Swisscanto (LU) Bond Fund

Transcription

1 Bond Fund Investment fund according to Part I of the Luxembourg Act with the legal form of a Fonds Commun de Placement (FCP) Audited annual report as at 31 January 218 Management Company: SWISSCANTO ASSET MANAGEMENT INTERNATIONAL S.A. Custodian bank: RBC Investor Services Bank S.A. R.C.S. B 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 218 Page 2 Contents Page Administration and Corporate Bodies 4 General Information 6 Activity Report 17 Statement of Net Assets 62 Income and Expense Statement and other Changes to Net Assets 7 Evolution of Shares in Circulation for the Fiscal Year Running from 1 February 217 to 31 January Statistics 93 Vision EUR 117 Investment portfolio 117 Geographic and economic composition of Investment portfolio 122 Vision USD 123 Investment portfolio 123 Geographic and economic composition of Investment portfolio 128 Vision CHF 129 Investment portfolio 129 Geographic and economic composition of Investment portfolio 134 Vision GBP 135 Investment portfolio 135 Geographic and economic composition of Investment portfolio 138 Vision CAD 139 Investment portfolio 139 Geographic and economic composition of Investment portfolio 142 Vision AUD 143 Investment portfolio 143 Geographic and economic composition of Investment portfolio 149 Vision International 15 Investment portfolio 15 Geographic and economic composition of Investment portfolio 156 Global Corporate 157 Investment portfolio 157 Geographic and economic composition of Investment portfolio 167 Global Convertible 168 Investment portfolio 168 Geographic and economic composition of Investment portfolio 171 Short Term Global High Yield 172 Investment portfolio 172 Geographic and economic composition of Investment portfolio 177 COCO 178 Investment portfolio 178 Geographic and economic composition of Investment portfolio 183 Global Absolute Return 184 Investment portfolio 184 Geographic and economic composition of Investment portfolio 196

3 as at 31 January 218 Page 3 Contents (cont.) Page Emerging Markets Absolute Return 198 Investment portfolio 198 Geographic and economic composition of Investment portfolio 25 Secured High Yield 26 Investment portfolio 26 Geographic and economic composition of Investment portfolio 211 Global Credit Opportunities 212 Investment portfolio 212 Geographic and economic composition of Investment portfolio 221 Notes on the annual report 222 Additional unaudited information 254 Report by the Réviseur d'entreprises agréé 261

4 Page 4 as at 31 January 218 Administration and Corporate Bodies Management Company Swisscanto Asset Management International S.A. 19, rue de Bitbourg, L1273 Luxembourg Board of Directors Chairman Hans Frey, Switzerland, Managing Director Swisscanto Fondsleitung AG, Zurich Members Richard Goddard, Luxembourg, Independent Company Director, The Directors Office, Luxembourg Roland Franz, Luxembourg, Managing Director Swisscanto Asset Management International S.A., Luxembourg René Beeler, Switzerland, Head of Business Development, Zürcher Kantonalbank, Zurich AnneMarie Arens, Luxembourg, Independent Company Director, LuxFLAG, Luxembourg Management Roland Franz, Luxembourg Michael Weiß, Germany Custodian Bank, Main Payment, Central Administration, Registrar and Transfer Office RBC Investor Services Bank S.A. 14, Porte de France, L436 EschsurAlzette, Luxembourg Portfolio Manager Zürcher Kantonalbank Bahnhofstasse 9, CH81 Zurich Payment and Sales Offices Germany DekaBank Deutsche Girozentrale Mainzer Landstrasse 16, D6325 Frankfurt am Main (the "German Payment and Information Agent") Liechtenstein Bendura Bank AG Schaaner Strasse 27, FL9487 GamprinBendern

5 Page 5 as at 31 January 218 Administration and Corporate Bodies (cont.) Luxembourg RBC Investor Services Bank S.A. 14, Porte de France, L436 EschsurAlzette Austria Vorarlberger Landes und Hypothekenbank Aktiengesellschaft HypoPassage 1, A69 Bregenz Paying agent in Switzerland Basler Kantonalbank Spiegelgasse 2, CH42 Basel Representative agent in Switzerland Swisscanto Fondsleitung AG Bahnhofstrasse 9, CH81 Zurich Central Order Collection Point Swisscanto Funds Centre Limited 4th Floor, 51 Moorgate, London, EC2R 6BH Independent Auditor Ernst & Young S.A. 35E, Avenue John F. Kennedy, L1855 Luxembourg Legal Advisor Arendt & Medernach S.A. 41A, Avenue John F. Kennedy, L282 Luxembourg Hengeler Mueller Partnership of Attorneys Bockenheimer Landstrasse 24, D6323 Frankfurt am Main

