( 中文節譯文 ) GAM 多元債券基金系列 (GAM Multibond) ( 至西元 2017 年 6 月 30 日止之原名稱為瑞士寶盛債券基金系列 (Julius Baer Multibond)) Société d lnvestissement á Capital Variable 年度報告 截至西元 2017 年 6 月 30 日 ( 經查核簽證 )
查核報告 致 GAM Multibond( 原名稱為 Julius Baer Multibond) 股東 : 意見 我們認為後附之財務報表以真實且公平的觀點, 依據盧森堡關於準備財務報表之法律及監理要求, 呈現了 GAM Multibond( 原名稱為 Julius Baer Multibond) 及其各子基金 ( 以下簡稱 基金 ) 於西元 2017 年 6 月 30 日之資產及財務情形 獲利狀況及截至財務年度終了之淨資產變動 查核標的 基金之財務報表由以下構成 : 西元 2017 年 6 月 30 日之淨資產表 ; 西元 2017 年 6 月 30 日之證券投資組合 ; 損益表及截至財務年度終了之淨資產變動表 ; 及 重要會計政策及其他說明資訊之摘要 ( 附件 ) 意見之依據 我們依據關於查核服務之法律 ( 下稱 西元 2016 年 7 月 23 日法規 ) 及經盧森堡金融業監管委員會 (Commission de Surveillance du Secteur Financier, 下稱 CSSF ) 採用之國際審計準則 (International Standards on Auditing, 下稱 ISA )) 進行查核 我們於前揭法律下之責任及準則於本報告 註冊會計師就財務報表查核之責任 章節有進一步說明 作為我們提供意見之依據, 我們認為我們取得充分且恰當的查核證據 獨立性 我們依據盧森堡 CSSF 採納之國際職業道德準則理事會之專業會計師道德守則 (Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code)), 及其進行查核財務報表所要求之專業行為準則, 獨立於基金之外 我們亦遵守其他該行為準則所要求之職業道德要求 其他資訊 - 2 -
基金之董事會就其他資訊負責 其他資訊由年報涵蓋之資訊組合, 惟不包括其中之財 務報表及我們的查核報過告 我們對財務報表所表示之意見並未涉及其他資訊, 且我們並不就其他資訊提供任何形 式之擔保結論 就財務報表之查核, 我們的責任在於檢視上述定義之其他資訊, 並於檢視時考量其他資訊與財務報表及我們查核所得之資訊間是否有重大歧異, 或是否有其他重大錯誤陳述 依據我們執行工作之情形, 如果我們認為其他資訊具有顯著的錯誤陳述, 我們應報告該事實 就此而言, 我們並無應報告事項 基金董事會及負責管理財務報表人員之責任 基金之董事會應依據盧森堡就準備及揭露財務報表之法律及監理要求, 負責準備並允 當地揭露財務報表, 且應就基金董事會認為用於避免財務報表之準備產生重大錯誤 ( 無 論係因詐欺或誤植導致 ) 之內部控制措施負擔責任 於準備財務報表時, 除非基金董事會打算清算基金或停止運作, 或並無可行之替代方 案, 董事會應負責評量基金持續經營之能力, 揭露關於影響持續經營之事項 ( 如有 ), 並 採用會計持續經營原則 負責管理財務報表之人員負責監控財務資訊報告流程 註冊會計師就財務報表查核之責任 我們查核之目標, 係為就財務報表整體並無重大錯誤 ( 無論係因詐欺或誤植導致 ) 取得合理之確認, 並出具包括我們意見在內的查核報告 合理之確認指高標準之確認, 惟並非保證依據盧森堡 CSSF 採納之西元 2016 年 7 月 23 日法規及 ISA 所進行之查核, 得發現所有存在之重大錯誤記載 詐欺及誤植皆有可能產生錯誤記載, 自單獨事件或整體情形之角度, 如該等記載可被合理認為將影響財務報表接收者之經濟上決策 ( 即其依該等財務報表所決策 ), 則其將被認為具重大性 作為依據盧森堡 CSSF 採納之西元 2016 年 7 月 23 日法規及 ISA 所進行之部分查核, 我們於查核時進行專業程度的判斷並提出專業上合理之懷疑 並且, 我們 辨識並評估於財務報表中發現之重大錯誤記載 ( 無論係因詐欺或誤植導致 ) 之風 險 設計並執行應對該等風險之查核程序, 並為我們意見取得充分及恰當依據的 查核證據依據 因為詐欺因素而未能發現重大錯誤記載之風險, 大於因誤植所產 - 3 -
生之風險, 因詐欺可能涉及共謀 偽造 刻意缺漏 不實表達或無視內部控制等 情形 ; 瞭解關於查核之內部控制以視情形設計恰當的查核程序, 惟其目的並非對基金內 部控制之有效性表示意見 ; 評估基金董事會採行會計政策之適當性, 及會計估算及相關揭露之合理性 ; 基於取得之查核證據, 就基金董事會運用持續經營原則之適當性, 評論是否存有具重大不確定性之事件或條件, 以致基金之持續經營能力存有重大疑問 如我們認為確有該等重大不確定性, 我們有義務在查核報告中點明財務報表之相關揭露, 且, 如果該等揭露不夠充分, 則須修改我們的意見 我們的結論係基於截至出具查核報告所得之查核證據作成 然而, 未來之事件或條件可能導致基金無法維持持續經營能力 ; 及 評估財務報表整體之表達 結構及內容, 包括揭露事項, 及財務報表是否允當地 呈現相關交易及事件 我們已經將包括查核計畫範圍及重大查核發現在內的事項告知負責公司治理之人員, 包括我們於查核中所發現之任何重大內部控制不足 Roxane Haas 代表 PricewaterhouseCoopers, Société coopérative 盧森堡,2017 年 10 月 10 日 - 4 -
GAM 多元債券基金系列 - 絕對報酬債券 (GAM Multibond-Absolute Return Bond) ( 至 2017 年 6 月 30 日止之原名稱為瑞士寶盛債券基金系列 - 絕對報酬債券基金 (Julius Baer Multibond-Absolute Return Bond Fund)) 淨資產表 損益表 截至 2017 年 6 月 30 日 自 2016 年 7 月 1 日至 2017 年 6 月 30 日 歐元 歐元 資產 收益 投資市值 2,476,039,210 證券投資收益 71,422,357 ( 成本 :2,431,181,213) 銀行利息 45,080 衍生性工具 : 交換合約利息收入 11,362,522 - 期貨 11,560,576 其他收益 1,122,494 - 遠期外匯合約 104,254,886 總收益 83,952,543 - 選擇權 100,250,342 - 交換合約 90,820,047 支出 交換合約收受對價 8,349,089 管理費 15,990,182 銀行存款 * 116,669,044 銀行負債利息支出 953,042 申購應收款 4,766,288 交換合約利息支出 34,028,174 出售證券應收款 14,823,859 其他支出 15,285,054 配息及利息應收款 17,863,275 平衡 577,060 其他應收款項 46,005 總支出 66,833,512 總資產 2,945,442,621 淨收益 / 淨損失 17,118,941 負債 已實現淨收益 / 淨損失 衍生性工具 : - 有價證券 35,435,947 - 期貨 1,144,808 - 選擇權 -32,121,878 - 遠期外匯合約 24,690,037 - 交換合約 43,179,407 - 選擇權 76,427,673 - 遠期外匯合約 -215,341,668 - 交換合約 98,795,117 - 期貨 -12,225,944 交換合約支付對價 13,302,800 - 外匯 57,944,733 股份贖回應付款 16,160,972 平衡 12,527,689 購買證券應付款 36,999,093 已實現淨收益 / 淨損失 -93,752,773 交換合約負債 3,684,775 未實現增值 / 貶值之淨變動 : 應付管理費 1,171,543 - 有價證券 -128,868,305 績效費用 193,912 - 選擇權 85,906,343 交換合約利息債務 3,268,216 - 交換合約 9,469,447 其他債務 1,110,054 - 遠期外匯合約 161,706,464 總負債 276,949,000 - 期貨 33,184,571 淨資產 2,668,493,621 - 外匯 -378,541 總收益 / 總損失 67,267,206 * 包括在經紀商之銀行存款或負債 淨資產變動表 2016 年 6 月 30 日 2017 年 6 月 30 日 歐元 歐元 會計年度開始之淨資產 5,597,652,583 3,325,153,231 總收益 / 總損失 -412,088,671 67,267,206 淨申購 / 淨贖回 -1,838,389,967-716,132,474 股息分配 -22,020,714-7,794,342 會計年度終了之淨資產 3,325,153,231 2,668,493,621-5 -
GAM 多元債券基金系列 - 多元化收入債券 (GAM Multibond-Diversified Income Bond) ( 至 2017 年 6 月 30 日止之原名稱為瑞士寶盛債券基金系列 - 多元機會債券基金 (Julius Baer Multibond-Credit Opportunities Bond Fund)) 淨資產表損益表 截至 2017 年 6 月 30 日歐元自 2016 年 7 月 1 日至 2017 年 6 月 30 日歐元 資產 收益 投資市值 168,590,729 投資證券收益 7,281,734 ( 成本 :161,746,818 歐元 ) 銀行利息 227 衍生性工具 : 交換合約利息收入 358,405 - 期貨 39,900 總收益 7,640,366 - 遠期外匯合約 4,606,747 - 交換合約 67,473 支出 銀行存款 * 7,115,311 管理費 1,812,400 申購應收款 258,114 銀行負債利息支出 20,199 出售證券應收款 104,040 交換合約利息支出 123,467 配息及利息應收款 2,055,258 其他支出 898,304 其他應收款 152,981 平衡 10,648 總資產 182,886,513 總支出 2,865,018 負債 淨收益 / 淨損失 4,775,348 衍生性工具 : 已實現收益 / 損失 : - 期貨 23,974 - 有價證券 502,588 - 遠期外匯合約 1,202,519 - 交換合約 282,899 - 交換合約 60,796 - 遠期外匯合約 -1,775,789 贖回應付款 272,414 - 期貨 468,972 購買證券應付款 224,392 - 外匯 -661,765 應付管理費 147,095 平衡 -208,549 交換合約利息負債 11,222 已實現淨收益 / 淨損失 3,383,704 其他負債 73,321 未實現增值 / 貶值之淨變動 : 總負債 2,015,733 - 有價證券 -5,110,016 淨資產 180,870,780 - 交換合約 24,924 - 遠期外匯合約 - 期貨 4,597,686 434,627 * 包括在經紀商之存款 - 外匯 -60,516 總收益 / 總損失 3,270,409 淨資產變動表 2016 年 6 月 30 日歐元 2017 年 6 月 30 日歐元 會計年度開始之淨資產 205,791,120 164,919,008 總收益 / 總損失 3,182,956 3,270,409 淨申購 / 淨贖回 -42,330,559 14,389,681 股息分配 -1,724,509-1,708,318 會計年度終了之淨資產 164,919,008 180,870,780-6 -
