Audited Annual Report CS Fund 3

Transcription

1 Audited Annual Report CS Fund 3 Investment Fund under Swiss Law (type: other funds for traditional investments ) May 31, 2018

2 2 CS Fund 3 Table of contents Management and statutory bodies 3 Unaudited report on activities 4 Credit Suisse (CH) 130/30 Swiss Equity Fund 7 Credit Suisse (CH) Swiss Real Estate Securities Fund 18 Credit Suisse (CH) Small and Mid Cap Switzerland Equity Fund 31 Credit Suisse (CH) Swiss Blue Chips Equity Fund 41 Credit Suisse (CH) Swissac Equity Fund 50 Credit Suisse (CH) Swiss Dividend Plus Equity Fund 58 Credit Suisse (CH) Small Cap Switzerland Equity Fund 72 Notes to the annual report Report of the audit company 87 88

3 CS Fund 3 3 Management and Statutory Bodies Management Company Credit Suisse Funds AG, Zurich Board of Directors Dr. Thomas Schmuckli, Chairman Luca Diener, Vice President Managing Director, Credit Suisse AG Ruth Bültmann, Member Gebhard Giselbrecht, Member Managing Director, Credit Suisse Asset Management (Switzerland) Ltd. Jürg Roth, Member Managing Director, Credit Suisse (Switzerland) Ltd. Christian Schärer, Member Managing Director, Credit Suisse (Switzerland) Ltd. Dr. Christoph Zaborowski, Member Petra Reinhard Keller (until April 4, 2018), Member Managing Director, Credit Suisse (Switzerland) Ltd. Executive Board Thomas Schärer, CEO Patrick Tschumper, Deputy CEO and Head Fund Solutions Gilbert Eyb (since June 1, 2017), Member, Legal Thomas Federer, Member, Performance & Risk Management Tim Gutzmer, Member, Fund Services Hans Christoph Nickl, Member, COO Thomas Vonaesch, Member, Real Estate Fund Management Gabriele Wyss, Member, Compliance Custodian Bank Credit Suisse (Switzerland) Ltd., Zurich Information on Third Parties Delegation of Investment Decisions Investment decisions have been delegated to Credit Suisse Asset Management (Switzerland) Ltd., Zurich, as asset manager. Delegation of Other Specific Tasks The fund management company has delegated certain fund administration duties to the following group companies of Credit Suisse Group AG: Credit Suisse AG, Switzerland: specific tasks such as providing legal and compliance advice, facility management and the Management Information System (MIS). Credit Suisse (Switzerland) Ltd., Switzerland: specific tasks such as providing compliance advice, human resources, Collateral Management, IT services and First Line of Defense Support (FLDS). Credit Suisse Asset Management (Switzerland) Ltd., Switzerland: real estate administration (including fund and real estate accounting and estate management). Credit Suisse Services AG, Switzerland: specific tasks such as providing compliance advice, managing the fund management company s finances and tax advice. Credit Suisse Fund Services (Luxembourg) S.A., Luxembourg: specific tasks relating to fund accounting and assistance in monitoring the investment regulations. Credit Suisse (Poland) Sp.z.o.o., Poland: Duties in relation to fund accounting, Information Management (product master data, price publications, factsheet production, KIID production and report preparation), Legal Reporting (preparation of the annual report) and other support tasks. Precise details of how the remit is to be fulfilled are laid down in an agreement between the fund management company and the aforementioned group companies. Further specific tasks may be delegated to the aforementioned group companies. Audit Company KPMG AG, Zurich

