Swisscanto (LU) Portfolio Fund

Transcription

1 Swisscanto (LU) Portfolio Fund Investment fund according to Part I of the Luxembourg Act with the legal form of a Fonds Commun de Placement (FCP) Audited annual report Management Company: Swisscanto Asset Management International S.A. Custodian bank: RBC Investor Services Bank S.A. B No subscriptions may be received on the basis of the annual and semi-annual reports. Subscriptions may only be made on the basis of the current sales prospectus enclosed with the most recent annual report and, if appropriate, the most recent semi-annual report.

2 Page 2 Contents Page Administration and Corporate Bodies 4 General Information 6 Activity Reports 8 Statement of Net Assets 29 Income and Expense Statement and other Changes to Net Assets 33 Evolution of Shares in Circulation for the Fiscal Year Running from 1 April 2015 to 31 March Statistics 42 Income 47 Investment portfolio 47 Geographic and economic composition of Investment portfolio 52 Yield 53 Investment portfolio 53 Geographic and economic composition of Investment portfolio 63 Balanced 64 Investment portfolio 64 Geographic and economic composition of Investment portfolio 72 Growth 73 Investment portfolio 73 Geographic and economic composition of Investment portfolio 79 Equity 80 Investment portfolio 80 Geographic and economic composition of Investment portfolio 85 Yield (EUR) 86 Investment portfolio 86 Geographic and economic composition of Investment portfolio 94 Balanced (EUR) 95 Investment portfolio 95 Geographic and economic composition of Investment portfolio 102 Growth (EUR) 103 Investment portfolio 103 Geographic and economic composition of Investment portfolio 108 Green Invest Income 109 Investment portfolio 109 Geographic and economic composition of Investment portfolio 113 Green Invest Income (EUR) 114 Investment portfolio 114 Geographic and economic composition of Investment portfolio 118 Green Invest Yield 119 Investment portfolio 119 Geographic and economic composition of Investment portfolio 126 Green Invest Yield (EUR) 127 Investment portfolio 127 Geographic and economic composition of Investment portfolio 133

3 Page 3 Contents (cont.) Page Green Invest Balanced 134 Investment portfolio 134 Geographic and economic composition of Investment portfolio 141 Green Invest Balanced (EUR) 142 Investment portfolio 142 Geographic and economic composition of Investment portfolio 148 Green Invest Equity 149 Investment portfolio 149 Geographic and economic composition of Investment portfolio 153 Notes on the annual report 154 Report by the Réviseur d'entreprises agréé 172

4 Page 4 Administration and Corporate Bodies Management Company Swisscanto Asset Management International S.A. 19, rue de Bitbourg, L-1273 Luxembourg Management Board Chairman Dr. Gérard Fischer, Switzerland, CEO Swisscanto Holding AG, Bern (until 8 April 2015) Hans Frey, Switzerland, Managing Director Swisscanto Fondsleitung AG, Zurich (from 12 June 2015) Members Hans Frey, Switzerland, Managing Director Swisscanto Fondsleitung AG, Zurich (until 11 June 2015) Richard Goddard, Luxembourg, Independent Company Director, The Directors' Office, Luxembourg Steve P. Cossins, England, Non-Exectuvie Director/ Advisor to the Board of Swisscanto Funds Centre Limited, London Roland Franz, Luxembourg, Managing Director Swisscanto Asset Management International S.A., Luxembourg Thomas Berger, Switzerland, Head of Product Management Funds, Services and Pensions, Zürcher Kantonalbank (By a resolution of the annual general meeting passed on 1 September 2015, Thomas Berger was appointed as a member of the Executive Board. On 19 May 2015, Mr. Thomas Berger was co-opted by the Executive Board of Swisscanto Asset Management International S.A. pursuant to Article 12 of the company's articles of association as a member of the Executive Board until the next annual general meeting of the company.) Management Roland Franz, Luxembourg Michael Weiß, Germany Custodian Bank, Main Payment, Central Administration, Registration and Transfer Offices RBC Investor Services Bank S.A. 14, Porte de France, L-4360 Esch-sur-Alzette, Luxembourg Portfolio Manager Swisscanto Asset Management AG Nordring 4, CH-3000 Bern 25 (until 29 June 2015) Zürcher Kantonalbank Bahnhofstrasse 9, CH-8001 Zurich, Switzerland (from 30 June 2015) Payment and Sales Offices Germany DekaBank Deutsche Girozentrale Mainzer Landstrasse 16, D Frankfurt am Main Liechtenstein Valartis Bank (Liechtenstein) AG Schaaner Strasse 27, FL-9487 Gamprin-Bendern

