Julius Baer Multicash Société d Investissement à Capital Variable

Transcription

1 Julius Baer Multicash Société d Investissement à Capital Variable Annual Report as at 30 June 2016 (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 Swiss Funds & Asset Management Association (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 UNDER LUXEMBOURG LAW 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 B36405

2 Contents Page Organisation and Management 3 Information on risk management (unaudited) 5 Audit Report 6 Report of the Board of Directors 8 Notes to the Annual Report 9 Additional Information for Shareholders in Switzerland (unaudited) 16 Julius Baer Multicash (umbrella fund) 17 Julius Baer Multicash - MONEY MARKET FUND DOLLAR 19 Julius Baer Multicash - MONEY MARKET FUND EURO 25 Julius Baer Multicash - MONEY MARKET FUND STERLING 31 Julius Baer Multicash - MONEY MARKET FUND SWISS FRANC 37 Addresses 43 2

3 Organisation and Management The Company has its registered office at Michel Malpas (until 15 October 2015) 25, Grand-Rue Independent Director L Luxembourg Luxembourg, Grand Duchy of Luxembourg Board of Directors of the Company Michele Porro (until 19 August 2015) Member of the Group Management Board, GAM Group Chairman: Region Head Continental Europe Martin Jufer GAM Investment Management (Switzerland) AG Member of the Group Management Board, GAM Group Zurich, Switzerland Region Head Continental Europe GAM Investment Management (Switzerland) AG Managing Directors of the Management Company Zurich, Switzerland Ewald Hamlescher Members: Managing Director Me Freddy Brausch GAM (Luxembourg) S.A. Partner Luxembourg, Grand Duchy of Luxembourg Linklaters LLP Luxembourg, Grand Duchy of Luxembourg Steve Kieffer Managing Director Andrew Hanges GAM (Luxembourg) S.A. Region Head UK GAM (UK) Ltd. Luxembourg, Grand Duchy of Luxembourg London, United Kingdom Investment Manager Jean-Michel Loehr Independent Director GAM Investment Management (Switzerland) AG Frisange, Grand Duchy of Luxembourg Hardstraße 201 P.O. Box Dirk Spiegel CH Zurich General Counsel Continental Europe GAM Investment Management (Switzerland) AG The investment managers may hire investment advisers to Zurich, Switzerland assist them in managing individual sub-funds. Management Company and Domiciliary Agent Advisory company GAM (Luxembourg) S.A. GAM Advisory (Luxembourg) S.A. (until 31 December 2015) 25, Grand-Rue 25, Grand-Rue L Luxembourg L Luxembourg Board of Directors of the Management Company Chairman: Martin Jufer Member of the Group Management Board, GAM Group Region Head Continental Europe GAM Investment Management (Switzerland) AG Zurich, Switzerland Members: Andrew Hanges Region Head UK GAM (UK) Ltd. London, United Kingdom Yvon Lauret Independent Director Luxembourg, Grand Duchy of Luxembourg Custodian, Central Administrator and Principal Paying Agent as well as Registrar and Transfer Agent State Street Bank Luxembourg S.C.A. 49, Avenue J.F. Kennedy L Luxembourg Auditor PricewaterhouseCoopers, Société coopérative 2, rue Gerhard Mercator L Luxembourg Legal Adviser Linklaters LLP 35, Avenue J.F. Kennedy L Luxembourg 3

4 Organisation and Management Local Representatives Austria: Erste Bank der österreichischen Sparkassen AG Representative in Switzerland: Am Belvedere 1 GAM Investment Management (Switzerland) AG A Vienna Hardstraße 201 P.O. Box France: CH Zurich Caceis Bank 1-3 Place Valhubert Paying Agent in Switzerland: F Paris Bank Julius Bär & Co. AG Bahnhofstrasse 36 Spain: P.O. Box ATL12 Capital Inversiones A.V., S.A. CH Zurich C. / Montalbán 9 (until 31 March 2016) E Madrid State Street Bank International GmbH, Munich, Belgium: Zurich Branch RBC Investor Services Belgium S.A. (until 12 May 2016: State Street Bank GmbH, Munich, Boulevard du Roi Albert II, 37 Zurich Branch) B Brussels Beethovenstrasse 19 CH Zurich Sweden: (since 1 April 2016) MFEX Mutual Funds Exchange AB Grev Turegatan 19 Paying Agent in Germany: SE Stockholm DekaBank Deutsche Girozentrale Mainzer Landstraße 16 Distributors D Frankfurt / Main The Company and/or the Management Company has appointed and Information Agent in Germany: may appoint further distributors authorised to sell the shares in one or GAM (Deutschland) GmbH more jurisdictions. (until 14 December 2015: GAM (Deutschland) AG) Taunusanlage 15 D Frankfurt / Main 4