GAM Multibond [formerly: Julius Baer Multibond (until 30 June 2017)] Société d'investissement à Capital Variable Annual Report As at 30 June 2017 (audited) Subscriptions are carried out solely on the basis of the current prospectus or the key investor information, in conjunction with the latest annual report and the latest semi-annual report if published thereafter. The Articles of Association, the valid prospectus and the key investor information, the annual and semi-annual reports, as well as information based on the Guidelines on transparency with regard to management fees of the Swiss Funds & Asset Management Association [SFAMA], may be obtained free of charge from the representative in Switzerland and/or from the respective paying agent. In case of differences between the German version and the translation, the German version shall be the authentic text. AN INVESTMENT FUND DOMICILED IN LUXEMBOURG Representative in Switzerland: GAM Investment Management (Switzerland) AG, Hardstraße 201, P.O. Box, CH - 8037 Zurich Paying Agent in Switzerland: State Street Bank International GmbH, Munich, Zurich Branch, Beethovenstraße 19, CH - 8027 Zurich Paying Agent in Germany: DekaBank Deutsche Girozentrale, Mainzer Landstraße 16, D - 60325 Frankfurt / Main Information Agent in Germany: GAM (Deutschland) GmbH, Taunusanlage 15, D - 60325 Frankfurt / Main Paying Agent in Austria: Erste Bank der oesterreichischen Sparkassen AG, Am Belvedere 1, A - 1100 Vienna Register number: R.C.S. Luxembourg B32187
Organisation and Management Page Organisation and Management 3 Audit Report 5 Report of the Board of Directors 9 Notes to the Annual Report 10 GAM Multibond (umbrella fund) 20 GAM Multibond - ABS* 22 GAM Multibond - ABSOLUTE RETURN BOND* 29 GAM Multibond - ABSOLUTE RETURN BOND DEFENDER* 83 GAM Multibond - ABSOLUTE RETURN BOND PLUS* 132 GAM Multibond - ABSOLUTE RETURN EMERGING BOND* 186 GAM Multibond - DIVERSIFIED INCOME BOND* 194 GAM Multibond - DOLLAR BOND* 208 GAM Multibond - EMERGING BOND* 215 GAM Multibond - EMERGING MARKETS CORPORATE BOND* 223 GAM Multibond - EMERGING MARKETS INFLATION LINKED BOND* 230 GAM Multibond - EMERGING MARKETS INVESTMENT GRADE BOND* 238 GAM Multibond - EMERGING MARKETS OPPORTUNITIES BOND* 245 GAM Multibond - O BOND* 254 GAM Multibond - O GOVERNMENT BOND* 269 GAM Multibond - GLOBAL CONVERT BOND* 279 GAM Multibond - GLOBAL HIGH YIELD BOND* 286 GAM Multibond - GLOBAL INFLATION LINKED BOND* 296 GAM Multibond - LOCAL EMERGING BOND* 304 GAM Multibond - SWISS FRANC BOND* 313 GAM Multibond - TOTAL RETURN BOND* 322 Appendix I Launches, liquidations, mergers and name changes of sub-funds and/or share classes 332 Appendix II Security Financing Transactions (unaudited) 333 Appendix III Additional Information for Shareholders in Switzerland (unaudited) 334 Appendix IV Information on risk management (unaudited) 350 Addresses 351 * See Appendix I.
Organisation and Management The Company has its registered office at Elmar Zumbühl (since 21 October 2016) 25, Grand-Rue Group Chief Risk Officer L - 1661 Luxembourg GAM Holding AG Zurich, Switzerland Board of Directors of the Company Managing Directors of the Management Company Chairman: Martin Jufer Ewald Hamlescher (until 17 March 2017) Member of the Group Management Board, GAM Group Managing Director Region Head Continental Europe GAM (Luxembourg) S.A. GAM Investment Management (Switzerland) AG Luxembourg, Grand Duchy of Luxembourg Zurich, Switzerland Steve Kieffer Members: Managing Director Me Freddy Brausch GAM (Luxembourg) S.A. Partner Luxembourg, Grand Duchy of Luxembourg Linklaters LLP Luxembourg, Grand Duchy of Luxembourg Nils Kruse (since 17 March 2017) Managing Director Andrew Hanges GAM (Luxembourg) S.A. Region Head UK Luxembourg, Grand Duchy of Luxembourg GAM (UK) Ltd. London, United Kingdom Investment Manager Jean-Michel Loehr For the sub-fund GAM Multibond - GLOBAL CONVERT Independent Director BOND*: Frisange, Grand Duchy of Luxembourg EMCore AG Marktgasse 11 Dirk Spiegel FL - 9490 Vaduz Group General Counsel GAM Investment Management (Switzerland) AG For the sub-funds GAM Multibond - ABSOLUTE RETURN Zurich, Switzerland BOND*, GAM Multibond - ABSOLUTE RETURN BOND DEFENDER*, GAM Multibond - ABSOLUTE Management Company and Domiciliary Agent RETURN BOND PLUS* and GAM Multibond - LOCAL EMERGING BOND*: GAM (Luxembourg) S.A. GAM International Management Limited 25, Grand-Rue 20 King Street L - 1661 Luxembourg London SW1Y 6QY, United Kingdom Board of Directors of the Management Company Chairman: Martin Jufer Member of the Group Management Board, GAM Group Region Head Continental Europe GAM Investment Management (Switzerland) AG Zurich, Switzerland Members: Andrew Hanges Region Head UK GAM (UK) Ltd. London, United Kingdom Yvon Lauret Independent Director Luxembourg, Grand Duchy of Luxembourg William Norris (since 21 October 2016) Head of Operations and IT GAM (UK) Ltd. London, United Kingdom For the sub-funds GAM Multibond - DOLLAR BOND* and GAM Multibond - GLOBAL HIGH YIELD BOND*: Aberdeen Asset Management Inc. 1735 Market Street, 32nd floor Philadelphia, PA 19103, USA For the remaining sub-funds: GAM Investment Management (Switzerland) AG Hardstraße 201 P.O. Box CH - 8037 Zurich The investment managers may hire investment advisers to assist them in managing individual sub-funds. Depositary, Central Administrator and Principal Paying Agent as well as Registrar and Transfer Agent State Street Bank Luxembourg S.C.A. 49, Avenue J.F. Kennedy L - 1855 Luxembourg 3