6 Page 6 as at 31 January 218 General Information Transfer of assets and renaming of subfunds The management company of, Swisscanto Asset Management International S.A., decided to amend the sales prospectus and management regulations with effect from 14 July 217. The two main amendments relate to the transfer of assets from the subfund Medium Term EUR / CHF / USD to the subfund EUR / CHF / USD and the renaming of several of the subfunds in the Fund. The subfunds' assets were transferred as follows on 14 July 217: Transferor fund Medium Term EUR Medium Term CHF Medium Term USD Transferee fund EUR CHF USD The assets of the transferor subfunds were transferred to the applicable transferee subfunds. In return, the transferor subfunds received units in the transferee subfunds. The transferor subfunds then distributed the units in the applicable transferee subfunds to their unitholders, who became unitholders in the transferee subfunds as follows: Unit class transferred ISIN Unit class received ISIN Medium LU EUR LU Term EUR AA AA Medium LU EUR LU Term EUR AT AT Medium LU EUR LU Term EUR DA DA Medium LU EUR LU Term EUR JT JT Medium LU EUR LU Term EUR DT DT Medium LU EUR LU Term EUR GT GT Medium LU CHF LU Term CHF AA AA Medium LU CHF LU Term CHF AT AT Medium LU CHF LU Term CHF DA DA Medium LU CHF LU Term CHF GT GT Medium LU CHF LU Term CHF DT DT Medium Term CHF BT LU CHF BT LU Medium Term USD AA LU USD LU AA Medium LU LU Term USD AT USD AA Medium LU LU Term USD DA USD DA Medium Term USD GT LU USD GT LU

7 Page 7 as at 31 January 218 General Information (cont.) The exchange ratio was determined on 14 July 217 using the NAV of 13 July 217 and was calculated by dividing the NAV per unit of the transferor fund by the NAV per unit of the transferee fund. In addition, the following subfunds were renamed as follows with effect from 14 July 217: Old name of subfund CHF EUR USD GBP AUD CAD International New name of subfund Vision CHF Vision EUR Vision USD Vision GPB Vision AUD Vision CAD Vision International

8 Page 8 as at 31 January 218 General Information (cont.) Investment fund under Luxembourg law ( Umbrella Construction ) is subject to the legal provisions set forth in Part I of the Luxembourg law of 17 December 21 on undertakings for collective investment. The management regulations of the investment fund were established by the management company on 3 October Several amendments have been made and, in accordance with the management regulations, published in the "Mémorial". The current versions of the management company's articles of association and the fund's management regulations have been deposited at the Register of Companies in Luxembourg. The management regulations, the detailed sales prospectus, the key investor information, and the annual and semiannual reports may be obtained directly and free of charge in printed form from Swisscanto Asset Management AG, the head office of the management company, the custodian bank and the representative in Switzerland, from the German payment and information agent, 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 fund unit subscriptions may be received based on the annual and semiannual 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 Units in may not be offered, sold or delivered within the US or to persons considered US persons within the meaning of Regulation S of the US Securities Act of 1933 or in accordance with the US Commodity Exchange Act, as amended. Guidelines of the Swiss Funds and Asset Management Association (SFAMA) on duties regarding the charging and use of fees and costs (22 May 214) Compensation for the distribution of the investment fund is paid out of the fixed management fee. Swisscanto Asset Management International S.A. also offers remuneration to institutional investors holding fund units for third parties from the fixed management fee. Risk management process The management company applies a risk management process to the fund and each subfund that complies with the Luxembourg law of 17 December 21 and other applicable regulations, in particular CSSF Circular 11/512. As part of the risk management process the total risk of all the subfunds is measured and checked using the socalled commitment approach.

9 Page 9 as at 31 January 218 General Information (cont.) Vision EUR ISIN number: Class AA: LU ISIN number: Class AT: LU ISIN number: Class CT*: LU ISIN number: Class DA: LU ISIN number: Class DT: LU ISIN number: Class GT: LU ISIN number: Class JT: LU Security number: Class AA: Security number: Class AT: Security number: Class CT*: Security number: Class DA: Security number: Class DT: Security number: Class GT: Security number: Class JT: Vision USD ISIN number: Class AA: LU ISIN number: Class AT: LU ISIN number: Class CT*: LU ISIN number: Class DA: LU ISIN number: Class DT: LU ISIN number: Class GT: LU Security number: Class AA: Security number: Class AT: Security number: Class CT*: Security number: Class DA: Security number: Class DT: Security number: Class GT: Vision CHF ISIN number: Class AA: LU ISIN number: Class AT: LU ISIN number: Class BT: LU ISIN number: Class CT*: LU ISIN number: Class DA: LU ISIN number: Class DT: LU ISIN number: Class GT: LU Security number: Class AA: Security number: Class AT: Security number: Class BT: Security number: Class CT*: Security number: Class DA: Security number: Class DT: Security number: Class GT: * Classes were activated on 26 September 217

10 Page 1 as at 31 January 218 General Information (cont.) Vision GBP ISIN number: Class AA: LU ISIN number: Class AT: LU ISIN number: Class CT*: LU ISIN number: Class DA: LU ISIN number: Class DT: LU ISIN number: Class GT: LU Security number: Class AA: Security number: Class AT: Security number: Class CT*: Security number: Class DA: Security number: Class DT: Security number: Class GT: Vision CAD ISIN number: Class AA: LU ISIN number: Class AT: LU ISIN number: Class CT*: LU ISIN number: Class DT: LU ISIN number: Class GT: LU Security number: Class AA: Security number: Class AT: Security number: Class CT*: Security number: Class DT: Security number: Class GT: Vision AUD ISIN number: Class AA: LU ISIN number: Class AT: LU ISIN number: Class BT: LU ISIN number: Class CT*: LU ISIN number: Class DT: LU ISIN number: Class GT: LU Security number: Class AA: Security number: Class AT: Security number: Class BT: Security number: Class CT*: Security number: Class DT: Security number: Class GT: * Classes were activated on 26 September 217