5 Information on risk management (unaudited) Commitment Approach On the basis of the respective investment policies and investment strategies (including the use of derivative financial instruments), the risk profile of the sub-funds stated below was determined according to the commitment approach (determining the aggregate risk through the liabilities). This means that a sub-fund s aggregate liabilities can be doubled at most through the use of derivative financial instruments. A sub-fund s aggregate liabilities are therefore capped at 200%. To calculate the aggregate liabilities, the positions in derivative financial instruments are converted into equivalent positions on the underlying assets. The aggregate liabilities of the derivative financial instruments are limited to 100% of the portfolio and therefore equate to the sum of the individual liabilities after netting or hedging. The following sub-funds determine their risk profile in accordance with the commitment approach: Julius Baer Multicash - MONEY MARKET FUND DOLLAR MONEY MARKET FUND EURO MONEY MARKET FUND STERLING MONEY MARKET FUND SWISS FRANC 5

6 Audit Report To the shareholders of Julius Baer Multicash Following our appointmen by the Annual General Meeting of Shareholders, we have auditedd the accompanying financial statements of Julius Baer Multicash (the SICAV ) and of each of its sub-funds, which comprise the statement of net assets, the securities portfolio as at 30 June 2016, the profit and loss account and the statement of changes in net assets for the year then ended, as well as a summary of significant accounting policies and otherr explanatory notes to thee financial statements. Responsibility of the Board of Directors s of the SICAV for the financial statements The Board of Directors of the SICAV is responsible for the preparation p and fair presentation of the financial statements in accordance with the Luxembourg legal and regulatoryy requirements relating to the preparation of financial statements, andd for the internal controls as the Board of Directors of the SICAV determines is necessary to enable the preparation of financial statements which are free from material misstatement, whether due to fraud or error. Responsibility of the Réviseur d entreprises agréé Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the International Standards S on Auditing as adoptedd for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit in order too obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about thee amounts and disclosures in the financial statements. The procedures selected depend on thee judgment of the Réviseur d entreprises agree, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making thosee risk assessments, the Réviseur d entreprises agree considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control system. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of accounting estimates made by the Board of Directors of the SICAV as well as evaluating the overall presentation p n of the financial statements. PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P. 1443, L Luxembourg Tel. : , Fax: , Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n ) n R.C..S. Luxembourg B VAT LU

7 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statementss give a true and fair vieww of the financial position of Julius Baer Multicash and of each of its sub-funds ass at 30 June 2016, and off their operations and changes in their net assets for the year then ended, in accordance with the Luxembourg legal and regulatory requirementsrelating to the preparation of financial statements. Other matters Supplementary informationn included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carriedd out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole. PricewaterhouseCoopers, Société coopérative Luxembourg, 7 October 2016 Represented by Marc Schernberg 7

8 Report of the Board of Directors Dear Investors, We are pleased to enclose the annual report of the SICAV Julius Baer Multicash. This report contains the Fund Management Report produced on behalf of the Board of Directors for the active sub-funds. It also includes the statement of net assets, the profit and loss account, the statement of changes in net assets, the comparative statement as well as the respective 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 2016). 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, in October 2016 On behalf of the Board of Directors of Julius Baer Multicash Martin Jufer Chairman of the Board of Directors Andrew Hanges Member of the Board of Directors 8

