Multicooperation SICAV Société d'investissement à Capital Variable

Transcription

1 Multicooperation SICAV Société d'investissement à Capital Variable Annual Report as at 30 June 2017 (audited) Subscriptions are carried out solely on the basis of the current prospectus or the key investor information, in conjunction with the latest annual report and the latest semiannual report if published thereafter. The articles of association, the valid prospectus and the key investor information, the annual and semi-annual reports, as well as the information based on the SFAMA guidelines on transparency with regard to management fees, may be obtained free of charge from the representative in Switzerland and/or from the respective paying agent. In case of differences between the German version and the translation, the German version shall be the authentic text. AN INVESTMENT FUND DOMICILED IN LUXEMBOURG Representative in Switzerland: GAM Investment Management (Switzerland) AG, Hardstraße 201, P.O. Box, CH Zurich Paying Agent in Switzerland: State Street Bank International GmbH, Munich, Zurich branch, Beethovenstraße 19, CH Zurich Paying Agent in Germany: DekaBank Deutsche Girozentrale, Mainzer Landstraße 16, D Frankfurt / Main Information Agent in Germany: GAM (Deutschland) GmbH, Taunusanlage 15, D Frankfurt / Main Paying Agent in Austria: Erste Bank der oesterreichischen Sparkassen AG, Am Belvedere 1, A Vienna Trade and Companies Register number: R.C.S. Luxembourg B44963

2 Contents Page Organisation and Management 4 Auditor s report 6 Report of the Board of Directors 10 Notes to the Annual Report 11 Multicooperation SICAV (umbrella fund) 24 Multicooperation SICAV - ADAGIO (LUX) - KONSERVATIV 26 Multicooperation SICAV - ALLEGRO (LUX) - DYNAMISCH 33 Multicooperation SICAV - ASSET ALLOCATION FUND DEFENDER* 42 Multicooperation SICAV - ASSET ALLOCATION FUND DYNAMIC* 44 Multicooperation SICAV - GAM COMMODITY* 46 Multicooperation SICAV - GAM MULTI ASSET STRATEGIC ALLOCATION* 54 Multicooperation SICAV - JULIUS BAER EQUITY FUND SPECIAL VALUE 63 Multicooperation SICAV - JULIUS BAER EQUITY GLOBAL EXCELLENCE EMERGING MARKETS 71 Multicooperation SICAV - JULIUS BAER EQUITY GLOBAL EXCELLENCE EUROPE 78 Multicooperation SICAV - JULIUS BAER EQUITY GLOBAL EXCELLENCE NORTH AMERICA 86 Multicooperation SICAV - JULIUS BAER FIXED INCOME EMERGING MARKETS HARD CURRENCY 98 Multicooperation SICAV - JULIUS BAER FIXED INCOME GLOBAL HIGH INVESTMENT GRADE 101 Multicooperation SICAV - JULIUS BAER FIXED INCOME GLOBAL HIGH YIELD 110 Multicooperation SICAV - JULIUS BAER FIXED INCOME GLOBAL LOW INVESTMENT GRADE 119 Multicooperation SICAV - JULIUS BAER GLOBAL EXCELLENCE EQUITY 127 Multicooperation SICAV - JULIUS BAER GLOBAL EXCELLENCE FIXED INCOME (CHF) 134 Multicooperation SICAV - JULIUS BAER GLOBAL EXCELLENCE FIXED INCOME (EUR) 141 Multicooperation SICAV - JULIUS BAER STRATEGY BALANCED (CHF) 146 Multicooperation SICAV - JULIUS BAER STRATEGY BALANCED (EUR) 154 Multicooperation SICAV - JULIUS BAER STRATEGY BALANCED (USD) 161 Multicooperation SICAV - JULIUS BAER STRATEGY GROWTH (CHF) 168 Multicooperation SICAV - JULIUS BAER STRATEGY GROWTH (EUR) 175 Multicooperation SICAV - JULIUS BAER STRATEGY INCOME (CHF) 182 Multicooperation SICAV - JULIUS BAER STRATEGY INCOME (EUR) 189

3 Contents Multicooperation SICAV - JULIUS BAER STRATEGY INCOME (USD) 196 Multicooperation SICAV - SWISS & GLOBAL AM DEUTSCHE AKTIEN* 203 Multicooperation SICAV - VIVACE (LUX) - AUSGEWOGEN 205 Appendix I - Launches, liquidation, mergers and name changes of sub-funds and/or share classes 213 Appendix II Securities financing transactions (unaudited) 214 Appendix III Additional information for shareholders in Switzerland (unaudited) 226 Appendix IV Information on risk management (unaudited) 234 Addresses 236 *See Appendix I.