11 Page 11 as at 31 January 218 General Information (cont.) Vision International ISIN number: Class AA: LU ISIN number: Class AT: LU ISIN number: Class BT: LU ISIN number: Class CT*: LU ISIN number: Class GT: LU Security number: Class AA: Security number: Class AT: Security number: Class BT: Security number: Class CT*: Security number: Class GT: Global Corporate ISIN number: Class ATH CHF: LU ISIN number: Class ATH EUR: LU ISIN number: Class AT: LU ISIN number: Class BTH CHF: LU ISIN number: Class BTH EUR: LU ISIN number: Class CTH CHF**: LU ISIN number: Class DTH CHF: LU ISIN number: Class DTH EUR: LU ISIN number: Class DT: LU ISIN number: Class GTH CHF: LU ISIN number: Class GTH EUR: LU ISIN number: Class GT: LU Security number: Class ATH CHF: Security number: Class ATH EUR: Security number: Class AT: Security number: Class BTH CHF: Security number: Class BTH EUR: Security number: Class CTH CHF**: Security number: Class DTH CHF: Security number: Class DTH EUR: Security number: Class DT: Security number: Class GTH CHF: Security number: Class GTH EUR: Security number: Class GT: * Class was activated on 28 September 217 * Class was activated on 27 September 217

12 Page 12 as at 31 January 218 General Information (cont.) Global Convertible ISIN number: Class ATH CHF: LU ISIN number: Class ATH EUR: LU ISIN number: Class AT: LU ISIN number: Class DTH CHF: LU ISIN number: Class DTH EUR: LU ISIN number: Class DT: LU ISIN number: Class GTH CHF: LU ISIN number: Class GTH EUR: LU ISIN number: Class GT: LU ISIN number: Class NTH CHF*: LU ISIN number: Class NTH EUR*: LU ISIN number: Class NT*: LU Security number: Class ATH CHF: Security number: Class ATH EUR: Security number: Class AT: Security number: Class DTH CHF: Security number: Class DTH EUR: Security number: Class DT: Security number: Class GTH CHF: Security number: Class GTH EUR: Security number: Class GT: Security number: Class NTH CHF*: Security number: Class NTH EUR*: Security number: Class NT*: * Classes were activated on 19 July 217

13 Page 13 as at 31 January 218 General Information (cont.) Short Term Global High Yield ISIN number: Class AAH EUR: LU ISIN number: Class ATH CHF: LU ISIN number: Class ATH EUR: LU ISIN number: Class AT: LU ISIN number: Class BTH CHF: LU ISIN number: Class DAH EUR: LU ISIN number: Class DTH CHF: LU ISIN number: Class DTH EUR: LU ISIN number: Class DT: LU ISIN number: Class GTH CHF: LU ISIN number: Class GTH EUR: LU ISIN number: Class GT: LU ISIN number: Class JTH EUR: LU ISIN number: Class NTH CHF: LU ISIN number: Class NTH EUR*: LU ISIN number: Class NT*: LU Security number: Class AAH EUR: Security number: Class ATH CHF: Security number: Class ATH EUR: Security number: Class AT: Security number: Class BTH CHF: Security number: Class DAH EUR: Security number: Class DTH CHF: Security number: Class DTH EUR: Security number: Class DT: Security number: Class GTH CHF: Security number: Class GTH EUR: Security number: Class GT: Security number: Class JTH EUR: Security number: Class NTH CHF: Security number: Class NTH EUR*: Security number: Class NT*: * Classes were activated on 21 July 217

14 Page 14 as at 31 January 218 General Information (cont.) COCO ISIN number: Class AAH CHF: LU ISIN number: Class AAH EUR: LU ISIN number: Class ATH CHF: LU ISIN number: Class ATH EUR: LU ISIN number: Class AT: LU ISIN number: Class BTH CHF: LU ISIN number: Class DTH CHF: LU ISIN number: Class DTH EUR: LU ISIN number: Class DTH SEK: LU ISIN number: Class DT: LU ISIN number: Class GTH CHF: LU ISIN number: Class GTH EUR: LU ISIN number: Class GTH SEK: LU ISIN number: Class GT: LU ISIN number: Class JTH EUR: LU ISIN number: Class NTH CHF: LU ISIN number: Class NTH EUR*: LU ISIN number: Class NT **: LU Security number: Class AAH CHF: Security number: Class AAH EUR: Security number: Class ATH CHF: Security number: Class ATH EUR: Security number: Class AT: Security number: Class BTH CHF: Security number: Class DTH CHF: Security number: Class DTH EUR: Security number: Class DTH SEK: Security number: Class DT: Security number: Class GTH CHF: Security number: Class GTH EUR: Security number: Class GTH SEK: Security number: Class GT: Security number: Class JTH EUR: Security number: Class NTH CHF: Security number: Class NTH EUR*: Security number: Class NT **: * Class was activated on 1 April 217 ** Class was activated on 15 December 217

