SWISSCANTO (LU) BOND INVEST

Transcription

1 SWISSCANTO (LU) BOND INVEST Investment fund under Luxembourg law Audited annual report as at 31 January 211 Management Company: MANAGEMENT COMPANY S.A. Custodian bank: RBC Dexia Investor Services Bank S.A. R.C.S. B38348 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 as at 31 January 211 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 Running from 1 February 21 to 31 January Statistics 34 Bond Invest EUR 44 Investment portfolio 44 Geographic and economic composition of Investment portfolio 46 Bond Invest USD 47 Investment portfolio 47 Geographic and economic composition of Investment portfolio 49 Bond Invest CHF 5 Investment portfolio 5 Geographic and economic composition of Investment portfolio 53 Bond Invest GBP 54 Investment portfolio 54 Geographic and economic composition of Investment portfolio 55 Bond Invest CAD 56 Investment portfolio 56 Geographic and economic composition of Investment portfolio 57 Bond Invest AUD 58 Investment portfolio 58 Geographic and economic composition of Investment portfolio 59 Bond Invest International 6 Investment portfolio 6 Geographic and economic composition of Investment portfolio 65 Bond Invest Medium Term CHF 66 Investment portfolio 66 Geographic and economic composition of Investment portfolio 69 Bond Invest Medium Term USD 7 Investment portfolio 7 Geographic and economic composition of Investment portfolio 72 Bond Invest Medium Term EUR 73 Investment portfolio 73 Geographic and economic composition of Investment portfolio 75 Bond Invest Opportunities Short Term EUR 76 Investment portfolio 76 Geographic and economic composition of Investment portfolio 77 Bond Invest Global Corporate 78 Investment portfolio 78 Geographic and economic composition of Investment portfolio 84

3 as at 31 January 211 Page 3 Contents (cont.) Page Bond Invest Global Convertible 85 Investment portfolio 85 Geographic and economic composition of Investment portfolio 87 Notes on the annual report 88 Report by the Réviseur d'entreprises agréé 96

4 as at 31 January 211 Page 4 Administration and Corporate Bodies Management Company MANAGEMENT COMPANY S.A. 69, route d'esch, L147 Luxembourg Management Board Chairman Dr. G. Fischer, CEO Swisscanto Holding AG, Bern Members S.P. Cossins, Managing Director Swisscanto Funds Centre Limited, London R.C. Branda, Director International Business Development Swisscanto Asset Management AG, Bad Säckingen, Germany Management H. Frey, Director of the Management Company Managing Director Swisscanto Asset Management AG, Bern Local Corporate Management Members R. Goddard, Independent Company Director, The Directors' Office, Luxembourg Custodian Bank, Main Payment, Central Administration, Registration and Transfer Offices RBC Dexia Investor Services Bank S.A. 14, Porte de France, L436 EschsurAlzette Portfolio Manager Swisscanto Asset Management AG Nordring 4, 3 Bern 25 Swisscanto Funds Centre Limited 4th Floor, 51 Moorgate, GBLondon, EC2R 6BH Investment advisory committee Dr. T. Stucki, Chief Investment Officer of St. Galler Kantonalbank Gruppe and Member of the Corporate Management of Hyposwiss Privatbank AG, St. Gallen (Chairman) M. Baumgartner, Deputy Director, Schaffhauser Kantonalbank, Schaffhausen M. Curti, Member of the Management Board, Zürcher Kantonalbank, Zurich A. Leiser, Member of the Mangement Board, Berner Kantonalbank, Bern O. Maillard, Authorized Representative, Banque Cantonale de Fribourg, Fribourg M. Völkle, Member of the Mangement Board, Basler Kantonalbank, Basel (until 3 June 21) R. Armbruster, Member of the Mangement Board, Basler Kantonalbank, Basel (from 1 July 21)

5 as at 31 January 211 Page 5 Administration and Corporate Bodies (cont.) Payment and sales offices Germany DekaBank Deutsche Girozentrale Mainzer Landstrasse 16, D6325 Frankfurt am Main ( the German payment and information centre ) Liechtenstein Valartis Bank (Liechtenstein) AG Schaaner Strasse 27, FL9487 GamprinBendern Luxembourg RBC Dexia Investor Services Bank S.A. 14, Porte de France, L436 EschsurAlzette Austria Vorarlberger Landes und Hypothekenbank AG HypoPassage 1 A69 Bregenz Switzerland Basler Kantonalbank Spiegelgasse 2, CH42 Basel all offices of the Cantonal Banks in Switzerland and Bank Coop AG, Basel Representative Bank in Switzerland Basler Kantonalbank Spiegelgasse 2, CH42 Basel Independent Auditor KPMG Audit S.à r.l. 9, Allée Scheffer, L252 Luxembourg Legal Advisors Anwaltskanzlei Arendt & Medernach 14, rue Erasme, L282 Luxembourg Hengeler Mueller Partnerschaft von Rechtsanwälten Bockenheimer Landstrasse 24, D6323 Frankfurt am Main