4 4 CS Fund 3 Unaudited Report on Activities from June 1, 2017 to May 31, 2018* Credit Suisse 130/30 Swiss Equity Fund Credit Suisse Equity Fund Swissac There was little movement in the Swiss equity market in the reporting period, with the Swiss Performance Index (SPI) falling by 0.8% up to the end of May. While the small/mid cap segment rose by 8.9%, large-cap stocks lost 3.1% on average. After a subdued period in the summer of 2017, the market moved into a rally in the fall thanks to strong economic and corporate data. By mid-january the SPI was up by around 10%. Rising interest rates and inflation fears combined with slightly more subdued economic data then sparked off the first major market sell-off for some time. The signs of a recovery by mid-april were followed by another drop in share prices thereafter. In addition to the reasons already mentioned, the higher tariffs imposed by the US, the normalization of central banks' monetary policies, geopolitical tensions, and renewed fears over Europe also led to uncertainties which were reflected in increased equity market volatility. Most of the segments in the SPI posted very similar performance in the 12-month reporting period and rose by between 0.3% and 1.2%. Defensive shares were the one area that clearly underperformed (-4.0%). While we further increased the underweight in defensive stocks during the reporting period, we maintained our overweight in growth and cyclical stocks. Although growth stocks are no longer cheap, they have aboveaverage earnings momentum. We carried out switches into both cyclical and growth stocks. We took profits in some areas and participated in IPOs. After the sharp fall in its share price and management changes, LafargeHolcim was added to the portfolio. We maintained our underweight in financials. The valuation of the Swiss equity market has improved considerably over the past year. The 12-month forward PE fell from 18.1 to Earnings revisions were positive and expected 2019 earnings have risen by 2.8% over the last 12 months. 10-year government bond yields approached the zero mark and were 10 basis points higher than at the end of May 2017 at %. The risk premium improved by half of one percentage point to 6.4%. The estimated dividend yield for the current fiscal year rose by 0.2% to an attractive 3.4%. Although valuation remains relatively high in a long-term comparison, this does not mean that the equity markets cannot continue to perform well going forward. However, this is conditional on the economic growth data and corporate earnings continuing to improve, as expected by us, with the support of pro-growth fiscal policy and monetary policy that does not become overly restrictive. However, the uncertainty referred to in the first paragraph is likely to continue to lead to volatile markets. Credit Suisse (CH) Swiss Real Estate Securities Fund After the very strong performance last year, the market for indirect real estate investments consolidated in the reporting period. Overall, the market was down by just under 1%, with real estate funds (-2.1%) underperforming real estate companies (+0.8%) by a clear margin. This is likely to have been mainly due to the very high issuance activity of the funds relative to real estate companies. The 10-year Swiss government bond yield traded in a narrow range of -0.2% to +0.2% in the reporting period and stood at -0.07% at May 31, Currently, the most important driver of the Swiss economy is the extremely dynamic global economy. Last year was the best in a decade for the euro zone, the most important market for Swiss exports. The euro zone should continue growing at a similar rate in 2018, as falling unemployment keeps the recovery on a firm footing. There is effectively full employment in the US and the tax cuts and spending increases by the US government may even overstimulate demand in the short term. Growth remains robust in the emerging markets, although it is still on the sluggish side by past standards. The outlook for the rental accommodation market has deteriorated further. This is evidenced by growing vacancies, rising pressure on rents, and tenants increasingly gaining the upper hand outside the major centers. However, thanks to high yield premiums, investors are not being put off by the increasing risks and are continuing to invest in the rental accommodation market. Rental apartment construction therefore remains at a very high level. At the same time, the market is facing falling demand, as immigration is steadily slowing. However, the ongoing robust economic recovery should have a supportive impact. Nonetheless, we expect a continued fall in rents by around 1% in There are increasing signs of an improvement in conditions for the office market. As there are no indications that new supply is being held back significantly, hopes are focused entirely on a gradual recovery of the Swiss economy in 2018 and that this will stimulate sufficient demand for new space. The trend of falling sales in retailing has come to a halt. However, major growth disparities between online and high street retailing combined with rising bankruptcy rates indicate that the structural change in the sector is still in full swing. We believe department stores and shopping areas in B and C locations are at greatest risk. In spite of the above, the yields of direct and indirect real estate investments remain attractive. Overall, we expect the performance of indirect real estate investments to weaken slightly in the coming years, but do not expect the market to go into reverse. The ongoing hunt for yield is unlikely to change much in the foreseeable future. As a result, real estate investments with an average yield should be able to largely continue the excellent performance of recent years. Overall, the fund is positioned conservatively; on valuation and yield grounds we favor equities over funds, and office and commercial over residential.

5 CS Fund 3 5 Credit Suisse (CH) Small and Mid Cap Switzerland Equity Fund The small/mid cap segment rose by 9% during the period under review. After a subdued spell in the summer of 2017, the market moved into a rally in the fall thanks to strong economic and corporate earnings data. By mid-january the SPIEX was up by around 15%. Rising interest rates and inflation fears combined with slightly weaker economic data then led to the first major market sell-off for some time. There was some recovery in April, before volatility rose again in May. Besides the reasons already mentioned, the higher tariffs imposed by the US, the normalization of central banks' monetary policies, and geopolitical tensions combined with renewed fears over Europe led to rising uncertainty. Within the SPIEX the segments performed very differently during the reporting period. While growth stocks from the technology sector rose sharply, defensive and value stocks underperformed the market. We believe the economic cycle has moved into its late stage and have therefore gradually reduced the risk profile in the fund. Among other changes, we took profits on highly-priced tech and medtech shares. We currently favor value stocks with commodity exposure, interest rate-sensitive stocks and, on a selective basis, more defensive securities. The valuation of Swiss small/mid-caps has moved sideways at a high level over the past year. The 12-month forward P/E ratio is around 23. Earnings revisions have been positive, and expected earnings for 2019 have risen along with share prices in the last 12 months. The risk premium versus government bonds therefore remains attractive at around 4%. The dividend yield for the current fiscal year stands at around 2.3%. Although valuation remains relatively high in a long-term comparison, this does not mean that the equity markets cannot continue to perform well going forward. However, this is conditional on the economic growth data and corporate earnings continuing to improve. With inflation risks rising, the central banks will ultimately be forced to exit from their ultra-low interest rate policies. This will inevitably cause friction in the equity markets and lead to heightened volatility. Credit Suisse (CH) Swiss Blue Chips Equity Fund There was little movement in the Swiss equity market in the reporting period, with the Swiss Performance Index (SPI) falling by 0.8% up to the end of May. While the small/mid cap segment rose by 8.9%, large-cap stocks lost 3.1% on average. After a subdued period in the summer of 2017, the market moved into a rally in the fall thanks to strong economic and corporate earnings data. The SPI was up by around 10% by mid-january. Rising interest rates and inflation fears combined with slightly weaker economic data then led to the first major market sell-off for some time. The signs of a recovery by mid- April were then followed by another drop in share prices thereafter. In addition to the reasons already mentioned, the higher tariffs imposed by the US, the normalization of central banks' monetary policies, geopolitical tensions, and renewed fears over Europe also led to uncertainties which were reflected in increased equity market volatility. Most of the segments in the SPI posted very similar performance in the 12-month reporting period and rose by between 0.3% and 1.2%. Defensive shares were the one area that clearly underperformed (-4.0%). We increased our weighting in the banking sector in the summer of In the insurance sector, we raised our weighting towards the end of the hurricane season in late autumn, and took some profits in banks in return. We reduced holdings of cyclical shares towards the end of the year. We temporarily increased our position in financial shares from January to March in anticipation of rising interest rates, before again raising our holdings of defensive shares thereafter. The valuation of the Swiss equity market has improved over the past year. The 12-month forward PE fell from 18.1 to Earnings revisions were positive and expected earnings for 2019 have risen by 2.8% in the last 12 months. 10-year government bond yields approached the zero mark and were 10 basis points higher than at the end of May 2017 at -0.07%. The risk premium improved by half of one percentage point to 6.4%. The estimated dividend yield for the current financial year rose by 0.2% to an attractive 3.4%. Although valuation remains relatively high in a long-term comparison, this does not mean that the equity markets cannot continue to perform well going forward. However, this is conditional on the economic growth data and corporate earnings continuing to improve, as expected by us, with the support of pro-growth fiscal policy and monetary policy that does not become overly restrictive. However, the uncertainties mentioned in the first paragraph are likely to continue to lead to volatile markets.