5 Page 5 Administration and Corporate Bodies (cont.) Luxembourg RBC Investor Services Bank S.A. 14, Porte de France, L-4360 Esch-sur-Alzette, Luxembourg Austria Vorarlberger Landes- und Hypothekenbank Aktiengesellschaft Hypo-Passage 1, A-6900 Bregenz Payment Agent in Switzerland Basler Kantonalbank Spiegelgasse 2, CH-4002 Basel Representative Agent in Switzerland Swisscanto Fondsleitung AG Europaallee 39, CH-8004 Zurich Central Order Collection Point Swisscanto Funds Centre Limited 4th Floor, 51 Moorgate, GB-London EC2R 6BH Cabinet de révision agréé (Auditor) KPMG Luxembourg, Société coopérative 39, Avenue John F. Kennedy, L-1855 Luxembourg Legal Advisor Arendt & Medernach S.A. 41A, Avenue John F. Kennedy, L-2082 Luxembourg Hengeler Mueller Partnership of Attorneys Bockenheimer Landstrasse 24, D Frankfurt/Main

6 Page 6 General Information The Executive Board of Swisscanto Asset Management International S.A., the fund management company according to the provisions of Chapter 15 of the Law of 17 December 2010 on Undertakings for Collective Investment, has decided to make the following changes in accordance with Article 8 of the fund management company's articles of association and Article 2 of the fund regulations: 1. New ownership structure On 25 March 2015, the Swisscanto Group was acquired by Zürcher Kantonalbank, Zurich. Zürcher Kantonalbank was founded in 1870 as an independent institution under public cantonal law, and is a bank, securities dealer and asset manager approved by the Swiss Financial Market Supervisory Authority (FINMA). Zürcher Kantonalbank has many years' experience of asset management and the management of collective investment schemes. 2. Management The new ownership structure has led to the following changes in the administration of the management company, which have been implemented in the legal documents accordingly: The composition of the Executive Board of Swisscanto Asset Management International S.A. has changed. The head office of Swisscanto Holding AG, which holds the capital paid in by the management company Swisscanto Asset Management International S.A., has been moved from Bern to Zurich. In addition, since 25 March 2015, Swisscanto Holding AG is wholly owned by Zürcher Kantonalbank. Swisscanto Asset Management AG is the fund's representative in Switzerland. With effect from 30 June 2015 it is renamed Swisscanto Fondsleitung AG, with head office in Zurich. 3. Management of the fund As a result of the new ownership structure, on 30 June 2015 the portfolio management of the umbrella fund and subfunds, which up to that point was the responsibility of Swisscanto Asset Management AG, Bern, was transferred to Zürcher Kantonalbank, Zurich. 4. New names The names of the companies of the Swisscanto Group, the umbrella funds and the subfunds, are no longer written only in upper case, but are now written in both upper and lower case. Changes have been made to the names of the following umbrella funds and subfunds, in addition to the change to upper and lower case writing, as of 30 June 2015: Old name of umbrella fund SWISSCANTO (LU) PORTFOLIO FUND New name of umbrella fund Investment fund under Luxembourg Umbrella Construction Law is subject to the legal provisions set forth in the first part of the Luxembourg law regarding undertakings for collective investment dated 17 December The contractual conditions of the investment fund were set forth by the management company on 14 November Several amendments followed and, in accordance with the terms of the contract, were published in the "Mémorial".

7 General Information (cont.) Page 7 The current versions of the management company's articles of association and the contract terms of the fund have been deposited at the Kanzlei des Bezirksgerichts (Chancellery of the Circuit Court) Luxembourg, where they can be viewed. The fund regulations, the detailed sales prospectus, key investor information and the annual and semi-annual reports can be obtained in paper form free of charge direct from Swisscanto Fondsleitung AG at the management company's head office, the custodian bank and its representative in Switzerland, from the German payment and information office, and from any branch of the cantonal banks and any payment and sales office. The information is also available on the Swisscanto website ( where additional current information on the fund is also available. No investments may be received based on the annual and semi-annual reports. Subscriptions shall only be made after consulting the current sales prospectus and the most recent annual report, as well as, where available, any subsequent semi-annual report. Sales restrictions Shares in may not be offered, sold or delivered within the US. Guidelines of the Swiss Funds and Asset Management Association (SFAMA) on Duties Regarding the Charging and Use of Fees andcosts (22 May 2014) Compensation for the marketing of the investment fund is paid out of the flat-rate administrative commission. Swisscanto Asset Management International S.A. also pays remuneration to institutional investors holding fund units for third parties from the flat-rate administrative commission. Risk management process The management company sets forth a risk management procedure for the fund and each subfund in line with the Law of 17 December 2010 and other applicable provisions, in particular CSSF Circular 11/512. As part of the risk management procedure, the overall risk of all sub-funds is measured and monitored using the commitment approach.

