SWISSCANTO (LU) SICAV II

Transcription

1 SWISSCANTO (LU) SICAV II Investment fund in accordance with Part II of Luxembourg law in the legal form of a Société d'investissement à Capital Variable (SICAV) Audited annual report Custodian bank: RBC Investor Services Bank S.A. R.C.S. B11328 No subscriptions may be received on the basis of the annual and semiannual 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 semiannual report.

2 Page 2 Contents Page Administration and Corporate Bodies 4 General Information 6 Activity Reports 7 Statement of Net Assets 21 Income and Expense Statement and other Changes to Net Assets 25 Evolution of shares in circulation for the fiscal year from 1 October 212 to 3 September Statistics 33 Swisscanto (LU) SICAV II Money Market CHF 37 Investment portfolio 37 Geographic and economic composition of Investment portfolio 4 Swisscanto (LU) SICAV II Money Market EUR 41 Investment portfolio 41 Geographic and economic composition of Investment portfolio 45 Swisscanto (LU) SICAV II Money Market USD 46 Investment portfolio 46 Geographic and economic composition of Investment portfolio 5 Swisscanto (LU) SICAV II Bond Medium Term CHF 51 Investment portfolio 51 Geographic and economic composition of Investment portfolio 54 Swisscanto (LU) SICAV II Bond Medium Term EUR 55 Investment portfolio 55 Geographic and economic composition of Investment portfolio 57 Swisscanto (LU) SICAV II Bond CHF 58 Investment portfolio 58 Geographic and economic composition of Investment portfolio 61 Swisscanto (LU) SICAV II Bond EUR 62 Investment portfolio 62 Geographic and economic composition of Investment portfolio 64 Swisscanto (LU) SICAV II Bond USD 65 Investment portfolio 65 Geographic and economic composition of Investment portfolio 68 Swisscanto (LU) SICAV II Bond Absolute Return (CHF) 69 Investment portfolio 69 Geographic and economic composition of Investment portfolio 82 Swisscanto (LU) SICAV II Bond Absolute Return (EUR) 83 Investment portfolio 83 Geographic and economic composition of Investment portfolio 96 Swisscanto (LU) SICAV II Portfolio Yield (EUR) 97 Investment portfolio 97 Geographic and economic composition of Investment portfolio 17 Swisscanto (LU) SICAV II Portfolio Balanced (EUR) 18 Investment portfolio 18 Geographic and economic composition of Investment portfolio 117

3 Page 3 Contents (cont.) Page Notes on the annual report 118 Report by the Réviseur d'entreprises agréé 127

4 Page 4 Administration and Corporate Bodies Management Company SWISSCANTO ASSET MANAGEMENT INTERNATIONAL S.A. 19, rue de Bitbourg, L1273 Luxembourg Management Board Chairman Dr. Gérard Fischer, Switzerland, CEO Swisscanto Holding AG, Bern Members Hans Frey, Switzerland, Chief Executive of Swisscanto Asset Management AG, Bern (since 2 October 212) Richard Goddard, Luxemburg, Independent Company Director, The Directors' Office, Luxembourg (since 2 October 212) Steve P. Cossins, England, Managing Director of Swisscanto Funds Centre Limited, London Marinko Sudar, Luxembourg, Chief Executive Swisscanto Asset Management International S.A., Luxembourg (since 25 September 213) Ralf C. Branda, Germany, Head of International Business Development Swisscanto Asset Management AG, Bern (until 2 October 213) Custodian Bank, Main Payment, Central Administration, Registration and Transfer Offices RBC Investor Services Bank S.A. 14, Porte de France, L436 EschsurAlzette, Luxembourg Portfolio Manager Swisscanto Asset Management AG Nordring 4, CH3 Bern 25 Swisscanto Funds Centre Limited 4th Floor, 51 Moorgate, GBLondon EC2R 6BH Payment and sales offices Luxembourg RBC Investor Services Bank S.A. 14, Porte de France, L436 EschsurAlzette Paying Agent in Switzerland Basler Kantonalbank Spiegelgasse 2, CH42 Basel Representative Office in Switzerland Swisscanto Asset Management AG Nordring 4, CH3 Bern 25 Central order collecting point Swisscanto Funds Centre Limited 4th Floor, 51 Moorgate, GBLondon EC2R 6BH

5 Page 5 Administration and Corporate Bodies (cont.) Cabinet de révision agréé (Auditor) KPMG Luxembourg S.à r.l. 9, Allée Scheffer, L252 Luxembourg Legal Adviser Anwaltskanzlei Arendt & Medernach 14, rue Erasme, L282 Luxembourg