4 Organisation and Management The registered office of the Company is: Elmar Zumbühl (since 21 October 2016) 25, Grand-Rue Group Chief Risk Officer L Luxembourg GAM Holding AG Zurich, Switzerland Board of Directors of the Company Managing Directors of the Management Company Chairman: Martin Jufer Ewald Hamlescher (until 17 March 2017) Member of the Group Management Board, GAM Group Managing Director Region Head Continental Europe GAM (Luxembourg) S.A. GAM Investment Management (Switzerland) AG Luxembourg, Grand Duchy of Luxembourg Zurich, Switzerland Steve Kieffer Members: Managing Director Me Freddy Brausch GAM (Luxembourg) S.A. Partner Luxembourg, Grand Duchy of Luxembourg Linklaters LLP Luxembourg, Grand Duchy of Luxembourg Nils Kruse (since 17 March 2017) Managing Director Andrew Hanges GAM (Luxembourg) S.A. Region Head UK Luxembourg, Grand Duchy of Luxembourg GAM (UK) Ltd. London, United Kingdom Investment Manager Jean-Michel Loehr For the sub-funds Independent Director GAM COMMODITY * Frisange, Grand Duchy of Luxembourg SWISS & GLOBAL AM DEUTSCHE AKTIEN*, ASSET ALLOCATION FUND DEFENDER* and Dirk Spiegel ASSET ALLOCATION FUND DYNAMIC*: Group General Counsel GAM Investment Management (Switzerland) AG GAM Investment Management (Switzerland) AG Hardstraße 201 Zurich, Switzerland P.O. Box CH Zurich Management Company and Domiciliary Agent For the sub-funds GAM (Luxembourg) S.A. ADAGIO (LUX) - KONSERVATIV, 25, Grand-Rue VIVACE (LUX) - AUSGEWOGEN and L Luxembourg ALLEGRO (LUX) - DYNAMISCH Valiant Bank AG Board of Directors of the Management Company Bundesplatz 4 P.O. Box Chairman: CH Bern Martin Jufer Member of the Group Management Board, GAM Group For the Region Head Continental Europe GAM MULTI ASSET STRATEGIC ALLOCATION* GAM Investment Management (Switzerland) AG GAM (Italia) S.G.R. S.p.A. Zurich, Switzerland Via Duccio di Boninsegna 10 I Milan Members: Andrew Hanges For the other sub-funds Region Head UK Bank Julius Bär & Co. AG GAM (UK) Ltd. Bahnhofstraße 36 London, United Kingdom P.O. Box CH Zurich Yvon Lauret Independent Director The investment managers may hire investment advisers Luxembourg, Grand Duchy of Luxembourg to assist them in managing individual sub-funds. William Norris (since 21 October 2016) Head of Operations and IT GAM (UK) Ltd. London, United Kingdom *See Appendix I. 4

5 Organisation and Management Custodian, Central Administrator Principal Paying Agent, Registrar and Transfer Agent State Street Bank Luxembourg S.C.A. 49, Avenue J.F. Kennedy L Luxembourg Distributors The Company and/or the Management Company has appointed and may appoint further distributors authorised to sell the shares in one or more jurisdictions. Auditor Spain: ATL12 Capital Inversiones A.V., S.A. C./ Montalbán, 9 E Madrid France: CACEIS Bank 1-3, Place Valhubert F Paris Belgium: RBC Investor Services Belgium S.A. Boulevard du Roi Albert II, 37 B Brussels PricewaterhouseCoopers, Société coopérative Liechtenstein: 2, Rue Gerhard Mercator LGT Bank AG L Luxembourg Herrengasse 12 FL Vaduz Local Representatives United Kingdom: Representative in Switzerland: GAM Sterling Management Ltd. GAM Investment Management (Switzerland) AG 12 St. James s Place Hardstraße 201 London, SW1A 1 NX P.O. Box CH Zurich Sweden: MFEX Mutual Funds Exchange AB Paying Agent in Switzerland: Grev Turegatan 19 State Street Bank International GmbH, Munich, S Stockholm Zurich Branch Beethovenstraße 19 CH Zurich Paying Agent in Germany: P.O. Box DekaBank Deutsche Girozentrale CY Nicosia Mainzer Landstraße 16 D Frankfurt am Main Ireland: Information Agent in Germany: GAM (Deutschland) GmbH Taunusanlage 15 Dublin 2 D Frankfurt am Main Legal Adviser Austria: Erste Bank der oesterreichischen Sparkassen AG Am Belvedere 1 A Vienna Cyprus: Cyprus Development Bank Public Company Ltd. 50 Arch. Makarios III Avenue GAM Fund Management Limited George s Court Townsend Street Linklaters LLP 35, Avenue J.F. Kennedy L Luxembourg 5

6 Auditor s report To the shareholders of Multicooperation SICAV Audit opinion In our opinion, the attached financial statements present a true and fair view of the assets and financial position of the Multicooperation SICAV and of each of its sub-funds (the funds ) as at 30 June 2017, and of their profit and loss and changes in their net assets for the financial year then ended, in accordance with the statutory provisions and regulations relating to the preparation of financial statements applicable in Luxembourg. What we have audited The financial statements of the funds consist of: the statement of net assets as at 30 June 2017; the securities portfolio as at 30 June 2017; the profit and loss account and the change in net assets for the financial year ending on this date; a summary of significant accounting methods and other explanatory information (Notes). Basis for the audit opinion We conducted our audit in accordance with the law on auditing activities (Law of 23 July 2016) and the International Standards on Auditing (ISA) as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF). Our responsibility for the audit in accordance with this regulation, this law and these standards is described in the section Responsibility of the Réviseur d entreprises agréé. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg Tel: , F: , Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n ) R.C.S. Luxembourg B TVA LU

7 Independence We are independent of the funds in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA code) as adopted for Luxembourg by the CSSF and the professional code of conduct. We have complied with these codes of conduct within the framework of the audit and have fulfilled all other professional duties in accordance with these requirements. Other information The Board of Directors of the funds is responsible for other information. Other information includes the information contained in the annual report, but does not include the financial statements or our opinion on these financial statements. Our audit opinion on the financial statements does not cover other information and we give no guarantees of any kind with regard to this information. In connection with the audit of the financial statements, it is our responsibility to read other information and to assess whether there is a significant discrepancy between this and the financial statements or the results of our audit findings, or whether other information is otherwise presented falsely. If we conclude on the basis of the work we carry out that other information contains material false statements, we are obliged to report this. We have nothing to report in this regard. Responsibility of the Board of Directors of the funds and the persons responsible for supervising the financial statements The Board of Directors of the funds is responsible for the compilation and proper overall presentation of the financial statements in accordance with the laws and statutory regulations in effect in Luxembourg for the preparation of financial statements and for internal controls that it considers necessary to ensure that the financial statements are prepared free of material misstatements, irrespective of whether these result from errors or violations. 7