Organisation and Management Distributors Spain: ATL12 Capital Inversiones A.V., S.A. The Company and/or the Management Company has C. / Montalbán 9 appointed and may appoint further distributors authorised E - 28014 Madrid to sell the shares in one or more jurisdictions. United Kingdom: Auditor GAM Sterling Management Ltd. 12 St. James s Place PricewaterhouseCoopers, Société coopérative 2, Rue Gerhard Mercator L - 2182 Luxembourg London, SW1A 1NX Belgium: RBC Investor Services Belgium S.A. Legal Adviser Boulevard du Roi Albert II, 37 B - 1030 Brussels Linklaters LLP 35, Avenue J.F. Kennedy Liechtenstein: L - 1855 Luxembourg Local Representatives LGT Bank AG Herrengasse 12 FL - 9490 Vaduz Representative in Switzerland: Sweden: GAM Investment Management (Switzerland) AG MFEX Mutual Funds Exchange AB Hardstraße 201 Grev Turegatan 19 P.O. Box SE - 114 38 Stockholm CH - 8037 Zurich Taiwan: Paying Agent in Switzerland: Concord Capital Management Corp. State Street Bank International GmbH, Munich, 9F, No. 176, Sec. 1 Zurich Branch Keelung Rd. Beethovenstraße 19 Taipei CH - 8027 Zurich Cyprus: Paying Agent in Germany: Cyprus Development Bank Public Company Ltd. DekaBank Deutsche Girozentrale 50 Arch. Makarios III Avenue Mainzer Landstraße 16 P.O. Box 21415 D - 60325 Frankfurt / Main CY - 1508 Nicosia Information Agent in Germany: GAM (Deutschland) GmbH Taunusanlage 15 D - 60325 Frankfurt / Main Austria: Erste Bank der oesterreichischen Sparkassen AG Am Belvedere 1 A - 1100 Vienna Ireland: GAM Fund Management Limited George s Court 54-62 Townsend Street Dublin 2 Ireland France: Caceis Bank 1-3, Place Valhubert F - 75013 Paris * See Appendix I. 4
Audit Report To the shareholders of GAM Multibond (formerly Julius Baer Multibond) Opinion In our opinion, the accompanying financial statements present a true and fair view of the and financial position of GAM Multibond (formerly Julius Baer Multibond) and of each of its sub-funds (the Fund ) as at 30 June 2017, and of the earnings position and statement of changes in for the financial year then ended, in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. What we have audited The financial statements of the Fund comprise: the statement of as at 30 June 2017; the securities portfolio as at 30 June 2017; the profit and loss account and the statement of changes in for the financial year then ended; a summary of significant accounting policies and other explanatory information (Annex). Basis for opinion We conducted our audit in accordance with the Law on auditing services (Law of 23 July 2016) and with the International Standards on Auditing (ISA) for Luxembourg as adopted by the Commission de Surveillance du Secteur Financier (CSSF). Our responsibilities for the audit under said law and standards are further described in the Responsibilities of the Réviseur d entreprises agréé for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P. 1443, L - 1014 Luxembourg Tel.: (+352) 49 48 48 1, Fax: (+352) 49 48 48 29 00, www.pwc.lu Cabi de révision agréé. Expert-comptable (autorisation gouvernementale n 10028256) R.C.S. Luxembourg B 65 477 - VAT No: LU25482518 5
Independence We are independent of the Fund in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) as adopted for Luxembourg by the CSSF and of the professional code of conduct we are required to adhere to when auditing the financial statements. We have also complied with all other professional duties in accordance with this code of conduct. Other information The Board of Directors of the Fund is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements or our audit report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors of the Fund and those charged with governance for the financial statements The Board of Directors of the Fund is responsible for the preparation and fair presentation of the financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements, and for such internal control as the Board of Directors of the Fund determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 6
In preparing the financial statements, the Board of Directors is responsible for assessing the Fund s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors of the Fund either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the financial reporting process. Responsibilities of the Réviseur d entreprises agréé for the audit of the financial statements The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of 23 July 2016 and with the ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures in response to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund s internal control; evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors of the Fund; 7
conclude on the appropriateness of the use by the Board of Directors of the Fund of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause the Fund to cease to continue as a going concern; evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. PricewaterhouseCoopers, Société coopérative Luxembourg, 10 October 2017 Represented by Roxane Haas 8
Report of the Board of Directors Dear Investors, We are pleased to enclose the annual report of GAM Multibond. This report contains the Fund Management Report produced on behalf of the Board of Directors for the active sub-funds. It also includes the statement of, the profit and loss account, the statement of changes in, the comparative statement as well as the respective portfolios of the sub-funds. The Board of Directors confirms that the Company adhered to the rules of the ALFI Code of Conduct for Luxembourg investment funds in all significant aspects during the accounting period and at the end of the financial year (30 June 2017). Further information on the SICAV and the sub-funds, including prospectuses and semi-annual reports, may be obtained from the Management Company of the SICAV upon request and may also be viewed online at www.funds.gam.com. Luxembourg, in October 2017 On behalf of the Board of Directors of GAM Multibond Martin Jufer Chairman of the Board of Directors Andrew Hanges Member of the Board of Directors 9