6 Page 6 General Information Investment company governed by Luxembourg law with an umbrella structure and variable capital (hereinafter referred to as the "SICAV") is subject to the legal provisions of the second part of the Luxembourg law of 17 December 21 regulating collective investment undertakings. The articles of association of the SICAV were published in the Mémorial on 2 January 26. The articles of association of the management company and the contract terms of fund, as last amended, have been filed in the Luxembourg Trade and Companies Register, in which they may be viewed. Printed copies of the Articles of Association, the simplified and detailed prospectus and the annual and semiannual reports can be obtained free of charge directly from Swisscanto Asset Management AG, the registered office of the Custodian Bank and all payments or sales offices. The information is also available on the home page of the Swisscanto web site ( where further uptodate information on SICAV can also be found. No subscriptions for shares can be accepted on the basis of the annual and semiannual reports. Subscriptions may only be made on the basis of the current prospectus and the last annual report and, if a semiannual report was issued subsequently, that semiannual report. Sales restrictions The shares of may not be offered, sold or delivered within the USA. Guidelines of the Swiss Funds and Asset Management Association SFAMA* concerning transparency in administrative commissions (7 June 25) Compensation for the marketing of the SICAV is paid out of the flatrate administrative commission. The fund management also intends to offer remuneration to institutional investors holding fund shares for third parties from the flatrate administrative commission. *Name changed on 1 July 213, formerly the Swiss Funds Association (SFA)

7 Page 7 Swisscanto (LU) SICAV II Money Market CHF Activity Reports Swisscanto (LU) SICAV II Money Market CHF Market review Switzerland remained among the best positioned to weather the global economic slowdown. A weak export market was assisted by the SNB's intervention in FX markets, where a 1.2 'target' in EUR/CHF was maintained. A healthy domestic picture made up for this shortfall resulting in positive growth throughout the reporting year. Unemployment rose marginally to 3.2%. The Swiss National Bank maintained an accommodative stance throughout and with falling inflation left Official Rates at zero. Review of categories relevant to the fund CHF LIBOR rates fell to historically low levels in response to the Swiss National Bank monetary policy decisions and underlying weak market conditions. New issuance remained poor over the reporting year and in light of the low nominal yield environment, many high grade names traded with negative yields. This environment also led to bank and financial issuer outperformance as investors looked further down the credit curve in search of returns. Performance review In response to a slightly less volatile market this year, the Portfolio Managers attempted to implement a longer dated average maturity for the Fund. However, a relative lack of Swiss bond issuance in the primary market over the year has lead to a scarcity of relevant names, also impacting secondary market space. In light of this, Euro Commercial Paper was heavily relied upon as an investment alternative. An accommodative monetary policy by the SNB which effectively pegged short end rates, led to the Portfolio Managers targeting medium term maturities of the funds term structure. ISIN no.: Class B : LU ISIN no.: Class P : LU Securities no.: Class B : Securities no.: Class P : Subfund performance 1 October September 213: Subfund performance 17 April September 213: Class B : (.24%) Class P : (.9%) 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.