6 6 CS Fund 3 Credit Suisse (CH) Swiss Dividend Plus Equity Fund There was little movement in the Swiss equity market in the reporting period, with the Swiss Performance Index (SPI) falling by 0.8% up to the end of May. While the small/mid cap segment rose by 8.9%, large-cap stocks lost 3.1% on average. After a subdued period in the summer of 2017, the market moved into a rally in the fall thanks to strong economic and corporate earnings data. The SPI was up by around 10% by mid-january. Rising interest rates and inflation fears combined with slightly weaker economic data then led to the first major market sell-off for some time. The signs of a recovery by mid- April were then followed by another drop in share prices thereafter. In addition to the reasons already mentioned, the higher tariffs imposed by the US, the normalization of central banks' monetary policies, geopolitical tensions, and renewed fears over Europe also led to uncertainties which were reflected in increased equity market volatility. Most of the segments in the SPI posted very similar performance in the 12-month reporting period and rose by between 0.3% and 1.2%. Defensive shares were the one area that clearly underperformed (-4.0%). We increased our weighting in the banking sector in the summer of In the insurance sector, we raised our weighting towards the end of the hurricane season in late autumn, and in return reduced some positions where the dividend yield had become less attractive after a sharp rise in the share price. We also took profits on banks during this period. We increased our holdings of defensive stocks towards the end of the year. We temporarily increased the position in financial shares from January to March in anticipation of rising interest rates, before again raising our holdings of defensive shares thereafter. The valuation of the Swiss equity market has improved over the past year. The 12-month forward PE fell from 18.1 to Earnings revisions were positive and expected earnings for 2019 have risen by 2.8% in the last 12 months. 10-year government bond yields approached the zero mark and were 10 basis points higher than at the end of May 2017 at -0.07%. The risk premium improved by half of one percentage point to 6.4%. The estimated dividend yield for the current financial year rose by 0.2% to an attractive 3.4%. Although valuation remains relatively high in a long-term comparison, this does not mean that the equity markets cannot continue to perform well going forward. However, this is conditional on the economic growth data and corporate earnings continuing to improve, as expected by us, with the support of pro-growth fiscal policy and monetary policy that does not become overly restrictive. However, the uncertainties mentioned in the first paragraph are likely to continue to lead to volatile markets. Credit Suisse (CH) Small Cap Switzerland Equity Fund The fund posted an absolute return of 8.6% during the reporting period and thus outperformed the benchmark, the Vontobel Small Companies Index, which saw a return of 4.8%, by 3.8%. After a subdued period in the summer of 2017, the market moved into a rally in the fall thanks to strong economic and corporate earnings data. Rising interest rates and inflation fears and somewhat subdued economic data in the first quarter of 2018 resulted in a correction in the equity markets. There was some recovery from April, before volatility rose again in May. Trade wars, the normalization of the central banks' monetary policies, geopolitical tensions, and renewed fears over Europe prevented further gains in prices. While growth stocks from the technology sector rose sharply, defensive and value stocks underperformed the market. We believe the economic cycle has moved into its late stage and have therefore gradually reduced the risk profile in the fund. Among other changes, we took profits on highly-priced tech and medtech shares. We currently favor value stocks with commodity exposure, interest rate-sensitive stocks and, on a selective basis, more defensive securities. The valuation of Swiss small/mid-caps has moved sideways at a high level over the past year. The 12-month forward P/E ratio is around 23. Earnings revisions have been positive, and expected earnings for 2019 have risen along with share prices in the last 12 months. The risk premium versus government bonds therefore remains attractive at around 4%. The dividend yield for the current fiscal year stands at around 2.3%. Although valuation remains relatively high in a long-term comparison, this does not mean that the equity markets cannot continue to perform well going forward. However, this is conditional on the economic growth data and corporate earnings continuing to improve. With inflation risks rising, the central banks will ultimately be forced to exit from their ultra-low interest rate policies. This will inevitably cause friction in the equity markets and lead to heightened volatility. * The information stated relates to the period under review and is not indicative of future returns.