Notes to the Annual Report Legal information GAM Multibond (the Company ) was incorporated on 1 December 1989 for an indefinite period. It is organised as a Société d Investissement à Capital Variable (open-ended investment company SICAV) under the Law of 10 August 1915 of the Grand Duchy of Luxembourg, as amended. It has been registered under Part I of the amended law of 17 December 2010 as an undertaking for collective investment in transferable securities (UCITS). Julius Baer Multibond was renamed GAM Multibond on 30 June 2017. The renaming of the sub-funds was implemented accordingly at the same time. The Company is registered under number B32187 in the Luxembourg Trade and Companies Register. The Company has its registered office at 25, Grand-Rue, L - 1661 Luxembourg. Share classes The following share classes are issued at present: - A shares: shares with distribution of income and/or capital gains. - An shares: shares with distribution of income and/or capital gains. - B shares: shares without distribution of income and/or capital gains. - Bn shares: shares without distribution of income and/or capital gains. - C shares (for institutional investors): shares without distribution of income and/or capital gains. - Ca shares (for institutional investors): shares with distribution of income and/or capital gains. - Cm shares (for specific distributors and institutional investors): shares with distribution of income and/or capital gains. - Cu shares (for institutional investors): shares without distribution of income and/or capital gains. - E shares (for specific distributors, as defined in the prospectus): shares without distribution of income and/or capital gains. - Em shares (for specific distributors, as defined in the prospectus): shares with distribution of income and/or capital gains. - G shares (for the GAM Group, as defined in the prospectus): shares without distribution of income and/or capital gains. - I shares (for specific institutional investors, as defined in the prospectus): shares without distribution of income and/or capital gains. - La shares (for specific distributors, as defined in the prospectus): shares with distribution of income and/or capital gains. - R shares (for specific distributors, as defined in the prospectus): shares without distribution of income and/or capital gains. - Ra shares (for specific distributors, as defined in the prospectus): shares with distribution of income and/or capital gains. - Tm shares (for specific distributors, as defined in the prospectus): shares with distribution of income and/or capital gains. Dividend distributions In relation to the distributing Cm, Em and Tm shares, a regular interim dividend shall be paid, in principle, on a monthly basis in the currency of the respective sub-fund or in the currency of the respective share category. Accounting principles Presentation of the annual report The annual report has been prepared in accordance with the legal requirements for investment funds in Luxembourg. The present report has been prepared on the basis of the last asset value ( NAV ) calculation at the end of the accounting period (in the following: NAV = Net Asset Value). Aggregation Each sub-fund of the Company prepares accounts relating to its operating result in its denominated currency. The accounts of the Company (umbrella fund) are prepared in Swiss francs by aggregating the and liabilities of the individual sub-funds using the exchange rates applicable on the last day of the financial year. Accounting The annual report of the Company has been prepared in accordance with the regulations relating to undertakings for collective investment in transferable securities (UCITS) applicable in Luxembourg. The accrual principle is taken into account when preparing the annual report. The accounting principles are applied consistently. 10
12 Notes to the Annual Report Valuation of and liabilities Assets and liabilities are valued at their nominal value, with the following exceptions. Foreign currencies Transactions effected in currencies other than the currency of the particular sub-fund are converted using the exchange rate on the date of the transaction. Assets and liabilities denominated in currencies other than the currency of the particular sub-fund are converted using the exchange rate on the balance sheet date. Foreign exchange profits and losses are included in the profit and loss account for the current financial year. Foreign exchange differences Foreign exchange differences are attributable to the fluctuation in exchange rates over the course of the financial year. The foreign exchange difference is as a result of consolidating the sub-fund currencies into the Fund currency. Securities portfolio Securities listed on a stock exchange or any other regulated market open to the public are valued at the last available price of the financial year. Unlisted securities are identified as such. Their value shall be based on a probable realisation value, determined with due care and in good faith. The realised profit/loss from the sale of securities is determined using the average historical acquisition costs. Securities denominated in currencies other than the currency of the particular sub-fund will be converted using the exchange rate on the balance sheet date or the date of sale, whichever is applicable. All profits and losses from foreign exchange are shown together with realised profit/loss from securities in the profit and loss account. Dividends are recorded on the ex-dividend date. Income from securities is shown of withholding taxes. The portfolio of the Fund may contain securities which are difficult to value (i.e. stale price, limited pricing sources). In such cases, the concerned securities are regularly monitored through a detailed analysis which is carried out at least monthly. A more general analysis is carried out every quarter. The monitoring is performed according to the principles and criteria determined by the Board of Directors Securities lending Income from securities lending is shown separately in the profit and loss account. As at 30 June 2017, there were no open securities lending positions. Repurchase agreement Income from the repurchase agreement for securities is shown separately in the profit and loss account. There are no repurchase agreements at the end of the financial year. Income from zero-coupon bonds For zero coupon bonds, the notional interest portion is calculated as interest income and reclassified in the profit and loss account under the item Income from securities instead of the item Net change in unrealised appreciation/depreciation on securities. Commercial papers Commercial papers are issued at a discount until maturity. 11