8 Page 8 Swisscanto (LU) SICAV II Money Market EUR Activity Reports Swisscanto (LU) SICAV II Money Market EUR Market review European GDP remained subdued for a large part of the reporting year, with only a very modest recovery late in the period under review thanks largely to Germany's contribution. Weak growth throughout most of Europe was fuelled by rising unemployment, poor wage growth and as a consequence, low consumer spending. Inflation dropped below the ECB's 2% target rate throughout the reporting year, led by softer Energy prices. In turn the ECB remained accommodative throughout, cutting Official Rates to 5bp in Q Review of categories relevant to the fund European Money Market rates fell over the course of the reporting period, as political developments in the European periphery and stunted global recovery led to a sustained accommodative policy from many of the worlds' Central Banks. Lower rated bank and financial issuers continued to trade expensively as nominal rates remained largely compressed, but continued to see healthy market support as investors hunted for yield. Performance review During the course of the reporting year, the conservative investment allocation was maintained. Portfolio Managers avoided 'peripheral Europe' and instead targeted the perceived safe haven issuers of core and semi core European states. Investments in the money market sector remained expensive as the 'lowerforlonger' theme for nominal rates ensured yields remained at or near alltime lows. The average maturity of the Portfolio was marginally lengthened during the period under review with investments in 'tailend' Bonds, Euro Commercial Paper and Floating Rate Notes. ISIN no.: Class B : LU ISIN no.: Class P : LU Securities no.: Class B : Securities no.: Class P : Subfund performance 1 October September 213: Subfund performance 17 April September 213: Class B : (.14%) Class P : (.4%) 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 Page 9 Swisscanto (LU) SICAV II Money Market USD Activity Reports Swisscanto (LU) SICAV II Money Market USD Market review GDP growth peaked at the end of Q3 212 and slid to recessionary conditions by year end as inventories were rundown and Government spending curtailed. Growth improved over the balance of the period, but remained subdued by historic norms. The employment situation improved with the unemployment rate falling from 7.8% to 7.3%, but much of this was due to a declining participation rate. Inflation was tame with CPI falling to 1.5% and PPI to 1.4%, from 2.% and 2.1% respectively. Most notably ISM surveys, both manufacturing and nonmanufacturing surged to multi year highs. Review of categories relevant to the fund US LIBOR rates in all maturities fell to historic lows over the course of the reporting period, in response to the still fragile market conditions and an ongoing accommodative Central Bank policy. New issuance remained very light with corporate issuance, both primary and secondary, trading expensively on an historical basis. Performance review Over the reporting year, the main focus of the Portfolio Managers was once again to invest new flows and redemption capital in high quality, short dated Bonds, Euro Commercial Paper and Floating Rate Notes. The average maturity of the Fund was maintained over the course of the year under review as Central Bank policy kept short end rates 'pegged' forcing investors further up the yield curve in search of returns. In light of this, the Portfolio Managers focused investments in the medium range of the funds maturity spectrum in the aforementioned high grade instruments. ISIN no.: Class B : LU ISIN no.: Class P : LU Securities no.: Class B : Securities no.: Class P : Subfund performance 1 October September 213: Subfund performance 17 April September 213: Class B : (.3%) Class P :.2% 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 Page 1 Swisscanto (LU) SICAV II Bond Medium Term CHF Activity Reports Swisscanto (LU) SICAV II Bond Medium Term CHF Market review Switzerland remained among the best positioned to weather the global economic slowdown. A weak export market was assisted by the SNB's intervention in FX markets, where a 1.2 'target' in EUR/CHF was maintained. A healthy domestic picture made up for this shortfall resulting in positive growth throughout the reporting year. Unemployment rose marginally to 3.2%. The Swiss National Bank maintained an accommodative stance throughout and with falling inflation left Official Rates at zero. Review of categories relevant to the fund 5 Year Swiss Government bond yields fell from a largely 'rangebound' position at the beginning of 213 as political upset in Peripheral Europe steered investor appetite to 'safe haven' bonds. Swiss yields rose, as most financial markets then sold off heavily in the summer, following the announcement from the Federal Reserve that 'Tapering' of its QE program would soon be introduced. In light of the ensuing market reaction, the Fed Chairman announced a delay to this policy action late in Q3 213, where bond yields fell once again throughout September 213. Performance review The Portfolio Managers maintained the fund exposure to selected financial paper in short dated maturities where yields remained attractive. This strategy remained in place in light of the ECB's existing 'LTRO' program which in effect eradicated short term credit risk by offering European banks a 3 year credit facility. The funds steepening yield curve allocation remained in place with an overweight in 13 year paper and underweight at the longer end of the funds term structure. An underweight duration stance therefore remained in place throughout the reporting year. 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 : Subfund performance 1 October September 213: Subfund performance 27 May September 213: Class A : (.3%) Class B : (.3%) Class P : (.1%) 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 Page 11 Swisscanto (LU) SICAV II Bond Medium Term EUR Activity Reports Swisscanto (LU) SICAV II Bond Medium Term EUR Market review European GDP remained subdued for a large part of the reporting year, with only a very modest recovery late in the period under review thanks largely to Germany's contribution. Weak growth throughout most of Europe was fuelled by rising unemployment, poor wage growth and as a consequence, low consumer spending. Inflation dropped below the ECB's 2% target rate throughout the reporting year, led by softer Energy prices. In turn the ECB remained accommodative throughout, cutting Official Rates to 5bp in Q Review of categories relevant to the fund 5 Year benchmark Government bond yields fell from a largely 'rangebound' position at the beginning of 213 as political upset in Italy drove investor demand into core European bonds. German yields rose, as most financial markets then sold off heavily in the summer, following the announcement from the Federal Reserve that 'Tapering' of its QE program would soon be introduced. In light of the ensuing market reaction, the Fed Chairman announced a delay to this policy action late in Q3 213, when bond yields fell once again throughout September 213. Performance review The portfolio managers maintained an overweight in 34 year paper as Central Bank policy kept short rates compressed. A largely neutral duration stance was maintained throughout, with an occasional, light underweight bias. An overweight allocation to select core European, Scandinavian and Australian Covered and Agency paper was held versus an underweight in French Government bonds. This was in view of weak fundamentals and a less than stable political backdrop in France over the reporting year. 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 : Subfund performance 1 October September 213: Subfund performance 27 May September 213: Class A : (.31%) Class B : (.32%) Class P : (.39%) 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 Swisscanto (LU) SICAV II Bond CHF Activity Reports Swisscanto (LU) SICAV II Bond CHF Market review Switzerland remained among the best positioned to weather the global economic slowdown. A weak export market was assisted by the SNB's intervention in FX markets, where a 1.2 'target' in EUR/CHF was maintained. A healthy domestic picture made up for this shortfall resulting in positive growth throughout the reporting year. Unemployment rose marginally to 3.2%. The Swiss National Bank maintained an accommodative stance throughout and with falling inflation left Official Rates at zero. Review of categories relevant to the fund 1 Year Swiss Government bond yields fell from a largely 'rangebound' position at the beginning of 213 as political upset in Peripheral Europe steered investor appetite to 'safe haven' bonds. Swiss yields rose, as most financial markets then sold off heavily in the summer, following the announcement from the Federal Reserve that 'Tapering' of its QE program would soon be introduced. In light of the ensuing market reaction, the Fed Chairman announced a delay to this policy action late in Q3 213, where bond yields fell once again throughout September 213. Performance review The Portfolio Managers maintained the fund exposure to selected financial paper in short dated maturities where yields remained attractive. This strategy remained in place in light of the ECB's existing 'LTRO' program which in effect eradicated short term credit risk by offering European banks a 3 year credit facility. The funds 'Bullet' yield curve allocation remained in place with an overweight in 71 year paper and underweight at the short and long ends of the term structure. A strategic underweight duration stance remained in place throughout the reporting year. 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 : Subfund performance 1 October September 213: Subfund performance 23 May September 213: Class A : (.98%) Class B : (.98%) Class P : (.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.