9 Notes to the Annual Report Legal information regarding the Company Julius Baer Multicash (the Company ) was incorporated on 15 March 1991 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 in the Luxembourg Trade and Companies Register under number B The Company s registered office is at 25, Grand-Rue, L Luxembourg. Share categories The following share classes are issued at present: - B shares: shares without distribution of income and/or capital gains - C shares (for institutional investors): shares without distribution of income and/or capital gains - E shares (for specific distributors, as defined in the prospectus): shares without distribution of income and/or capital gains Accounting principles Presentation of annual report The annual report of the Company has been prepared in compliance 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 Swiss francs by aggregating the assets and liabilities of the individual sub-funds using the exchange rates applicable on the last day of the financial year. Accounting The annual report of the Company was prepared in accordance with the regulations relating to undertakings for collective investment in transferable securities (UCITS) applicable in Luxembourg. The accrual principle is applied in the preparation ofthe annual report. The accounting principles are applied consistently. 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 transaction date. 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. 9

10 Notes to the Annual Report Foreign exchange differences Foreign exchange differences are attributable to the fluctuation in exchange rates over the course of the financial year. The foreign exchange difference is the result of consolidating the sub-fund currencies into the Fund currency. On the other hand, foreign exchange differences sub-fund refer to the conversion of individual share classes into the sub-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 profits/losses on the sale of securities are determined using the average historical acquisition costs. Securities 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 foreign exchange profits and losses are shown in the profit and loss account, together with net realised profit/loss from securities. 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 price (i.e. stale price, limited pricing sources). In those instances, the concerned securities are regularly monitored through a detailed analysis which is carried out at least monthly, and a quarterly more general overview. The monitoring is performed according to the principles and criteria defined by the Board of Directors. Securities lending Income from securities lending is shown separately in the profit and loss account. There were no outstanding securities lending positions as at 30 June 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 the unrealised appreciation/depreciation on securities. Commercial papers Commercial papers are issued at a discount until maturity. Options A purchaser of a put option has the right, but not the obligation, to sell an underlying instrument ( underlying ) at an agreed price ( strike price ) to the option seller. A purchaser of a call option has the right, but not the obligation, to purchase the underlying instrument at the strike price from the option seller. 10

11 Notes to the Annual Report Purchased options: Premiums paid by the sub-fund for purchased options are included in the statement of net assets as acquisition costs of the investement. The valuation of options is adjusted daily to reflect the current market value of the option. The change is recorded as Net change in the 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 the corresponding value is booked. If a sold option is exercised or closed, the paid premium with the sales proceeds of the underlying asset is settled or added to the cost price of the underlying asset in order 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 costs of an investment. The valuation of options is adjusted daily to reflect the current market value of the option. The change is shown under Net change in the unrealised appreciation/depreciation in the profit and loss account. Premiums received from written options that expire without being executed are treated as realised profits of 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 closing transaction to determine whether there has been a realised profit or loss. If a put option is exercised by an option buyer, the premium received by the option seller reduces the cost basis of purchased security. Written uncovered call options expose 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 expose the sub-fund to a risk of loss if the value of the underlying declines 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. Outstanding options traded on a regulated market are valued based on the closing price or the last available market price of the underlying security. OTC options are marked to market based upon prices obtained from third-party pricing agents and verified against the value from the counterparty. 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 unrealised profits / losses on options are disclosed in the profit and loss account under the heading Realised profit/loss on options and Net change in the unrealised appreciation/depreciation on options. Options, warrants and rights are recorded in numbers in the securities portfolio. For a future-style option contract the buyer of a future-style option does not prepay the premium. Buyers and sellers post margins as in a future contract, and the option premium is marked to market daily. Valuation differs from traditional futures options primarily in the analysis of the timing of cash flows associated with the buyer's non-payment of an upfront premium. 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 future agree on the delivery of the underlying instrument at a fixed price or for a cash amount based on the change in the value of the underlying instrument 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. 11