6 as at 31 January 211 Page 6 General Information Investment funds under Luxembourg Umbrella Construction Law is subject to the legal provisions set forth in the first part of Luxembourg law regarding the undertakings for collective investment dated 2 December 22. The contractual conditions of the investment fund were set forth by the management company on 3 October Several amendments followed and, in accordance with the terms of the contract, were published in "Memorial". The current versions of the management company's articles of association and the contract terms of fund, along with any amendments thereof have been deposited at the Kanzlei des Bezirksgerichts (Chancellery of the Circuit Court) Luxembourg, where they can be viewed. The contract terms, the simplified and the detailed sales prospectus, the annual and semiannual reports can be obtained directly, free of charge in printed form from Swisscanto Fondsleitung AG, at the Management Company's head office, the Custodian Bank and its representative in Switzerland, from the German payment and information office, and from any branch of the cantonal banks and any payment and sales office. The information is also available on the Swisscanto website ( where additional current information on the fund is also available. No investments may be received based on the annual and semi annual reports. Subscriptions shall only be made after consulting the current sales prospectus and the most recent annual report, as well as, where available, any subsequent semiannual report. Sales restrictions Shares in may not be offered, sold or delivered within the US. Guidelines of the Swiss Funds Association SFA concerning transparency in administrative commissions (7 June 25) Compensation for the marketing of the investment fund 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.

7 as at 31 January 211 Page 7 Bond Invest EUR Activity Reports Bond Invest EUR The European sovereign debt crisis put substantial pressure on economic growth in the reporting year. While the German economy proved to be relatively stable due to continuation of robust domestic and foreign demand, growth in the other euro zone countries was low. Greece and Ireland were compelled to accept a bailout from the EU and the IMF. The labour markets in Europe (with the exception of Germany) remained under pressure, with unemployment reaching a 12year high. As a result, the European Central Bank adhered to its accommodating monetary policy during the reporting year. European government bond yields performed unevenly over the course of the year. At the start of the year a flight to quality helped German government bonds to outperform European peripheral paper, although this saw a reversal after the appetite for risk on the markets increased following support from the central bank. Corporate bonds were subject to fluctuation throughout the year, since the credit spreads followed the pattern of government bonds from the European periphery. They widened in the first half of the year, narrowing again towards the end of the reporting period as appetite for risk changed. In response to the continuing uncertainty on the markets, the Portfolio Managers decided during the reporting period to overweight Finnish, Dutch and Austrian government bonds, and to underweight Greek, Spanish, Portuguese and Irish government bonds. As a consequence the Fund outperformed its reference index over the course of the year. The sale of some highquality corporate bonds in the second quarter of 21 also had a positive impact on the Fund's performance. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class I : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class I : Subfund performance 1 February January 211: Class A : 1.64% Class B : 1.65% Class I* : 2.1% * The performance of the I classes is calculated on the basis of the "valuation net asset value" ("unswung" net asset value). In contrast, the other classes are calculated on the basis of the modified net asset value ("swung" net asset value). The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

8 as at 31 January 211 Page 8 Bond Invest USD Activity Reports Bond Invest USD Economic recovery in the US remained slow in the reporting year. Growth was supported by a relatively weak US dollar, which had a positive effect on foreign demand. Despite governmentsponsored stimulus programmes, the domestic market nevertheless remained relatively weak in the reporting period, since US consumers preferred to save their disposable income due to uncertainty and the high level of unemployment. Against this backdrop the Federal Reserve continued its accommodating monetary policy during the reporting year, leaving its key rate unchanged at.25%. The Fed also introduced a policy of quantitative easing in order to boost the liquidity on the market. Tenyear government bonds performed unevenly over the course of the reporting year. In the first three quarters, yields were in decline since the monetary policy and quantitative easing programme of the central bank, together with falling overall inflation, provided support to the government bond market. From the fourth quarter of 21 onwards, however, there was then a turnaround, since investors' appetite for risk increased again, resulting in outperformance by US corporate bonds. The Portfolio Managers retained their defensive asset allocation in the reporting period and invested almost exclusively in US Treasuries. Profits were largely taken on the highquality corporate bonds remaining in the portfolio in the first half of the year, since the Portfolio Managers correctly expected a widening of credit spreads. Ignoring costs, the Fund outperformed its reference index in the reporting year. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class I : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class I : Subfund performance 1 February January 211: Class A : 3.77% Class B : 3.77% Class I* : 4.13% * The performance of the I classes is calculated on the basis of the "valuation net asset value" ("unswung" net asset value). In contrast, the other classes are calculated on the basis of the modified net asset value ("swung" net asset value). The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