13 Page 13 Swisscanto (LU) SICAV II Bond EUR Activity Reports Swisscanto (LU) SICAV II Bond EUR Market review European GDP remained subdued for a large part of the reporting year, with only a very modest recovery late in the period under review thanks largely to Germany's contribution. Weak growth throughout most of Europe was fuelled by rising unemployment, poor wage growth and as a consequence, low consumer spending. Inflation dropped below the ECB's 2% target rate throughout the reporting year, led by softer Energy prices. In turn the ECB remained accommodative throughout, cutting Official Rates to 5bp in Q Review of categories relevant to the fund 1 Year benchmark Government bond yields fell from a largely 'rangebound' position at the beginning of 213 as political upset in Italy drove investor demand into core European bonds. Bund yields rose, as most financial markets sold off heavily in the summer, following the announcement from the Federal Reserve that 'Tapering' of its QE program would soon be introduced. In light of the ensuing market reaction, the Fed Chairman announced a delay to this policy action late in Q3 213, when bond yields fell once again throughout September 213. Performance review The fund remained invested in selective core European, Scandinavian and Australian covered and Agency issuance as an 'out of benchmark' or 'proxy' to an underweight allocation in French Government paper. This remained in place in light of the weak economic fundamentals in France and less than stable political backdrop. The funds duration remained close to neutral with a small underweight bias at times. The yield curve positioning focused on the 'belly of the curve' with underweight in short and long maturities in view of the steepening curve slope. 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 : Subfund performance 1 October September 213: Subfund performance 23 May September 213: Class A : (.23%) Class B : (.21%) Class P : (1.72%) 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 Swisscanto (LU) SICAV II Bond USD Activity Reports Swisscanto (LU) SICAV II Bond USD Market review GDP growth peaked at the end of Q3 212 and slid to recessionary conditions by year end as inventories were rundown and Government spending curtailed. Growth improved over the balance of the period, but remained subdued by historic norms. The employment situation improved with the unemployment rate falling from 7.8% to 7.3%, but much of this was due to a declining participation rate. Inflation was tame with CPI falling to 1.5% and PPI to 1.4%, from 2.% and 2.1% respectively. Most notably ISM surveys, both manufacturing and nonmanufacturing surged to multi year highs. Review of categories relevant to the fund 1 year Government bond yields rose during the first half of the reporting period as stronger economic data weighed on the market, only to fall back into late spring as strength tempered. The most significant market moves followed comments by the Federal Reserve Board regarding the USD 85 billion per month asset purchase program. In late May'13 Fed Chairman Bernanke suggested they may 'taper' their purchases. This pushed yields significantly higher across the curve. In late September though, when such action was expected, the Central Bank decided against tapering its QE program, thereby pushing yields lower again. Performance review The Portfolio Managers remained largely neutral in terms of duration and yield curve throughout the year. Outofbenchmark high grade investment was largely liquidated late in 212 as spreads fell to levels such that they offered no real compensation against spread risk. Short dated Treasuries were switched into High grade FRN's at this time, to increase the fund yield and mitigate interest rate risk. 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 : Subfund performance 1 October September 213: Subfund performance 16 May September 213: Class A : (2.98%) Class B : (2.98%) Class P : (2.52%) 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 Page 15 Swisscanto (LU) SICAV II Bond Absolute Return (CHF) Activity Reports Swisscanto (LU) SICAV II Bond Absolute Return (CHF) Market review The Fed's QE 3 programme ensured that volatility was clearly below average over the past year. The real estate market in the USA along with the equities market was one of the main beneficiaries of the US central bank's policy. In addition to the USA, Japan conducted an ultra relaxed monetary policy. This led to a considerable weakening of the Japanese yen and a booming Japanese equities market. As for China, there was still uncertainty surrounding the course of the economy, which led to further insecurity, particularly on Asian equities markets and on the commodities market. During the first quarter of 213, the Cypriot banking system had to be rescued. Possible shock waves on the equities market, however, did not happen. At the end of May, Fed Chairman Ben Bernanke announced that the Fed wanted to slow down its bond purchase programme. This announcement brought the equities markets under pressure and was accompanied by rising volatility. The bond markets also reacted to this announcement and the US 1year interest rate rose from below 2% to over 3%. When in September 213 Mr Bernanke announced there would be a temporary deferral of the cut in QE 3, there was a small scale explosion of prices on the equities markets and interest rates fell again. Review of categories relevant to the fund The interest rate markets were highly volatile during the reporting period. The 1year US interest rate fluctuated between 1.5% and 2% until the beginning of May. Finally interest rates rose to almost 3% and at the end of the reporting period amounted to 2.6%. By the end of April 213, interest rates on 1year German government bonds had fallen to below 1.2%, finally rising again to above 2%. At the end of the reporting period they amounted to 1.8%. The credit risk premium for global corporate bonds of an investmentgrade narrowed during the reporting period, which was a positive factor for investors. In addition in midmay a low point of 1.3% was reached while at the end of the reporting period credit risk premiums were at 1.43%. There was a similar picture for credit risk premiums for high yield bonds, which also reached a low point in mid May 213 at just over 4%. At the end of the reporting period, high yield spreads were at 4.6%, a narrowing of around 9 basis points over the reporting period. Performance review Performance was satisfactory when considered over the whole of the reporting period. We mainly pursued an active credit selection over the period. At present we prefer papers in the BBB and BB segments and also we see good opportunities in the subordinated sector. Towards the end of the reporting period, we actively employed a duration strategy. We reduced the average duration from around 2 years to a of almost zero in order to protect the portfolio from rising interest rates. In February we used volatility futures in order to protect the portfolio from potentially high volatility due to the difficulty in forming a government in Italy. 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 Page 16 Swisscanto (LU) SICAV II Bond Absolute Return (CHF) Activity Reports (cont.) 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 : Subfund performance 1 October September 213: Subfund performance 22 May September 213: Class A : 2.46% Class B : 2.46% Class P : (.63%) 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 Page 17 Swisscanto (LU) SICAV II Bond Absolute Return (EUR) Activity Reports Swisscanto (LU) SICAV II Bond Absolute Return (EUR) Market review The Fed's QE 3 programme ensured that volatility was clearly below average over the past year. The real estate market in the USA along with the equities market was one of the main beneficiaries of the US central bank's policy. In addition to the USA, Japan conducted an ultra relaxed monetary policy. This led to a considerable weakening of the Japanese yen and a booming Japanese equities market. As for China, there was still uncertainty surrounding the course of the economy, which led to further insecurity, particularly on Asian equities markets and on the commodities market. During the first quarter of 213, the Cypriot banking system had to be rescued. Possible shock waves on the equities market, however, did not happen. At the end of May, Fed Chairman Ben Bernanke announced that the Fed wanted to slow down its bond purchase programme. This announcement brought the equities markets under pressure and was accompanied by rising volatility. The bond markets also reacted to this announcement and the US 1year interest rate rose from below 2% to over 3%. When in September 213 Mr Bernanke announced there would be a temporary deferral of the cut in QE 3, there was a small scale explosion of prices on the equities markets and interest rates fell again. Review of categories relevant to the fund The interest rate markets were highly volatile during the reporting period. The US 1year interest rate fluctuated between 1.5% and 2% until the beginning of May. Finally interest rates rose to almost 3% and at the end of the reporting period amounted to 2.6%. By the end of April 213, interest rates on 1year German government bonds had fallen to below 1.2%, finally rising again to above 2%. At the end of the reporting period they amounted to 1.8%. The credit risk premium for global corporate bonds of an investmentgrade narrowed during the reporting period, which was a positive factor for investors. In addition in midmay a low point of 1.3% was reached while at the end of the reporting period credit risk premiums were at 1.43%. There was a similar picture for credit risk premiums for high yield bonds, which also reached a low point in mid May 213 at just over 4%. At the end of the reporting period, high yield spreads were at 4.6%, a narrowing of around 9 basis points over the reporting period. Performance review Performance was satisfactory when considered over the whole of the reporting period. We mainly pursued an active credit selection over the period. At present we prefer papers in the BBB and BB segments and also we see good opportunities in the subordinated sector. Towards the end of the reporting period, we actively employed a duration strategy. We reduced the average duration from around 2 years to a of almost zero in order to protect the portfolio from rising interest rates. In February we used volatility futures in order to protect the portfolio from potentially high volatility due to the difficulty in forming a government in Italy. 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 Page 18 Swisscanto (LU) SICAV II Bond Absolute Return (EUR) Activity Reports (cont.) 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 : Subfund performance 1 October September 213: Subfund performance 23 May September 213: Class A : 2.53% Class B : 2.53% Class P : (.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.