12 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 values of the forward foreign exchange contracts are adjusted daily based on the applicable exchange rate of the underlying currency. Changes in the value 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 change in unrealised profit / loss resulting there from 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 differences are contracts entered into between a broker and the sub-fund under which the parties 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 differences also mirror any corporate actions that take place. Contracts for differences are valued based on the closing market price of the underlying security, less 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 contract 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 as a result thereof 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) based on a nominal amount that serves as a computation basis which 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 as a result thereof 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 transaction in which two parties enter into an agreement, whereby one party (the protection buyer) pays the other (the protection seller) a fixed periodic coupon for the specified life of the agreement in return for a payment contingent on a credit event related to the underlying reference obligation. If a credit event occurs, the protection seller would be obligated to make a payment, which may be either: (i) a net cash settlement equal to the notional amount of the swap less 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. Potential liabilities under these contracts may be reduced by: the auction rates of the underlying reference obligations; upfront payments received at the inception of a swap; and net amounts received from credit default swaps purchased with the identical reference obligation. Credit default swaps are marked to market at each NAV calculation 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 shown in the statement of net assets under Derivative instruments - Swaps. Realised profits / losses and change in the unrealised profit / loss resulting there from are included in the profit and loss account under Realised profit / loss on swaps and Net change in the unrealised appreciation/depreciation on swaps. 12

13 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 represented by a security, commodity, basket or index thereof for a fixed or variable rate. One party pays out the total return of a specific reference asset, and in return, receives a regular stream of periodical payments. 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 cash flows to be exchanged are calculated by reference to an agreed upon notional amount or number. To the extent the total return of the reference asset underlying the transaction exceeds or falls short of the offsetting payment, the sub-fund will receive a payment from or make a 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 as a result thereof are included in the profit and loss account under Realised profit / loss on swaps and Net change in unrealised appreciation / depreciation on swaps. 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. In the case that a reimbursement request of withholding taxes is filed, any receivables are neither recorded nor 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. Any costs associated with submitting refund applications were/are charged to the concerned sub-funds. Any reimbursements of withholding taxes are included in the profit and loss account under the item 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, subject to an annual tax of 0.05% of the net assets (taxe d abonnement). A reduced taxe d abonnement of 0.01% p.a. shall apply to the net assets in share classes C and Ca (for institutional investors). The sub-funds of the Company, which are invested exclusively in deposits and money market instruments in accordance with the Law of 2010 (currently MONEY MARKET FUND DOLLAR, MONEY MARKET FUND EURO, MONEY MARKET FUND STERLING and MONEY MARKET FUND SWISS FRANC), are subject to the reduced tax rate of 0.01% p.a. of their net asset value. However, if parts of the Company s assets are invested in other Luxembourg UCITS and taxed, these are not taxed in the Company. This classification is based on the Company s understanding of the current legal situation, which may be subject to change with retroactive effect. 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 net assets at the end of each quarter. 13

14 Notes to the Annual Report Costs and fees The statement of costs under the section entitled Costs and fees in the prospectus was restructured as at 1 July As of this date, the taxe d abonnement is included in the service fee, which has increased by the percentage rate of the taxe d abonnement as a result. Management fees For advisory services relating to the securities portfolios of the sub-funds, related administrative services and distribution services, the following 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 Shares Shares B C* E Julius Baer Multicash - MONEY MARKET FUND DOLLAR 0.20% 0.10% 0.45% MONEY MARKET FUND EURO 0.20% 0.10% 0.45% MONEY MARKET FUND STERLING 0.25% 0.10% 0.50% MONEY MARKET FUND SWISS FRANC 0.15% 0.10% 0.40% * The Company does not pay distributors any commission for public sale undertaken in connection with the sale, offering or holding of C shares. The fees stated above are used to remunerate distributors and asset managers for distributing shares of the sub-funds and to reimburse institutional investors. Servicing fee 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); 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 on behalf of the Company. The Servicing Fee may be charged by the Management Company at different rates for individual sub-funds and/or share categories within a given sub-fund or may be waived in full. The annual maximum Servicing Fee is shown in the table below. Both, Management Fee and the Servicing Fee, will 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. The Management Fee and the Servicing Fee together constitute the Total Expense Ratio (TER) of the respective sub-fund and/or share category. The Management Fee and the Servicing are both capped. Any costs exceeding this cap are borne by the Management Company. 14