9 as at 31 January 211 Page 9 Bond Invest CHF Activity Reports Bond Invest CHF The Swiss economy remained relatively well supported by global exports in the reporting period. Expansion in emerging markets compensated for falling demand from Europe, where the 16 euro zone countries suffered from the sovereign debt crisis. Consumer confidence and the business climate in Switzerland remained robust during the reporting period, resulting in a strong franc and a dynamic labour market. The Swiss National Bank monitored these trends attentively and intervened on the foreign exchange markets to weaken its domestic currency and provide support for Swiss exports. The National Bank also adhered to its accommodating monetary policy during the reporting year. A flight to quality in the first half of 21 resulted in a significant fall in yields on tenyear CHF bonds. As the year progressed, however, there was a strong countermovement, because interest in riskier investments increased again, leading to a narrowing of credit spreads and outperformance by bank and corporate bonds with lower ratings. Overall a flattening of the yield curve was observed in the reporting period. In response to the continued uncertainty on financial markets, the Portfolio Managers stuck to their conservative asset allocation policy throughout the reporting period. New capital inflows were invested exclusively in firstclass government and semigovernment bonds. The Fund underperformed its benchmark due to this policy, since the narrowing of credit spreads led to outperformance by bank and corporate bonds of lower quality over the course of the year. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class I : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class I : Subfund performance 1 February January 211: Class A : 1.46% Class B : 1.46% Class I* : 1.91% * The performance of the I classes is calculated on the basis of the "valuation net asset value" ("unswung" net asset value). In contrast, the other classes are calculated on the basis of the modified net asset value ("swung" net asset value). The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

10 as at 31 January 211 Page 1 Bond Invest GBP Activity Reports Bond Invest GBP Recovery in the UK was adversely affected by the European sovereign debt crisis in the reporting year because there was a drop in demand for exports to Europe. Growth also suffered from the uncertainty surrounding the parliamentary elections in the middle of the year, resulting in a subdued mood in the UK and depreciation of Sterling. Consumer confidence remained weak due to the costcutting measures introduced by the new government, with unemployment rising to 8% in the reporting year. The Bank of England adhered to its accommodating policy and left its key rate unchanged at.5%. The monetary policy committee's quantitative easing programme amounting to GBP 2 billion continued to be implemented during the reporting year. Yields on tenyear UK government bonds fell in the first half of the year, with flight to quality and the aversion to risk on the market being contributing factors. A change in investor sentiment in the fourth quarter of 21 nonetheless led to a significant turnaround. An appetite for risk returned to the financial markets, leading to a narrowing of credit spreads and outperformance by bank and corporate bonds with lower ratings. The 13year segment of the curve tended to become steeper overall across wide stretches of the reporting year, although it did flatten again in the fourth quarter. Due to ongoing market volatility, the Portfolio Managers stuck to a conservative strategy throughout the reporting period. In the second quarter, profits were taken on some highquality corporate bonds. As a consequence the Fund outperformed its reference index over the reporting year. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class I : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class I : Subfund performance 1 February January 211: Class A : 3.79% Class B : 3.78% Class I* : 4.35% * The performance of the I classes is calculated on the basis of the "valuation net asset value" ("unswung" net asset value). In contrast, the other classes are calculated on the basis of the modified net asset value ("swung" net asset value). The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

