zcapital Swiss Small & Mid Cap Fund

Transcription

1 A collective investment scheme under Swiss law of the type «other funds for traditional investments» Unaudited semi-annual report 2012/2013 for the period from December 1, 2012 to May 31, 2013 zcapital AG Baarerstrasse Zug Our transparency T Your fundholder value

2 A COLLECTIVE INVESTMENT SCHEME UNDER SWISS LAW OF THE TYPE «OTHER FUNDS FOR TRADITIONAL INVESTMENTS» Unaudited semi-annual report as of May 31, 2013 for the period from December 1, 2012 to May 31, 2013 In case of difference between the German version and the translation, the German version shall prevail. This document is not an offer to purchase or subscribe to units but is for informational purposes only. Units of an investment fund under Swiss law may only be subscribed on the basis of the current prospectus, including the fund contract, the current annual and semi-annual reports and the Key Investor Information Document. An investment in this fund entails risks which are described in the prospectus. All documents may be obtained free of charge at zcapital AG, Baarerstrasse 82, 6300 Zug, at Vontobel Fonds Services AG, Gotthardstrasse 43, 8002 Zurich or at Independent advice should be sought on the legal principles that apply in the relevant country regarding any sales restrictions.

3 Contents Organisation 2 Basic data 3 Performance 3 4 Further information 9 1

4 Organisation Fund management company Vontobel Fonds Services AG Gotthardstrasse 43 CH-8022 Zurich Tel , Fax Board of Directors Dominic Gaillard Christoph Ledergerber Dr. Martin Taufer Executive Board Diego Gadient Daniel Spitzer Steven Wicki Lobsang Changten Managing Director, Bank Vontobel AG, Chairman Managing Director, Bank Vontobel AG Managing Director, Bank Vontobel AG Executive Director, Vontobel Fonds Services AG, Chairman Executive Director, Vontobel Fonds Services AG Executive Director, Vontobel Fonds Services AG Director, Vontobel Fonds Services AG Custodian bank RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich branch Badenerstrasse 567 P.O. Box 101 CH-8066 Zurich Asset management company zcapital AG Baarerstrasse 82 CH-6300 Zug Tel Portfolio manager Hilmar Langensand CIO, zcapital AG External auditor Ernst & Young AG Maagplatz 1 CH-8010 Zurich Subscription and paying agent Bank Vontobel AG Gotthardstrasse 43 CH-8022 Zurich Tel , Fax Publication of prices 2

5 Basic data Total net fund assets in CHF millions Outstanding units 145' ' ' ' Net asset value per unit in CHF 1' ' ' ' Distribution per unit in CHF TER excl. performance fee in % 1) TER incl. performance fee in % 1) PTR in % 2) High since launch (in CHF) 1' ' ' ' Low since launch (in CHF) Launch date Securities number ISIN Code CH Reuters page S Bloomberg ZCAPSWI SW Equity 1) TER (Total Expense Ratio) = Total expenses x 100/average net asset value. 2) PTR (Portfolio Turnover Rate) = Turnover rate of the fund's portfolio. It is considered an indicator of the significance of the transaction costs incurred by the fund when buying and selling securities. Performance in CHF Launch date to from launch to * % % 17.81% 12.14% 59.55% SPI Extra Total Return 20.10% % 13.89% 13.68% 32.79% Past performance is not a guide to current or future performance. The performance data do not take account of the commissions and costs incurred on the issue or redemption of units. * Performance was calculated as at in accordance with the SFA performance guidelines of

6 A collective investment scheme under Swiss law of the type «other funds for traditional investments» Change in units Units outstanding at the beginning of the period 183' ' Number of units issued 64' ' Number of units redeemed 30' ' Units outstanding at the end of the period 217' ' Net asset value per unit in CHF 1' ' Statement of Assets (in CHF) Assets Cash at banks at sight 8'739' ' on time 10'000' '800' Securities Equities 285'942' '446' Derivative financial instruments - - Other assets 631' '312' Total fund assets 305'313' '583' /. Loans taken out - -./. Other liabilities -1'525' '504' Total net fund assets 303'788' '079' Statement of Changes in Net Assets Net fund assets at beginning of reporting period 220'634' '788' Distributions - - Balance of units issued/units redeemed 45'578' '886' Total net income 37'575' '404' Net asset value at end of reporting period 303'788' '079'