8 In the preparation of the financial statements, the Board of Directors of the funds is responsible for assessing the ability of the funds to continue its activities and if applicable providing information about circumstances related to the continuation of activities of the funds, and using the going concern assumption as an accounting standard, unless the Board of Directors of the funds intends to liquidate the funds, suspend business activities, or has no other realistic alternative than to do so. The persons responsible for supervision are responsible for supervising the processes of preparing the financial statements. Responsibility of the Réviseur d entreprises agréé for the audit The objective of our audit is to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, either resulting from inaccuracies or violations, and to issue an audit report that contains our opinion. Reasonable assurance corresponds to a high degree of certainty, but is no guarantee that an audit in accordance with the Law of 23 July 2016 and the ISAs as adopted for Luxembourg by the CSSF will always uncover material misstatements, if present. Material misstatements can result either from inaccuracies or violations and are considered to be significant if it can be reasonably assumed that these, individually or as a whole, could influence the addressees economic decisions made on the basis of these financial statements. In the context of an audit in accordance with the Law of 23 July 2016 and the ISAs as adopted for Luxembourg by the CSSF, we exercise our dutiful discretion and maintain a critical attitude. In addition: We identify and assess the risk of material misstatements, resulting from inaccuracies or violations, in the financial statements, plan and conduct audit procedures as a response to these risks, and obtain audit evidence, which is sufficient and appropriate, to serve as the basis for our audit opinion. The risk that material misstatements will not be discovered is higher for violations than for inaccuracies, since violations may contain fraudulent conduct, counterfeits, intended omissions, misleading information and derogation of internal controls; We gain an understanding of the relevant internal control system for the audit, in order to plan audit procedures that are appropriate in the given circumstances, but not with the objective of expressing an audit opinion on the effectiveness of the internal control system of the SICAV; We assess the appropriateness of the accounting methods used by the Board of Directors of the funds, the accounting-related estimates and the corresponding notes; 8

9 We conclude, via the appropriateness of the application of the accounting standards to the continuation of activities by the Board of Directors of the funds and on the basis of the audit evidence obtained, whether there is significant uncertainty in connection with events or circumstances that may raise significant doubts as to the ability of the funds to continue its activities. Should we conclude that there is significant uncertainty, we are obliged to mention this in the Auditor s report on the related notes to the financial statements or, if the information is inappropriate, to modify the audit opinion. These conclusions are based on the audit evidence obtained on the basis of the Auditor s report up to this date. Future events or circumstances may, however, lead to the funds no longer being able to continue its activities; We evaluate the overall presentation, the structure and the content of the financial statements, including the notes, and assess whether these properly present the underlying business transactions and events. We communicate to the persons responsible for the supervision, among other things, the planned scope of the audit and time period, as well as significant audit findings, including significant weaknesses in the internal control system, which we identify as part of the audit. PricewaterhouseCoopers, Société coopérative Luxembourg, 6 October 2017 Represented by Marc Schernberg 9

10 Report of the Board of Directors Dear Investors, We are pleased to enclose the Annual Report of the Multicooperation SICAV. This includes, among other information, the Fund Management Report for the active sub-funds produced on behalf of the Board of Directors. Furthermore, the Annual Report contains the statement of net assets, the profit and loss account, the statement of changes in net assets, the comparative statement and the portfolios of the sub-funds. The Board of Directors confirms that the Company adhered to the rules of the ALFI Code of Conduct for Luxembourg investment funds in all significant aspects during the accounting period and at the end of the financial year (30 June 2017). Further information on the SICAV and the sub-funds, including prospectuses and semi-annual reports, may be obtained from the Management Company of the SICAV upon request and may also be viewed online at Luxembourg, October 2017 On behalf of the Board of Directors of the Multicooperation SICAV Martin Jufer Chairman of the Board of Directors Andrew Hanges Member of the Board of Directors 10

11 Notes to the Annual Report Legal information The Multicooperation SICAV (the Company ) was incorporated on 8 September 1993 for an indefinite period. It is organised as a Société d Investissement à Capital Variable (open-ended investment company SICAV) under the law of 10 August 1915 of the Grand Duchy of Luxembourg, as amended. It has been registered under Part I of the amended law of 17 December 2010 as an undertaking for collective investment in transferable securities (UCITS). The Company is registered under number B44963 in the Luxembourg Trade and Companies Register. The registered office of the Company is at 25, Grand Rue, L Luxembourg. Share categories The following share classes are issued at present: - Shares A: shares with distribution of income and/or capital gains - Shares B: shares without distribution of income and/or capital gains - Shares C (for institutional investors): shares without distribution of income and/or capital gains - Shares Ca (for institutional investors): shares with distribution of income and/or capital gains - Shares E (for specific distributors, as defined in the prospectus): shares without distribution of income and/or capital gains - Shares Et (for specific distributors, as defined in the prospectus): shares with distribution of income and/or capital gains - Shares Fa (for institutional investors): shares with distribution of income and/or capital gains - Shares I (for institutional investors): shares with distribution of income and/or capital gains - Shares K: shares without distributions of income and/or capital gains (with a minimum subscription amount, as defined in the prospectus) - Shares N (for specific distributors, as defined in the prospectus): shares without distribution of income and/or capital gains - Shares Na (for specific distributors, as defined in the prospectus): shares with distribution of income and/or capital gains - Shares P: shares with distribution of income and/or capital gains - Shares Z: (for specific institutional investors, as defined in the prospectus) shares without distribution of income and/or capital gains Detailed information about other currency-hedged share classes can be found in the prospectus. Shares A, B, C, K and Z may further be marked with an h (currency-hedged share classes). Accounting principles Presentation of annual report The annual report has been prepared in accordance with the legal requirements for investment funds in Luxembourg. The present report has been prepared on the basis of the last net asset value ( NAV ) calculation at the end of the accounting period (in the following: NAV = Net Asset Value). Aggregation Each sub-fund of the Company prepares accounts relating to its operating result in its denominated currency. The accounts of the Company (umbrella fund) are prepared in CHF by aggregating the assets and liabilities of the individual sub-funds using the exchange rates applicable on the last day of the financial year / period. Accounting The annual report of the Company has been prepared in accordance with the regulations relating to undertakings for collective investment in transferable securities (UCITS) applicable in Luxembourg. The accrual principle is taken into account when drawing up the annual report. The accounting principles are applied consistently. 11