19 Page 19 Swisscanto (LU) SICAV II Portfolio Yield (EUR) Activity Reports Swisscanto (LU) SICAV II Portfolio Yield (EUR) Market overview The announcement by the US central bank at the beginning of the reporting period that it would keep interest rates low by continuing to purchase government bonds brought about a rise in risk appetite among market participants. The exceptionally relaxed monetary policy in the USA created further stimulation to the gradually improving economy. The position in relation to the debt crisis in the eurozone also sharpened after an agreement was reached on new aid payments to Greece and in relation to a timetable for reforms. Furthermore the European Central Bank (ECB) decided to reduce interest rates in early May. In June suggestions emanating from US central bank circles that it would probably taper its bond purchases during the current year brought about a marked change in mood. With the increasing risk aversion, positions were reduced, regardless of the asset class, which had the effect of considerably decreasing prices on a broad front. To the surprise of many market participants however, the US central bank in mid September decided, despite the good economic climate, to keep the monthly purchases of government bonds and real estate papers at a level of USD 85 billion. Review of categories relevant to the fund The worldwide equities index from the perspective of a euro investor gained more than 14% during the reporting period. The regional yield differences were considerable. The highest gains of around 25% were on the Swiss and Japanese stock markets, while European stocks rose by about 17% and Latin American markets lost over 12%. Interest rates showed variable movements depending on the currency area. The synthetic benchmarks for the EUR area, Japan and Switzerland achieved positive yields in their respective local currency. In the USA and UK, on the other hand, the yields on benchmark indices were slightly negative. The euro gained against all the main currencies. Performance review The fund rose during the reporting period by not quite 1.8%, so its performance was slightly below the synthetic benchmark. The underweighting in government bonds of peripheral eurozone countries made a negative contribution. In terms of equities, the fund showed gains similar to the benchmark index. The asset allocation approach made a positive contribution to the result. ISIN no.: Class A : LU ISIN no.: Class B : LU Securities no.: Class A : Securities no.: Class B : Subfund performance 1 October September 213: Class A : 1.77% Class B : 1.77% 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 Page 2 Swisscanto (LU) SICAV II Portfolio Balanced (EUR) Activity Reports Swisscanto (LU) SICAV II Portfolio Balanced (EUR) Market overview The announcement by the US central bank at the beginning of the reporting period that it would keep interest rates low by continuing to purchase government bonds brought about a rise in risk appetite among market participants. The exceptionally relaxed monetary policy in the USA created further stimulation to the gradually improving economy. The position in relation to the debt crisis in the eurozone also sharpened after an agreement was reached on new aid payments to Greece and in relation to the timetable for reforms. Furthermore the European Central Bank (ECB) decided to reduce interest rates in early May. In June suggestions emanating from US central bank circles that it would probably taper its bond purchases during the current year brought about a marked change in mood. With the increasing risk aversion, positions were reduced, regardless of the asset class, which had the effect of considerably decreasing prices on a broad front. To the surprise of many market participants however, the US central bank in mid September decided, despite the good economic climate, to keep the monthly purchases of government bonds and real estate papers at a level of USD 85 billion. Review of categories relevant to the fund The worldwide equities index from this perspective of a euro investor gained more than 14% during the reporting period. The regional yield differences were considerable. The highest gains of around 25% were on the Swiss and Japanese stock markets, while European stocks rose by about 17% and Latin American markets lost over 12%. Interest rates showed variable movements depending on the currency area. The synthetic benchmarks for the EUR area, Japan and Switzerland achieved positive yields in their respective local currency. In the USA and UK, yields on benchmark indices were slightly negative. The euro gained against all the main currencies. Performance review The fund rose during the reporting period by not quite 4.7%, so its performance was slightly below the synthetic benchmark. The underweighting in government bonds of peripheral eurozone countries made a negative contribution. In terms of equities, the fund showed gains similar to the benchmark index. The asset allocation approach made a positive contribution to the result. ISIN no.: Class A : LU ISIN no.: Class B : LU Securities no.: Class A : Securities no.: Class B : Subfund performance 1 October September 213: Class A : 4.68% Class B : 4.68% 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.