11 as at 31 January 211 Page 11 Bond Invest CAD Activity Reports Bond Invest CAD Compared to other countries, Canada remained one of the most resilient economies in the reporting year. Exports continued to receive good support from the US and emerging markets, since demand for Canadian commodities remained robust. The Canadian industrial sector was a pillar of the domestic labour market, as reflected in a fall in the unemployment rate to 7.6%. Low credit costs and government tax breaks continued to ensure relatively strong consumer confidence. The Bank of Canada was one of the few central banks that pursued a defensive monetary policy during the year. It increased its key rate by a total of 75 basis points. Canadian government bonds remained well supported in the first half of the year, because the flight to quality caused tenyear yields to fall. In the second half of the year this trend reversed to some extent, since the greater appetite for risk produced narrower credit spreads and underperformance by government bonds. The yield curve remained volatile during the reporting period, although it did flatten in the course of the year. The Portfolio Managers stuck to their conservative asset allocation policy in the reporting year. At the start of the reporting period the strategy was aligned with a flattening of the yield curve, which ultimately led to profits in the second quarter. In the second and third quarters, a long duration position was also adopted, which was closed at a profit in October. The highquality corporate bonds remaining in the portfolio benefited from narrowing of credit spreads over the course of the year, which was a contributing factor in outperforming the benchmark. ISIN no.: Class A : LU ISIN no.: Class B : LU Securities no.: Class A : Securities no.: Class B : Subfund performance 1 February January 211: Class A : 3.7% Class B : 3.7% 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 as at 31 January 211 Page 12 Bond Invest AUD Activity Reports Bond Invest AUD The Australian economy remained healthy in the reporting period, since strong growth in emerging markets created high demand for Australian commodities. Together with the ongoing projects for development of the infrastructure, this meant that full employment was reached in Australia in the course of the year. However, these excellent general conditions were badly affected by the flood damage in Queensland, with a negative impact on harvests and mining. The Reserve Bank of Australia increased its key rate by 1 basis points, since concerns about inflation outweighed the focus on domestic growth. Yields on Australian government bonds fell in the first half of the year, since the global economic climate tended to promote a flight to quality. As the year progressed, however, there was a reversal in this trend, as greater appetite for risk held sway on financial markets, resulting in outperformance by paper with lower ratings. The yield curve changed inconsistently, even though a general tendency towards flattening was observed in the reporting year. The Portfolio Managers stuck to their conservative asset allocation policy in the reporting period. In the first and second quarters the strategy was aligned with a flattening of the yield curve, which ultimately led to profits at the end of May 21. Performance in comparison with the benchmark also benefited from the remaining positions in highquality corporate bonds. Over the course of the year a general narrowing of credit spreads led to outperformance by these securities and paper with lower ratings in comparison with the corresponding Australian government bonds. ISIN no.: Class A : LU ISIN no.: Class B : LU Securities no.: Class A : Securities no.: Class B : Subfund performance 1 February January 211: Class A : 3.91% Class B : 3.91% 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 as at 31 January 211 Page 13 Bond Invest International Activity Reports Bond Invest International The Australian economy remained healthy in the reporting period, since strong growth in emerging markets created high demand for Australian commodities. Together with the ongoing projects for development of the infrastructure, this meant that full employment was reached in Australia in the course of the year. However, these excellent general conditions were badly affected by the flood damage in Queensland, with a negative impact on harvests and mining. The Reserve Bank of Australia increased its key rate by 1 basis points, since concerns about inflation outweighed the focus on domestic growth. Yields on Australian government bonds fell in the first half of the year, since the global economic climate tended to promote a flight to quality. As the year progressed, however, there was a reversal in this trend, as greater appetite for risk held sway on financial markets, resulting in outperformance by paper with lower ratings. The yield curve changed inconsistently, even though a general tendency towards flattening was observed in the reporting year. The Portfolio Managers stuck to their conservative asset allocation policy in the reporting period. In the first and second quarters the strategy was aligned with a flattening of the yield curve, which ultimately led to profits at the end of May 21. Performance in comparison with the benchmark also benefited from the remaining positions in highquality corporate bonds. Over the course of the year a general narrowing of credit spreads led to outperformance by these securities and paper with lower ratings in comparison with the corresponding Australian government bonds. ISIN no.: Class A : LU ISIN no.: Class B : LU Securities no.: Class A : Securities no.: Class B : Subfund performance 1 February January 211: Class A : (6.13%) Class B : (6.13%) 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 as at 31 January 211 Page 14 Bond Invest Medium Term CHF Activity Reports Bond Invest Medium Term CHF The Swiss economy remained relatively well supported by global exports in the reporting period. Expansion in emerging markets compensated for falling demand from Europe, where the 16 euro zone countries suffered from the sovereign debt crisis. Consumer confidence and the business climate in Switzerland remained robust during the reporting period, resulting in a strong franc and a dynamic labour market. The Swiss National Bank monitored these trends attentively and intervened on the foreign exchange markets to weaken its domestic currency and provide support for Swiss exports. The National Bank also adhered to its accommodating monetary policy during the reporting year. Yields on fiveyear CHF bonds fell in the first half of the year, with flight to quality and the general aversion to risk being contributing factors. There was nevertheless a reversal in this trend in the second half of the year, as market interest in riskier investments increased again. The result was a narrowing of credit spreads and outperformance by banking and financial securities with lower ratings in comparison with government bonds. In response to the continued uncertainty on financial markets, the Portfolio Managers stuck to their conservative asset allocation policy throughout the reporting period. New capital inflows were invested exclusively in firstclass government and semigovernment bonds. The Fund underperformed its benchmark due to this policy, since the narrowing of credit spreads led to outperformance by bank and corporate bonds of lower quality over the course of the year. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class I : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class I : Subfund performance 1 February January 211: Class A :.5% Class B :.51% Class I* : 1.1% * The performance of the I classes is calculated on the basis of the "valuation net asset value" ("unswung" net asset value). In contrast, the other classes are calculated on the basis of the modified net asset value ("swung" net asset value). The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

