Q&A Fund Merger Credit Suisse (Lux) Global Emerging Market Brands Equity Fund to Merge with Credit Suisse (Lux) Global Prestige Equity Fund

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1 Questions & Answers July 21, 2017 Q&A Fund Merger Global Emerging Market Brands to Merge with Global Prestige Key points In order to streamline the existing product range and to ensure more efficient management of assets, Credit Suisse Asset Management has decided to merge the Credit Suisse (Lux) Global Emerging Market Brands with the Global Prestige. The absorbing fund adopts a theme-based approach and invests in leading global and Asian brands that provide prestige goods and services and that are benefiting from the rise of the emerging consumer a structural long-term growth trend. Typically, up to one third of the portfolio is invested in emerging markets. The base currency of the fund is the euro. It is benchmarked against the MSCI World NR Index. The fund is managed by Juan Mendoza, who is also head of the Equities Asia team based in Hong Kong and Singapore. There will be slightly higher management fee for specific share classes. The merger will take place on August 28, Investors in the Global Emerging Market Brands may redeem their shares at any time until August 21, 2017, 15:00 CET. Which funds are being merged? Original fund Global Emerging Market Brands Share class EUR BH GBP BH USD IB EUR IBH USD UB EUR UBH USD EB ISIN, valor no. Absorbing fund Global Prestige Share class ISIN, valor no. LU , LU , LU , EUR B LU , LU LU , LU , LU , EUR IB LU , LU , LU , EUR UB LU , LU LU , LU , LU , EUR EB LU , When will the merger take place? The merger will take place on August 28, What is the timetable for this change? Publication of merger decision Original fund closed for subscriptions , 15:00 CET Original fund closed for redemptions , 15:00 CET Calculation of NAV and conversion ratio before booking to safekeeping accounts Merger with the absorbing fund Shares of the absorbing fund booked ~ to client safekeeping accounts Why are the funds being merged? Management has decided to merge the Credit Suisse (Lux) Global Emerging Market Brands with the Global Prestige in order to streamline the existing product range. The merger will increase the asset base of the absorbing fund, ensuring that the assets in the original fund are managed more efficiently while enhancing operational efficiencies of two relatively similar products. 1/5

2 What are the differences between the absorbing fund and the original fund? The objective of the Global Emerging Market Brands is to achieve long-term capital growth, while maintaining an adequate diversification of risks, by investing in companies providing consumer goods or services to global emerging market consumers. The investment strategy of the fund is based on fundamental analysis, and the process targets attractively valued companies expected to benefit from growth in emerging consumer markets. The fund invests across the market cap structure, and is made up of 40 to 60 high-conviction stock picks. The fund s investment universe of around 600 companies is primarily consumer companies from emerging markets, though it can also invest in developed market companies with the majority of their revenues coming from emerging markets. While the Global Prestige is also a consumer-oriented fund, it is much more focused, offering investors the opportunity to invest in leading global and Asian brands that provide luxury goods and services and that are benefiting from a structural long-term growth trend. For many brands, 50% of revenues come from emerging market consumers. In particular, the Chinese middle class is stepping up spending and is now the largest consumer group in the luxury goods and services industry. The investment universe of the fund also differs in that it is more defined (around 200 companies) and includes companies around the world from both developed and emerging markets. The fund is also more concentrated, investing in 25 to 50 companies. It can hold up to one third of its assets in in emerging market stocks. Typically, these are investments in China and South Korea in the e-commerce, hotels and cosmetics sectors. Is the absorbing fund based on the same benchmark as the original fund? The merger does involve a change in the benchmark for investors. The Global Emerging Market Brands is benchmarked against the MSCI Emerging Markets Net Total Return Index (USD). However, given the wider global remit of the Global Prestige Equity Fund, it is benchmarked against the MSCI World NR Index. Key fund facts at a glance universe approach objectives Global Emerging Market Brands Around 600 companies, mainly in global emerging markets Companies providing consumer goods or services to global emerging market consumers Developed and emerging market companies with the majority of their revenues coming from emerging markets Actively managed portfolio Fundamental analysis, targeting attractively valued companies expected to benefit from growth in emerging consumer markets Portfolio of 40 to 60 high-conviction stock picks To achieve longterm capital growth, while maintaining an adequate diversification of risks Global Prestige 1 Around 200 global companies Leading luxury goods companies that are active in product categories such as luxury handbags, leather goods, fashion, jewelry, hotels, cars, spirits, watches and cosmetics Actively managed portfolio Fundamental analysis, targeting leading luxury goods and services companies with high pricing power Global brands are benefiting greatly from the emerging consumer for some companies, half of their revenues are already coming from these consumers A highly focused portfolio of 25 to 50 companies An unconstrained, nonbenchmarkoriented approach To maximize total return from capital appreciation and dividends over extended periods of time Fund currency USD EUR Benchmark MSCI Emerging Markets MSCI World NR Index Net Total Return Index (USD) Portfolio Anna Väänänen Juan Mendoza manager Number of holdings 2 Top ten 34.74% 42.24% holdings in % 2 Risk profile 6 5 (SRRI) 2 Settlement T+4 T+2 cycle Fund assets 2 USD m EUR m 1 The fund was formerly known as the Luxury Goods Equity Fund. On , it was restructured and renamed the Credit Suisse (Lux) Global Prestige. The restructured fund is managed in accordance with the same investment guidelines and investment policies as the former fund. 2 As at /5