7 Credit Suisse (CH) 130/30 Swiss Equity Fund 7 Highlights Key figures Consolidation Net assets in millions Unit class B Total net assets in millions Net asset value per unit (Swung NAV) Net asset value per unit (Unswung NAV) Unit class DB Total net assets in millions Net asset value per unit (Swung NAV) 1' ' ' Net asset value per unit (Unswung NAV) 1' ' ' Unit class EB Total net assets in millions Net asset value per unit (Swung NAV) 1' ' ' Net asset value per unit (Unswung NAV) 1' ' ' Unit class UB Total net assets in millions Net asset value per unit (Swung NAV) Net asset value per unit (Unswung NAV) Appropriation out of Net Income Accumulation For unitholders domiciled in Switzerland and abroad Accumulation 2018 Unit class B Unit class DB Unit class EB For Accumulation available earnings Less 35% Swiss withholding tax For Accumulation retained earnings Coupon no. earnings For unitholders domiciled in Switzerland and abroad Accumulation 2018 Unit class UB For Accumulation available earnings Less 35% Swiss withholding tax For Accumulation retained earnings Coupon no. earnings 4

8 8 Credit Suisse (CH) 130/30 Swiss Equity Fund Exchange rates Exchange rates as at SWISS FRANC UNITED STATES DOLLAR

9 Credit Suisse (CH) 130/30 Swiss Equity Fund 9

10 10 Credit Suisse (CH) 130/30 Swiss Equity Fund Assets as at May 31, 2018 Assets Consolidated Bank deposits, including fiduciary investments with third-party banks, divided into: - Sight deposits 932' '512' Securities, including securities loaned and pledged, divided into: - Shares and other equity instruments and rights 208'154' '198' Short sales -46'607' '489' Other Assets 1'441' '084' Total fund asset minus 163'920' '305' Other liabilities 136' ' Due to bank '027' Net assets 163'784' '134' Change in net assets Net assets at beginning of review period 150'134' '304' Delivery withholding tax -498' ' Issue of units 42'375' '528' Redemption of units -33'714' '115' Other items from unit transactions -679' '724' Total income 6'167' '169' Net assets at end of review period 163'784' '134' Net assets at end of review period Change in units in circulation Number at beginning of the review period 4'053' '664' Number of units issued 838' ' Number of units redeemed -1'041' '296' Number at the end of the review period 3'850' '053' Currency Unit class Currency Unit class Net asset value per share (Swung NAV) Net asset value per share (Unswung NAV) Consolidated

11 Credit Suisse (CH) 130/30 Swiss Equity Fund 11 Assets as at May 31, 2018 Assets Consolidated Bank deposits, including fiduciary investments with third-party banks, divided into: - Sight deposits 932' '512' Securities, including securities loaned and pledged, divided into: - Shares and other equity instruments and rights 208'154' '198' Short sales -46'607' '489' Other Assets 1'441' '084' Total fund asset minus 163'920' '305' Other liabilities 136' ' Due to bank '027' Net assets 163'784' '134' Unit class B Unit class DB Unit class EB Unit class UB 66'908' '625' '441' '673' '253' '515' '531' '490' ' ' ' ' ' ' ' ' '660' '041' '389' '726' '248' '172' '076' '588' '067' '256' ' '906' '309' '435' '189' '517' ' ' ' '098' ' ' ' ' '735' '757' '436' '124' '222' '121' ' '164' '590' '908' '706' '441' '350' '253' '136' '531' '643' '427' ' ' ' ' '369' '187' ' ' ' ' ' ' ' ' ' '053' ' ' ' ' ' '205' '643' ' ' ' ' '592' '369' () () () () 1' ' ' ' () () 1' ' ' ' () ()

12 12 Credit Suisse (CH) 130/30 Swiss Equity Fund Income statement for the period from June 1, 2017 to May 31, 2018 Income Consolidated Income from bank balances 3' ' Securities lending 40' ' Substitute payments 86' ' Securities income, divided into: - Shares and other equity instruments and rights, including bonus shares 3'677' '845' Current income paid in by new subscribers -179' ' Total income 3'628' '056' Expenses Interest Due 3' ' Negative interest 21' ' Audit costs 16' ' Statutory remuneration to: - Management company 1'447' '435' Custodian bank 55' ' Expenses relating to substitute payments 520' ' Partial transfer of expenditure on realized capital losses -115' ' Expenses relating to securities lending 400' ' Other expenses 6' ' Current net income paid out upon the redemption of units -152' ' Total Expenses 2'203' '693' Net income before tax adjustment 1'424' '362' Tax adjustment due to income from target funds Net income after tax adjustment 1'424' '362' Realised capital gains and losses 10'360' '403' Partial transfer of expenditure on realized capital losses -115' ' Realized income 11'669' '656' Unrealized capital gain/losses -5'502' '512' Total income 6'167' '169' Application of results Net income of financial year 1'424' '362' Net income available for distribution 1'424' '362' Distribution/delivery witholding taxes (35%) 498' ' For reinvestment of retained earnings (65%) 926' '883.38