8 Activity Reports Page 8 Income Income Market overview The reporting period began once again with turbulence surrounding Greece, leading to a deterioration of sentiment. Whereas in July and the first half of August, markets were boosted by largely positive company results, they were severely dampened from August onwards by emerging concerns about developments in China. The final months of 2015 were wholly dominated by speculation over what the central banks would do next. While the European Central Bank, with the small steps eventually announced, could not live up to the high expectations of financial market participants, the US Federal Reserve showed better instinct. Its first rate hike in mid-december, after a zero interest rate policy lasting seven years, was well received by the markets. At the start of 2016, however, emerging fears of a global recession accompanied by massive depreciation of China's currency led once more to major uncertainty and a sell-off of higher-risk asset classes. Decreasing capital flows from China and positive economic data from the US, supported by the current monetary policy of central banks, provided some relief towards the end of the reporting period. The European Central Bank decided on further measures to support the economic recovery; for its part, the Fed left interest rates unchanged in March and surprised markets by significantly lowering its own forecasts of interest rate increases in the current year and over the next two years. The global economy was generally robust over the period as a whole, even if growth tended slightly weaker. Oil prices continued to fall significantly. Review of categories relevant to the fund Government bond yields had a mixed performance. While interest rates in CHF and EUR were lower overall at the end of the reporting period, US dollar interest rates rose slightly at the short end. Longer-term interest rates also bounced back slightly. Compared to the reference indices (customised benchmark), foreign currency papers denominated in CHF and also hedged against CHF delivered positive returns. Among the currencies, EUR rose by 4.6% against CHF, while USD declined by 1.4%. Performance overview The fund declined marginally in value during the period under review. On the bonds side, the temporarily shorter duration impacted negatively, while the debtor selection made a positive contribution. The position in catastrophe bonds had a net positive effect on the overall result. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class R : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class R : Sub-fund performance 1 April March 2016: Class A : (0.22%) Class B : (0.22%) Sub-fund performance 1 October March 2016: Class R : 1.64% The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

9 Activity Reports Page 9 Yield Yield Market overview The reporting period began once again with turbulence surrounding Greece, leading to a deterioration of sentiment. Whereas in July and the first half of August, markets were boosted by largely positive company results, they were severely dampened from August onwards by emerging concerns about developments in China. The final months of 2015 were wholly dominated by speculation over what the central banks would do next. While the European Central Bank, with the small steps eventually announced, could not live up to the high expectations of financial market participants, the US Federal Reserve showed better instinct. Its first rate hike in mid-december, after a zero interest rate policy lasting seven years, was well received by the markets. At the start of 2016, however, emerging fears of a global recession accompanied by massive depreciation of China's currency led once more to major uncertainty and a sell-off of higher-risk asset classes. Decreasing capital flows from China and positive economic data from the US, supported by the current monetary policy of central banks, provided some relief towards the end of the reporting period. The European Central Bank decided on further measures to support the economic recovery; for its part, the Fed left interest rates unchanged in March and surprised markets by significantly lowering its own forecasts of interest rate increases in the current year and over the next two years. The global economy was generally robust over the period as a whole, even if growth tended slightly weaker. Oil prices continued to fall significantly. Review of categories relevant to the fund Government bond yields had a mixed performance. While interest rates in CHF and EUR were lower overall at the end of the reporting period, US dollar interest rates rose slightly at the short end. Longer-term interest rates also bounced back slightly. Compared to the reference indices (customised benchmark), foreign currency papers denominated in CHF and also hedged against CHF delivered positive returns. Equities performed negatively. The Swiss Performance Index lost nearly 9%, while international equities as measured by the MSCI World ex CH in EUR declined by 4.6%. Emerging market equities did worst of all, falling by around 13% in CHF. Performance overview The fund declined in value during the period under review. The overweight of equities compared with bonds did not pay off. On the bonds side, the temporarily shorter duration impacted negatively, while the debtor selection made a positive contribution. In the case of equities, the fund lagged slightly behind the benchmark indices (customised benchmark); in particular, the selection of international equities had a negative impact. The position in catastrophe bonds had a net positive effect on the overall result. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class R : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class R : Sub-fund performance 1 April March 2016: Class A : (3.14%) Class B : (3.14%) The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