21 Page 21 Statement of Net Assets Swisscanto (LU) SICAV II Money Market CHF Swisscanto (LU) SICAV II Money Market EUR Swisscanto (LU) SICAV II Money Market USD Swisscanto (LU) SICAV II Bond Medium Term CHF Note CHF EUR USD CHF ASSETS Investment portfolio at market (2) 145,945,99 Bank balance 2,385,69 Receivables from sale of securities Outstanding subscription monies Receivables from securities revenue 918,889 Unrealised profit from currency forward contracts (8) Other TOTAL ASSETS 149,249, ,468,244 23,13, ,222 5,457, ,852,73 147,717,27 7,49,5 21, , ,165, ,82,735 99,415 1,641,73 1,367, ,91,479 LIABILITIES Bank overdraft Liabilities from securities purchases 924,686 Outstanding payments from the repurchase of stock 334,89 Net unrealised loss on futures (9) Bank interest and other liabilities 13,632 TOTAL LIABILITIES 1,273,28 NET ASSETS AT THE END OF FISCAL YEAR 147,976,389 1,366,491 1,915,1 91,196 3,372, ,48,6 1,15,97 31,56 42,14 1,88, ,76, ,479 15,548 17,96 854, ,56,356 Net asset per share Class A Class B Class P Number of shares in circulation Class A Class B Class P 1,47,14 9,342 3,484,738 55,381 1,366,811 21, ,466 72,

22 Page 22 Statement of Net Assets (cont.) Swisscanto (LU) SICAV II Bond Medium Term EUR Swisscanto (LU) SICAV II Bond CHF Swisscanto (LU) SICAV II Bond EUR Swisscanto (LU) SICAV II Bond USD Note EUR CHF EUR USD ASSETS Investment portfolio at market (2) 218,17,687 Bank balance 161,857 Receivables from sale of securities Outstanding subscription monies 19,656 Receivables from securities revenue 2,475,136 Unrealised profit from currency forward contracts (8) Other TOTAL ASSETS 22,674,336 91,925,464 11, ,11 1,55,592 93,755,883 12,441,42 182, ,457 23,178 1,827, ,689,62 44,765, ,676 6,98 294,465 27,18 45,338,994 LIABILITIES Bank overdraft Liabilities from securities purchases Outstanding payments from the repurchase of stock 514,928 Net unrealised loss on futures (9) Bank interest and other liabilities 282,658 TOTAL LIABILITIES 797,586 NET ASSETS AT THE END OF FISCAL YEAR 219,876,75 568, , ,564 92,958, , , , ,265,172 1,17 32,66 132,677 45,26,317 Net asset per share Class A Class B Class P Number of shares in circulation Class A Class B Class P 1,221, ,446 1, , ,219 11,68 338,97 64,26 67, , ,293 89,66