15 as at 31 January 211 Page 15 Bond Invest Medium Term USD Activity Reports Bond Invest Medium Term USD Economic recovery in the US remained slow in the reporting year. Growth was supported by a relatively weak US dollar, which had a positive effect on foreign demand. Despite governmentsponsored stimulus programmes, the domestic market nevertheless remained relatively weak in the reporting period, since US consumers preferred to save their disposable income due to uncertainty and the high level of unemployment. Against this backdrop the Federal Reserve continued its accommodating monetary policy during the reporting year, leaving its key rate unchanged at.25%. The Fed also introduced a policy of quantitative easing in order to boost the liquidity on the market. In the first three quarters, yields on fiveyear government bonds were in decline since the monetary policy and quantitative easing programme of the central bank, together with falling overall inflation, provided support to the US Treasury market. A change in the appetite for risk in the fourth quarter of 21 led to a turnaround, resulting in a narrowing of credit spreads and outperformance by US bonds with lower ratings. The Portfolio Managers retained their defensive strategy in the reporting period and invested almost exclusively in US Treasuries. Profits were largely taken on the highquality corporate bonds remaining in the portfolio in the first half of the year, since the Portfolio Managers correctly expected a widening of credit spreads. Ignoring costs, the Fund outperformed its reference index in the reporting year. At the start of the third quarter, profits were also taken on a flattening position. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class I : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class I : Subfund performance 1 February January 211: Class A : 2.36% Class B : 2.36% Class I* : 2.81% * The performance of the I classes is calculated on the basis of the "valuation net asset value" ("unswung" net asset value). In contrast, the other classes are calculated on the basis of the modified net asset value ("swung" net asset value). The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

16 as at 31 January 211 Page 16 Bond Invest Medium Term EUR Activity Reports Bond Invest Medium Term EUR The European sovereign debt crisis put substantial pressure on economic growth in the reporting year. While the German economy proved to be relatively stable due to continuation of robust domestic and foreign demand, growth in the other euro zone countries was low. Greece and Ireland were compelled to accept a bailout from the EU and the IMF. The labour markets in Europe (with the exception of Germany) remained under pressure, with unemployment reaching a 12year high. As a result, the European Central Bank adhered to its accommodating monetary policy during the reporting year. Yields on fiveyear European government bonds performed unevenly over the course of the year. A flight to quality helped German government bonds to outperform the European periphery, although later in the year this saw a reversal after the appetite for risk on the markets increased following support from the central bank. Corporate bonds were subject to fluctuation throughout the year, since the credit spreads followed the pattern of government bonds from the European periphery. They widened in the first half of the year, narrowing again towards the end of the reporting period as appetite for risk changed. In response to the continuing uncertainty on the markets, the Portfolio Managers decided during the reporting period to overweight Finnish, Dutch and Austrian government bonds, and to underweight Greek, Spanish, Portuguese and Irish government bonds. As a consequence the Fund outperformed its reference index over the course of the year. The sale of some highquality corporate bonds in the second quarter of 21 also had a positive impact on the Fund's performance. ISIN no.: Class A : LU ISIN no.: Class B : LU ISIN no.: Class I : LU Securities no.: Class A : Securities no.: Class B : Securities no.: Class I : Subfund performance 1 February January 211: Class A :.75% Class B :.76% Class I* : 1.3% * The performance of the I classes is calculated on the basis of the "valuation net asset value" ("unswung" net asset value). In contrast, the other classes are calculated on the basis of the modified net asset value ("swung" net asset value). The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