10 Activity Reports (cont.) Page 10 Yield Sub-fund performance 12 May March 2016: Class R : (1.50%) The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

11 Activity Reports Page 11 Balanced Balanced Market overview The reporting period began once again with turbulence surrounding Greece, leading to a deterioration of sentiment. Whereas in July and the first half of August, markets were boosted by largely positive company results, they were severely dampened from August onwards by emerging concerns about developments in China. The final months of 2015 were wholly dominated by speculation over what the central banks would do next. While the European Central Bank, with the small steps eventually announced, could not live up to the high expectations of financial market participants, the US Federal Reserve showed better instinct. Its first rate hike in mid-december, after a zero interest rate policy lasting seven years, was well received by the markets. At the start of 2016, however, emerging fears of a global recession accompanied by massive depreciation of China's currency led once more to major uncertainty and a sell-off of higher-risk asset classes. Decreasing capital flows from China and positive economic data from the US, supported by the current monetary policy of central banks, provided some relief towards the end of the reporting period. The European Central Bank decided on further measures to support the economic recovery; for its part, the Fed left interest rates unchanged in March and surprised markets by significantly lowering its own forecasts of interest rate increases in the current year and over the next two years. The global economy was generally robust over the period as a whole, even if growth tended slightly weaker. Oil prices continued to fall significantly. Review of categories relevant to the fund Government bond yields had a mixed performance. While interest rates in CHF and EUR were lower overall at the end of the reporting period, US dollar interest rates rose slightly at the short end. Longer-term interest rates also bounced back slightly. Compared to the reference indices (customised benchmark), foreign currency papers denominated in CHF and also hedged against CHF delivered positive returns. Equities performed negatively. The Swiss Performance Index lost nearly 9%, while international equities as measured by the MSCI World ex CH in EUR declined by 4.6%. Emerging market equities did worst of all, falling by around 13% in CHF. Performance overview The fund declined in value during the period under review. The overweight of equities compared with bonds did not pay off. On the bonds side, the temporarily shorter duration impacted negatively, while the debtor selection made a positive contribution. In the case of equities, the fund lagged slightly behind the benchmark indices (customised benchmark); in particular, the selection of international equities had a negative impact. The position in catastrophe bonds had a net positive effect on the overall result. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class R : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class R : Sub-fund performance 1 April March 2016: Class A : (4.78%) Class B : (4.79%) Class R : (4.31%) The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

12 Page 12 Growth Activity Reports Growth Market overview The reporting period began once again with turbulence surrounding Greece, leading to a deterioration of sentiment. Whereas in July and the first half of August, markets were boosted by largely positive company results, they were severely dampened from August onwards by emerging concerns about developments in China. The final months of 2015 were wholly dominated by speculation over what the central banks would do next. While the European Central Bank, with the small steps eventually announced, could not live up to the high expectations of financial market participants, the US Federal Reserve showed better instinct. Its first rate hike in mid-december, after a zero interest rate policy lasting seven years, was well received by the markets. At the start of 2016, however, emerging fears of a global recession accompanied by massive depreciation of China's currency led once more to major uncertainty and a sell-off of higher-risk asset classes. Decreasing capital flows from China and positive economic data from the US, supported by the current monetary policy of central banks, provided some relief towards the end of the reporting period. The European Central Bank decided on further measures to support the economic recovery; for its part, the Fed left interest rates unchanged in March and surprised markets by significantly lowering its own forecasts of interest rate increases in the current year and over the next two years. The global economy was generally robust over the period as a whole, even if growth tended slightly weaker. Oil prices continued to fall significantly. Review of categories relevant to the fund Government bond yields had a mixed performance. While interest rates in CHF and EUR were lower overall at the end of the reporting period, US dollar interest rates rose slightly at the short end. Longer-term interest rates also bounced back slightly. Compared to the reference indices (customised benchmark), foreign currency papers denominated in CHF and also hedged against CHF delivered positive returns. Equities performed negatively. The Swiss Performance Index lost nearly 9%, while international equities as measured by the MSCI World ex CH in EUR declined by 4.6%. Emerging market equities did worst of all, falling by around 13% in CHF. Performance overview The fund declined in value during the period under review. The overweight of equities compared with bonds did not pay off. On the bonds side, the temporarily shorter duration impacted negatively, while the debtor selection made a positive contribution. In the case of equities, the fund lagged slightly behind the benchmark indices (customised benchmark); in particular, the selection of international equities had a negative impact. The position in catastrophe bonds had a net positive effect on the overall result. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class R : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class R : Sub-fund performance 1 April March 2016: Class A : (6.27%) Class B : (6.27%) The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