Notes to the Annual Report Options The buyer of a put option has the right, but not the obligation, to sell an underlying instrument ( underlying ) at an agreed upon price ( strike price ) to the option seller. The buyer of a call option has the right, but not the obligation, to purchase the underlying at the strike price from the option seller. Purchased Options: Premiums paid by the sub-fund for purchased options are included in the statement of as acquisition costs of the investments. The valuation of options is adjusted daily to reflect their current market value. The change is recorded as Net change in unrealised appreciation/depreciation in the profit and loss account. If the option expires without being executed, the sub-fund loses the paid premium and a realised loss of corresponding value is booked. If a sold option is exercised or closed, the paid premium with the sales proceeds of the underlying is settled or added to the cost price of the underlying to determine the realised profit/loss as well as the costs of the underlying asset. Written Options: Premiums received by the sub-fund for written options are included in the statement of as negative acquisition cost of an investment. The valuation of options is adjusted daily to reflect their current market value. The change is recorded as Net change in unrealised appreciation/depreciation in the profit and loss account. If the written option expires without being executed, the premium received is recorded as realised profit of the corresponding value. The sub-fund records a realised profit or loss on written options based on whether or not the cost of the closing of the transaction exceeds the premium received. If a call option is exercised by the option buyer, the premium received by the sub-fund is added to the proceeds from the sale of the underlying and compared to the cost of the underlying in order to determine whether there has been a realised profit or loss. If a put option is exercised by the option buyer, the costs of the purchased security will be reduced by the premium received by the option buyer. Written uncovered call options subject the sub-fund to an unlimited risk of loss. For written covered call options the potential for profit is limited to the strike price. Written put options subject the sub-fund to a risk of loss if the price of the underlying falls below the strike price minus the premium. The sub-fund is not subject to credit risk on written options as the counterparty has already performed its obligation by paying the premium at the inception of the contract. Options traded on a regulated market are valued on the basis of the closing price or the last available market price of the underlying. OTC options are marked-to-market based upon prices obtained from third party pricing agents and verified against the counterparty's valuation. The market value of options is included in the statement of under the heading Derivative instruments Options. The realised profits/losses and the change in the unrealised profits/losses from options are disclosed in the profit and loss account under the headings Realised profit/loss on options and Net change in unrealised appreciation/depreciation on options. Options, warrants and rights are disclosed in numbers in the securities portfolio. For futures-style options, the option buyer pays the option seller the full amount of the premium upon the exercise or expiry of the option. As in a future contract, buyers and sellers deposit a security (margin). While the option is held, profits and losses are marked-to-market on a daily basis. Valuation differs from traditional options primarily in terms of the timing of cash flows, since the option buyer pays the typically upfront option premium at a later date. The unrealised profit/loss of future-style options is recorded in the statement of under Derivative Instruments Options. Futures contracts (Futures) The contractual parties of a futures contract agree on the delivery of an underlying at a fixed price or for a payment of a cash amount based on the change in the valuation of the underlying at a specific date in the future. Upon entering into a futures contract, the sub-fund is required to deposit with the broker, cash or securities amounting to a certain percentage of the contract amount, a so called initial margin. Subsequent payments, referred to as variation margin, are made or received by the sub-fund periodically and are based on changes in the market value of open futures contracts. The unrealised profit/loss on futures contracts is disclosed in the statement of under Derivative instruments Futures. Changes in the market value of open futures contracts are recorded as unrealised profit/loss in the profit and loss account under Net change in unrealised appreciation/depreciation on futures. Realised profits or losses, representing the difference between the value of the contract at the time it was opened and the value at the time it was closed, are reported at the closing or expiration of futures contracts in the profit and loss account under Realised profit/loss on futures. Securities deposited as initial margin are designated in the securities portfolio and cash deposited is recorded in the statement of. A receivable and/or a payable to brokers for the daily variation margin is also recorded in the statement of. 12