15 Page 15 as at 31 January 218 General Information (cont.) Global Absolute Return ISIN number: Class AA: LU ISIN number: Class AAH CHF: LU ISIN number: Class AAH EUR: LU ISIN number: Class ATH CHF: LU ISIN number: Class ATH EUR: LU ISIN number: Class AT: LU ISIN number: Class BTH CHF: LU ISIN number: Class BTH EUR: LU ISIN number: Class CTH CHF**: LU ISIN number: Class DAH EUR*: LU ISIN number: Class DTH CHF: LU ISIN number: Class DTH EUR: LU ISIN number: Class DT: LU ISIN number: Class GTH CHF: LU ISIN number: Class GTH EUR: LU ISIN number: Class GT: LU ISIN number: Class JTH EUR: LU ISIN number: Class NTH CHF***: LU Security number: Class AA: Security number: Class AAH CHF: Security number: Class AAH EUR: Security number: Class ATH CHF: Security number: Class ATH EUR: Security number: Class AT: Security number: Class BTH CHF: Security number: Class BTH EUR: Security number: Class CTH CHF**: Security number: Class DAH EUR*: Security number: Class DTH CHF: Security number: Class DTH EUR: Security number: Class DT: Security number: Class GTH CHF: Security number: Class GTH EUR: Security number: Class GT: Security number: Class JTH EUR: Security number: Class NTH CHF***: Emerging Markets Absolute Return ISIN number: Class ATH CHF: LU ISIN number: Class ATH EUR: LU ISIN number: Class AT: LU ISIN number: Class BTH CHF: LU ISIN number: Class DTH EUR: LU ISIN number: Class GTH CHF: LU ISIN number: Class GTH EUR: LU ISIN number: Class GT: LU Security number: Class ATH CHF: Security number: Class ATH EUR: Security number: Class AT: Security number: Class BTH CHF: Security number: Class DTH EUR: Security number: Class GTH CHF: Security number: Class GTH EUR: Security number: Class GT: * Class was activated on 25 July 217 * Class was activated on 27 September 217 *** Class was activated on 28 September 217

16 Page 16 as at 31 January 218 General Information (cont.) Secured High Yield ISIN number: Class AA: LU ISIN number: Class AAH CHF: LU ISIN number: Class AAH EUR: LU ISIN number: Class ATH CHF: LU ISIN number: Class ATH EUR: LU ISIN number: Class AT: LU ISIN number: Class BTH CHF: LU ISIN number: Class DAH EUR: LU ISIN number: Class DTH CHF: LU ISIN number: Class DTH EUR: LU ISIN number: Class DT: LU ISIN number: Class GTH CHF: LU ISIN number: Class GTH EUR: LU ISIN number: Class GT: LU ISIN number: Class JTH EUR*: LU ISIN number: Class NTH CHF**: LU Security number: Class AA: Security number: Class AAH CHF: Security number: Class AAH EUR: Security number: Class ATH CHF: Security number: Class ATH EUR: Security number: Class AT: Security number: Class BTH CHF: Security number: Class DAH EUR: Security number: Class DTH CHF: Security number: Class DTH EUR: Security number: Class DT: Security number: Class GTH CHF: Security number: Class GTH EUR: Security number: Class GT: Security number: Class JTH EUR*: Security number: Class NTH CHF**: Global Credit Opportunities ISIN number: Class AAH EUR: LU ISIN number: Class ATH CHF: LU ISIN number: Class GTH CHF: LU ISIN number: Class GTH EUR: LU ISIN number: Class NTH CHF***: LU ISIN number: Class NTH EUR***: LU ISIN number: Class NT***: LU Security number: Class AAH EUR: Security number: Class ATH CHF: Security number: Class GTH CHF: Security number: Class GTH EUR: Security number: Class NTH CHF***: Security number: Class NTH EUR***: Security number: Class NT***: * Class was activated on 15 September 217 ** Class was activated on 31 October 217 *** Class was activated on 17 July 217