12 Notes to the Annual Report Valuation of assets and liabilities Assets and liabilities are valued at their Nominal value, with the following exceptions. Foreign currencies Transactions effected in currencies other than the currency of the particular sub-fund are converted using the exchange rate on the date of the transaction. Assets and liabilities denominated in currencies other than the currency of the particular sub-fund are converted using the exchange rate on the balance sheet date. Foreign exchange profits and losses are included in the profit and loss account for the current financial year / period. Foreign exchange differences Foreign exchange differences are attributable to the fluctuation in exchange rates over the course of the financial year / period. The "foreign exchange difference" is as a result of consolidating the sub-fund currencies into the Fund currency. Securities portfolio Securities listed on a stock exchange or any other regulated market open to the public are valued at the last available price of the financial year. Unlisted securities are identified as such. Their value shall be based on a probable realisation value, determined with due care and in good faith. The realised profit/loss from the sale of securities is determined using the average historical acquisition costs. Securities denominated in currencies other than the currency of the particular sub-fund will be converted using the exchange rate on the balance sheet date or the date of sale, whichever is applicable. All profits and losses from foreign exchange are shown together with net realised profit/loss from securities in the profit and loss account. Dividends are recorded on the ex-dividend date. Income from securities is shown net of withholding taxes. The portfolio of the Fund may contain securities which are difficult to value (i.e. stale price, limited pricing sources). In such cases, the concerned securities are regularly monitored through a detailed analysis which is carried out at least monthly. A more general analysis is carried out every quarter. The monitoring is performed according to the principles and criteria determined by the Board of Directors Securities lending Income from securities lending is shown separately in the profit and loss account. Details of the securities lent as per the balance sheet date are listed in the securities portfolio. As at 30 June 2017, the market value of securities lent on the balance sheet date amounts to: Multicooperation SICAV - Currency of the Sub-fund Amount JULIUS BAER EQUITY FUND SPECIAL VALUE EUR JULIUS BAER EQUITY GLOBAL EXCELLENCE EMERGING MARKETS USD JULIUS BAER EQUITY GLOBAL EXCELLENCE EUROPE EUR JULIUS BAER EQUITY GLOBAL EXCELLENCE NORTH AMERICA USD JULIUS BAER GLOBAL EXCELLENCE EQUITY EUR JULIUS BAER STRATEGY BALANCED (CHF) CHF JULIUS BAER STRATEGY BALANCED (EUR) EUR JULIUS BAER STRATEGY BALANCED (USD) USD JULIUS BAER STRATEGY GROWTH (CHF) CHF JULIUS BAER STRATEGY GROWTH (EUR) EUR JULIUS BAER STRATEGY INCOME (CHF) CHF JULIUS BAER STRATEGY INCOME (EUR) EUR JULIUS BAER STRATEGY INCOME (USD) USD

13 Notes to the Annual Report The company received the following collateral amounts for the lent securities: Multicooperation SICAV - Currency of the Sub-fund Collateral amount Type JULIUS BAER EQUITY FUND SPECIAL VALUE EUR Securities JULIUS BAER EQUITY GLOBAL EXCELLENCE EMERGING MARKETS USD Securities JULIUS BAER EQUITY GLOBAL EXCELLENCE EUROPE EUR Securities JULIUS BAER EQUITY GLOBAL EXCELLENCE NORTH AMERICA USD Securities JULIUS BAER GLOBAL EXCELLENCE EQUITY EUR Securities JULIUS BAER STRATEGY BALANCED (CHF) CHF Securities JULIUS BAER STRATEGY BALANCED (EUR) EUR Securities JULIUS BAER STRATEGY BALANCED (USD) USD Securities JULIUS BAER STRATEGY GROWTH (CHF) CHF Securities JULIUS BAER STRATEGY GROWTH (EUR) EUR Securities JULIUS BAER STRATEGY INCOME (CHF) CHF Securities JULIUS BAER STRATEGY INCOME (EUR) EUR Securities JULIUS BAER STRATEGY INCOME (USD) USD Securities The gross and net income of loaned securities amounts to: Multicooperation SICAV - Currency of the Sub-fund Gross income Costs and Fees Net income ALLEGRO (LUX) - DYNAMISCH CHF JULIUS BAER EQUITY FUND SPECIAL VALUE EUR JULIUS BAER EQUITY GLOBAL EXCELLENCE EMERGING MARKETS USD JULIUS BAER EQUITY GLOBAL EXCELLENCE EUROPE EUR JULIUS BAER EQUITY GLOBAL EXCELLENCE NORTH AMERICA USD JULIUS BAER GLOBAL EXCELLENCE EQUITY EUR JULIUS BAER STRATEGY BALANCED (CHF) CHF JULIUS BAER STRATEGY BALANCED (EUR) EUR JULIUS BAER STRATEGY BALANCED (USD) USD JULIUS BAER STRATEGY GROWTH (CHF) CHF JULIUS BAER STRATEGY GROWTH (EUR) EUR JULIUS BAER STRATEGY INCOME (CHF) CHF JULIUS BAER STRATEGY INCOME (EUR) EUR JULIUS BAER STRATEGY INCOME (USD) USD SWISS & GLOBAL AM DEUTSCHE AKTIEN* EUR *See Appendix I. The securities lending transaction was entered into with the following counterparties: Counterparty Bank of Nova Scotia Barclays Capital Securities Limited Credit Suisse AG, Dublin Branch Credit Suisse Securities (Europe) Limited Deutsche Bank AG Goldman Sachs International Merrill Lynch International Societe Generale S.A. UBS AG Repurchase agreement Income from the repurchase agreement for securities is shown separately in the profit and loss account. There are no repurchase agreements at the end of the financial year. Income from zero-coupon bonds For zero coupon bonds, the "notional" interest portion is calculated as interest income and reclassified in the profit and loss account under the item "Income from securities" instead of the item "Net change in unrealised appreciation/depreciation on securities". 13