17 as at 31 January 211 Page 17 Bond Invest Opportunities Short Term EUR Activity Reports Bond Invest Opportunities Short Term EUR The European sovereign debt crisis put substantial pressure on economic growth in the reporting year. While the German economy proved to be relatively stable due to continuation of robust domestic and foreign demand, growth in the other euro zone countries was low. Greece and Ireland were compelled to accept a bailout from the EU and the IMF. The labour markets in Europe (with the exception of Germany) remained under pressure, with unemployment reaching a 12year high. As a result, the European Central Bank adhered to its accommodating monetary policy during the reporting year. European government bond yields performed unevenly over the course of the year. A flight to quality helped German government bonds to outperform the European periphery, although this saw a reversal after the appetite for risk on the markets increased following support from the central bank. Corporate bonds were subject to fluctuation throughout the year, since the credit spreads followed the pattern of government bonds from the European periphery. They widened in the first half of the year, narrowing again towards the end of the reporting period as appetite for risk changed. EURIBOR rates essentially moved within a narrow range in the period under review, due to the policies adopted by central banks. The Fund continued to follow a conservative approach in the reporting period. Cash flows were invested in firstclass corporate bonds when suitable opportunities arose. An intensive attempt was made to maintain the Fund's maturities profile, even though the liquidity in suitable "grandfathered" paper remained weak. Effective 1 February 211 the subfund Bond Invest Opportunities Short Term EUR with its net asset value as at 31 January 211 will be transferred into the subfund Bond Invest Medium Term EUR. ISIN no.: Class B : LU Securities no.: Class B : 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 as at 31 January 211 Page 18 Bond Invest Global Corporate Activity Reports Bond Invest Global Corporate In the credit sector, attention revolved almost exclusively around the topic of the PIIGS in 21. Much more has already been said about this than there is even to say. The only thing that is clear, however, is that the EU has so far failed to provide a clearcut response to this smouldering fire on a potentially large scale. Although the market has calmed down noticeably since JeanClaude Trichet, with unprecedented clarity, first announced the ECB's determination to save the monetary union and then underpinned it with a few dozen billion EUR, a longterm credible solution is still not in sight. We expect that Portugal will still need the protection of the bailout in the first quarter of 211 and Spain will be thoroughly tested, and that we will not know until then whether the EU has the problem under control. Relatively large movements in both directions are likely before then. Since the countries on the periphery of Europe represent a large proportion of the capitalweighted reference indices, we are still faced with the unpleasant dilemma of large absolute and large relative risk. We are sticking to our underweight in PIIGS countries, although we will also buy opportunistically if the market deteriorates into panic mode and the prices factor in some massive cuts to capital. While we believe that the credit market will prove to be very robust, we tend to be cautious and will use the large issue volumes in the first few months to buy bonds with attractive valuations. 211 will nevertheless not be an easy year for corporate bonds. On the one hand, we believe that the market is in the middle of a cyclical recovery phase and consequently should outperform government bonds. On the other, a satisfactory solution has yet to be found for the crisis in the peripheral countries. These countries should boost growth and aim at full employment in order to generate a sustained surplus in their budgets, instead of taking part in the EU's "wateringcan" policy. The stress tests in the European banking system have shown that they are not so very far away from the competition in the US and enjoy sufficient capital protection to stem the losses. In this context we prefer Scandinavian, Australian and emergingmarket banks over EMU banks. Since the Fund tranches were launched at different points in time, the performance figures for the reporting period are also different. "Global Corp. H CHF" (launch at the end of February) was.47% below the benchmark, "Global Corp. H EUR" (launch in midmarch) underperformed the index by.4%, while "Global Corp. H USD" (launch at the end of June) outperformed it by.41%. The good performance overall was due to the overweight in securities with BBB rating. Cyclical investment grade bonds (capital goods, basic industry) and the highyield segment defied the still slow and fragile economic recovery and the problems in euro zone countries. Exposure to the financial sector was reduced in the last quarter. Geographically the portfolio was diversified into growth regions such as Brazil and South East Asia and into stable countries such as Canada and Scandinavia. Positions in Southern European countries were reduced accordingly. ISIN no.: Class H (CHF) B: LU ISIN no.: Class H (EUR) B: LU ISIN no.: Class H (USD) B: LU Securities no.: Class H (CHF) B: Securities no.: Class H (EUR) B: Securities no.: Class H (USD) B: Subfund performance since launch on 26 February January 211: Class H (CHF) B: 3.55% Class H (EUR) B: 3.44% Class H (USD) B: 3.% 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 as at 31 January 211 Page 19 Bond Invest Global Convertible Activity Reports Bond Invest Global Convertible The equity markets and the economy overall performed positively in the reporting period. The central banks have largely stuck to their expansive monetary policy and supplied the markets generously with liquidity. All in all the financial system benefited from this. Corporate bond spreads fell back further, while a number of European countries revealed major problems due to their high levels of debt. The market rated some countries with higher spreads: Portugal and Ireland in particular, but also Spain, Italy, Belgium and France. So it was not surprising that the EUR had to accept severe losses against the major currencies, while the CHF made strong gains. Global equity markets tended to perform positively in the reporting period. In local currency terms, the US (S&P 5 Index) gained 7.6%. In Europe the EuroStoxx Index returned overall performance of 5%, and in Japan (Nikkei Index) the gain was 5.4% in the reporting period. The Fund also benefited from the positive performance. Volatility diminished further in the reporting period. Uncertainty among investors has tended to decline. In the composition of ratings, we held an overweight in the AA and A segments, to the detriment of BBB debtors. As a result the Fund benefited less strongly from the downward movement in spreads. Relative to the effective duration, which was about 1.7 years on average, the Fund was scarcely exposed to the risk of interestrate changes. The overall portfolio was slightly overweight in its equity investments in comparison with the benchmark. In general the Fund was able to benefit from the positive performance on financial markets. ISIN no.: Class H (CHF) B: LU ISIN no.: Class H (EUR) B: LU ISIN no.: Class H (CHF) J: LU ISIN no.: Class H (EUR) J: LU Securities no.: Class H (CHF) B: Securities no.: Class H (EUR) B: Securities no.: Class H (CHF) J: Securities no.: Class H (EUR) J: Subfund performance since launch on 12 November January 211: Class H (CHF) B: 1.85% Class H (EUR) B: 1.88% Class H (CHF) J*: 1.65% Class H (EUR) J*: 1.76% * The performance of the H (CHF) J and H (EUR) J classes is calculated on the basis of the "valuation net asset value" ("unswung" net asset value). In contrast, the other classes are calculated on the basis of the modified net asset value ("swung" net asset value). The historic performance is not an indicator of the current or future performance. Performance details do not take into account the costs and commissions for the issue and return of the shares. The information and figures contained in this report are based upon the past and provide no indication of future developments.