13 Credit Suisse (CH) 130/30 Swiss Equity Fund 13 Income statement for the period from June 1, 2017 to May 31, 2018 Unit class B Unit class DB Unit class EB Unit class UB 1' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '357' '693' '188' '253' ' ' ' ' ' ' ' ' ' ' ' '348' '775' '230' '331' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '049' '053' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '226' '498' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '656' '856' ' ' '663' '022' '388' '065' '248' '851' ' ' ' ' '979' ' '276' ' ' ' ' ' '335' ' '481' ' '927' '734' '812' '273' '053' '234' ' '270' '735' '757' '436' '124' '222' '121' ' '164' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '519.60

14 14 Credit Suisse (CH) 130/30 Swiss Equity Fund Composition of portfolio and changes in holdings Description Number/ nominal value Purchases 1 Disposals 1 Number/ nominal value Market value in % of total fund assets Securities listed on a stock exchange or other organised markets Shares (and equity-type securities) Aeronautic and astronautic industry AUTONEUM HOLDING (reg. shares) 5'000-5'000-1'210' Aeronautic and astronautic industry -1'210' Banks and other credit institutions CANTONAL BANK OF SAINT GALL -4'000-4'000-2'116' CEMBRA MONEY (reg. shares) 19'000 7'000 12' ' CREDIT SUISSE GROUP AG (rights) ' '008 CS GROUP (reg. shares) 322' ' ' '000 5'782' GAM HOLDING (reg. shares) 150'000 32' '500 80'000 1'178' JULIUS BAER GRUPPE -35'000 9'000 1'000-27'000-1'552' LUZERNER KANTONALBANK -3'000-3'000-1'614' SOCIETE GENERALE DE SURVEILLANCE HOLDING (reg. shares) 1' '400 3'568' VONTOBEL HOLDING -27' '000-1'850' Banks and other credit institutions 4'350' Building materials and building industry FORBO HOLDING (reg. shares) 1' '530 1'999' IMPLENIA -15'000 15'000 27'000-27'000-2'061' LAFARGEHOLCIM (reg. shares) 73'000 45'000 24'000 94'000 4'741' Building materials and building industry 4'679' Chemicals CLARIANT (reg. shares) 140'000 22'000 82'000 80'000 1'902' EMS-CHEMIE HOLDING ' GURIT-HEBERLEIN LONZA GROUP (reg. shares) 20'500 2'500 1'250 21'750 5'735' SIEGFRIED HOLDING (reg. shares) 9' '600 3'681' SIKA LTD (rights) '180 3'180 Chemicals 11'319' Computer hardware and networking LOGITECH INTERNATIONAL (reg. shares) 110'000 19'500 32'500 97'000 3'901' Computer hardware and networking 3'901' Electrical appliances and components ABB (reg. shares) 250'000 62'000 32' '000 6'241' BELIMO HOLDING (reg. shares) '904' COMET HOLDING AG -8'500 7'689 5'939-6' ' SONOVA HOLDING (reg. shares) 11'000 14'500 7'000 18'500 3'182' Electrical appliances and components 10'449' Electronics and semiconductors AMS 41'000 35'000 49'500 26'500 2'255' DORMAKABA -1' '300-1'001' KUDELSKI -65'000 10'000-75' ' Electronics and semiconductors 482' Energy and water supply BKW -30'000 8'000 3'000-25'000-1'555' Energy and water supply -1'555' Financial, investment and other div. companies BURCKHARDT COMPRESSION HOLDING -3'900 2'500 1'900-3'300-1'214' CEVA LOGISTICS AG 85'000 17'000 68'000 1'734' CIE FINANCIERE RICHEMONT (reg. shares) 69'000 9'500 1'000 77'500 7'001' DAETWYLER HOLDING 13'000 1' '000 2'674' EFG INTERNATIONAL 105' '500 64' '000 1'067' GEBERIT 9'500 1'500 11'000 4'683' LANDIS+GYR GROUP AG 36'616 15'616 21'000 1'510' LEONTEQ 34'300 20'500 14'550 40'250 2'233' MEDARTIS HOLDING AG 9'380 9' ' MEYER BURGER TECHNOLOGY (reg. shares) 1'895'000 1'145' ' ' OC OERLIKON CORPORATION (reg. shares) 265'000 54' '000 3'359' PARGESA HOLDING -25'000-25'000-2'153' PARTNERS GROUP 7' '300 5'197' RIETER HOLDING (reg. shares) -7' '500-1'324' SENSIRION HOLDING AG 17'698 3'180 14' ' SFS GROUP (reg. shares) 18'500 1'000 17'500 1'942' SIKA '171' TECAN GROUP (reg. shares) 13' '009 5'000 1'165' U-BLOX HOLDING 12'000 2'750 1'750 13'000 2'364' UBS GROUP 475' ' ' '000 7'053' VALIANT HOLDING (reg. shares) -15'000-15'000-1'623' VAT GROUP 26'000 3'500 5'300 24'200 3'417' VZ HOLDING 4' '900 1'156' Financial, investment and other div. companies 46'589'