14 Notes to the Annual Report Commercial papers Commercial papers will be mathematically discounted by their remaining term. Options The buyer of a put option has the right, but not the obligation, to sell an underlying instrument ( underlying ) at an agreed upon price ( strike price ) to the option seller. The buyer of a call option has the right, but not the obligation, to purchase the underlying at the strike price from the option seller. Purchased Options: Premiums paid by the sub-fund for purchased options are included in the statement of net assets as acquisition costs of the investments. The valuation of options is adjusted daily to reflect their current market value. The change is recorded as net change in unrealised appreciation / depreciation in the profit and loss account. If the option expires without being executed, the sub-fund loses the paid premium and a realised loss of corresponding value is booked. If a sold option is exercised or closed, the paid premium with the sales proceeds of the underlying is settled or added to the cost price of the underlying to determine the realised profit / loss as well as the costs of the underlying asset. Written Options: Premiums received by the sub-fund for written options are included in the statement of net assets as negative acquisition cost of an investment. The valuation of options is adjusted daily to reflect their current market value. The change is recorded as net change in unrealised appreciation / depreciation in the profit and loss account. If the written option expires without being executed, the premium received is recorded as realised profit of the corresponding value. The sub-fund records a realised profit or loss on written options based on whether the cost of the closing transaction exceeds the premium received. If a call option is exercised by the option buyer, the premium received by the sub-fund is added to the proceeds from the sale of the underlying and compared to the cost of the underlying in order to determine whether there has been a realised profit or loss. If a put option is exercised by the option buyer, the costs of the purchased security will be reduced by the premium received by the option buyer. Written uncovered call options subject the sub-fund to an unlimited risk of loss. For written covered call options the potential for profit is limited to the strike price. Written put options subject the sub-fund to a risk of loss if the price of the underlying falls below the strike price minus the premium. The sub-fund is not subject to any credit risk on written options as the counterparty has already performed its obligation by paying the premium at the inception of the contract. Options traded on a regulated market are valued on the basis of the closing price or the last available market price of the underlying. OTC options are marked-to-market based upon prices obtained from third party pricing agents and verified against the counterparty s valuation. The market value of options is included in the statement of net assets under the heading Derivative instruments - Options. The realised profits / losses and the change in the unrealised profits / losses from options are disclosed in the profit and loss account under the headings Realised profit/loss on options and Net change in unrealised appreciation/depreciation on options. Options, warrants and rights are disclosed in numbers in the securities portfolio. For future-style options, the option buyer pays the option seller the full amount of the premium upon the exercise or expiry of the option. As in a future contract, buyers and sellers deposit a security (margin). While the option is held, profits and losses are marked-to-market on a daily basis. Valuation differs from traditional options primarily in terms of the timing of cash flows, since the option buyer pays the typically upfront option premium at a later date. The unrealised profit/loss of future-style options is recorded in the statement of net assets under Derivative Instruments Options. Futures contracts (Futures) The contractual parties of a futures contract agree on the delivery of an underlying at a fixed price or for a payment of a cash amount based on the change in the valuation of the underlying at a specific date in the future. Upon entering into a futures contract, the sub-fund is required to deposit with the broker, cash or securities amounting to a certain percentage of the contract amount, a so called initial margin. Subsequent payments, referred to as variation margin, are made or received by the sub-fund periodically and are based on changes in the market value of open futures contracts. The unrealised profit / loss on future contracts is disclosed in the statement of net assets under Derivative instruments - Futures. Changes in the market value of open futures contracts are recorded as unrealised profit / loss in the profit and loss account under Net change in unrealised appreciation/depreciation on futures. Realised profits or losses, representing the difference between the value of the contract at the time it was opened and the value at the time it was closed, are reported at the closing or expiration of futures contracts in the profit and loss account under Realised profit/loss on futures. Securities deposited as initial margin are designated in the securities portfolio and cash deposited is recorded in the statement of net assets. A receivable and/or a payable to brokers for the daily variation margin is also recorded in the statement of net assets. 14