20 as at 31 January 211 Page 2 Bond Invest Global High Yield Activity Reports Bond Invest Global High Yield This fund was launched with three different currency tranches on 31 January 211. The first annual report will thus cover the period from 31 January 211 to 31 January 212. ISIN no.: Class H (CHF) B: LU ISIN no.: Class H (EUR) B: LU ISIN no.: Class H (USD) B: LU ISIN no.: Class H (CHF) J: LU Securities no.: Class H (CHF) B: Securities no.: Class H (EUR) B: Securities no.: Class H (USD) B: Securities no.: Class H (CHF) J: 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 as at 31 January 211 Page 21 Statement of Net Assets as at 31 January 211 Bond Invest EUR Bond Invest USD Bond Invest CHF Bond Invest GBP Note EUR USD CHF GBP ASSETS Investment portfolio including options (purchased options) at market value (2) 572,585,92 Bank balance 24,761,52 Receivables from sale of securities 3,36,547 Outstanding subscription monies 238,85 Receivables from securities revenue 8,41,67 Interest receivable on current accounts 1 Unrealised profit from currency forward contracts (3) Unrealised profit on futures (4) 363,3 Other assets TOTAL ASSETS 636,25,621 23,136,445 18,372,79 227,156 1,949, , ,796, ,237,237 65,2,14 258,691 8,877,15 81,392,957 14,297,787 7,526,317 1,838,169 44,636 1,245, , ,26,497 LIABILITIES Bank overdraft 2,1 Liabilities from securities purchases 14,79,97 Outstanding payments from the repurchase of stock 1,626,165 Net unrealised loss on forward foreign exchange contracts (3) Bank interest and other liabilities 779,555 TOTAL LIABILITIES 17,197,917 NET ASSETS AT END OF FISCAL YEAR 618,827,74 393,57 166,794 56, ,236,533 2,819,141 1,472,189 4,291,33 86,11,627 4,899, ,156 5,41,843 19,984,654 Net asset value per share Class A Class B Class H (CHF) B Class H (EUR) B Class H (USD) B Class H (CHF) J Class H (EUR) J Class I Number of units in circulation Class A Class B Class H (CHF) B Class H (EUR) B Class H (USD) B Class H (CHF) J Class H (EUR) J Class I 5,95,89 2,591, ,22 762,63 841,795 83,974 4,48,447 2,61,95 55, , ,734 8,64

22 as at 31 January 211 Page 22 Statement of Net Assets as at 31 January 211 (cont.) Bond Invest CAD Bond Invest AUD Bond Invest International Bond Invest Medium Term CHF Note CAD AUD CHF CHF ASSETS Investment portfolio including options (purchased options) at market value (2) 138,577,493 Bank balance 6,533,84 Receivables from sale of securities 4,612,767 Outstanding subscription monies 42,885 Receivables from securities revenue 1,4,42 Interest receivable on current accounts 7 Unrealised profit from currency forward contracts (3) Unrealised profit on futures (4) Other assets TOTAL ASSETS 151,167,412 39,63,668 25,431,374 8,567, ,921 4,599, ,93, ,444,241 54,558,24 32,155,281 44,431 6,698, ,15 647,933,423 1,87,527,328 29,355,122 1,74,147 12,474,5 1,131,96,62 LIABILITIES Bank overdraft Liabilities from securities purchases Outstanding payments from the repurchase of stock 59,148 Net unrealised loss on forward foreign exchange contracts (3) Bank interest and other liabilities 19,97 TOTAL LIABILITIES 25,55 NET ASSETS AT END OF FISCAL YEAR 15,917,357 61, ,81 1,48, ,881,249 16,515 13,216,864 1,543, ,361 86,398 15,754, ,178,889 1,55,57 1,31,267 2,86,324 1,128,236,278 Net asset value per share Class A Class B Class H (CHF) B Class H (EUR) B Class H (USD) B Class H (CHF) J Class H (EUR) J Class I Number of units in circulation Class A Class B Class H (CHF) B Class H (EUR) B Class H (USD) B Class H (CHF) J Class H (EUR) J Class I 681, ,644 1,772, ,931 5,818,236 1,263,167 5,5,91 4,9,819 55,773

23 as at 31 January 211 Page 23 Statement of Net Assets as at 31 January 211 (cont.) Bond Invest Medium Term USD Bond Invest Medium Term EUR Bond Invest Opportunities Short Term EUR Bond Invest Global Corporate USD EUR EUR USD ASSETS Investment portfolio including options (purchased options) at market value (2) 223,424,269 Bank balance 5,864,887 Receivables from sale of securities Outstanding subscription monies 391,424 Receivables from securities revenue 1,197,867 Interest receivable on current accounts Unrealised profit from currency forward contracts (3) Unrealised profit on futures (4) Other assets TOTAL ASSETS 23,878,447 33,598,7 13,96,4 1,277,852 4,322, ,5 349,386,731 23,8,529 1,418,85 526, ,953, ,373,856 9,254,159 3,358,934 1,224,238 5,818, ,282,249 1,459, ,771,437 LIABILITIES Bank overdraft Liabilities from securities purchases Outstanding payments from the repurchase of stock 926,981 Net unrealised loss on forward foreign exchange contracts (3) Bank interest and other liabilities 255,16 TOTAL LIABILITIES 1,182,87 NET ASSETS AT END OF FISCAL YEAR 229,696,36 5,13, , ,511 6,166,33 343,22,41 268,287 24,78 292,365 33,661,312 6,185, , ,382 6,924,873 46,846,564 Net asset value per share Class A Class B Class H (CHF) B Class H (EUR) B Class H (USD) B Class H (CHF) J Class H (EUR) J Class I Number of units in circulation Class A Class B Class H (CHF) B Class H (EUR) B Class H (USD) B Class H (CHF) J Class H (EUR) J Class I 69, , ,823 1,878,882 1,9, ,977 35,69 1,935,146 1,72,168 43,493