17 Page 17 as at 31 January 218 Vision EUR Activity Report Vision EUR Market overview The global economic numbers were very encouraging in the first quarter of 217; dominant among them were the good mood indicators on the state of the economy in the US, Europe and China. The positive economic environment caused inflation expectations to rise slightly worldwide. Meanwhile bond yields increased; in January and again at the beginning of March, when the Fed raised its key rate by.25% for the third time in the current ratehike cycle. However, the ongoing political uncertainties in Europe and the ECB's adherence to its expansionary monetary policy ensured that these interest rate rises were temporary. For example, 1year yields trended sideways in the first quarter. In the second quarter, political events including the successful presidential election of Emmanuel Macron in France and the disappointing Parliamentary elections for Theresa May in the UK caused unrest in the bond markets. But the volatile politics in the US, the freeze in relations between the US and Russia, and the sabrerattling of North Korea also caused some temporary jitters. Nevertheless, the central banks steered their pathdependent monetary policies with a steady hand. In midjune, the Fed increased the key interest rate by 25 basis points, as expected, and announced that it would begin shrinking its balance sheet in the second half of the year. Buoyed by a strong labour market, robust growth in the US continued, and even in Europe the hard data confirmed the slow recovery of the economy with declining unemployment rates. The global economy delivered positive news in the third quarter. In the US, macroeconomic data once again painted a rosier picture, and was surprisingly more positive than in the first half of the year. The European Monetary Union also showed just as much growth momentum, with the driving forces now stronger than they have been for years. Accordingly, the major central banks sent out further trend reversal signals for monetary policy. However, this was hardly reflected at all in the evolution of yields. After rising at the end of June, yields headed south once again in the third quarter, increasing again slightly in September. Even 1year Swiss government bonds fell below zero again in August. Overall, the market closed at the end of September at a similar level to the start of the quarter. Credit risk premiums on bonds in the investment grade and highyield segments narrowed further. In particular in July and September, EURdenominated mortgage bonds experienced strong compression. Even in the last quarter of 217, the markets showed their friendly side. Overall economic performance picked up pace. In the US, GDP growth was at its strongest in years and the leading economic indicators painted a rosy picture. Europe is also experiencing strong growth, and manufacturers and consumers alike are looking optimistically to the future, which has long not been the case. The meetings of the four big central banks (ECB, Fed, BoE and SNB) in December passed with no surprises. The Fed's.25% key interest rate hike had been expected, and the ECB continued to stick to its bondbuying programme. The unchanged interest rate forecasts caused market interest rates to fall and yield curves to flatten even further. In the US, 1year Treasury bond yields closed 5 basis points down, at 2.42%. 1year German Bund yields also fell by.4% in the fourth quarter to.43%, an increase of.25% yearonyear. Credit risk premiums on bonds in the investment grade and highyield segments continued to fall in the fourth quarter as well. Demand was buoyed by the expectation of additional corporate bond purchases by the ECB and strong economic and quarterly data. Credit risk premiums ended the year at their lowest level since 26. Review of fundrelevant categories Interest rates displayed a highly volatile sideways movement in 217. Any trends were shortlived before being almost completely counteracted again by market movements. The main constant, however, was the excellent performance of credit risk. Additional credit risk exposure was very well rewarded. Although risk premiums were already very low at the start of the year, they managed to fall further in almost all sectors over the course of the year. Past performance is not an indicator of current or future performance. Performance data does not take into account the costs and commissions charged for the issue and redemption of units. The information and figures contained in this report are based upon the past and provide no indication of future developments.

18 Page 18 as at 31 January 218 Vision EUR Activity Report (cont.) The spreads on French bonds only increased in the first half of the year. However, this was directly correlated with the presidential election in France. The associated uncertainty evaporated very rapidly on the election of Emmanuel Macron and the risk premiums for France recovered with even greater strength. At the end of 217 and in particular in January 218, there was a rapid increase in interest rates due to the good economic situation and initial signs of rising inflation. Performance review 217 had started with positive economic prospects. This good sentiment was borne out by a clear upward trajectory for interest rates. The relatively low interest rate risk which the fund had started the year with prevented a stronger negative impact from the interest rate increase. Furthermore, the strong underweight in French government bonds made for a very encouraging start to the year. The planned presidential election in France in the second quarter of 217 resulted in much higher rewards for French credit risk. At the height of the uncertainty, the spreads had become enormously attractive, French bonds were ultimately purchased by the fund, and the positioning was converted to an overweight in France. With the successful election of Emmanuel Macron as president, the credit premiums recovered again, and an encouraging contribution to performance was recorded on the credit risk exposure. Volatility was higher towards the middle of the year, especially for interest rates. The positive macroeconomic picture emboldened the Fed in its efforts to further increase the key interest rate and, surprisingly, to shrink its balance sheet. The subsequent global increase in interest rates relative to the benchmark (Bloomberg Barclays Euro Aggregate Bond Index) was positive. The absolute performance contribution, on the other hand, was negative. The trend towards higher interest rates, however, did not continue in the third and fourth quarters. By middecember, interest rates had fallen again. Interest rates only rose again towards the end of 217 and particularly in January 218. With little exposure to interest rate risk, the fund was able to position itself accordingly. It was also exposed to less credit risk relative to the benchmark in the final two quarters of 217 and in January 218. Although extremely low, credit premiums fell further still, which ultimately also had a negative impact on relative fund performance. Past performance is not an indicator of current or future performance. Performance data does not take into account the costs and commissions charged for the issue and redemption of units. The information and figures contained in this report are based upon the past and provide no indication of future developments.

19 Page 19 as at 31 January 218 Vision EUR Activity Report (cont.) ISIN number: Class AA: LU ISIN number: Class AT: LU ISIN number: Class CT*: LU ISIN number: Class DA: LU ISIN number: Class DT: LU ISIN number: Class GT: LU ISIN number: Class JT: LU Security number: Class AA: Security number: Class AT: Security number: Class CT*: Security number: Class DA: Security number: Class DT: Security number: Class GT: Security number: Class JT: Subfund performance 31 January January 218***: Class AA:.15% Class AT:.14% Class CT*:.33% Class DA**.6% Class DT**.61% Class GT**.66% Class JT**.55% * Class was activated on 26 September 217 ** The performance of the institutional unit classes is calculated using the net asset value assessment (unswung net asset value). By contrast, the remaining classes are calculated using the modified net asset value (swung net asset value). *** Percentage figures include dividend impact Past performance is not an indicator of current or future performance. Performance data does not take into account the costs and commissions charged for the issue and redemption of units. The information and figures contained in this report are based upon the past and provide no indication of future developments.

