset value per unit on the day of valuation, plus or minus any fees and expenses.

¹ The Federal Council determines in which instances the fund regulations may specify a limited deferment of the repayment of the units in the interest of all investors.

² FINMA may in exceptional instances grant limited deferment for the repayment of the units in the interest of all investors.

The Federal Council enforces redemption if:

a.

this is necessary to safeguard the reputation of the financial market, and specifically to combat money laundering;

b.

the investor no longer meets the statutory, regulatory or contractual requirements, or the requirements set out in the articles of association, for participation in a collective investment scheme.

¹ The net asset value of an open-ended collective investment scheme is calculated at the market value as of the end of the financial year, and on each day on which units are issued or redeemed.

² The net asset value per unit represents the market value of the fund's assets, less all the fund's liabilities, divided by the number of units in circulation.

³ FINMA may permit a method of calculating the net asset value(s) that differs from that specified in paragraph 2, provided such method meets international standards and the protective purpose of this Act is not impaired as a result.

⁴ The fund management company and the SICAV publish the net asset values at regular intervals.

¹ The fund management company and the SICAV shall on request supply investors with information concerning the basis for the calculation of the net asset value per unit.

² If investors express an interest in more detailed information on specific business transactions effected by the fund management company or the SICAV, such as the exercising of membership and creditors' rights, or on risk management, they must be given such information at any time.¹¹¹

³ The investors may request at the courts of the registered office of the fund management company or the SICAV that the audit company or another expert investigate the matter which requires clarification and furnish the investors with a report.

If the open-ended collective investment scheme is unlawfully denied asset entitlements or benefits are withheld from it, the investors may claim compensation from the open-ended collective investment scheme concerned.

¹ The investors may request that the courts appoint a representative if they wish to pursue a claim for damages in favour of the open-ended collective investment scheme.

² The court shall give notice of the appointment in the media of publication of the open-ended collective investment scheme.

³ The representative has the same rights as the investors.

⁴ If the representative files an action for damages in favour of the open-ended collective investment scheme, the investors may no longer exercise their individual right to file such an action.

⁵ Unless the court decides otherwise, the expenses incurred by the representative are paid by the investment fund.

Separate books of account must be kept for each open-ended collective investment scheme. Unless this Act or the implementing regulations provide otherwise, Article 662 et seq. of the Code of Obligations¹¹² apply.

¹ Investments which are listed on a stock exchange or another regulated market open to the public shall be valued at the prices paid on the main market.

² Other investments for which no current price is available must be valued at the price that would probably be obtained in a diligent sale at the time of valuation.

¹ An annual report shall be published for each open-ended collective investment scheme within four months of the close of the financial year; it shall contain the following data in particular:

a.

the annual accounts consisting of a statement of net assets or the balance sheet and the profit and loss account, together with information concerning the appropriation of net income and the disclosure of expenses;

b.

the number of units redeemed and newly issued during the financial year, as well as the final balance of the issued units;

c.

the inventory of the fund's assets at market value and the resulting value (net asset value) of a fund unit as of the last day of the financial year;

d.

the valuation principles as well as the principles used for the calculation of the net asset value;

e.

a breakdown of the buy and sell transactions;

f.

the names of persons and companies to which duties have been entrusted;

g.

information relating to matters of particular economic or legal significance, specifically:

1.

amendments to the fund regulations,

2.

material questions concerning interpretation of this Act and the fund regulations,

3.

a change of fund management company and custodian bank,

4.¹¹³

changes concerning the executive officers at the fund management company, SICAV or asset manager of collective investment schemes,

5.

legal disputes;

h.

the performance of the open-ended collective investment scheme, possibly benchmarking it with comparable investments;

i.

a brief report by the audit company regarding the information mentioned above, as well as the items set out in Article 90 in the case of real estate funds.

² The statement of net assets of the investment fund and the balance sheet of the SICAV must be prepared on the basis of market values.

³ A semi-annual report must be issued within two months after the end of the first half of the financial year. The report contains an unaudited statement of net assets or unaudited balance sheet and income statement, as well as information as per Paragraph 1 letters b, c and e.

⁴ The annual and semi-annual reports shall be filed with FINMA the latest at the time of publication.

⁵ These are made available for inspection free of charge to interested parties for ten years.

¹ The annual accounts of a real estate fund consist of a consolidated statement of net assets or balance sheet and profit and loss account of the real estate fund and the associated real estate companies. Article 89 applies accordingly.

² The statement of net assets must show property assets at market value.

³ The inventory of the fund's assets must state the purchase price and estimated market values of the individual property assets.

⁴ In addition to the information required as per Article 89, the annual report and the annual accounts shall contain the particulars of the valuation expert, the valuation methods and the capitalisation and discounting rates applied.

FINMA issues additional regulations concerning the duty to maintain books of account, valuation, financial statements and publication requirements.

In the case of an open-ended collective investment scheme with subfunds (umbrella fund), each subfund constitutes a collective investment scheme in its own right and has its own net asset value.

¹ In the case of an umbrella fund, investors are only entitled to the income and assets of the respective subfund in which they are participating.

² Each subfund is liable only for its own liabilities.

¹ Investors are only entitled to participate in the assets and income of the respective subfund in accordance with the number of shares they hold.

² Each subfund under paragraph 1 is liable only for its own liabilities.¹¹⁴

¹ The following restructurings of open-ended collective investment schemes are permitted:

a.

a merger through the transfer of assets and liabilities;

b.

a conversion to a different legal status of a collective investment scheme;

c.

in the case of SICAVs: the transfer of assets in accordance with Articles 69-77 of the Mergers Act of 3 October 2003¹¹⁶.

² A restructuring in accordance with paragraph 1 letters b and c may only be entered in the Commercial Register following FINMA's approval in accordance with Article 15.

¹ An investment fund is dissolved:

a.

if it was formed for an unlimited period: on notice by the fund management company or the custodian bank;

b.

if it was formed for a fixed period: on expiry of such period;

c.

by order of FINMA:

1.

if it was formed for a fixed period: based on reasonable cause, at the re- quest of the fund management company or the custodian bank,

2.

if the minimum assets fall below the required amount,

3.

in the cases specified in Article 13 paragraph 3 et seq.

² A SICAV is dissolved:

a.

if it was formed for an unlimited period: by resolution of the company shareholders, provided such resolution is carried by at least two thirds of the company shares;

b.

if it was formed for a fixed period: on expiry of such period;

c.

by order of FINMA:

1.

if it was formed for a fixed period: based on reasonable cause, by reso- lution of the company shareholders, provided such resolution is carried by at least two thirds of the company shares,

2.

if the minimum assets fall below the stipulated amount,

3.

in the cases specified in Article 133 et seq.;

d.

in the other cases specified by the Act.

³ For the dissolution of subfunds, paragraphs 1 and 2 apply accordingly.

⁴ The fund management company and the SICAV shall notify FINMA of the disso- lution forthwith, and shall announce the dissolution in the media of publication.

¹ Following its dissolution, an investment fund or SICAV may neither issue nor redeem any units.

² In the case of an investment fund, investors have a claim to a proportionate share of the proceeds of liquidation.

³ In the case of a SICAV, investors have the right to a proportionate share of the proceeds of the liquidation. The rights of company shareholders are subordinate. In all other respects, Articles 737 et seq. of the Code of Obligations¹¹⁷ apply.