7 A collective investment scheme under Swiss law of the type «other funds for traditional investments» Statement of income (in CHF) Income Income on cash at banks - - Income on securities Equities 3'097' '114' Other income - - Accrued income - paid in on units subscribed -66' ' Total income 3'030' '055' Expense Interest paid 7' ' Auditing expense 11' ' Fund management company fee as per regulations: for the management, asset management, distribution and custody 1) 3'971' '758' for the performance fee 2) 1'609' ' Other expenses 2' ' Partial carryover of the regulatory fees to the fund management company on the realised 3) capital gains/losses (performance fee) -1'609' ' Partial carryover of expenditure on realised capital gains and losses -17' ' Accrued income paid out on units redeemed 24' ' Total expenses 4'001' '827' Net income/loss ( ) -970' '227' Realised capital gain and loss -810' '777' Payments from the capital contributions principle 4'061' '107' Partial carryover of the regulatory fees to the fund management company on the realised 3) capital gains/losses (performance fee) -1'609' ' Partial carryover of expenditure on realised capital gains and losses -17' ' Realised income 653' '296' Unrealised capital gain and loss 36'921' '108' Total net income 37'575' '404' Utilisation of Net Income (in CHF) Net income for financial year -970' Net loss charged to accrued realised capital gains -970' Profit carried forward from previous year 166' Profit available for distribution 166' Profit intended for distribution to investors - - Profit carried forward 166' Effective fees: 1) The regulatory fee for the fund management company, specifically for the management, asset management and distribution of the investment fund and compensation for the custodian totals 1.50% of the net asset value of fund assets. The investment manager donates 0.1% p.a. of the net asset value of fund assets to charitable organisations (included in the 1.50%). No reimbursements and trailer fees were paid out of the management fee in accordance with Section 4 of the SFA guideline Transparency with regard to management fees" dated June 7, ) 15% in accordance with the high water mark principle. 3) In accordance with article 29 of the Implementing Ordinance on the Swiss Federal Law on Withholding Tax (Vollziehungsverordnung zum Bundesgesetz über die Verrechnungssteuer). 5

8 A collective investment scheme under Swiss law of the type «other funds for traditional investments» Stock of Funds Assets as at Securities Stock Purchase 1) Sale 1) Stock Market value in CHF Market value in % of total fund assets 2) Securities Shares Securities listed on an official exchange Canada Intl Minerals Corp N 820' '000-1'200'000 3'120' Total - Canada 3'120' Austria Austriamicrosystems I 36'000 36'000 2'000 70'000 6'461' Total - Austria 6'461' Switzerland Allreal Holding N 27'000 5'000 6'000 26'000 3'533' APG SGA N 18' '000 16'000 3'662' Aryzta N 185'000 15'000 40' '000 8'824' Baloise Holding N 130'000 54'000 9' '000 16'511' Banque Cantonale Vaudoise N 8'000 1'000 3'000 6'000 2'988' Barry Callebaut N 2' '200 1'964' Belimo Holding N '535' Bucher Industries N 28'000 13'200 7'200 34'000 7'673' Clariant N 700' ' '000 1'050'000 14'637' Daetwyler Holding I 46'000 6'000 8'000 44'000 4'488' Dufry N 40'000 37'000 25'000 52'000 6'817' EMS-Chemie Holding N 7'650 11'350 1'000 18'000 5'130' Evolva Holding N 2'700'000-2'700'000 1'998' Flughafen Zürich N 8'000 3'000 1'000 10'000 4'710' Forbo Holding N 6' '500 4'425' Galenica N 7'000 10'000 3'500 13'500 8'363' Gam Holding N 760' ' ' '000 9'688' Gategroup N 57'000 33'000 90' Geberit N 12'000-12' Georg Fischer N 15'000 3'000 10'000 8'000 3'550' Gurit Holding I 2' ' ' Helvetia Holding N 11'000-1'000 10'000 3'962' Huber & Suhner N 28'400-18'400 10' ' Implenia N 170'000 48'500 18' '000 9'950' Kaba Holding N 15' '000 8'000 3'000' Komax Holding N 30'000-30'000 2'826' Kudelski I 80' '000 10' '000 2'618' Kuehne & Nagel International N 145'000 30'000 45' '000 13'975' Kuoni Reisen Holding N 22'500-22'500 7'065' Lindt & Spruengli N '861' Lindt & Spruengli PS 1' '800 6'381' Logitech International N 350'000 50' ' Looser Holding N 36'000 13'000-49'000 3'454' MCH Group N 18'300 3'700-22'000 1'276'