13 Page 13 Growth Activity Reports (cont.) Sub-fund performance 19 May March 2016: Class R : (6.46%) The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

14 Page 14 Equity Activity Reports Equity Market overview During the past year, markets were moved mainly by geopolitical events and various forms of economic turmoil. No sooner had the Greek crisis and the Ukraine conflict subsided, than potential interest rate hikes in the US and relatively weak economic growth in China came to the fore. OPEC's inability to compromise and the associated drop in oil prices added to the uncertainty. In the EU, political and economic contradictions became increasingly apparent among member states. Important questions about how or when member countries will repay their accumulated debts, what is the right interest rate policy for the EU, or what Brexit will mean, rarely found a consensus. All these events triggered uncertainty and caution among investors, creating high market volatility for a time. Over the year as a whole, investors wavered between promising investments on the one hand, and a flight to low-risk, lowreturn investments on the other. Although we still consider equities relatively attractive as an asset class, the MSCI World Index ended the period lower. The index declined by single-digit percentage points in euro terms. This was despite the fact that companies presented surprisingly robust quarterly and annual financial statements, while at the same time the market saw plenty of M&A activity. Review of categories relevant to the fund The regions represented in the fund achieved a similar performance to the previous year. Above all Europe and Asia lost ground; only the North American equity market showed some resilience. At sector level, consumer goods and the telecom sector performed particularly well. Energy, commodities, financials and the pharmaceutical sector, on the other hand, declined in value Performance overview The fund lagged slightly behind the benchmark index (customized benchmark) in the year under review. Our small overweight in the North American market contributed positively to the fund's overall performance. On the other hand, our overweight in pharmaceuticals and the underweight in the telecom sector had a negative impact. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class P : LU ISIN no.: Class R : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class P : Securities no.: Class R : Sub-fund performance 1 April March 2016: Class A : (9.97%) Class B : (9.97%) Class P*: (9.27%) Class R : (9.43%) * The performance of the institutional unit classes is calculated using the net asset value assessment (unswung net asset value). By contrast the remaining classes are calculated using the modified net asset value (swung net asset value). The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

15 Activity Reports Page 15 Yield (EUR) Yield (EUR) Market overview The reporting period began once again with turbulence surrounding Greece, leading to a deterioration of sentiment. Whereas in July and the first half of August, markets were boosted by largely positive company results, they were severely dampened from August onwards by emerging concerns about developments in China. The final months of 2015 were wholly dominated by speculation over what the central banks would do next. While the European Central Bank, with the small steps eventually announced, could not live up to the high expectations of financial market participants, the US Federal Reserve showed better instinct. Its first rate hike in mid-december, after a zero interest rate policy lasting seven years, was well received by the markets. At the start of 2016, however, emerging fears of a global recession accompanied by massive depreciation of China's currency led once more to major uncertainty and a sell-off of higher-risk asset classes. Decreasing capital flows from China and positive economic data from the US, supported by the current monetary policy of central banks, provided some relief towards the end of the reporting period. The European Central Bank decided on further measures to support the economic recovery; for its part, the Fed left interest rates unchanged in March and surprised markets by significantly lowering its own forecasts of interest rate increases in the current year and over the next two years. The global economy was generally robust over the period as a whole, even if growth tended slightly weaker. Oil prices continued to fall significantly. Review of categories relevant to the fund Government bond yields had a mixed performance. While interest rates in CHF and EUR were lower overall at the end of the reporting period, US dollar interest rates rose slightly at the short end. Longer-term interest rates also bounced back slightly. Compared to the reference indices (customised benchmark), foreign currency papers denominated in EUR and also hedged against EUR delivered positive returns. Equities performed negatively. The MSCI EMU Index lost over 13%, while international equities as measured by the MSCI World ex EMU in EUR declined by 8.4%. Emerging market equities did worst of all, falling by around 17% in EUR. Performance overview The fund declined in value during the period under review. The overweight of equities compared with bonds did not pay off. On the bonds side, the temporarily shorter duration impacted negatively, while the debtor selection made a positive contribution. In the case of equities, the fund lagged slightly behind the benchmark indices (customised benchmark); in particular, the selection of international equities had a negative impact. The position in catastrophe bonds had a net positive effect on the overall result. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class R : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class R : Sub-fund performance 1 April March 2016: Class A : (4.12%) Class B : (4.12%) Sub-fund performance 20 May March 2016: Class R : (2.76%) The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