15 Notes to the Annual Report Transaction costs The transaction costs primarily include brokerage fees. The transaction costs incurred during the financial year are included in the costs of the securities purchased and sold. During the period from 1 July 2015 to 30 June 2016, the Company incurred transaction costs in the amount set out below in connection with the purchase and sale of securities: Julius Baer Multicash - MONEY MARKET FUND DOLLAR USD 0 MONEY MARKET FUND EURO EUR 0 MONEY MARKET FUND STERLING GBP 0 MONEY MARKET FUND SWISS FRANC CHF The transaction costs reported above may be misleading, as the different costs incurred in transactions are not always reported separately and, in some instances, are included directly in the purchase and sale costs. For the sub-funds stated above, this may therefore result in differing transaction costs for comparable investments and transaction volumes. Other expenses include: Currency Servicing Fee Other Expenses Total Julius Baer Multicash - MONEY MARKET FUND DOLLAR USD MONEY MARKET FUND EURO EUR MONEY MARKET FUND STERLING GBP MONEY MARKET FUND SWISS FRANC CHF

16 Additional Information for Shareholders in Switzerland (unaudited) Benchmarks Julius Baer Multicash - MONEY MARKET FUND DOLLAR MONEY MARKET FUND EURO MONEY MARKET FUND STERLING MONEY MARKET FUND SWISS FRANC BofA ML USD LIBID Overnight TR EMMI EONIA Euro Overnight Index Average SONIA Sterling OverNight Index Average Citigroup CHF Eurodeposit 1 Month Performance* Julius Baer Multicash - Shares Currency 1 year 3 years Since launch Perf. Benchmark Perf. Benchmark Perf. Benchmark MONEY MARKET FUND DOLLAR B USD 0.29% 0.16% 0.26% 0.27% 82.05% % MONEY MARKET FUND DOLLAR C USD 0.40% 0.16% 0.60% 0.27% 40.80% 43.33% MONEY MARKET FUND DOLLAR E USD 0.04% 0.16% -0.49% 0.27% 17.89% 28.67% MONEY MARKET FUND EURO B EUR -0.46% -0.22% -0.92% -0.10% % % MONEY MARKET FUND EURO C EUR -0.31% -0.22% -0.48% -0.10% 34.20% 43.77% MONEY MARKET FUND EURO E EUR -0.71% -0.22% -1.66% -0.10% 17.42% 33.08% MONEY MARKET FUND STERLING B GBP 0.33% 0.46% 0.79% 1.34% % % MONEY MARKET FUND STERLING C GBP 0.46% 0.46% 1.17% 1.34% 59.77% 65.10% MONEY MARKET FUND STERLING E GBP 0.08% 0.46% 0.03% 1.34% 35.63% 48.96% MONEY MARKET FUND SWISS FRANC B CHF -0.91% -1.04% -1.12% -1.73% 45.82% 57.84% MONEY MARKET FUND SWISS FRANC C CHF -0.81% -1.04% -0.83% -1.73% 11.22% 15.33% MONEY MARKET FUND SWISS FRANC E CHF -1.15% -1.04% -1.86% -1.73% 0.72% 10.05% Total Expense Ratio (TER) Julius Baer Multicash - TER excluding Performance TER including Currency performance fee fees performance fee in % in % in % MONEY MARKET FUND DOLLAR Accumulation shares (B-USD shares) USD Accumulation shares (C-USD shares) USD Accumulation shares (E-USD shares) USD MONEY MARKET FUND EURO Accumulation shares (B-EUR shares) EUR Accumulation shares (C-EUR shares) EUR Accumulation shares (E-EUR shares) EUR MONEY MARKET FUND STERLING Accumulation shares (B-GBP shares) GBP Accumulation shares (C-GBP shares) GBP Accumulation shares (E-GBP shares) GBP MONEY MARKET FUND SWISS FRANC Accumulation shares (B-CHF shares) CHF Accumulation shares (C-CHF shares) CHF Accumulation shares (E-CHF shares) CHF The TER is calculated in accordance with the relevant SFAMA Guidelines on the Calculation and Disclosure of the TER. * The information and returns relate to past reporting periods and do not provide an indication of future income. The performance of the sub-funds is calculated in accordance with the applicable SFAMA Guidelines on the Calculation and Publication of Performance Data of Collective Investment Schemes. 16