9 A collective investment scheme under Swiss law of the type «other funds for traditional investments» Stock of Funds Assets as at Securities Stock Purchase 1) Sale 1) Stock Market value in CHF Market value in % of total fund assets 2) Shares (Continued) Securities listed on an official exchange Switzerland (Continued) Metall Zug N 1' '450 3'117' Meyer Burger Technology rights (Maturity: ) 800' ' Meyer Burger Technology N 220' ' ' '000 4'668' OC Oerlikon N 597' ' ' '000 8'155' Orior N 72'000-2'000 70'000 3'615' Partners Group Holding N 41'000 15'500 6'500 50'000 12'170' PSP Swiss Property N 87'000 15' '000 8'868' Publigroupe N 24'000 3'000-27'000 3'326' Romande Energie Holding I 2' '800 4'161' Schindler Holding PS 103'000 7'000 14'000 96'000 13'420' Schindler Holding N 70'000 25'000-95'000 12'939' Schweiter Technologies I 6'550 2'450-9'000 5'085' Sika I 4' '000 3'400 8'044' Sonova Holding N 77'000 18'000 25'000 70'000 7'385' St. Galler Kantonalbank N 6' '000 2'612' Starrag Group Holding N 20' '000 1'230' Straumann Holding N 18'000-18'000 2'379' Sulzer N 68'000 16'000 16'000 68'000 10'968' Swatch Group N 98'000 62' '000 15'232' Swiss Life Holding N 20'100 24'900 3'000 42'000 6'732' Swiss Prime Site N 120'000 38'000 8' '000 10'807' Swisslog Holding N 800' ' Swissquote Group Holding N 80'000 66' '000 4'234' Tecan Group N 103'000-78'000 25'000 2'136' Temenos Group N 370'000 40' ' '000 3'003' U-Blox Holding N 10'000-10' ' Valiant Holding N 40'000 13'000 3'000 50'000 4'200' Valora Holding N 31'000 5'000-36'000 6'699' VZ Holding N 15'000 14'000-29'000 4'060' Zehnder Group I 36'400 1'600 13'000 25'000 1'053' Zug Estates Holding N 1' '500 1'875' Total - Switzerland 350'865' Total - Shares listed on an official exchange 360'446' Total - Securities listed on an official exchange 360'446' Total - Securities 360'446'

10 A collective investment scheme under Swiss law of the type «other funds for traditional investments» Stock of Funds Assets as at Market value in CHF Market value in % of total fund assets 2) Cash at banks at sight 24' Cash at banks on time 19'800' Other assets 13'312' Total fund assets 393'583' Other liabilities -9'504' Total net fund assets 384'079' Includes purchases, sales and corporate actions. 2 Any discrepancies in the totals are a result of rounding differences. 8