14 Notes to the Annual Report Forward foreign exchange contracts Forward foreign exchange contracts represent obligations to purchase or sell foreign currency on a specified future date at a price fixed at the time the contracts are entered into. Non-deliverable forward foreign exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The valuation of the forward foreign exchange contracts are adjusted daily based on the applicable exchange rate of the underlying currency. Changes in the valuation of these contracts are recorded as unrealised appreciation or depreciation until the contract settlement date. When the forward contract is closed, the sub-fund records a realised profit or loss equal to the difference between the value at the time the contract was opened and the value at the time it was closed. The unrealised profit/loss on forward foreign exchange contracts is disclosed in the statement of under Derivative Instruments Forward foreign exchange contracts. Realised profits/losses and changes in unrealised profit/loss are included in the profit and loss account respectively under Realised profit/loss on forward foreign exchange contracts and Net change in unrealised appreciation/depreciation on forward foreign exchange contracts. The forward foreign exchange contracts detailed in the overview of derivative instruments are grouped by traded currency and by maturity date. Contracts for difference (CFD) Contracts for difference are contracts between two parties that agree to make payments to each other so as to replicate the economic consequences of holding a long or short position in the underlying security. Contracts for difference are valued based on the closing market price of the underlying security, minus any financing charges attributable to each contract. Upon entering into contracts for differences, the sub-fund may be required to pledge to the broker an amount of cash and/or other equal to a certain percentage of the contractual amount ( initial margin ). Subsequently, payments known as variation margin are made or received by the sub-fund periodically, depending on fluctuations in the value of the underlying security. The unrealised profit/loss is disclosed in the statement of under Derivative instruments Swaps. Realised profits/losses and changes in unrealised profit/loss are included in the profit and loss account under Realised profit/loss on swaps and Net change in unrealised appreciation/depreciation on swaps. Interest Rate Swaps () An interest rate swap is a bilateral agreement in which each party agrees to exchange a series of interest payments for another series of interest payments (usually fixed vs. floating). The interest payments are based on a nominal amount which is used as a basis for calculation and is usually not exchanged. During the life of the swap, each party pays interest (in the currency of the principal received) to the other. Interest rate swaps are marked-to-market at each NAV calculation date. The market value is based on the valuation elements laid down in the contracts, and is obtained from independent third party pricing agents, market makers or internal models. The unrealised profit/loss is disclosed in the statement of under Derivative instruments Swaps. Realised profits/losses and changes in unrealised profit/loss are included in the profit and loss account under Realised profit/loss on swaps and Net change in unrealised appreciation/depreciation on swaps. Credit Default Swaps (CDS) A credit default swap is a credit derivative which offers protection against the default risk of a reference company/debtor. One party ( protection buyer ) makes fixed periodic payments (coupon ) to the other party ( protection seller ) over the term of the agreement. The protection seller is in return required to make a payment contingent on a credit event related to the underlying reference obligation. This payment consists of either: (i) a cash settlement equal to the notional amount of the swap minus the auction value of the reference obligation or (ii) the notional amount of the swap in exchange for the delivery of the reference obligation. Selling protection effectively adds leverage to a sub-fund s portfolio up to the notional amount of swap agreements. The notional amount represents the maximum potential liability under a contract and is not reflected in the statement of. Contingent liabilities from these contracts can be reduced through anticipated residual claims from the underlying reference obligation; prepayments upon issuing the swap; and amounts received from the purchased credit default swap with an identical reference obligation. Credit default swaps are marked-to-market on each valuation day. The market value is based on the valuation elements laid down in the contracts, and is obtained from independent third party pricing agents, market makers or internal models. The unrealised profit/loss is disclosed in the statement of under Derivative instruments Swaps. Realised profits/losses and changes in unrealised profit/loss are included in the profit and loss account under Realised profit/loss on swaps and Net change in unrealised appreciation/depreciation on swaps. 13