16 Activity Reports Page 16 Balanced (EUR) Balanced (EUR) Market overview The reporting period began once again with turbulence surrounding Greece, leading to a deterioration of sentiment. Whereas in July and the first half of August, markets were boosted by largely positive company results, they were severely dampened from August onwards by emerging concerns about developments in China. The final months of 2015 were wholly dominated by speculation over what the central banks would do next. While the European Central Bank, with the small steps eventually announced, could not live up to the high expectations of financial market participants, the US Federal Reserve showed better instinct. Its first rate hike in mid-december, after a zero interest rate policy lasting seven years, was well received by the markets. At the start of 2016, however, emerging fears of a global recession accompanied by massive depreciation of China's currency led once more to major uncertainty and a sell-off of higher-risk asset classes. Decreasing capital flows from China and positive economic data from the US, supported by the current monetary policy of central banks, provided some relief towards the end of the reporting period. The European Central Bank decided on further measures to support the economic recovery; for its part, the Fed left interest rates unchanged in March and surprised markets by significantly lowering its own forecasts of interest rate increases in the current year and over the next two years. The global economy was generally robust over the period as a whole, even if growth tended slightly weaker. Oil prices continued to fall significantly. Review of categories relevant to the fund Government bond yields had a mixed performance. While interest rates in CHF and EUR were lower overall at the end of the reporting period, US dollar interest rates rose slightly at the short end. Longer-term interest rates also bounced back slightly. Compared to the reference indices (customised benchmark), foreign currency papers denominated in EUR and also hedged against EUR delivered positive returns. Equities performed negatively. The MSCI EMU Index lost over 13%, while international equities as measured by the MSCI World ex EMU in EUR declined by 8.4%. Emerging market equities did worst of all, falling by around 17% in EUR. Performance overview The fund declined in value during the period under review. The overweight of equities compared with bonds did not pay off. On the bonds side, the temporarily shorter duration impacted negatively, while the debtor selection made a positive contribution. In the case of equities, the fund lagged slightly behind the benchmark indices (customised benchmark); in particular, the selection of international equities had a negative impact. The position in catastrophe bonds had a net positive effect on the overall result. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class R : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class R : Sub-fund performance 1 April March 2016: Class A : (6.31%) Class B : (6.30%) Sub-fund performance 9 September March 2016: Class R : 0.36% The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

17 Activity Reports Page 17 Growth (EUR) Growth (EUR) Market overview The reporting period began once again with turbulence surrounding Greece, leading to a deterioration of sentiment. Whereas in July and the first half of August, markets were boosted by largely positive company results, they were severely dampened from August onwards by emerging concerns about developments in China. The final months of 2015 were wholly dominated by speculation over what the central banks would do next. While the European Central Bank, with the small steps eventually announced, could not live up to the high expectations of financial market participants, the US Federal Reserve showed better instinct. Its first rate hike in mid-december, after a zero interest rate policy lasting seven years, was well received by the markets. At the start of 2016, however, emerging fears of a global recession accompanied by massive depreciation of China's currency led once more to major uncertainty and a sell-off of higher-risk asset classes. Decreasing capital flows from China and positive economic data from the US, supported by the current monetary policy of central banks, provided some relief towards the end of the reporting period. The European Central Bank decided on further measures to support the economic recovery; for its part, the Fed left interest rates unchanged in March and surprised markets by significantly lowering its own forecasts of interest rate increases in the current year and over the next two years. The global economy was generally robust over the period as a whole, even if growth tended slightly weaker. Oil prices continued to fall significantly. Review of categories relevant to the fund Government bond yields had a mixed performance. While interest rates in CHF and EUR were lower overall at the end of the reporting period, US dollar interest rates rose slightly at the short end. Longer-term interest rates also bounced back slightly. Compared to the reference indices (customised benchmark), foreign currency papers denominated in EUR and also hedged against EUR delivered positive returns. Equities performed negatively. The MSCI EMU Index lost over 13%, while international equities as measured by the MSCI World ex EMU in EUR declined by 8.4%. Emerging market equities did worst of all, falling by around 17% in EUR. Performance overview The fund declined in value during the period under review. The overweight of equities compared with bonds did not pay off. On the bonds side, the temporarily shorter duration impacted negatively, while the debtor selection made a positive contribution. In the case of equities, the fund lagged slightly behind the benchmark indices (customised benchmark); in particular, the selection of international equities had a negative impact. The position in catastrophe bonds had a net positive effect on the overall result. ISIN no.: Class A : LU ISIN no.: Class B : LU Securities no.: Class A : Securities no.: Class B : Sub-fund performance 1 April March 2016: Class A : (8.68%) Class B : (8.68%) The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