11 Further information Basis for the valuation and calculation of the net asset value 1. The net asset value of the fund is calculated in Swiss francs at the market value as of the end of the financial year and for each day on which units are issued or redeemed. The fund's net asset value will not be calculated on days when the stock exchanges or markets in the fund's main investment countries are closed (e.g. bank and stock exchange holidays). 2. Securities traded on a stock exchange or another regulated market open to the public shall be valued at the current prices paid on the main market. Other investments or investments for which no current market value is available shall be valued at the price which would probably be obtained in a diligent sale at the time of the valuation. In such cases, the fund management company will use appropriate valuation models and principles recognised in practice to determine the market value. 3. Open-ended collective investment schemes are valued at their redemption price/net asset value. If they are regularly traded on a stock exchange or another regulated market open to the public, the fund management company can value such funds in accordance with (2) above. 4. The value of money market instruments that are not traded on a stock exchange or another regulated market open to the public is determined as follows: the valuation price of such investments is successively adjusted in line with the redemption price, taking the net purchase price as the basis and holding the investment yield calculated from it constant. If there are significant changes in market conditions, the valuation basis for the individual investments will be adjusted in line with the new market yields. If there is no current market price in such instances, the calculations are as a rule based on the valuation of money market instruments with the same characteristics (quality and domicile of the issuer, issuing currency, term to maturity). 5. Bank deposits are valued on the basis of the amount due plus accrued interest. If there are significant changes in market conditions or the credit rating, the valuation basis for time deposits will be adjusted in line with the new conditions. 6. The net asset value of a unit is determined by the market value of the fund's assets, minus all this fund's liabilities, divided by the number of units in circulation. It will be rounded to the nearest CHF Events of special economic or legal importance 1. Amendments to the fund contract Investors were notified of the following amendments to the fund contract concerning the conversion of the funds in zcapital (other funds for traditional investments in the form of an umbrella fund) on April 3, 2013 in the official publications of the fund; the application for the approval of the conversion is still pending with the Swiss Financial Market Supervisory Authority FINMA: a. Basic information Conversion refers to the incorporation of existing individual funds or sub-funds into a new or existing umbrella fund and the spinoff of sub-funds as individual funds. As fund management company, Vontobel Fonds Services AG, intends to convert the individual fund. In this process, the existing individual fund zcapital Swiss Small & Mid Cap Fund (individual fund being converted; hereinafter also: ) will be incorporated into the existing umbrella fund zcapital (receiving umbrella fund; hereinafter also: zcapital Umbrella Fund). RBC Investor Services S.A. Esch-sur-Alzette, Zurich Branch, as custodian bank, has agreed to this change. b. Reason for the conversion In the interest of a more efficient and cost effective fund structure and management, Vontobel Fonds Services AG, as fund management company, intends to convert the existing individual fund under the receiving umbrella fund, whose sponsor and investment manager is also zcapital AG. c. Conditions of the conversion For the individual fund affected, conversion represents nothing more than a change in the contractual wrapping. For this reason, a conversion can only be carried out when all the contractual provisions of the individual fund to be converted are in compliance with the provisions of the fund contract of the receiving umbrella fund. In particular, the following provisions of the fund contract of the individual fund being converted must comply with the fund contract of the receiving umbrella fund: Fund type, fund management, custodian bank, investor group, units and unit classes, investment policy (permitted investments), cash, securities lending, repurchase agreements, derivatives, borrowing and granting of loans, charges against fund assets, risk distribution, calculation of net asset value, issue and redemption of units, fees and incidental costs charged to the investor, remuneration and incidental costs charged to the fund's assets, auditor, accounting procedures, use of income, official publications, restructuring and dissolution, and maturity. If the fund contract is divided into a general and a special part, the provisions of the special part (especially investment policy, risk distribution, costs, etc.) may differ as long as they are consistent with those of the general part. If any provisions of the individual fund being converted differ from the fund contract of the receiving umbrella fund, the fund contract must be amended in accordance with Art. 27 CISA in conjunction with Art. 41 CISO; this can be done as part of the actual conversion. The amendments to the fund contract listed below were made in order to adjust all the provisions of the fund contract of the individual fund being converted to the provisions of the fund contract of the receiving umbrella fund. d. Conversion procedure The conversion must be published by the applicant and investors have the opportunity to raise objections within 30 days (Art. 27 (3) CISA). e. Summary of the proposed fund contract amendments in connection with the conversion of zcapital Swiss Small & Mid Cap Fund into zcapital ea. Deletion of provisions relating to pooling in zcapital Swiss Small & Mid Cap Fund (Section 3 (5) of zcapital Swiss Small & Mid Cap Fund) and insertion of a sub-fund-specific provision Umbrella Fund, Section 3 (5) of the zcapital Swiss Small & Mid Cap Fund provision on pooling, which was not and is not practiced, is deleted. The following provision (corresponding to Section 3 (5) of the zcapital Umbrella Fund) concerning the merger and dissolution of sub-funds shall take its place (Section 3 (5) of the zcapital Swiss Small & Mid Cap Fund): "The fund management company may merge individual subfunds with other sub-funds or other investment funds pursuant to the provisions of section 24 or dissolve individual sub-funds under the provisions of section 25." 9