Notes to the Annual Report Total Return Swaps (TRS) A total return swap is a bilateral contract in which each party agrees to exchange payments based on the performance of an underlying, e.g. a security, commodity, basket or index, for a fixed or variable rate. One party pays out the total return of a specific reference asset, and receives periodic payments in return. The total performance includes profits and losses on the underlying, as well as any interest or dividends during the contract period according to the type of underlying. The payments are calculated by reference to an agreed upon notional amount or number. Depending on whether the total return surpasses or falls short of the fixed or variable rate, the sub-fund receives or makes a corresponding payment to the counterparty. Total return swaps are marked-to-market at each NAV calculation date. The estimated market value is based on the valuation elements laid down in the contracts, and is obtained from independent third party pricing agents, market makers or internal models. The unrealised profit/loss is disclosed in the statement of under Derivative instruments Swaps. Realised profits/losses and changes in unrealised profit/loss are included in the profit and loss account under Realised profit/loss on swaps and Net change in unrealised appreciation/depreciation on swaps. Collateral At the end of the financial year, collateral was deposited for the derivatives instruments in favour of the following sub-funds: Sub-fund(s) Currency Cash collateral Non-cash collateral GAM Multibond - ABSOLUTE RETURN BOND* 35 475 946 41 427 000 Federal treasury notes ABSOLUTE RETURN BOND DEFENDER* 1 318 677 1 808 000 Federal treasury notes ABSOLUTE RETURN BOND PLUS* 6 003 029 38 518 420 Federal treasury notes EMERGING BOND* USD 290 000 - LOCAL EMERGING BOND* USD 910 000 - TOTAL RETURN BOND* 875 000 - The cash and non-cash collateral listed in the table above was deposited by Bank of America NA, Barclays Bank Plc., Citigroup Global Markets Ltd., Credit Suisse International, Goldman Sachs International, JP Morgan Securities Plc., Merrill Lynch or Morgan Stanley & Co. International Plc. In addition, at the end of the financial year, the Fund received the following collateral held at brokers for the derivatives instruments on the sub-funds listed below: Sub-fund(s) Currency Cash collateral GAM Multibond - ABSOLUTE RETURN BOND* 90 162 700 ABSOLUTE RETURN BOND DEFENDER* 5 809 000 ABSOLUTE RETURN BOND PLUS* 66 688 003 DIVERSIFIED INCOME BOND* 33 000 EMERGING MARKETS OPPORTUNITIES BOND* USD 250 000 LOCAL EMERGING BOND* USD 24 317 666 TOTAL RETURN BOND* 1 417 119 The cash and non-cash collateral stated in the table above was deposited by Bank of America NA, Barclays Bank Plc., Citibank NA, Credit Suisse AG, Deutsche Bank AG, Goldman Sachs International, HSBC Bank Plc., JP Morgan Securities Plc., Merrill Lynch international, Morgan Stanley & Co. International Plc., Nomura International Plc., RBS London or UBS AG. * See Appendix I. 14
16 Notes to the Annual Report Pooling and co-management For the purpose of efficient management and to reduce administrative costs, and if permitted by the investment policies of the sub-funds, the Board of Directors may decide to co-manage some or all of the of certain sub-funds and other Luxembourg UCIs and UCITS of GAM. The of such sub-funds are referred to in the following as co-managed. In this case, the pooling technique will be applied to the co-managed of the various sub-funds. Assets that are co-managed will be referred to using the term pool. Such pools will only be used for the purpose of internal management. They will not constitute distinct legal entities and will not be directly accessible to investors. The unrealised profit/loss of the pool is allocated to the sub-funds at each NAV calculation on the basis of daily updated pool allocation factors. There is no guarantee that the sum of this unrealised profit/loss corresponds to the reported change in unrealised appreciation/depreciation on securities at sub-fund level. Taxation In accordance with current legal practice in the European Union, the Company may apply to local EU tax authorities for a refund of the withholding tax levied on dividend payments by a number of EU member-states. If refund applications are submitted, no receivables are recorded or reported in the sub-fund, since the outcome of the refund applications is uncertain and the estimated likelihood of success may change over the course of a refund procedure. Only upon receipt of the withholding tax refund are the amounts recorded in the sub-funds in question and reported accordingly. Any costs in connection with the submission of the refund applications were/are charged to the concerned sub-funds. Any withholding tax refunds are included in the profit and loss account under Other income. Taxes In accordance with Luxembourg law, the Company is not subject to any Luxembourg income tax. Dividends paid by the Company are currently not subject to withholding tax in Luxembourg. The Company is, however, charged with an annual tax of 0.05 the ( taxe d abonnement ). A reduced taxe d abonnement of 0.01% will be applied on the applicable to the share classes for institutional investors. This classification is based on the Company s understanding of the current legal situation. This legal situation is liable to be changed, even with retroactive effect, which may result in the tax rate of 0.05% being applied retroactively. The tax is payable quarterly in arrears on the basis of the respective at the end of each quarter. Costs and Fees Management Fees For advisory services relating to the portfolios of the sub-funds, related administrative services and distribution services, the following current annual fees based on the asset value of the respective sub-fund will be charged to the sub-fund at the end of each month: Schedule of fees (p.a.) Currency Shares Shares Shares Shares Shares Shares Shares classes A/B/E/Em/Tm** An/Bn C/Ca/Cm*** G*** I*** La*** R/Ra*** GAM Multibond - ABS* CHF, 0.55% - 0.30% - - - - ABSOLUTE RETURN BOND*, CHF, 1.00% - 0.55% 0.00% - 0.75% 0.60% GBP, USD ABSOLUTE RETURN BOND DEFENDER*, CHF, 0.90% 1.20% 0.45% 0.00% - - 0.50% GBP, USD ABSOLUTE RETURN BOND PLUS*, CHF, 1.10% - 0.65% 0.00% 0.65% - 0.70% GBP, USD ABSOLUTE RETURN EMERGING BOND* USD,, CHF 1.20% - 0.65% - - - - DIVERSIFIED INCOME BOND*, USD, 1.00% - 0.60% - - - - CHF, GBP DOLLAR BOND* USD 0.80% - 0.35% - - - 0.35% EMERGING BOND* USD, CHF,, GBP 1.30% - 0.70% - - - 0.70% 15