17 Julius Baer Multicash COMBINED STATEMENT OF NET ASSETS as at 30 June 2016 CHF Assets Investments at market value (acquisition cost: CHF ) Bank deposits* Receivables from the issue of shares Receivables on securities sold Dividends and interest Total Assets Liabilities Liabilities on the redemption of shares Liabilities on securities purchases Management fees payable Other liabilities Total liabilities Net Assets *Also include deposits at brokers. The accompanying notes form an integral part of the financial statements. 17

18 Julius Baer Multicash COMBINED PROFIT AND LOSS ACCOUNT from 1 July 2015 until 30 June 2016 CHF Income Income from securities Bank interest Equalisation Total income Expenses Management fees Interest expense on bank liabilities Other expenses Equalisation Total expenses Net profit/loss Realised profit/loss on: - Securities Equalisation Net realised profit/loss Net change in the unrealised appreciation/depreciation on: - Securities Total profit/loss COMBINED STATEMENT OF CHANGES IN NET ASSETS 30 June June 2016 CHF CHF Net assets at the beginning of the financial year Foreign exchange difference Foreign exchange difference - sub-fund Total profit/loss Net receipts/payments from the issue and redemption of shares Net assets at the end of the financial year EXCHANGE RATES USED FOR THE CONSOLIDATION as at 30 June 2016 (in CHF) 1 EUR = CHF 1 GBP = CHF 1 USD = CHF The accompanying notes form an integral part of the financial statements. 18

19 Julius Baer Multicash - MONEY MARKET FUND DOLLAR Fund Management Report Investment Policy Julius Baer Multicash - MONEY MARKET FUND DOLLAR invests predominantly in money market investments and variable or fixed-income securities denominated in US dollars. The investment objective is to achieve current income in accordance with the money market while aiming for high levels of liquidity and capital security. The sub-fund enables investors to invest their liquid assets efficiently. Market review and portfolio Owing to the sound performance of the US economy, many market participants expected the Fed to begin tightening its monetary policy in autumn Fears of an economic slowdown in China sparked an increase in risk premiums on US bond markets from the middle of This meant that the Fed could not increase its key interest rates until December At the beginning of 2016, burgeoning fears of a recession as well as price falls on the commodity and energy markets again triggered market turbulence. Over the following months, economic growth slowed down slightly, and fewer new jobs were created than expected. The Brexit referendum at the end of June led to further uncertainty, which is set to continue for some time. The portfolio comprises money market investments with short maturities and high credit ratings. From the middle of 2015, the sub-fund was able to benefit from rising US money market interest rates. Variable interest-bearing instruments make up around 30% of the portfolio; the remainder is invested in bonds with short maturities and commercial papers. The sectors with the highest weightings are agencies, industrial companies and mortgage bonds. Canada, Germany, Sweden and the United States dominate the country allocation. Issuers from southern European countries are underweighted. The information in this report is based on historical data and is no indication of future performance. 19

20 Julius Baer Multicash - MONEY MARKET FUND DOLLAR STATEMENT OF NET ASSETS as at 30 June 2016 USD Assets Investments at market value (acquisition cost: USD ) Bank deposits Receivables from the issue of shares Dividends and interest Total Assets Liabilities Liabilities on the redemption of shares Liabilities on securities purchases Management fees payable Other liabilities Total liabilities Net Assets The accompanying notes form an integral part of the financial statements. 20

21 Julius Baer Multicash - MONEY MARKET FUND DOLLAR PROFIT AND LOSS ACCOUNT from 1 July 2015 until 30 June 2016 USD Income Income from securities Bank interest Equalisation Total Income Expenses Management fees Other expenses* Total Expenses Net profit/loss Realised profit/loss on: - Securities Equalisation Net realised profit/loss Net change in the unrealised appreciation/depreciation on: - Securities Total profit/loss CHANGES IN NET ASSETS 30 June June 2016 USD USD Net assets at the beginning of the financial year Foreign exchange difference - sub-fund Total profit/loss Net receipts/payments from the issue and redemption of shares Net assets at the end of the financial year * See page 15. The accompanying notes form an integral part of the financial statements. 21

22 Julius Baer Multicash - MONEY MARKET FUND DOLLAR COMPARATIVE STATEMENT 30 June June June 2016 Number of shares Number of shares Number of shares Number of shares in circulation Accumulation shares (B-USD shares) Accumulation shares (C-USD shares) Accumulation shares (E-USD shares) USD USD USD Net Assets In the share class currency In the share class currency In the share class currency NAV per share Accumulation shares (B-USD shares) Accumulation shares (C-USD shares) Accumulation shares (E-USD shares)