12 Further information eb. Insertion of a sub-fund-specific provision in the zcapital Swiss Small & Mid Cap Fund (new: Section 5 (2) of the ) umbrella, a new point 2 is inserted in Section 5 of the zcapital Swiss Small & Mid Cap Fund, which corresponds to Section 5 (2) of the zcapital Umbrella Fund: "Investors are only entitled to the assets and income of the sub-fund in which they have a stake. Only for the sub-fund concerned is liable for the obligations attributable to an individual sub-fund. ec. Creation of a Class A unit class for the zcapital Swiss Small & Mid Cap Fund, and the supplementing of the provisions of Section 6 Units and unit classes at the (a) In order to adapt to the unit class division and designation of the zcapital Umbrella Fund, an A class unit class is created for, into which the currently existing shares of will be transferred. Accordingly, Section 6 (4) of the zcapital Swiss Small & Mid Cap Fund will therefore be deleted. (b) For the purpose of alignment with the provisions of the zcapital Umbrella Fund, the following new points of the zcapital Umbrella Fund will be inserted in Section 6 of the zcapital Swiss Small & Mid Cap Fund after point 5: 6. In the issue of units, there is provision for the issue of fractions of units. 7. The fund management company undertakes to ask investors who no longer fulfil the requirements to hold a unit class to return their units within 30 calendar days, pursuant to Section 17, to transfer them to a person who does fulfil the requirements stipulated or to exchange them for units of another class whose conditions they do fulfil. If the investor does not comply with this request, the fund management company in conjunction with the custodian bank may either undertake a compulsory exchange to another unit class of the corresponding sub-fund or, if this is not possible, a compulsory redemption of the units in question pursuant to Section 5 (7). ed. Supplement to the provisions concerning Section 8 Investment policy of the zcapital Swiss Small & Mid Cap Fund Umbrella Fund, in "Section 8 Investment Policy" the investment universe of the is supplemented by the following provision, corresponding to the provision in Section 8 (1d) of the zcapital Umbrella Fund. Under this provision, the fund management company, under the specific investment policy of the individual sub-fund, may also invest the assets of each sub-fund in structured products denominated in Swiss Francs or other freely convertible currencies such as certificates from issuers worldwide that relate to securities, collective investment schemes, money market instruments, derivatives, indices, interest rates, exchange rates, currencies, precious metals, commodities or similar. The specific investment policy of the zcapital Swiss Small & Mid Cap Fund to be converted remains unaffected. This same content will now be inserted under Section 8 (3.2) of the zcapital Umbrella Fund. ee. Deletion of Section 11 Repurchase agreements of the and replacement with the provision of Section 11 Repurchase agreements of the zcapital Umbrella Fund Umbrella Fund, Section 11 Repurchase agreements of the is replaced by Section 11 Repurchase agreements of the zcapital Umbrella Fund: The fund management company will not enter into any repurchase agreements for the account of any of the sub-funds. ef. Supplements to and deletions in Section 12 Derivatives of the and the zcapital Umbrella Fund To align Section 12 Derivatives in the zcapital umbrella and the, the following provision is added to the zcapital Umbrella Fund point 3b: The use of credit default swaps (CDS) is not provided for. Section 12 (10) of the is supplemented as follows: The prospectus contains additional information on credit derivatives. eg. Deletion in Section 13 Borrowing and granting of loans of the To align it with the provisions of the zcapital Umbrella Fund, sentence 2 is deleted in both Section 13 (1 and 2) of the zcapital Swiss Small & Mid Cap Fund. eh. Change in the risk distribution provisions in Section 15 of the Umbrella Fund, risk distribution provisions of 15 of the zcapital Swiss Small & Mid Cap Fund are amended as follows: (a) Section 15 (3) of the is replaced with the following provisions, which correspond to Section 15 (3) of the zcapital Umbrella Fund: Including derivatives, the fund management company may now invest a maximum of 20% of the total assets of a Sub-Fund in securities and money market instruments of the same issuer. The total value of the securities and money market instruments of the issuers in which more than 10% of the entire Sub-Fund is invested may not exceed 60% of the Sub-Fund in question. Subject to the provisions of Section 15 (4 and 5). (b) In addition, Section 15 (5 and 6) of the zcapital Swiss Small & Mid Cap Fund is deleted. (c) Section 15 (8 and 9) of the zcapital Swiss Small & Mid Cap Fund are both supplemented as follows: Subject to the higher limits pursuant to Section 15 (12 and 13) below. (d) In addition, the following provision, which corresponds to Section 15 (8) of the zcapital Umbrella Fund, shall be added to Section 15 of the : The fund management company may invest no more than 20% of the assets of a sub-fund in units of the same target fund. 10