3 What is the investment strategy of the absorbing fund? The Global Prestige s primary goal is to deliver the highest possible capital growth. To this end, it adopts a theme-based approach and invests worldwide in leading luxury goods and services companies with high pricing power that are active in product categories such as luxury handbags, leather goods, fashion, jewelry, hotels, cars, spirits, watches and cosmetics. The fund invests in a focused portfolio of 25 to 50 companies. It can hold a large allocation to Asian brands in the e-commerce, hotels and cosmetics sectors. Bottom-up stock selection is based on fundamental analysis, company visits and meetings. decisions are made using a proprietary scorecard to identify companies with a strong market position and promising growth prospects. At least 50% of assets are invested in companies with a market capitalization of over EUR 5 bn. Although the fund s performance is measured against the MSCI World NR Index, it is not subject to any restrictions in terms of geographical allocation or market capitalization of the stocks held. Please see the fund prospectus for detailed information. It can be found under Funds on the website of Credit Suisse Asset Management. What risks does investing in the Credit Suisse (Lux) Global Prestige entail? Particular risks associated with investing in stocks include significant market price fluctuations as well as stocks subordinate status to debt obligations of the same company. Macroeconomic factors or external shocks may result in declining stock prices. Furthermore, restricting investments to luxury goods companies may result in significant concentration in an individual subsector or region. The investment offers no capital protection and investors may lose part or all of their investment in the fund. Who will manage this fund? What is their track record? The Global Prestige is managed by Credit Suisse Asset Management in Hong Kong. The Equities Asia team in Hong Kong comprises four investment professionals with an average of 10 years of investment experience covering the global luxury theme as well as Greater China equities and China A shares equity strategies. The team also has two investment professionals based in Singapore managing the Asia Pacific Income. The Equity Asia team is headed by Juan Mendoza, who is also the lead portfolio manager for the Global Prestige. Juan Mendoza, Director, is Head of Equities Asia and a senior portfolio manager. He is a proven expert in the luxury goods sector, having won several Lipper Fund Awards and other industry awards in 2011, 2012 and Juan started his career in 1997 as an equity broker in the institutional equity division of Salomon Smith Barney in Zurich and New York. Thereafter, he worked at Bank Julius Bar in Zurich. In 2006, Juan joined Credit Suisse and has been the fund manager of the Global Prestige Equity Fund since the end of With the former Credit Suisse (Lux) Luxury Goods, he won three Lipper Fund Awards in France, Germany and Austria in 2011, one Lipper Fund Award in Austria in 2012 and three Lipper Fund Awards in 2013 in Austria, Germany and Europe in the consumer category. Juan holds an MBA in Corporate Finance from the Goizueta Business School at Emory University in Atlanta, USA. Isis Ma, Vice President, is a Greater China analyst and joined Credit Suisse (formerly Clariden Leu) in June Isis is an equity specialist in the consumer, real estate and financial sectors. She has served as the analyst for the Credit Suisse (Lux) Global Prestige, formerly the Credit Suisse (Lux) Luxury Goods, since 2010 and has worked closely with Juan Mendoza. Prior to joining Credit Suisse, Isis worked in the investment banking division at Macquarie International Capital Markets in Hong Kong and in the business advisory division of PricewaterhouseCoopers. Isis graduated from the Chinese University of Hong Kong with a major in Accountancy. She is a chartered accountant and a CFA charterholder. Is the Global Emerging Market Brands still open for subscriptions and redemptions? Subscriptions for the Global Emerging Market Brands can be made until 15:00 CET on July 21, The fund will close for redemptions at 15:00 CET on August 21, /5