18 Activity Reports Page 18 Green Invest Income Green Invest Income Market overview The reporting period began once again with turbulence surrounding Greece, leading to a deterioration of sentiment. Whereas in July and the first half of August, markets were boosted by largely positive company results, they were severely dampened from August onwards by emerging concerns about developments in China. The final months of 2015 were wholly dominated by speculation over what the central banks would do next. While the European Central Bank, with the small steps eventually announced, could not live up to the high expectations of financial market participants, the US Federal Reserve showed better instinct. Its first rate hike in mid-december, after a zero interest rate policy lasting seven years, was well received by the markets. At the start of 2016, however, emerging fears of a global recession accompanied by massive depreciation of China's currency led once more to major uncertainty and a sell-off of higher-risk asset classes. Decreasing capital flows from China and positive economic data from the US, supported by the current monetary policy of central banks, provided some relief towards the end of the reporting period. The European Central Bank decided on further measures to support the economic recovery; for its part, the Fed left interest rates unchanged in March and surprised markets by significantly lowering its own forecasts of interest rate increases in the current year and over the next two years. The global economy was generally robust over the period as a whole, even if growth tended slightly weaker. Oil prices continued to fall significantly. Review of categories relevant to the fund Government bond yields had a mixed performance. While interest rates in CHF and EUR were lower overall at the end of the reporting period, US dollar interest rates rose slightly at the short end. Longer-term interest rates also bounced back slightly. Compared to the reference indices (customised benchmark), foreign currency papers denominated in CHF and also hedged against CHF delivered positive returns. Among the currencies, EUR rose by 4.6% against CHF, while USD declined by 1.4%. Performance overview The fund gained value in the period under review. On the bonds side, the temporarily shorter duration impacted negatively, while the debtor selection made a positive contribution. The generally conservative orientation of the portfolio had a positive impact in the period under review. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class P : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class P : Sub-fund performance 1 April March 2016: Class A : 0.63% Class B : 0.62% Class P*: 1.10% * The performance of the institutional unit classes is calculated using the net asset value assessment (unswung net asset value). By contrast the remaining classes are calculated using the modified net asset value (swung net asset value). The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

19 Activity Reports Page 19 Green Invest Income (EUR) Green Invest Income (EUR) Market overview The reporting period began once again with turbulence surrounding Greece, leading to a deterioration of sentiment. Whereas in July and the first half of August, markets were boosted by largely positive company results, they were severely dampened from August onwards by emerging concerns about developments in China. The final months of 2015 were wholly dominated by speculation over what the central banks would do next. While the European Central Bank, with the small steps eventually announced, could not live up to the high expectations of financial market participants, the US Federal Reserve showed better instinct. Its first rate hike in mid-december, after a zero interest rate policy lasting seven years, was well received by the markets. At the start of 2016, however, emerging fears of a global recession accompanied by massive depreciation of China's currency led once more to major uncertainty and a sell-off of higher-risk asset classes. Decreasing capital flows from China and positive economic data from the US, supported by the current monetary policy of central banks, provided some relief towards the end of the reporting period. The European Central Bank decided on further measures to support the economic recovery; for its part, the Fed left interest rates unchanged in March and surprised markets by significantly lowering its own forecasts of interest rate increases in the current year and over the next two years. The global economy was generally robust over the period as a whole, even if growth tended slightly weaker. Oil prices continued to fall significantly. Review of categories relevant to the fund Government bond yields had a mixed performance. While interest rates in CHF and EUR were lower overall at the end of the reporting period, US dollar interest rates rose slightly at the short end. Longer-term interest rates also bounced back slightly. Compared to the reference indices (customised benchmark), foreign currency papers denominated in EUR and also hedged against EUR delivered positive returns. Among the currencies, USD lost around 6% against EUR. Performance overview The fund declined marginally in value during the period under review. On the bonds side, the temporarily shorter duration impacted negatively, while the debtor selection made a positive contribution. The generally conservative orientation of the portfolio also had a positive impact in the period under review. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class I : LU ISIN no.: Class P : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class I : Securities no.: Class P : Sub-fund performance 1 April March 2016: Class A : (0.11%) Class B : (0.11%) Class I*: 0.75% Class P*: 0.90% * The performance of the institutional unit classes is calculated using the net asset value assessment (unswung net asset value). By contrast the remaining classes are calculated using the modified net asset value (swung net asset value). The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