13 Further information (e) Section 15 (12) of the is deleted and replaced with the following provisions, which correspond to Section 15 (11 to 13) of the zcapital Umbrella Fund: 11. The limits stipulated in Section 15 (9 and 10) above are not applicable to securities and money market instruments issued or guaranteed by a state or a public body from the OECD or by international organisations of a public nature to which Switzerland or a member state of the European Union belong. 12. The 20% limit mentioned in (3) is raised to 35% if the securities or money market instruments are issued or guaranteed by a state or a public body from the OECD or by international organisations of a public nature to which Switzerland or a member state of the European Union belong. The aforementioned securities or money market instruments are not taken into consideration in the calculation of the 60% limit pursuant to Section 15 (3). However, the individual limits described in (3 and 5) may not be accumulated with this limit of 35%. 13. The 20% limit mentioned in Section 15 (3) is raised to 100% if the securities or money market instruments are issued or guaranteed by a state or a public body from the OECD or by international organisations of a public nature to which Switzerland or a member state of the European Union belong. In this case, the fund's assets must contain corresponding Sub-fund securities or money market instruments from at least six different issues. The aforementioned securities or money market instruments are not taken into consideration in the calculation of the 60% limit pursuant to Section 15 (3). The permitted issuers or guarantors are: OECD countries, the European Union (EU), the Council of Europe, Euro Finance, the International Bank for Reconstruction and Development (IBRD), (IFC), Inter-American Development Bank (IADB), the Asian Development Bank (ADB), the African Development Bank (AfDB), the European Investment Bank (EIB), the Nordic Investment Bank, the European Bank for Reconstruction and Development. 9. Change of Section 16 Calculation of net asset value of the Umbrella Fund, Section 16 (3) of the zcapital Swiss Small & Mid Cap Fund is deleted and replaced by the following provision, which corresponds to Section 16 (3) of the zcapital Umbrella Fund: "Open-ended collective investment schemes are valued at their redemption price/net asset value. If they are regularly traded on a stock exchange or another regulated market open to the public, the fund management company can value such funds in accordance with Section 16 (2) above. In addition, for the purpose of alignment with the provisions of the zcapital Umbrella Fund, Section 16 (5) sentence 2 of the is deleted. Pursuant to Section 16 (6) of the zcapital Swiss Small & Mid Cap Fund, for the purpose of alignment, the following sub-fundspecific provision is inserted, which corresponds to Section 16 (7) of the zcapital Umbrella Fund: The ratios of the market value of a sub-fund's net assets (subfund's assets less any liabilities) to be ascribed to the respective unit classes are determined for the first time upon the initial issue of several unit classes (if this occurs simultaneously), or upon the initial issue of a further unit class on the basis of the portion accruing to the sub-fund for each unit class. The ratio is recalculated when the following events occur: b) on the cut-off date for distributions, insofar as (i) such distributions apply only to individual unit classes (distribution