4 How will the share classes of the original fund be transferred to those of the absorbing fund? The share classes of the original fund will be transferred to those of the absorbing fund as shown below. Original fund Global Emerging Market Brands EUR BH GBP BH USD IB EUR IBH USD UB EUR UBH USD EB Absorbing fund Global Prestige EUR B EUR B EUR IB EUR IB EUR UB EUR UB EUR EB What are the management fees for the absorbing share classes? The annual management fee for the, EUR B,, EUR UB and share classes will remain the same, as shown in the table on the this. The annual management fee for the EUR EB share class is 0.90% and thus 20 basis points (bps) higher than the corresponding fee for the USD EB share class of the original fund. The annual management fee for the EUR IB share class is 0.90% and thus 20 bps higher than the corresponding fee for the USD IB and EUR IBH share classes of the original fund. Is the settlement cycle of the absorbing fund the same as that of the original fund? The settlement cycle for the original fund was four business days (T+4). However, for the absorbing fund, it is two business days (T+2). What will the tax implications be? Mergers can have tax implications. As our clients have very different tax positions, Credit Suisse is unable to make general statements. We therefore recommend that clients contact their tax advisor to find out what the tax implications of the fund merger are in their native country, country of residence or country of domicile. The absorbing fund at a glance Global Prestige Fund domicile Luxembourg Portfolio manager Juan Mendoza Fund currency EUR Benchmark MSCI World NR Index Inception date Initial charge As per bank fees Performance fee None Share class ISIN Valor no. Management fee p.a. (%) EUR B LU EUR IB LU EUR UB LU EUR EB LU LU H LU USD UBH LU USD EBH LU LU LU SGD BH LU SGD UBH LU The fund was formerly known as the Luxury Goods Equity Fund. On , it was restructured and renamed the Credit Suisse (Lux) Global Prestige. The restructured fund is managed in accordance with the same investment guidelines and investment policies as the former fund. Will this entail any costs or fees for clients? The merger will not entail any costs for clients. Your contact Do you have any questions? Please contact us. Credit Suisse Asset Management (Switzerland) Ltd. Asset Management Fund Distribution Tel clientservices.amfunds@credit-suisse.com credit-suisse.com Source: Credit Suisse, unless specified otherwise 4/5

5 Source: Credit Suisse, otherwise specified. Unless noted otherwise, all illustrations in this document were produced by Credit Suisse Group AG and/or its affiliates with the greatest of care and to the best of its knowledge and belief. The information provided herein constitutes marketing material. It is not investment advice or otherwise based on a consideration of the personal circumstances of the addressee nor is it the result of objective or independent research. The information provided herein is not legally binding and it does not constitute an offer or invitation to enter into any type of financial transaction. The information provided herein was produced by Credit Suisse Group AG and/or its affiliates (hereafter "CS") with the greatest of care and to the best of its knowledge and belief. The information and views expressed herein are those of CS at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. CS provides no guarantee with regard to the content and completeness of the information and does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The information provided herein is for the exclusive use of the recipient. Neither this information nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). It may not be reproduced, neither in part nor in full, without the written permission of CS. Equities are subject to market forces and hence fluctuations in value, which are not entirely predictable. Emerging market investments usually result in higher risks such as political, economic, credit, exchange rate, market liquidity, legal, settlement, market, shareholder and creditor risks. Emerging markets are located in countries that possess one or more of the following characteristics: a certain degree of political instability, relatively unpredictable financial markets and economic growth patterns, a financial market that is still at the development stage or a weak economy. These funds are domiciled in Luxembourg. The representative in Switzerland is Credit Suisse Funds AG, Zurich. The paying agent in Switzerland is Credit Suisse AG, Zurich. The prospectus, the simplified prospectus and/or the Key Investor Information Document (KIID) and the annual and half-yearly reports may be obtained free of charge from Credit Suisse Funds AG, Zurich or from any branch of Credit Suisse AG in Switzerland. Copyright 2017 CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved. credit-suisse.com/assetmanagement CH/E/ /5