23 Page 23 Statement of Net Assets (cont.) Swisscanto (LU) SICAV II Bond Absolute Return (CHF) Swisscanto (LU) SICAV II Bond Absolute Return (EUR) Swisscanto (LU) SICAV II Portfolio Yield (EUR) Swisscanto (LU) SICAV II Portfolio Balanced (EUR) Note CHF EUR EUR EUR ASSETS Investment portfolio at market (2) 1,158,137,918 Bank balance 77,265,264 Receivables from sale of securities Outstanding subscription monies 5,243,467 Receivables from securities revenue 18,46,367 Unrealised profit from currency forward contracts (8) 22,671,693 Other 1,14,291 TOTAL ASSETS 1,282,739, 212,945,77 3,766, ,22 3,377,745 2,413,88 22, ,445,685 84,518,647 11,445,531 61,793 31,448 1,112,771 75,828 5,921 97,251,939 43,798,348 3,948,277 64, 49, ,45 27,984 5,665 48,327,456 LIABILITIES Bank overdraft 25,72 Liabilities from securities purchases 4,918,46 Outstanding payments from the repurchase of stock 385,535 Net unrealised loss on futures (9) 7,356,86 Bank interest and other liabilities 95,327 TOTAL LIABILITIES 13,86,786 NET ASSETS AT THE END OF FISCAL YEAR 1,268,878,214 44,15 911, ,322 1,34,834 24,893 2,8,483 22,645,22 15,54 616, ,279 6,6 212,97 1,137,2 96,114,739 1,36 17,667 4,4 12, ,182 48,84,274 Net asset per share Class A Class B Class P Number of shares in circulation Class A Class B Class P 9,493,161 2,932,14 419,81 1,456, ,842 45, , , , ,917

24 Page 24 Statement of Net Assets (cont.) Consolidated Note CHF ASSETS Investment portfolio at market (2) 2,997,439,454 Bank balance 138,89,263 Receivables from sale of securities 2,731,877 Outstanding subscription monies 7,424,71 Receivables from securities revenue 4,834,315 Unrealised profit from currency forward contracts (8) 25,752,475 Other 1,322,793 TOTAL ASSETS 3,214,395,248 LIABILITIES Bank overdraft 335,816 Liabilities from securities purchases 1,882,273 Outstanding payments from the repurchase of stock 5,647,87 Net unrealised loss on futures (9) 9,11,52 Bank interest and other liabilities 2,755,184 TOTAL LIABILITIES 28,631,862 NET ASSETS AT THE END OF FISCAL YEAR 3,185,763,386

25 Page 25 Income and Expense Statement and other Changes to Net Assets from 1 October 212 to 3 September 213 Swisscanto (LU) SICAV II Money Market CHF Swisscanto (LU) SICAV II Money Market EUR Swisscanto (LU) SICAV II Money Market USD Swisscanto (LU) SICAV II Bond Medium Term CHF Note CHF EUR USD CHF NET ASSETS AT THE BEGINNING OF FISCAL YEAR 223,44,271 INCOME Dividends, net Net interest income from bonds and other debenture bonds 1,846,446 Interest on bank balance Interest on swaps Other revenue TOTAL INCOME 1,846,446 EXPENSES Transaction costs (11) 13,454 Fixed administrative commission (3) 144,14 Subscription tax ("taxe d'abonnement") (4) 17,228 Interest expenses from bank liabilities 41,235 Other expenses TOTAL EXPENSES 216,57 INCOME ADJUSTMENT (285,298) TOTAL NET INCOME 1,345,91 Netrealised increases / (decreases) from securities (2,14,324) Net realised increases / (decreases) from swaps Netrealised increases / (decreases) from currency forward contracts Netrealised increases / (decreases) from futures contracts Netrealised increases / (decreases) from foreign exchange transactions (155) NET REALISED GAIN / (LOSS) ON INVESTMENTS (669,388) Net changes in nonrealised increases / (decreases) from securities (55,398) from swaps from futures from currency forward contracts NET INCREASE / NET DECREASE OF NET ASSETS (724,786) 62,34,969 9,992,391 9,992,391 1,11 1,39,434 46,834 1,447,279 (1,727,387) 6,817,725 (8,763,412) (1,945,687) (493,991) (2,439,678) 199,95,124 2,221,972 6,847 2,228,819 34, ,42 17, ,987 (176,19) 1,473,723 (1,491,222) (132) (17,631) (21,997) (228,628) 257,289,512 4,295,118 4,295,118 7,655 1,5,621 96,78 4,93 1,114,257 (798,797) 2,382,64 (1,114,826) (583) 1,266,655 (2,596,496) (1,329,841) Share subscriptions (2) 8,99,136 Share redemptions (2) (83,537,53) Distributions Income Adjustment 285,298 Measurement difference (2) NET ASSETS AT THE END OF FISCAL YEAR 147,976,389 24,276,288 (251,388,96) 1,727, ,48,6 9,179,569 (54,,637) 176,19 155,76,537 22,734,755 (129,49,958) (1,386,99) 798, ,56,356