20 Activity Reports Page 20 Green Invest Yield Green Invest Yield Market overview The reporting period began once again with turbulence surrounding Greece, leading to a deterioration of sentiment. Whereas in July and the first half of August, markets were boosted by largely positive company results, they were severely dampened from August onwards by emerging concerns about developments in China. The final months of 2015 were wholly dominated by speculation over what the central banks would do next. While the European Central Bank, with the small steps eventually announced, could not live up to the high expectations of financial market participants, the US Federal Reserve showed better instinct. Its first rate hike in mid-december, after a zero interest rate policy lasting seven years, was well received by the markets. At the start of 2016, however, emerging fears of a global recession accompanied by massive depreciation of China's currency led once more to major uncertainty and a sell-off of higher-risk asset classes. Decreasing capital flows from China and positive economic data from the US, supported by the current monetary policy of central banks, provided some relief towards the end of the reporting period. The European Central Bank decided on further measures to support the economic recovery; for its part, the Fed left interest rates unchanged in March and surprised markets by significantly lowering its own forecasts of interest rate increases in the current year and over the next two years. The global economy was generally robust over the period as a whole, even if growth tended slightly weaker. Oil prices continued to fall significantly. Review of categories relevant to the fund Government bond yields had a mixed performance. While interest rates in CHF and EUR were lower overall at the end of the reporting period, US dollar interest rates rose slightly at the short end. Longer-term interest rates also bounced back slightly. Compared to the reference indices (customised benchmark), foreign currency papers denominated in CHF and also hedged against CHF delivered positive returns. From the perspective of investors accounting in CHF, the MSCI World index lost around 5% in the period under review. North American equity markets performed significantly better than European and Asian equity markets. Performance overview The fund declined in value during the period under review. The overweight of equities compared with bonds did not pay off. On the bonds side, the temporarily shorter duration impacted negatively, while the debtor selection made a positive contribution. In the case of equities, the fund lagged slightly behind the benchmark index (customised benchmark); in particular, the overweight in European as opposed to American equities had a negative impact. At stock level, Gamesa, Home Depot and American Water Works contributed positively to the return, while Canadian Solar, Borg Warner and Micron Technology had a negative impact on performance. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class R : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class R : Sub-fund performance 1 April March 2016: Class A : (2.47%) The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

21 Activity Reports (cont.) Page 21 Green Invest Yield Class B : (2.47%) Sub-fund performance 17 November March 2016: Class R : (0.61%) The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

22 Activity Reports Page 22 Green Invest Yield (EUR) Green Invest Yield (EUR) Market overview The reporting period began once again with turbulence surrounding Greece, leading to a deterioration of sentiment. Whereas in July and the first half of August, markets were boosted by largely positive company results, they were severely dampened from August onwards by emerging concerns about developments in China. The final months of 2015 were wholly dominated by speculation over what the central banks would do next. While the European Central Bank, with the small steps eventually announced, could not live up to the high expectations of financial market participants, the US Federal Reserve showed better instinct. Its first rate hike in mid-december, after a zero interest rate policy lasting seven years, was well received by the markets. At the start of 2016, however, emerging fears of a global recession accompanied by massive depreciation of China's currency led once more to major uncertainty and a sell-off of higher-risk asset classes. Decreasing capital flows from China and positive economic data from the US, supported by the current monetary policy of central banks, provided some relief towards the end of the reporting period. The European Central Bank decided on further measures to support the economic recovery; for its part, the Fed left interest rates unchanged in March and surprised markets by significantly lowering its own forecasts of interest rate increases in the current year and over the next two years. The global economy was generally robust over the period as a whole, even if growth tended slightly weaker. Oil prices continued to fall significantly. Review of categories relevant to the fund Government bond yields had a mixed performance. While interest rates in CHF and EUR were lower overall at the end of the reporting period, US dollar interest rates rose slightly at the short end. Longer-term interest rates also bounced back slightly. Compared to the reference indices (customised benchmark), foreign currency papers denominated in EUR and also hedged against EUR delivered positive returns. Equities performed negatively. From the perspective of investors accounting in EUR, the MSCI World index lost around 9% in the period under review. North American equity markets performed significantly better than European and Asian equity markets. Performance overview The fund declined in value during the period under review. The overweight of equities compared with bonds did not pay off. On the bonds side, the temporarily shorter duration impacted negatively, while the debtor selection made a positive contribution. In the case of equities, the fund lagged slightly behind the benchmark index (customised benchmark); in particular, the overweight in European as opposed to American equities had a negative impact. At stock level, Gamesa, Home Depot and American Water Works contributed positively to the return, while Canadian Solar, Borg Warner and Micron Technology had a negative impact on performance. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class I : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class I : Sub-fund performance 1 April March 2016: Class A : (3.38%) The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.