24 as at 31 January 211 Page 24 Statement of Net Assets as at 31 January 211 (cont.) Bond Invest Global Convertible Bond Invest Global High Yield Consolidated Note USD USD CHF ASSETS Investment portfolio including options (purchased options) at market value (2) 37,486,689 Bank balance 7,975,764 Receivables from sale of securities Outstanding subscription monies 46,89 Receivables from securities revenue 199,319 Interest receivable on current accounts 113 Unrealised profit from currency forward contracts (3) 1,148,755 Unrealised profit on futures (4) Other assets 168,49 TOTAL ASSETS 47,25,219 LIABILITIES Bank overdraft Liabilities from securities purchases Outstanding payments from the repurchase of stock 8,883 Net unrealised loss on forward foreign exchange contracts (3) Bank interest and other liabilities 45,49 TOTAL LIABILITIES 53,932 NET ASSETS AT END OF FISCAL YEAR 46,971,287 63,316,439 63,316,439 63,316,439 5,49,373, ,547,149 89,551,54 74,517,12 61,569, ,165,171 73,633 1,851,164 5,586,36,155 19,221 45,427,819 19,9, ,361 6,895,83 71,469,42 5,514,836,735 Net asset value per share Class A Class B Class H (CHF) B Class H (EUR) B Class H (USD) B Class H (CHF) J Class H (EUR) J Class I Number of units in circulation Class A Class B Class H (CHF) B Class H (EUR) B Class H (USD) B Class H (CHF) J Class H (EUR) J Class I ,11 98,576 14,11 6, , ,735 19,19 267,2

25 as at 31 January 211 Page 25 Income and Expense Statement and other Changes to Net Assets from 1 February 21 to 31 January 211 Bond Invest EUR Bond Invest USD Bond Invest CHF Bond Invest GBP Note EUR USD CHF GBP NET ASSETS AT THE BEGINNING OF FISCAL YEAR 75,71, ,99,869 87,77, ,16,121 INCOME Net interest income from bonds and other debenture bonds 23,521,639 Interest on bank balance 75,157 Commissions received (9) 1,277 Other revenue TOTAL INCOME 23,598,73 7,754,548 9, ,764,85 2,892,526 2,892,526 4,943,342 1,834 4,954,176 EXPENSES Transaction costs (2) 19,84 Fixed administrative commission (5) 5,643,159 Subscription tax ("taxe d'abonnement") (6) 323,539 Interest expenses from bank liabilities 43 Other expenses TOTAL EXPENSES 5,986,581 INCOME ADJUSTMENT (98,67) TOTAL NET INCOME 16,63,822 Netrealised value increases / (depreciations) from securities 29,122,23 Net realised gain / (loss) on options Netrealised value increases / (depreciations) from currency forward contracts Netrealised value increases / (depreciations) from forward contracts (762,93) Netrealised value increases / (depreciations) from foreign exchange transactions NET REALISED GAIN / (LOSS) ON INVESTMENTS 44,989,915 Net changes in nonrealised value increases / (depreciation) from securities (32,833,955) from futures 363,3 from currency forward contracts from options NET INCREASE / NET DEPRECIATION OF NET ASSETS 12,519,26 1,892 1,98,854 16, ,25,876 (117,916) 5,62,293 3,956, ,9 (2,422) 9,694,68 (1,579,147) 8,114,921 2,38 6,85, ,328 7,272,5 (674,577) 12,945,449 11,61,424 (2,468) 24,544,45 (12,452,631) 12,91, ,726 57,543 1,49,88 (25,55) 3,699,538 1,447,227 (225) (269) 5,146,271 (1,64,735) 74,167 4,155,73 Share subscription (2) 95,76,44 Share redemptions (2) (183,889,43) Distributions (12,244,91) Income Adjustment 98,67 Measurement difference (2) NET ASSETS AT THE END OF FISCAL YEAR 618,827,74 38,111,993 (46,93,482) (3,34,684) 117, ,236,533 91,812,794 (16,7,815) (9,24,44) 674,577 86,11,627 18,48,1 (31,223,621) (2,217,1) 25,55 19,984,654