15 Credit Suisse (CH) 130/30 Swiss Equity Fund 15 Description Number/ nominal value Purchases 1 Disposals 1 Number/ nominal value Market value in % of total fund assets Food and soft drinks ARYZTA -35'000 17'001 24'001-42' ' BARRY CALLEBAUT (reg. shares) -1' '679' EMMI (reg. shares) -2' '300-1'958' LINDT & SPRUENGLI '679' NESTLE (reg. shares) 301'000 69'000 39' '000 24'619' Food and soft drinks 23'044' Graphics publishing and printing media TAMEDIA (reg. shares) -4'000 2'000-6' ' Graphics publishing and printing media -894' Insurance companies BALOISE-HOLDING (reg. shares) 11'000 1'000 12'000 1'735' HELVETIA HOLDING -2' '800-1'558' SWISS LIFE HOLDING (reg. shares) 12'000 2' '000 4'704' SWISS REINSURANCE 32'000 4'000 5'000 31'000 2'640' ZURICH INSURANCE GROUP (reg. shares) 17'000 8'000 3'500 21'500 6'282' Insurance companies 13'803' Internet, software and IT services SWISSQUOTE GROUP HOLDING -27'560 9'983 13'423-31'000-1'965' TEMENOS GROUP 40'000 1'000 9'000 32'000 4'672' Internet, software and IT services 2'706' Mechanical engineering and industrial equipment ARBONIA -75'000 15'000-90'000-1'575' BOBST GROUP -16'700 2'083 3'133-17'750-1'906' FEINTOOL INTERNATIONAL HOLDING (reg. shares) 11'300 11'300 GEORG FISCHER (reg. shares) -1' '550-1'976' KOMAX HOLDING (reg. shares) 7'600 7'600 2'117' SCHINDLER HOLDING -5'000 5'000 SCHWEITER TECHNOLOGIES 2' '175 2'401' SULZER (reg. shares) 17'000 10'300 6'300 21'000 2'373' ZEHNDER GROUP (reg. shares) -A- 23'000 15'039 6'373 31'666 1'350' Mechanical engineering and industrial equipment 2'784' Mining, coal and steel industry SCHMOLZ + BICKENBACH 1'000'000-1'000' ' Mining, coal and steel industry -772' Miscellaneous services ADECCO (reg. shares) 43'000 20'000 23'000 1'359' DKSH HOLDING (reg. shares) 18'500 1' '250 1'512' IDORSIA LTD 37'000 3'000 34' ' Miscellaneous services 3'682' Pharmaceuticals, cosmetics and medical products ACTELION 2nd LINIE 03/17 17'000 17'000 BASILEA PHARMACEUTICA (reg. shares) -10'000 5'000-15'000-1'054' GALENICA AG 27'000 4'000 15'000 16' ' GIVAUDAN (reg. shares) 2' '475 5'432' NOVARTIS (reg. shares) 230'000 54'500 21' '000 19'188' ROCHE HOLDINGS (cert. shares) 67'500 10'000 15'500 62'000 13'085' STRAUMANN HOLDING (reg. shares) 3' '600 2'700 1'753' VIFOR PHARMA AG 20'000 1'500 3'500 18'000 2'753' YPSOMED 8' '500 ZUR ROSE GROUP AG 5'320 5'320 Pharmaceuticals, cosmetics and medical products 42'017' Real estate ALLREAL HOLDING (reg. shares) -10'500-10'500-1'655' PSP SWISS PROPERTY (reg. shares) -21'000-21'000-1'896' SWISS PRIME SITE -21'000-21'000-1'930' Real estate -5'483' Retailing, department stores DUFRY '500-9'750-1'310' Retailing, department stores -1'310' Telecommunication SUNRISE COMMUNICATIONS GROUP 23'000 23'000 1'850' SWISSCOM (reg. shares) 2'000 2'000 Telecommunication 1'850' Traffic and transportation KUEHNE & NAGEL INTERNATIONAL -13'000 4'750 2'250-10'500-1'560' PANALPINA WELTTRANSPORT -11'500 1'500 1'200-11'200-1'368' Traffic and transportation -2'928' Vehicles BUCHER INDUSTRIES -3'700 5'459 1'759 Vehicles