15 Notes to the Annual Report Forward foreign exchange contracts Forward foreign exchange contracts represent obligations to purchase or sell foreign currency on a specified future date at a price fixed at the time the contracts are entered into. Non-deliverable forward foreign exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The valuation of the forward foreign exchange contracts is adjusted daily based on the applicable exchange rate of the underlying currency. Changes in the valuation of these contracts are recorded as unrealised appreciation or depreciation until the contract settlement date. When the forward contract is closed, the sub-fund records a realised profit or loss equal to the difference between the value at the time the contract was opened and the value at the time it was closed. The unrealised profit / loss on forward foreign exchange contracts is disclosed in the statement of net assets under Derivative Instruments - Forward foreign exchange contracts. Realised profits / losses and changes in unrealised profit / loss are included in the profit and loss account respectively under Realised profit / loss on forward foreign exchange contracts and Net change in unrealised appreciation/depreciation on forward foreign exchange contracts. The forward foreign exchange contracts detailed in the overview of derivative instruments are grouped by traded currency and by maturity date. Contracts for difference (CFD) Contracts for difference are contracts between two parties that agree to make payments to each other so as to replicate the economic consequences of holding a long or short position in the underlying security. Contracts for difference are valued based on the closing market price of the underlying security, minus any financing charges attributable to each contract. Upon entering into contracts for differences, the sub-fund may be required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contractual amount ( initial margin ). Subsequently, payments known as variation margin are made or received by the sub-fund periodically, depending on fluctuations in the value of the underlying security. The unrealised profit / loss is disclosed in the statement of net assets under Derivative instruments - Swaps. Realised profits / losses and changes in unrealised profit / loss are included in the profit and loss account under Realised profit / loss on swaps and Net change in unrealised appreciation / depreciation on swaps. Interest Rate Swaps (IRS) An interest rate swap is a bilateral agreement in which each party agrees to exchange a series of interest payments for another series of interest payments (usually fixed vs. floating). The interest payments are based on a nominal amount which is used as a basis for calculation and is usually not exchanged. During the life of the swap, each party pays interest (in the currency of the principal received) to the other. Interest rate swaps are marked-to-market at each NAV calculation date. The market value is based on the valuation elements laid down in the contracts, and is obtained from independent third-party pricing agents, market makers or internal models. The unrealised profit / loss is disclosed in the statement of net assets under Derivative instruments - Swaps. Realised profits / losses and changes in unrealised profit / loss are included in the profit and loss account under Realised profit / loss on swaps and Net change in unrealised appreciation / depreciation on swaps. Credit Default Swaps (CDS) A credit default swap is a credit derivative which offers protection against the default risk of a reference company/debtor. One party ( protection buyer ) makes fixed periodic payments ( coupon ) to the other party ( protection seller ) over the term of the agreement. The protection seller is in return required to make a payment contingent on a credit event related to the underlying reference obligation. This payment consists of either: (i) a net cash settlement equal to the notional amount of the swap minus the auction value of the reference obligation or (ii) the notional amount of the swap in exchange for the delivery of the reference obligation. Selling protection effectively adds leverage to a sub-fund s portfolio up to the notional amount of swap agreements. The notional amount represents the maximum potential liability under a contract and is not reflected in the statement of net assets. Contingent liabilities from these contracts can be reduced through anticipated residual claims from the underlying reference obligation; prepayments upon issuing the swap; and net amounts received from the purchased credit default swap with an identical reference obligation. Credit default swaps are marked-to-market on each valuation day. The market value is based on the valuation elements laid down in the contracts, and is obtained from independent third-party pricing agents, market makers or internal models. The unrealised profit / loss is disclosed in the statement of net assets under Derivative instruments - Swaps. Realised profits / losses and changes in unrealised profit / loss are included in the profit and loss account under Realised profit / loss on swaps and Net change in unrealised appreciation / depreciation on swaps. 15

16 Notes to the Annual Report Total Return Swaps (TRS) A total return swap is a bilateral contract in which each party agrees to exchange payments based on the performance of an underlying, e.g. a security, commodity, basket or index, for a fixed or variable rate. One party pays out the total return of a specific reference asset, and receives periodic payments in return. The total performance includes profits and losses on the underlying, as well as any interest or dividends during the contract period according to the type of underlying. The payments are calculated by reference to an agreed upon notional amount or number. Depending on whether the total return surpasses or falls short of the fixed or variable rate, the sub-fund receives or makes a corresponding payment to the counterparty. Total return swaps are marked-to-market at each NAV calculation date. The estimated market value is based on the valuation elements laid down in the contracts, and is obtained from independent third party pricing agents, market makers or internal models. The unrealised profit / loss is disclosed in the statement of net assets under Derivative instruments - Swaps. Realised profits / losses and changes in unrealised profit / loss are included in the profit and loss account under Realised profit / loss on swaps and Net change in unrealised appreciation / depreciation on swaps. Collateral As per end of the financial year, collateral was deposited for the derivatives instruments in favour of the following sub-funds: Sub-fund Currency Cash collateral Non-cash collateral Multicooperation SICAV - GAM COMMODITY* USD United States Treasury Bill JULIUS BAER FIXED INCOME GLOBAL HIGH YIELD USD The non-cash collateral listed in the above table is deposited at Barclays Bank Plc., BNP Paribas S.A., Deutsche Bank AG, JP Morgan Securities Plc., Merrill Lynch International, Morgan Stanley and Co. International Plc. or Societe Generale. Furthermore, the following collateral was deposited with the Fund at the end of the financial year for derivative transactions: Sub-fund Currency Cash collateral Multicooperation SICAV - GAM COMMODITY* USD The cash collateral listed in the above table was deposited at Barclays Bank Plc. Pooling and co-management For the purpose of efficient management and to reduce administrative costs, and if permitted by the investment policies of the sub-funds, the Board of Directors may decide to co-manage some or all of the assets of certain sub-funds and other Luxembourg UCIs and UCITS of GAM. The assets of such sub-funds are referred to in the following as "co-managed assets". In this case, the pooling technique will be applied to the co-managed assets of the various sub-funds. Assets that are co-managed will be referred to using the term "pool". Such pools will only be used for the purpose of internal management. They will not constitute distinct legal entities and will not be directly accessible to investors. The unrealised profit / loss of the pool is allocated to the sub-funds at each NAV calculation on the basis of daily updated pool allocation factors. There is no guarantee that the sum of this unrealised profit/loss corresponds to the reported net change in unrealised appreciation/depreciation on securities at sub-fund level. *See Appendix I. Taxation In accordance with current legal practice in the European Union, the Company may apply to local EU tax authorities for a refund of the withholding tax levied on dividend payments by a number of EU member-states. If refund applications are submitted, no receivables are recorded or reported in the sub-fund, since the outcome of the refund applications is uncertain and the estimated likelihood of success may change over the course of a refund procedure. Only upon receipt of the withholding tax refund are the amounts recorded in the sub-funds in question and reported accordingly. 16