20 Page 2 as at 31 January 218 Vision USD Activity Report (cont.) Vision USD Market overview The global economic numbers were very encouraging in the first quarter of 217; dominant among them were the good mood indicators on the state of the economy in the US, Europe and China. The positive economic environment caused inflation expectations to rise slightly worldwide. Meanwhile bond yields increased; in January and again at the beginning of March, when the Fed raised its key rate by.25% for the third time in the current ratehike cycle. However, the ongoing political uncertainties in Europe and the ECB's adherence to its expansionary monetary policy ensured that these interest rate rises were temporary. For example, 1year yields trended sideways in the first quarter. In the second quarter, political events including the successful presidential election of Emmanuel Macron in France and the disappointing Parliamentary elections for Theresa May in the UK caused unrest in the bond markets. But the volatile politics in the US, the freeze in relations between the US and Russia, and the sabrerattling of North Korea also caused some temporary jitters. Nevertheless, the central banks steered their pathdependent monetary policies with a steady hand. In midjune, the Fed increased the key interest rate by 25 basis points, as expected, and announced the shrinking of its own balance sheet in the second half of the year. Buoyed by a strong labour market, robust growth in the US continued, and even in Europe the hard data confirmed the slow recovery of the economy with declining unemployment rates. The global economy delivered positive news in the third quarter. In the US, macroeconomic data once again painted a rosier picture, and was surprisingly more positive than in the first half of the year. The European Monetary Union also showed just as much growth momentum, with the driving forces now stronger than they have been for years. Accordingly, the major central banks sent out further trend reversal signals for monetary policy. However, this was hardly reflected at all in the evolution of yields. After rising at the end of June, yields headed south once again in the third quarter, increasing again slightly in September. Even 1year Swiss government bonds fell below zero again in August. Overall, the market closed at the end of September at a similar level to the start of the quarter. Credit risk premiums on bonds in the investment grade and highyield segments narrowed further. In particular in July and September, EURdenominated mortgage bonds experienced strong compression. Even in the last quarter of 217, the markets showed their friendly side. Overall economic performance picked up pace. In the US, GDP growth was at its strongest in years and the leading economic indicators painted a rosy picture. Europe is also experiencing strong growth, and manufacturers and consumers alike are looking optimistically to the future, which has long not been the case. The meetings of the four big central banks (ECB, Fed, BoE and SNB) in December passed with no surprises. The Fed's.25% key interest rate hike had been expected, and the ECB continued to stick to its bondbuying programme. The unchanged interest rate forecasts caused market interest rates to fall and yield curves to flatten even further. In the US, 1year Treasury bond yields closed 5 basis points down, at 2.42%. 1year German Bund yields also fell by.4% in the fourth quarter to.43%, an increase of.25% yearonyear. Credit risk premiums on bonds in the investment grade and highyield segments continued to fall in the fourth quarter as well. Demand was buoyed by the expectation of additional corporate bond purchases by the ECB and strong economic and quarterly data. Credit risk premiums ended the year at their lowest level since 26. Review of fundrelevant categories Interest rates in the US recorded very volatile movements in the reporting period. After a decline that lasted until summer, they started to go up from September 217. The yield curve also became much steeper, meaning that shortterm interest rates rose more sharply than longterm ones. The main constant, however, was the excellent performance of corporate bonds. Past performance is not an indicator of current or future performance. Performance data does not take into account the costs and commissions charged for the issue and redemption of units. The information and figures contained in this report are based upon the past and provide no indication of future developments.

21 Page 21 as at 31 January 218 Vision USD Activity Report (cont.) Additional credit risk exposure was very well rewarded. Although risk premiums were already very low at the start of the year, they managed to narrow further in almost all sectors over the course of the year. A particular highlight is the yield earned on corporate bonds, which were able to benefit spectacularly well from the good macroeconomic prospects. In the first year under Trump, the US economy appears to be growing significantly, investments are being boosted, and inflation is finally likely to rise. Performance review 217 had started with positive economic prospects. This good sentiment was borne out by a clear upward trajectory for interest rates. The relatively low interest rate risk which the fund had started the year with prevented a stronger negative impact from the interest rate increase. In contrast, the performance from the credit positioning was very positive. Risk premiums for bonds fell considerably in the first half of the year. Due to the slightly higher credit risk exposure of the fund, the bond positioning resulted in a very positive performance contribution both in absolute and relative terms. Volatility was higher towards the middle of the year, especially for interest rates. The positive macroeconomic picture emboldened the Fed in its efforts to further increase the key interest rate and, surprisingly, to shrink its balance sheet. The subsequent global increase in interest rates relative to the benchmark (Bloomberg Barclays Euro Aggregate Bond Index) was positive, while the absolute performance contribution was negative. This trend towards higher interest rates, however, did not continue in the third and fourth quarters. By middecember, interest rates had fallen again. Otherwise, the fund was more exposed to credit risk relative to the benchmark, but this was ultimately still too cautious. Although extremely low, credit premiums fell further still, which ultimately also had a negative impact on relative fund performance. Past performance is not an indicator of current or future performance. Performance data does not take into account the costs and commissions charged for the issue and redemption of units. The information and figures contained in this report are based upon the past and provide no indication of future developments.