26 Page 26 Income and Expense Statement and other Changes to Net Assets from 1 October 212 to 3 September 213 (cont.) Swisscanto (LU) SICAV II Bond Medium Term EUR Swisscanto (LU) SICAV II Bond CHF Swisscanto (LU) SICAV II Bond EUR Swisscanto (LU) SICAV II Bond USD Note EUR CHF EUR USD NET ASSETS AT THE BEGINNING OF FISCAL YEAR 328,441,746 INCOME Dividends, net Net interest income from bonds and other debenture bonds 7,421,493 Interest on bank balance Interest on swaps Other revenue TOTAL INCOME 7,421,493 EXPENSES Transaction costs (11) 1,139 Fixed administrative commission (3) 2,196,999 Subscription tax ("taxe d'abonnement") (4) 131,662 Interest expenses from bank liabilities 116 Other expenses TOTAL EXPENSES 2,338,916 INCOME ADJUSTMENT (1,4,316) TOTAL NET INCOME 4,78,261 Netrealised increases / (decreases) from securities (352,651) Net realised increases / (decreases) from swaps Netrealised increases / (decreases) from currency forward contracts Netrealised increases / (decreases) from futures contracts (44,5) Netrealised increases / (decreases) from foreign exchange transactions (3,) NET REALISED GAIN / (LOSS) ON INVESTMENTS 3,678,11 Net changes in nonrealised increases / (decreases) from securities (5,49,75) from swaps from futures from currency forward contracts NET INCREASE / NET DECREASE OF NET ASSETS (1,812,595) 24,594,61 2,935,336 2,935,336 5,4 1,88,64 7,51 9,15 1,173,16 (663,888) 1,98,288 4,945,394 (43) 6,43,279 (7,865,595) (1,822,316) 262,935,68 5,462,925 5,462,925 8,853 1,62,3 83, ,712,89 (1,396,23) 2,353,85 8,438,859 (5,977) 1,786,687 (12,216,617) (1,429,93) 66,941,331 1,18, ,18,829 8, ,658 23, ,652 (145,84) 53,93 1,755,273 88,314 5,282 2,351,962 (4,135,76) (1,783,114) Share subscriptions (2) 9,964,736 Share redemptions (2) (114,399,55) Distributions (3,321,93) Income Adjustment 1,4,316 Measurement difference (2) NET ASSETS AT THE END OF FISCAL YEAR 219,876,75 21,658,753 (131,581,899) (554,168) 663,888 92,958,319 45,148,562 (184,765,733) (1,19,25) 1,396,23 122,265,172 12,228,583 (31,99,888) (334,679) 145,84 45,26,317

27 Page 27 Income and Expense Statement and other Changes to Net Assets from 1 October 212 to 3 September 213 (cont.) Swisscanto (LU) SICAV II Bond Absolute Return (CHF) Swisscanto (LU) SICAV II Bond Absolute Return (EUR) Swisscanto (LU) SICAV II Portfolio Yield (EUR) Swisscanto (LU) SICAV II Portfolio Balanced (EUR) Note CHF EUR EUR EUR NET ASSETS AT THE BEGINNING OF FISCAL YEAR 632,638,185 INCOME Dividends, net Net interest income from bonds and other debenture bonds 37,267,427 Interest on bank balance 51 Interest on swaps 4,245 Other revenue TOTAL INCOME 37,271,723 EXPENSES Transaction costs (11) 83,248 Fixed administrative commission (3) 7,244,679 Subscription tax ("taxe d'abonnement") (4) 491,179 Interest expenses from bank liabilities 25,12 Other expenses TOTAL EXPENSES 8,69,226 INCOME ADJUSTMENT 11,45,818 TOTAL NET INCOME 4,68,315 Netrealised increases / (decreases) from securities (2,55,159) Net realised increases / (decreases) from swaps (55) Netrealised increases / (decreases) from currency forward contracts 15,61,719 Netrealised increases / (decreases) from futures contracts 2,483,898 Netrealised increases / (decreases) from foreign exchange transactions (4,95,442) NET REALISED GAIN / (LOSS) ON INVESTMENTS 52,543,276 Net changes in nonrealised increases / (decreases) from securities (24,243,123) from swaps (2,238) from futures (7,356,86) from currency forward contracts 8,329,38 NET INCREASE / NET DECREASE OF NET ASSETS 29,27, ,852,764 8,157, ,758 8,159,527 26,59 1,97,47 98,66 2,126 2,33, ,231 7,48,46 294, ,285,438 5,525 (411,93) 15,718,311 (6,769,339) (925) (1,34,834) (2,132,34) 5,475, ,992, ,498 2,78, ,249,993 13,985 1,247,374 5,812 1,145 1,743 1,315,59 (139,522) 1,795,412 3,672,73 378, ,324 (41,83) 6,169,475 (4,383,758) 27,86 (81,893) 1,73,91 57,425,82 552,852 1,5, ,692 1,562,745 12, ,395 25, , ,791 (84,5) 746,94 2,518, , ,297 (13,797) 3,596,145 (1,187,51) (9,73) (45,1) 2,354,561 Share subscriptions (2) 716,485,681 Share redemptions (2) (76,649,126) Distributions (21,461,197) Income Adjustment (11,45,818) Measurement difference (2) NET ASSETS AT THE END OF FISCAL YEAR 1,268,878,214 99,495,161 (38,393,633) (3,862,38) (922,231) 22,645,22 7,48,26 (25,111,466) (1,116,568) 139,522 96,114,739 5,942,621 (17,28,972) (441,68) 84,5 48,84,274