classes) or (ii), the distributions of the various unit classes account for different percentages of their respective net asset value, or (iii) the distributions of the various unit classes are subject to different fees and charges as a percentage of the distributions; c) when the net asset value is calculated, in the context of the allocation of liabilities (including due or accrued commissions) to the various unit classes, provided that the liabilities of the various unit classes account for a different percentage of their net asset value, specifically if (i) different commission rates apply to the different unit classes or (ii) there are class-specific costs; d) when the net asset value is calculated, in the context of the allocation of income or capital gains to the various unit classes, provided the income or capital gains arises from transactions made solely in the interests of a unit class or in the interests of several unit classes, but is not in proportion to their share of the net assets of a sub-fund. ei. Supplement to Section 17 Issue and redemption of units of the Umbrella Fund, Section 17 Issue and redemption of shares is supplemented by the following provisions, which correspond to Section 17 (8) of the zcapital Umbrella Fund: The fund management company is the sole decision-maker on payments in kind within the meaning of Section 5 (3) above and agrees to such transactions only if the execution of the transaction is fully in accordance with the investment policy of the sub-fund and the fund contract, the assets are liquid and can be readily valued, and the interests of the remaining investors are unaffected. The fund management company draws up a report containing details of the assets transferred, their market value on the date of transfer, the quantity of units issued or redeemed in return, and the amount of any compensation paid in cash, which shall be reviewed by the auditor and submitted to the supervisory authority for approval. For each payment in kind, the custodian bank shall verify the fund management company s compliance with the duty of loyalty as well as the valuation of the transferred assets and the units issued in relation to the date of the transaction. The custodian bank shall immediately inform the auditor of any reservations or objections. Payments in kind are to be identified in the annual report in accordance with the practice of the supervisory authority. ej. Supplement to Section 18 Fees and ancillary costs charged to the investor of the zcapital Swiss Small & Mid Cap Fund (a) For purposes of alignment with the provisions of the zcapital Umbrella Fund Section 18 Fees and ancillary costs charged to the investor, the is adding the following provision, which corresponds to the revised Section 18 (3) of the zcapital Umbrella Fund: When investors switch from one sub-fund to another, they may be charged a conversion fee in favour of the assets of the sub-fund from which the investor is withdrawing of no more than 0.4% of the net asset value. The current maximum rate is stated in the prospectus and in the Key Investor Information Document). The exchange between unit classes within a sub-fund is free of charge. (b) In addition, a further provision is inserted in the zcapital Swiss Small & Mid Cap Fund, which corresponds to Section 18 (6) of the zcapital Umbrella Fund: "Any costs arising in connection with payments in kind are not charged to the fund's assets." a) on the issue and redemption of units; 11