22 Page 22 as at 31 January 218 Vision USD Activity Report (cont.) ISIN number: Class AA: LU ISIN number: Class AT: LU ISIN number: Class CT*: LU ISIN number: Class DA: LU ISIN number: Class DT: LU ISIN number: Class GT: LU Security number: Class AA: Security number: Class AT: Security number: Class CT*: Security number: Class DA: Security number: Class DT: Security number: Class GT: Subfund performance 31 January January 218***: Class AA:.47% Class AT:.47% Class CT*: 1.47% Class DA**:.94% Class DT**:.93% Class GT**: 1.1% * Class was activated on 26 September 217 ** The performance of the institutional unit classes is calculated using the net asset value assessment (unswung net asset value). By contrast, the remaining classes are calculated using the modified net asset value (swung net asset value). *** Percentage figures include dividend impact Past performance is not an indicator of current or future performance. Performance data does not take into account the costs and commissions charged for the issue and redemption of units. The information and figures contained in this report are based upon the past and provide no indication of future developments.

23 Page 23 as at 31 January 218 Vision CHF Activity Report (cont.) Vision CHF Market overview The global economic numbers were very encouraging in the first quarter of 217; dominant among them were the good mood indicators on the state of the economy in the US, Europe and China. The positive economic environment caused inflation expectations to rise slightly worldwide. Meanwhile bond yields increased; in January and again at the beginning of March, when the Fed raised its key rate by.25% for the third time in the current ratehike cycle. However, the ongoing political uncertainties in Europe and the ECB's adherence to its expansionary monetary policy ensured that these interest rate rises were temporary. For example, 1year yields trended sideways in the first quarter. In the second quarter, political events including the successful presidential election of Emmanuel Macron in France and the disappointing Parliamentary elections for Theresa May in the UK caused unrest in the bond markets. But the volatile politics in the US, the freeze in relations between the US and Russia, and the sabrerattling of North Korea also caused some temporary jitters. Nevertheless, the central banks steered their pathdependent monetary policies with a steady hand. In midjune, the Fed increased the key interest rate by 25 basis points, as expected, and announced that it would begin shrinking its balance sheet in the second half of the year. Buoyed by a strong labour market, robust growth in the US continued, and even in Europe the hard data confirmed the slow recovery of the economy with declining unemployment rates. The global economy delivered positive news in the third quarter. In the US, macroeconomic data once again painted a rosier picture, and was surprisingly more positive than in the first half of the year. The European Monetary Union also showed just as much growth momentum, with the driving forces now stronger than they have been for years. Accordingly, the major central banks sent out further trend reversal signals for monetary policy. However, this was hardly reflected at all in the evolution of yields. After rising at the end of June, yields headed south once again in the third quarter, increasing again slightly in September. Even 1year Swiss government bonds fell below zero again in August. Overall, the market closed at the end of September at a similar level to the start of the quarter. Credit risk premiums on bonds in the investment grade and highyield segments narrowed further. In particular in July and September, EURdenominated mortgage bonds experienced strong compression. Even in the last quarter of 217, the markets showed their friendly side. Overall economic performance picked up pace. In the US, GDP growth was at its strongest in years and the leading economic indicators painted a rosy picture. Europe is also experiencing strong growth, and manufacturers and consumers alike are looking optimistically to the future, which has long not been the case. The meetings of the four big central banks (ECB, Fed, BoE and SNB) in December passed with no surprises. The Fed's.25% key interest rate hike had been expected, and the ECB continued to stick to its bondbuying programme. The unchanged interest rate forecasts caused market interest rates to fall and yield curves to flatten even further. In the US, 1year Treasury bond yields closed 5 basis points down, at 2.42%. 1year German Bund yields also fell by.4% in the fourth quarter to.43%, an increase of.25% yearonyear. Credit risk premiums on bonds in the investment grade and highyield segments continued to fall in the fourth quarter as well. Demand was buoyed by the expectation of additional corporate bond purchases by the ECB and strong economic and quarterly data. Credit risk premiums ended the year at their lowest level since 26. Review of fundrelevant categories Interest rates moved sideways within a narrow range in 217. No medium or longterm trends were discernible. The main constant, however, was the excellent performance of credit risk. Additional credit risk exposure was very well rewarded. Although risk premiums were already very low at the start of the year, they managed to fall further in almost all sectors over the course of the year. The spreads on French bonds only increased in the first half of the year. Past performance is not an indicator of current or future performance. Performance data does not take into account the costs and commissions charged for the issue and redemption of units. The information and figures contained in this report are based upon the past and provide no indication of future developments.

24 Page 24 as at 31 January 218 Vision CHF Activity Report (cont.) However, this was directly correlated with the presidential election in France. The associated uncertainty evaporated very rapidly on the election of Emmanuel Macron and the risk premiums for France subsequently recovered. The global economy is showing robust, broadbased growth. Similarly, the Swiss economy regained its footing, recovered from the exchange rate shock and benefited from the positive global economic environment. According to the latest estimates of the State Secretariat for Economic Affairs, Swiss GDP grew by.6% in real terms in the third quarter of 217 and by 1.2% compared to the same quarter in the previous year. Switzerland's annual consumer price inflation was.8% in November 217, compared with.5% in August. Performance review 217 had started with positive economic prospects. Since the start of the year, the portfolio has achieved absolute gross performance (before fees and costs) of.25%. This result is attributable to the good performance of corporate bonds, i.e. declining credit risk premiums. Interest rate development has had a negative impact on performance, although the yields on 1year Bunds have grown by six basis points since the start of the year. Market interest rates remained stable due to the SNB's unchanged negative interest rate policy. The CHF 3month LIBOR has traded at around.73% since the beginning of the year. The underweight in supranational and public sector issuers in the Netherlands and Germany had a positive impact. The same applies to the overweight in Australian banks, which are still the banks with the highest rating. The overweight in French securities helped performance. The planned presidential election in France in the second quarter of 217 resulted in much higher rewards for French credit risk. With the successful election of Emmanuel Macron as president, the credit premiums recovered again, and an encouraging contribution to performance was recorded on the credit risk exposure. The fund was also exposed to less credit risk relative to the benchmark (Swiss Bond Index Foreign AAAA) in the final two quarters of 217. Although extremely low, credit premiums fell further still, which ultimately also had a negative impact on relative fund performance. Past performance is not an indicator of current or future performance. Performance data does not take into account the costs and commissions charged for the issue and redemption of units. The information and figures contained in this report are based upon the past and provide no indication of future developments.