17 Notes to the Annual Report Any costs in connection with the submission of the refund applications were/are charged to the concerned sub-funds. Any withholding tax refunds are included in the profit and loss account under Other income. Taxes In accordance with Luxembourg law, the Company is not subject to any Luxembourg income tax. Dividends paid by the Company are currently not subject to withholding tax in Luxembourg. The Company is, however, charged with an annual tax of 0.05% of the net assets ( taxes d abonnement ). A reduced taxe d abonnement of 0.01% will be applied on the net assets applicable to the share class for institutional investors. This classification is based on the Company s understanding of the current legal situation. This legal situation is liable to be changed with retroactive effect, which may result in the tax rate of 0.05% being applied retroactively. The tax is payable quarterly in arrears on the basis of the respective net assets at the end of each quarter. Costs and Fees Management fees For advisory services relating to the portfolios of the sub-funds, related administrative services and distribution services, the following current annual fees based on the net asset value of the respective sub-fund will be charged to the sub-fund at the end of each month: Overview of fees (p.a.) Shares A/Ah and B/Bh Shares C/Ch/Ca** Shares E* Shares Et* Shares Fa** Shares K/Kh Shares N/Na Shares Z/Zh** Multicooperation SICAV - ASSET ALLOCATION FUND DEFENDER*** 1.20% 0.55% 1.95% ASSET ALLOCATION FUND DYNAMIC*** 1.40% 0.65% 2.15% GAM COMMODITY*** 1.30% 0.65% 2.05% GAM MULTI ASSET STRATEGIC 1.20% 0.55% 1.60% 1.60% 0.20% ALLOCATION*** JULIUS BAER EQUITY FUND SPECIAL VALUE 1.60% 0.85% 2.35% % 0.95% 0.00% JULIUS BAER EQUITY GLOBAL 1.30% % % EXCELLENCE EMERGING MARKETS JULIUS BAER EQUITY GLOBAL 1.30% % % EXCELLENCE EUROPE JULIUS BAER EQUITY GLOBAL 1.30% % % EXCELLENCE NORTH AMERICA JULIUS BAER FIXED INCOME EMERGING 0.75% % % MARKETS HARD CURRENCY JULIUS BAER FIXED INCOME GLOBAL HIGH 0.75% % % INVESTMENT GRADE JULIUS BAER FIXED INCOME GLOBAL HIGH 1.10% 0.60% % % YIELD JULIUS BAER FIXED INCOME GLOBAL LOW 0.75% % % INVESTMENT GRADE JULIUS BAER GLOBAL EXCELLENCE 1.30% % 0.90% - EQUITY JULIUS BAER GLOBAL EXCELLENCE FIXED 0.75% % - - INCOME (CHF) JULIUS BAER GLOBAL EXCELLENCE FIXED INCOME (EUR) 0.75% %