23 Julius Baer Multicash - MONEY MARKET FUND DOLLAR SECURITIES PORTFOLIO AS AT 30 JUNE 2016 Quantity/ Nominal (in 1 000) Security Maturity date Market value USD % of net assets TOTAL % SECURITIES TRADED ON A STOCK EXCHANGE % Bonds % USD % % Agence Francaise de Developpement % % Anheuser-Busch InBev Finance, Inc % % Bank Nederlandse Gemeenten NV % % Bank Nederlandse Gemeenten NV 144A % % BMW US Capital LLC % % BP Capital Markets Plc % % Caisse d Amortissement de la Dette Sociale % % Daimler Finance North America LLC % % FMS Wertmanagement AoeR % % FMS Wertmanagement AoeR % % General Electric Capital Co % % Japan Bank for International Cooperation % % KFW % % Kommunalbanken AS 144A % % Kommunekredit % % Kommuninvest I Sverige AB % % Landwirtschaftliche Rentenbank 144A % % Municipality Finance Plc % % Nederlandse Waterschapsbank NV % % Nederlandse Waterschapsbank NV 144A % % Network Rail Infrastructure Finance Plc % % Nordea Eiendomskreditt AS % % Province of Ontario Canada % % Royal Bank of Canada % % Shell International Finance BV % % Svensk Exportkredit AB % % Sweden Government International Bond % SECURITIES TRADED ON ANOTHER REGULATED MARKET % Bonds % USD % % ABN AMRO Bank NV 144A % % American Express Credit Corp % % American Honda Finance Corp % % American Honda Finance Corp % % Australia & New Zealand Banking Group Ltd. 144A % % Bank of America Corp % % Bank of Montreal 144A % % Bank of Nova Scotia % % Bayer US Finance LLC 144A % % Berkshire Hathaway Finance Corp % % Caterpillar Financial Services Corp % % Chevron Corp % % Commonwealth Bank of Australia 144A % % Cooperatieve Centrale Raiffeisen-Boerenleenbank UA/NY % % Daimler Finance North America LLC % % Dexia Credit Local S.A % The statement of changes in the securities portfolio is available free of charge from the national paying agents and the representative in Switzerland. Any inconsistencies in the net assets percentages are the result of rounding differences. 23

24 Julius Baer Multicash - MONEY MARKET FUND DOLLAR SECURITIES PORTFOLIO AS AT 30 JUNE 2016 (continued) Quantity/ Nominal (in 1 000) Security Maturity date Market value USD % of net assets % Exxon Mobil Corp % % Home Depot, Inc % % JPMorgan Chase & Co % % National Australia Bank Ltd % % PepsiCo, Inc % % Svenska Handelsbanken AB % % Swedbank Hypotek AB 144A % % Toronto-Dominion Bank % % Toronto-Dominion Bank % % Toyota Motor Credit Corp % % UnitedHealth Group, Inc % % Verizon Communications, Inc % % Wells Fargo Bank NA % % Wells Fargo Bank NA % % Westpac Banking Corp % CASH-EQUIVALENT FINANCIAL INSTRUMENTS % Commercial papers % USD % Agence Centrale Organismes % Agence Centrale Organismes % Agrium, Inc % BAT International Finance Plc % Bell Canada % Deutsche Telekom AG % ENI Finance USA, Inc % Export Finance & Insurance Corp % Ford Motor Credit Company LLC % Korea Development Bank % LVMH Finance Belgique S.A % Merck Financial Services GmbH % Mondelez International, Inc % Nissan Motor Acceptance Co % Potash Corp. SASK % Schlumberger Holdings Corp % Suncor Energy, Inc % Vasteras kommun % Vinci S.A % VW CR, Inc % Treasury notes % USD % % United States Treasury Bill % % United States Treasury Bill % The statement of changes in the securities portfolio is available free of charge from the national paying agents and the representative in Switzerland. Any inconsistencies in the net assets percentages are the result of rounding differences. 24