16 16 Credit Suisse (CH) 130/30 Swiss Equity Fund Description Number/ nominal value Purchases 1 Disposals 1 Number/ nominal value Market value in % of total fund assets Watch and clock industry, jewellery THE SWATCH GROUP 4'000 2' '250 2'988' THE SWATCH GROUP (reg. shares) 11'000 1'000 12'000 1'050' Watch and clock industry, jewellery 4'039' Total Shares (and equity-type securities) 161'547' Total Securities listed on a stock exchange or other organised markets 161'547' Total Securities listed on a stock exchange or other organised markets Total investments 161'547' Cash at banks 932' Other assets 1'441' Total assets 163'920' /. Due to banks./. Other liabilities 136' /. Other loans Net assets 163'784' abc (1) Inclusive of purchases/sales and corporate actions Abc Summarized breakdown of the portfolio in accordance with FINMA Art. 84 (2) Investment categories Market value in % of total fund assets abc Securities listed on a stock exchange or other organised markets 161'547' Securities not listed on a stock exchange, whose value is based on market-observed parameters Securities valued with suitable valuation models taking account of the current market circumstances abc Securities holdings loaned (Securities Lending and Borrowing) Description Issuer Lending / Borrowing Number/ nominal value AMS Credit Suisse (Schweiz) AG Lending 25'450 ARYZTA Credit Suisse (Schweiz) AG Lending 89 BKW Credit Suisse (Schweiz) AG Lending 180 BOBST GROUP Credit Suisse (Schweiz) AG Lending 224 BURCKHARDT COMPRESSION HOLDING Credit Suisse (Schweiz) AG Lending 1'317 COMET HOLDING AG Credit Suisse (Schweiz) AG Lending 1'532 DKSH HOLDING (reg. shares) Credit Suisse (Schweiz) AG Lending 17'324 DORMAKABA Credit Suisse (Schweiz) AG Lending 89 EFG INTERNATIONAL Credit Suisse (Schweiz) AG Lending 118'799 HELVETIA HOLDING Credit Suisse (Schweiz) AG Lending 179 IMPLENIA Credit Suisse (Schweiz) AG Lending 853 JULIUS BAER GRUPPE Credit Suisse (Schweiz) AG Lending 2'609 KOMAX HOLDING (reg. shares) Credit Suisse (Schweiz) AG Lending 3'776 KUEHNE & NAGEL INTERNATIONAL Credit Suisse (Schweiz) AG Lending 629 LAFARGEHOLCIM (reg. shares) Credit Suisse (Schweiz) AG Lending 57'046 LANDIS+GYR GROUP AG Credit Suisse (Schweiz) AG Lending 5'273 MEYER BURGER TECHNOLOGY (reg. shares) Credit Suisse (Schweiz) AG Lending 699'899 RIETER HOLDING (reg. shares) Credit Suisse (Schweiz) AG Lending 89 STRAUMANN HOLDING (reg. shares) Credit Suisse (Schweiz) AG Lending 81 SWISSQUOTE GROUP HOLDING Credit Suisse (Schweiz) AG Lending 899 U-BLOX HOLDING Credit Suisse (Schweiz) AG Lending 11'210 VIFOR PHARMA AG Credit Suisse (Schweiz) AG Lending 10'100 VZ HOLDING Credit Suisse (Schweiz) AG Lending 282 ZEHNDER GROUP (reg. shares) -A- Credit Suisse (Schweiz) AG Lending 3'181 Abc abc Securities pledged either fully or in part for securing short sales Description ABB (reg. shares) Credit Suisse (Schweiz) AG 250'000 CIE FINANCIERE RICHEMONT (reg. shares) Credit Suisse (Schweiz) AG 40'000 GEBERIT Credit Suisse (Schweiz) AG 5'200 NESTLE (reg. shares) Credit Suisse (Schweiz) AG 199'000 NOVARTIS (reg. shares) Credit Suisse (Schweiz) AG 260'000 ROCHE HOLDINGS (cert. shares) Credit Suisse (Schweiz) AG 59'000 ZURICH INSURANCE GROUP (reg. shares) Credit Suisse (Schweiz) AG 16'000 Total amount of 62'298' Abc abc Issuer Number/ nominal value

17 Credit Suisse (CH) 130/30 Swiss Equity Fund 17 abc Off Balance sheet Underlying equivalent in fund currency in % of net fund asset Underlying equivalent in fund currency in % of net fund asset abc Volume of securities lent and commission income from securities - Volume of securities lent 15'469' '151' Commission income 40' ' Abc

18 18 Credit Suisse (CH) Swiss Real Estate Securities Fund Highlights Key figures Consolidation Net assets in millions Unit class A Total net assets in millions Net asset value per unit (Swung NAV) Net asset value per unit (Unswung NAV) Unit class DB Total net assets in millions Net asset value per unit (Swung NAV) 1' ' ' Net asset value per unit (Unswung NAV) 1' ' ' Unit class EB Total net assets in millions Net asset value per unit (Swung NAV) 1' ' ' Net asset value per unit (Unswung NAV) 1' ' ' Unit class IB Total net assets in millions Net asset value per unit (Swung NAV) 1' ' ' Net asset value per unit (Unswung NAV) 1' ' ' Unit class UA Total net assets in millions Net asset value per unit (Swung NAV) Net asset value per unit (Unswung NAV) Appropriation out of Net Income Distribution 1. For unitholders domiciled in Switzerland and abroad Distribution 2018 Unit Class A Unit Class UA Gross Distribution out of earnings Less 35% Swiss withholding tax Net distribution out of earnings Coupon no. earnings For unitholders domiciled in Switzerland and abroad (coupons excempt from withholding tax from direct real estate possession) Distribution 2018 Unit Class A Unit Class UA Gross Distribution out of earnings Net distribution out of earnings Coupon no. earnings 15 6 Payable on or after at Credit Suisse (Schweiz) AG and at their branch offices in Switzerland.

19 Credit Suisse (CH) Swiss Real Estate Securities Fund 19 Accumulation 1. For unitholders domiciled in Switzerland and abroad Accumulation 2018 Unit class DB Unit class EB Unit class IB For Accumulation available earnings Less 35% Swiss withholding tax For Accumulation retained earnings Coupon no. earnings For unitholders domiciled in Switzerland and abroad (coupons excempt from withholding tax from direct real estate possession) Accumulation 2018 Unit class DB Unit class EB Unit class IB For Accumulation available earnings For Accumulation retained earnings Coupon no. earnings

20 20 Credit Suisse (CH) Swiss Real Estate Securities Fund Exchange rates Exchange rates as at SWISS FRANC