18 Notes to the Annual Report Overview of fees (p.a.) Shares A/Ah and B/Bh Shares C/Ch/Ca** Shares E* Shares Et* Shares Fa** Shares K/Kh Shares N/Na JULIUS BAER STRATEGY BALANCED (CHF) 1.40% 0.85% 2.15% % - - JULIUS BAER STRATEGY BALANCED (EUR) 1.40% 0.85% 2.15% % - - JULIUS BAER STRATEGY BALANCED (USD) 1.40% 0.85% 2.15% % 1.00% - JULIUS BAER STRATEGY GROWTH (CHF) 1.50% 0.90% 2.25% % - - JULIUS BAER STRATEGY GROWTH (EUR) 1.50% 0.90% 2.25% % - - JULIUS BAER STRATEGY INCOME (CHF) 1.30% 0.80% 2.05% % - - JULIUS BAER STRATEGY INCOME (EUR) 1.30% 0.80% 2.05% % - - JULIUS BAER STRATEGY INCOME (USD) 1.30% 0.80% 2.05% % - - Shares Z/Zh** For the following sub-funds, the Company pays a general annual fee for services provided under the custodian bank agreement, the central administration, domiciliary and transfer agent agreement, the investment management agreements as well as additional agreements regarding distribution and sales support. The fee is calculated as a percentage of the net asset value of the respective sub-fund on each valuation day. Overview of fees (p.a.) Shares B Shares I** Shares P Multicooperation SICAV - ADAGIO (LUX) - KONSERVATIV % 1.25% ALLEGRO (LUX) - DYNAMISCH % 1.25% SWISS & GLOBAL AM DEUTSCHE AKTIEN*** 1.50% - - VIVACE (LUX) - AUSGEWOGEN % 1.25% * The management fee includes an additional distribution fee of 0.75% p.a. For Multicooperation SICAV - GAM MULTI ASSET STRATEGIC ALLOCATION*** this additional distribution fee is 0.40% p.a. ** Distributors are not paid any commission for distribution activities undertaken in connection with the sale, offering or holding of Shares C, Ca, Ch, Fa, I, Z and Zh. *** See Appendix I. The fees as set out above are used to remunerate distributors and asset managers for distributing shares of the sub-funds and to reimburse institutional investors. Performance Fee Multicooperation SICAV - GAM MULTI ASSET STRATEGIC ALLOCATION* The investment manager is entitled to a performance fee under the conditions stated below: The performance fee is calculated on each valuation date and is set aside from the net asset value per share of the Fa share category, subject to the following rates and conditions. After the end of the respective accounting year/period, any performance fee owed at that time to the investment manager is actually paid out. The performance fee for the Fa share category of the sub-fund GAM MULTI ASSET STRATEGIC ALLOCATION* is payable when the percentage return from the start of the accounting year/period is above that of the benchmark index of the Fa share category (outperformance of the benchmark index) and simultaneously the net asset value per share is higher than the High Water Mark (outperformance of the High Water Mark). Both conditions must be fulfilled. The performance fee is 15% p.a. of the outperformance of the benchmark index since the beginning of the accounting year/period or since the last provision set aside during the accounting year/period due to large net inflows (as described below). The accrued performance fee is limited on each valuation day to 0.40% of the net assets of the Fa share category. High Water Mark: At the launch of the sub-fund or, if applicable, a share category in a currency other than the sub-fund s accounting currency, the High Water Mark is identical to the initial issue price. If the net asset value per share on the last valuation day of a subsequent accounting year/period is higher than the previous High Water Mark and the percentage return during the accounting year/period is higher than that of the benchmark index, the High Water Mark is set to the net asset value per share calculated on the last valuation day of that accounting year/period after deduction of the deferred performance fee. In the case of shares that are redeemed during the accounting year/period, the performance fee due on a proportional basis for redeemed shares is established and set aside and disbursed at the end of the investment manager s accounting year (crystallisation). The performance fee is set aside for significant net inflows relative to the fund assets (defined as net inflows that are greater than or equal to the number of outstanding shares before subscription). A prerequisite for this is that a performance fee has been accrued up to this time. The total performance fee accrued before the net inflow is separated and subsequently paid out at the end of the accounting year. *See Appendix I. 18

19 Notes to the Annual Report In the case of very large net inflows after the crystallisation the High Water Mark is reset. Sub-fund Shares Benchmark for the calculation of the performance fee GAM MULTI ASSET STRATEGIC ALLOCATION* Fa - EUR MTS Italy BOT + 200bps Servicing fee For the sub-funds GAM COMMODITY*, ASSET ALLOCATION FUND DEFENDER*, ASSET ALLOCATION FUND DYNAMIC* and GAM MULTI ASSET STRATEGIC ALLOCATION*. A servicing fee ( Servicing Fee ) will be debited by the Management Company to each sub-fund and/or share category. The servicing fee constitutes remuneration for the following services rendered by the Management Company or its appointees and delegates: Custody and Administration Services: business activities in accordance with custody and sub-custody services, registrar and transfer agency, central administration (fund administration, fund accounting), principal paying agency; Operational Management: Remuneration of the Management Company for the operational management and supervision of the business activities of the Company; Risk Management; remuneration and expenses of the Board of Directors of the Company; expenses in relation to the convening of general meetings of shareholders; notary fees; Sales and Marketing: Sales and marketing expenses, further distribution support, licence fees; Regulatory: public charges: taxes (particularly the taxe d abonnement applicable to sub-funds constituted under Luxembourg law); provision of mandatory fund documents (prospectus, KIID, annual and semi-annual reports); auditing fees; costs associated with registration and reporting to supervisory authorities in different distribution countries; listing fees; publication costs for NAVs and corporate actions; Other Services: legal and tax services; paying agents and representatives; insurance premiums; and any other costs incurred by the Management Company acting on behalf of the Company. The Management Company may charge the servicing fee to individual sub-funds and/or share classes of a given sub-fund in varying ratios, or may waive it entirely. The annual maximum Servicing Fee is shown in the prospectus. The management fee and the servicing fee are both be calculated on the basis of the net asset value of the respective sub-fund and/or share category and debited to such sub-fund and/or such share category on each valuation day (as defined in the section Calculation of net asset value ), and will be payable monthly in arrears. Since the change to the fee structure, the management fee and servicing fee together constitute the Total Expense Ratio (TER) of the respective sub-fund and/or share class. The Management Fee and the Servicing Fee are both capped. Any costs exceeding this cap are borne by the Management Company. Service Load For all sub-funds besides GAM COMMODITY*, ASSET ALLOCATION FUND DEFENDER*, ASSET ALLOCATION FUND DYNAMIC* and GAM MULTI ASSET STRATEGIC ALLOCATION*. Service Load means the costs incurred in connection with the operation of the Company. These costs include the following unless already otherwise separately stated or included: Costs of operational management and supervision of the Company s business; tax advisory, legal and auditing services; purchase and sale of securities; government taxes and levies; convening the Annual General Meeting; issue of share confirmations; preparation of financial statements and prospectuses; sales support; issue and redemption of shares; the payment of dividends, paying agents and representatives, the payment of State Street Bank Luxembourg S.C.A. as administrator and principal paying agent, registrar and transfer agent; registration for sale; reporting to supervisory authorities in the various countries of distribution; fees and expenses of the Board of Directors of the Company; insurance premiums; interest; stock exchange admission fees and broker fees; reimbursement of expenses to the custodian and all other contracting parties of the Company; calculation and publication of the net asset value per share and the share prices as well as licence fees. *See Appendix I. 19