25 Page 25 as at 31 January 218 Vision CHF Activity Report (cont.) ISIN number: Class AA: LU ISIN number: Class AT: LU ISIN number: Class BT: LU ISIN number: Class CT*: LU ISIN number: Class DA: LU ISIN number: Class DT: LU ISIN number: Class GT: LU Security number: Class AA: Security number: Class AT: Security number: Class BT: Security number: Class CT*: Security number: Class DA: Security number: Class DT: Security number: Class GT: Subfund performance 31 January January 218***: Class AA: 1.64% Class AT: 1.65% Class BT: 1.29% Class CT:.55% Class DA**: 1.3% Class DT**: 1.3% Class GT**:.96% * Class was activated on 26 September 217 ** The performance of the institutional unit classes is calculated using the net asset value assessment (unswung net asset value). By contrast, the remaining classes are calculated using the modified net asset value (swung net asset value). *** Percentage figures include dividend impact Past performance is not an indicator of current or future performance. Performance data does not take into account the costs and commissions charged for the issue and redemption of units. The information and figures contained in this report are based upon the past and provide no indication of future developments.

26 Page 26 as at 31 January 218 Vision GBP Activity Report (cont.) Vision GBP Market overview The global economic numbers were very encouraging in the first quarter of 217; dominant among them were the good mood indicators on the state of the economy in the US, Europe and China. The positive economic environment caused inflation expectations to rise slightly worldwide. Meanwhile bond yields increased; in January and again at the beginning of March, when the Fed raised its key rate by.25% for the third time in the current ratehike cycle. However, the ongoing political uncertainties in Europe and the ECB's adherence to its expansionary monetary policy ensured that these interest rate rises were temporary. For example, 1year yields trended sideways in the first quarter. In the second quarter, political events including the successful presidential election of Emmanuel Macron in France and the disappointing Parliamentary elections for Theresa May in the UK caused unrest in the bond markets. But the volatile politics in the US, the freeze in relations between the US and Russia, and the sabrerattling of North Korea also caused some temporary jitters. Nevertheless, the central banks steered their pathdependent monetary policies with a steady hand. In midjune, the Fed increased the key interest rate by 25 basis points, as expected, and announced the shrinking of its own balance sheet in the second half of the year. Buoyed by a strong labour market, robust growth in the US continued, and even in Europe the hard data confirmed the slow recovery of the economy with declining unemployment rates. The global economy delivered positive news in the third quarter. In the US, macroeconomic data once again painted a rosier picture, and was surprisingly more positive than in the first half of the year. The European Monetary Union also showed just as much growth momentum, with the driving forces now stronger than they have been for years. Accordingly, the major central banks sent out further trend reversal signals for monetary policy. However, this was hardly reflected at all in the evolution of yields. After rising at the end of June, yields headed south once again in the third quarter, increasing again slightly in September. Even 1year Swiss government bonds fell below zero again in August. Overall, the market closed at the end of September at a similar level to the start of the quarter. Credit risk premiums on bonds in the investment grade and highyield segments narrowed further. In particular in July and September, EURdenominated mortgage bonds experienced strong compression. Even in the last quarter of 217, the markets showed their friendly side. Overall economic performance picked up pace. In the US, GDP growth was at its strongest in years and the leading economic indicators painted a rosy picture. Europe is also experiencing strong growth, and manufacturers and consumers alike are looking optimistically to the future, which has long not been the case. The meetings of the four big central banks (ECB, Fed, BoE and SNB) in December passed with no surprises. The Fed's.25% key interest rate hike had been expected, and the ECB continued to stick to its bondbuying programme. The unchanged interest rate forecasts caused market interest rates to fall and yield curves to flatten even further. In the US, 1year Treasury bond yields closed 5 basis points down, at 2.42%. 1year German Bund yields also fell by.4% in the fourth quarter to.43%, an increase of.25% yearonyear. Credit risk premiums on bonds in the investment grade and highyield segments continued to fall in the fourth quarter as well. Demand was buoyed by the expectation of additional corporate bond purchases by the ECB and strong economic and quarterly data. Credit risk premiums ended the year at their lowest level since 26. Review of fundrelevant categories Interest rates displayed a highly volatile sideways movement in 217. Any trends were shortlived before being almost completely counteracted again by market movements. The main constant, however, was the excellent performance of credit risk. Additional credit risk exposure was very well rewarded. Past performance is not an indicator of current or future performance. Performance data does not take into account the costs and commissions charged for the issue and redemption of units. The information and figures contained in this report are based upon the past and provide no indication of future developments.