21 Credit Suisse (CH) Swiss Real Estate Securities Fund 21

22 22 Credit Suisse (CH) Swiss Real Estate Securities Fund Assets as at May 31, 2018 Assets Consolidated Bank deposits, including fiduciary investments with third-party banks, divided into: - Sight deposits ' Securities, including securities loaned and pledged, divided into: - Shares and other equity instruments and rights 163'153' '049' Units of other collective investment scheme 226'524' '879' Other Assets 2'463' '421' Total fund asset minus 392'141' '794' Other liabilities 232' ' Due to bank 87' Net assets 391'821' '590' Change in net assets Net assets at beginning of review period 337'590' '766' Ordinary Annual distribution -2'278' '301' Delivery withholding tax -1'167' ' Issue of units 105'518' '186' Redemption of units -49'499' '846' Other items from unit transactions 927' '913' Total income 731' '613' Net assets at end of review period 391'821' '590' Net assets at end of review period Change in units in circulation Number at beginning of the review period 11'669' '701' Number of units issued 4'120' '320' Number of units redeemed -3'059' '352' Number at the end of the review period 12'730' '669' Currency Unit class Currency Unit class Net asset value per share (Swung NAV) Net asset value per share (Unswung NAV) Consolidated

23 Credit Suisse (CH) Swiss Real Estate Securities Fund 23 Assets as at May 31, 2018 Assets Consolidated Bank deposits, including fiduciary investments with third-party banks, divided into: - Sight deposits ' Securities, including securities loaned and pledged, divided into: - Shares and other equity instruments and rights 163'153' '049' Units of other collective investment scheme 226'524' '879' Other Assets 2'463' '421' Total fund asset minus 392'141' '794' Other liabilities 232' ' Due to bank 87' Net assets 391'821' '590' Unit class A Unit class DB Unit class EB Unit class IB 173'989' '308' '780' '668' '526' '974' '626' '750' '197' '236' ' ' ' ' ' ' '538' '578' '875' '252' '715' '833' '420' '834' '689' '054' '166' '972' '597' '492' ' '852' ' '571' ' ' ' ' ' ' ' '965' '039' '430' ' '605' ' '103' '381' '989' '185' '780' '671' '526' '927' '626' '091' '332' ' ' ' ' ' ' '747' '045' ' ' ' ' ' ' '973' '285' ' ' ' ' '865' '091' ' ' ' ' ' ' () () () () 1' ' ' ' () () 1' ' ' ' () () 1' ' ' '690.44

24 24 Credit Suisse (CH) Swiss Real Estate Securities Fund Assets as at May 31, 2018 Assets Consolidated Bank deposits, including fiduciary investments with third-party banks, divided into: - Sight deposits ' Securities, including securities loaned and pledged, divided into: - Shares and other equity instruments and rights 163'153' '049' Units of other collective investment scheme 226'524' '879' Other Assets 2'463' '421' Total fund asset minus 392'141' '794' Other liabilities 232' ' Due to bank 87' Net assets 391'821' '590' Change in net assets Net assets at beginning of review period 5'667' '064' Ordinary Annual distribution -81' ' Delivery withholding tax Issue of units 3'967' '687' Redemption of units -948' ' Other items from unit transactions 27' ' Total income 22' ' Net assets at end of review period 8'655' '667' Net assets at end of review period Change in units in circulation Number at beginning of the review period 482' ' Number of units issued 346' ' Number of units redeemed -83' ' Number at the end of the review period 745' ' Currency Unit class Currency Unit class Net asset value per share (Swung NAV) Net asset value per share (Unswung NAV) () Unit class UA ()

25 Credit Suisse (CH) Swiss Real Estate Securities Fund 25

26 26 Credit Suisse (CH) Swiss Real Estate Securities Fund Income statement for the period from June 1, 2017 to May 31, 2018 Income Consolidated Securities lending 19' ' Substitute payments 20' ' Securities income, divided into: - Shares and other equity instruments and rights, including bonus shares 1'670' '245' Shares of other collective investments 5'346' '379' Income from retrocessions 3' Income from collective investment scheme with direct real estate investments 1'051' ' Current income paid in by new subscribers out of direct real estate investments 45' ' Current income paid in by new subscribers 302' ' Total income 8'460' '949' Expenses Interest Due 1' Negative interest 14' ' Audit costs 16' ' Statutory remuneration to: - Management company 2'217' '718' Custodian bank 116' ' Partial transfer of expenditure on direct real estate investments -304' ' Expenses relating to direct real estate investments 304' ' Other expenses 6' ' Current net income paid out upon the redemption of units out of direct real estate investments 21' ' Current net income paid out upon the redemption of units 146' ' Total Expenses 2'542' '112' Net income before tax adjustment 5'918' '837' Tax adjustment due to income from target funds 864' ' Net income after tax adjustment 6'783' '283' Realised capital gains and losses 12'741' '559' Partial transfer of tax adjustment due to income from target funds -864' ' Realized income 18'659' '396' Unrealized capital gain/losses -17'928' '217' Total income 731' '613' Application of results Net income of financial year 6'783' '283' Previous presentation of collective investment schemes with property owned directly 109' ' Carried forward of the previous year 189' ' Net income available for distribution 7'082' '513' Net income earmarked for distribution to investors 2'492' '064' Net income earmarked for distribution to investors out of investment schemes with direct real estate investments 370' ' Distribution/delivery witholding taxes (35%) 1'167' ' For reinvestment of retained earnings (65%) 2'168' '698' For reinvestment of retained amount of collective investment schemes with property owned directly 498' ' Carried forward out of collective investment schemes with direct real estate investments 10' ' Carried forward to following year 373' '895.95