London, 10th December 2018

COMPETITIVENESS OF THE PORTUGUESE MARKET

José Veiga Sarmento – Chairman of APFIPP

THE REPRESENTATIVE ASSOCIATION FOR THE

PORTUGUESE INVESTMENT MANAGEMENT INDUSTRY

Founded in 1991

APFIPP is a member of EFAMA and Pensions EuropeAPFIPP is a very dynamic partner of the industry and the Authorities

Mutual Funds

Real EstateFunds

PensionFunds

DiscretionaryAsset

Management

2

7-REASONS WHY PORTUGAL IS, FROM LONDON, A NATURAL CHOICE

Quality of life

2

Human skills

3

History

1

Infrastructures

4

Judicial System

5

Tax Environment

6

Funds Supervision and Regulation

7

3

REASON : HISTORY1

PORTUGAL AND ENGLAND, THE OLDEST ALLIANCE - 1386

4

XII CENTURY

5

Portugal founded with the participation of English and other European crusaders

XIV CENTURY

English success in the European Continent had this important Portuguese chapter

6

Portugal affirms its independence from Spain.Alliance with Richard II: Windsor Treaty

XVI CENTURY

Trade from Europe through Africa, to India and China

7

Portugal creates the notion of the first Global Empire

XVII CENTURY Portugal regains its independence from Spain.

Renewed alliance with England with the marriage of Princess Catherine with Charles II (1661).

Catherine gave:• to England - Bombay, and • to the English - the Tea, the Orange Marmalade and for the

Ladies…high heels!

8

Port wine became a central piece for the presence of English merchants in Portugal

XVIII CENTURY

9

After losing Bordeaux, Porto remains today a successful English merchant hub presence

Wellington started his successful career in Portugal fighting Napoleon, and with Portuguese troops he entered Spain, and then France

XIX CENTURY, beginning

10

Without Portugal, Wellington history would be quite different

Charles John Napier, the hero of the Crimean war, started his successful career in Portugal, helping the establishment of a democratic constitutional regime.

XIX CENTURY, mid

11

Portugal recognized Admiral Napier greatness, long before his countrymen

XX CENTURY

12

Portugal joined the Allies in WWI

100 years in the cemeteries of France

From London, moving south to Portugal is a recognised, comfortable and natural decision

PORTUGAL IS ENGLAND’S NEXT DOOR

13

London

REASON : QUALITY OF LIFE2

14

Weather

REASON : QUALITY OF LIFE2

15

Real Estate

REASON : QUALITY OF LIFE2

16

Real Estate

Emerging Trends in Real Estate® Europe Survey for 2019

“Lisbon is the year’s choice for overall prospects, rising 10places to Number 1.

Interviewees cite the city’s “quality of life” and “positive”leadership. Plus, it is seen as a late-cycle play. Portugal’seconomy is growing at a healthy clip, and its capital is nowan international destination for companies, investors andtourists.”

“Everyone is talking about Lisbon now”

“Portugal has become apopular location to locateservice centres and businessprocess outsourcing.

It is a combination of stillrelatively cheap labour andreal estate, and a greatquality of life,”

REASON : QUALITY OF LIFE2

17

Food

REASON : QUALITY OF LIFE2

18

Food

Portugal:▪ 6 restaurants with two stars; and▪ 20 restaurants with one star.

REASON : QUALITY OF LIFE2

19

Security

REASON : QUALITY OF LIFE2

20

Health Service

English speaking UniversitiesMBA’s well rated

REASON : HUMAN SKILLS3

21

Católica Lisbon School of Business and Economics

▪ First Portuguese Business School member of the elite group of schools holding the coveted Triple Crown status.

▪ First CFA University Program Partner in Portugal.

▪ 23rd FT Masters in Finance Pre-experience (2018).

Nova School of Business & Economics▪ All courses taught in English.

▪ 40% international students.

▪ 21st FT Masters in Finance Pre-experience (2018).

The Lisbon MBA - Católica & Nova PartnershipAccreditation:

REASON : HUMAN SKILLS (cont.)3

22

ISEG▪ First Economics and

Management School founded in Portugal.

▪ 5,000 students from 40 different nationalities.

Porto Business School▪ Belongs to the University of

Porto, which has almost 30,000 students.

▪ 6 consecutive years in Eduniversal Bests Masters Ranking- 25th for The Magellan MBA - 47th for The Executive MBA

▪ MBA accredited by AMBA and EPAS.

English speaking UniversitiesMBA’s well rated

Instituto Superior Técnico ▪ 86% of graduates get a job within six months after graduation.

▪ 2,237 Scientific publications in ISI Web of Science, of which 14 highly cited papers, 1 hot paper and 1 highly cited researcher.

▪ 31% of international students attend a PhD programme.

These Schools are part of the University of Lisbon, which has almost 48,000 students.

ISCTE Business School▪ More than 75 worldwide partnerships

with Universities, accredited by AACSB, AMBA and EFMD.

▪ 27th FT Masters in Finance Pre-experience (2018).

Giga Internet

REASON : INFRASTRUCTURES4

23

Ubiquitous4G

3,000 km of

Highways

e-govern (Simplex

Programme)

REASON : INFRASTRUCTURES4

2424

Simplex Programme

The first Simplex Programme was launched in 2006

CITIZEN’S CARD

5 ID cards in 1 and a tool for eGov

ELECTRONIC PRE-FILLED INCOME TAX RETURN

Filling taxes has become easier

SIMPLIFIED COMPANY INFORMATION

Submitting financial and accounting

information in one step

ON THE SPOT FIRM

Start up a firm in less than one hour

BORN CITIZEN

Birth Registration

at theMaternity Hospital

2006-2011: More than 1,000 measures

AUTOMATIC INCOME TAX RETURNS

DIRECT PAYMENT OF TAXES

PORTUGUESE CITIZEN CARD FOR

FOREIGNERS

BUSINESS MATCH MAKING

SOCIAL SECURITY DIRECT

2020 SUPPORT PROGRAMS

2016: 255 measures2017: 172 measures + 65 from 20162018: 175 measures + 93 from 2017

(…)

▪ Neutral judicial procedure and enforceability of awards

▪ Commercial Competence and Tribunal Expertise

▪ Autonomy of the Parties and Procedural Flexibility

▪ Cost, speed and finality of Decisions

▪ Confidentiality and Privacy of the Dispute Resolution Process.

REASON : ALTERNATIVE LITIGATION – ARBITRATION5

25

REASON : TAX ENVIRONMENT FOR FUNDS6

26

Tax competitiveness (similar to Luxembourg)

Investment Funds fully exempt for non-residents

Real Estate Funds WHT of 10%

Stamp duty of 1.25 bp on NAV (0.25 bp for MMF)

REASON : FUNDS SUPERVISION AND REGULATION7

27

Supervisor: business friendly

(monthly meetings with the Industry)

EU rules fully implemented

(very low gold plating)

London, 10th December 2018

CONTACTS: R. Castilho, nº 44 - 2º Andar

1250-071 LISBOA

Tel. : + 351 21 799 48 40 Fax: + 351 21 799 48 42 Email : info@apfipp.pt