14 Further information ek. Adjustment of Section 19 Fees and ancillary costs charged to the investor of the zcapital Swiss Small & Mid Cap Fund (a) For purposes of alignment with the provisions of the zcapital Umbrella Fund, point 1 of Section 19 Fees and ancillary costs charged to the fund assets of the zcapital Swiss Small & Mid Cap Fund is revised as follows: a) For the management, asset management and distribution of the sub-fund Swiss Small & Mid Cap Fund, the fund management company shall charge the sub-fund a commission, the maximum annual amount of which may be different for each sub-fund and which shall be charged to the sub-fund's assets on a pro rata basis each time the net asset value is calculated and paid monthly in arrears ( management fee ). The management fee for the sub-fund Swiss Small & Mid Cap Fund shall be - no more than 1.60% p.a. for units of the A class. The fund management company shall disclose in the prospectus when it grants reimbursements to investors and/or trailer commissions to distributors. The actual rate of the management fee is stated in the annual and semi-annual reports. b) For the safekeeping of the assets of the sub-fund Swiss Small & Mid Cap Fund, the provision of payment services of the subfund and the other tasks of the custodian bank listed in Section 4, the custodian bank shall charge the sub-fund a commission, the annual maximum amount of which may be different for each sub-fund and which shall be charged to the sub-fund's assets on a pro rata basis each time the net asset value is calculated and paid monthly in arrears ( custodian fee ). The custodian fee for the sub-fund Swiss Small & Mid Cap Fund shall be - no more than 0.10% p.a. for units of the A class. The actual rate of the custodian fee for each sub-fund is stated in the annual and semi-annual reports. For clarification purposes, it should be noted here that the current and effective commissions and their maximum rates are not being changed as part of this conversion. (b) For purposes of alignment with the provisions of the zcapital Umbrella Fund, the following sub-fund-specific wording is added to Section 19 of the, which corresponds to Section 19 (9) of the zcapital Umbrella Fund: Fees may only be charged to a sub-fund if that sub-fund benefits from a specific service. Costs that cannot be clearly allocated to a sub-fund shall be charged to the individual subfunds in proportion to their net assets. el. Adjustment of Section 22 Utilisation of net income of the (a) For the purpose of alignment with the provisions of the zcapital Umbrella Fund, Section 22 (2) of the zcapital Swiss Small & Mid Cap Fund is deleted and replaced by the following provision, which corresponds to Section 22 (2) of the zcapital Umbrella Fund: Up to 30% of the net income of the distributing unit classes of the sub-fund may be carried forward to new account. If the net profit of a financial year, including profit carried forward from earlier financial years, is less than 1% of the net asset value of a sub-fund, no distribution is made and the total net profit shall be carried forward to the sub-fund's new account. (b) In addition, for the purpose of alignment with the provisions of the zcapital Umbrella Fund, the following provision is inserted as a new Section 22 (3) of the zcapital Swiss Small & Mid Cap, which corresponds to Section 22 (3) of the zcapital Umbrella Fund: The net income of the accumulating unit classes is reinvested annually in the corresponding Sub-Fund is added for clarification purposes. This is subject to any taxes and fees levied on the reinvestment. em. Change in Section 26 Maturity of the investment fund and dissolution of the Umbrella Fund, Section 26 (2) of the zcapital Swiss Small & Mid Cap Fund is deleted and replaced by the following provision, which corresponds to Section 25 (2) of the zcapital Umbrella Fund: The fund management company or the custodian bank may dissolve individual sub-funds by terminating the fund contract with one month's notice. 2. Significant issues with regard to the interpretation of legislation and the fund contract None 3. Change of fund management company and custodian bank None 4. Changes in executive officers at the fund management company None 5. Legal disputes None Soft commissions The fund management company has not concluded any agreements in respect of soft commissions. Off-balance-sheet transactions As at the balance sheet date, there were no off-balance-sheet transactions. Securities lending As at the balance sheet date, no securities had been lent. Loans As at the balance sheet date, no loans had been drawn upon. Securities repurchase agreements As at the balance sheet date, no securities repurchase agreements had been entered into. Exercise of membership and creditor rights Membership rights are actively exercised. Voting rights are exercised in accordance with the voting policy of zcapital AG, which was most recently reviewed and approved as fund management company by Vontobel Fonds Services AG on zcapital has summarised the results of the votes for the reporting period at its own responsibility for the fund. This is available at (zcapital Funds, reporting) (as at ). Investors can request information both from zcapital AG and from the fund management company with regard to how voting rights were exercised in individual cases. In addition, a corresponding publication is available at 12

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