Notes to the Annual Report Schedule of fees (p.a.) Currency Shares Shares Shares Shares Shares Shares Shares classes A/B/E/Em/Tm** An/Bn C/Ca/Cm*** G*** I*** La*** R/Ra*** EMERGING MARKETS CORPORATE BOND*, CHF, USD 1.20% - 0.60% - - - - EMERGING MARKETS INFLATION LINKED USD,, GBP 1.30% - 0.70% - - - 0.80% BOND* EMERGING MARKETS INFLATION LINKED CHF 1.30% - 0.70% - - - 0.75% BOND* EMERGING MARKETS INVESTMENT GRADE, CHF, USD 0.90% - 0.55% - - - - BOND* EMERGING MARKETS OPPORTUNITIES, CHF, USD, 1.10% - 0.60% - - - 0.70% BOND* GBP O BOND* 0.80% - 0.35% - - - - O GOVERNMENT BOND* 0.70% - 0.30% - - - - GLOBAL CONVERT BOND*, CHF, USD 1.00% - 0.55% - 0.50% - 0.55% GLOBAL HIGH YIELD BOND*, USD, GBP 1.10% - 0.60% - - - - GLOBAL INFLATION LINKED BOND* USD,, CHF 0.70% - 0.30% - - - - LOCAL EMERGING BOND* USD,, GBP, 1.40% - 0.70% 0.00% - - 0.75% CHF SWISS FRANC BOND*** CHF 0.55% - 0.30% - - - - TOTAL RETURN BOND***, CHF, USD 0.80% - 0.35% - - - - ** For E, Em and Tm shares, an additional distribution fee of a maximum of 0.50% p.a. is charged. For GAM Multibond ABS*, this additional distribution fee is a maximum of 0.45% p.a. *** With regard to the distribution, offering or holding of C, Ca, Cm, Cu, G-, I, La, R and Ra shares, the Company does not pay the distributors any commissions for public distribution. The fees as set out above are used to remunerate distributors and asset managers for distributing shares of the sub-funds and to reimburse institutional investors. Performance Fee With regard to GAM Multibond - ABSOLUTE RETURN BOND*, GAM Multibond - ABSOLUTE RETURN BOND DEFENDER*, GAM Multibond - ABSOLUTE RETURN BOND PLUS* and GAM Multibond - ABSOLUTE RETURN EMERGING BOND*, the investment manager is entitled to receive a performance-related fee ( Performance Fee ). The Performance Fee is payable when the percentage return from the start of the accounting year is above that of the benchmark index stated below per sub-fund and share currency (outperformance of the benchmark index), which will be adjusted to the effective market conditions at the end of each quarter (on the last valuation day of March, June, September, December), and when simultaneously the asset value per share is higher than the high water mark (outperformance of the high water mark). Both conditions must be fulfilled cumulatively. The Performance Fee in each case amounts to 10% p.a. of the outperformance above the high water mark or, as applicable, the outperformance above the respective benchmark index, where the lower in percentage terms of the two outperformances determined in this way is taken as the basis for calculating the Performance Fee in each case. At the launch of the respective sub-fund or a share class in a currency other than the sub-fund s accounting currency, the high water mark is identical to the initial issue price. If the asset value per share on the last valuation day of a subsequent accounting year is higher than the previous high water mark and the percentage return during the accounting year is higher than that of the benchmark index, the high water mark is set to the asset value per share calculated on the last valuation day of that accounting year before deduction of the deferred performance fee. In all other cases, the high water mark will remain unchanged. The amount of the Performance Fee is re-calculated on each valuation day in accordance with the above conditions on the basis of the outperformance since the beginning of the accounting year and is accrued in the respective sub-fund/share class. The re-calculated amount of the Performance Fee is compared on each valuation day with the amount deferred on the previous valuation day. The amount provisioned on the previous day is adjusted accordingly on the basis of the difference found between the newly calculated amount and the amount previously provisioned. Any performance fee which has been calculated under the aforementioned conditions and is payable to the investment manager is not paid out until the end of the Company's accounting year. This ensures that the Performance Fee only gets paid out if the percentage return of the sub-fund in the corresponding share currency measured over an entire accounting year is above that of the benchmark index (outperformance of the benchmark index) and simultaneously the asset value per share is higher than the high water mark (outperformance of the high water mark). ** With regard to G share classes, no Performance Fee is calculated for the sub-funds GAM Multibond - ABSOLUTE RETURN BOND*, GAM Multibond - ABSOLUTE RETURN BOND DEFENDER* and GAM Multibond - ABSOLUTE RETURN BOND PLUS*. * See Appendix I. 16
18 Notes to the Annual Report Benchmark index per sub-fund and share currency Sub-fund(s) Share class currency Benchmark index GAM Multibond - ABSOLUTE RETURN BOND* 3-month LIBOR CHF CHF 3-month LIBOR USD USD 3-month LIBOR GBP GBP 3-month LIBOR ABSOLUTE RETURN BOND DEFENDER* 3-month LIBOR CHF CHF 3-month LIBOR USD USD 3-month LIBOR GBP GBP 3-month LIBOR ABSOLUTE RETURN BOND PLUS* 3-month LIBOR CHF CHF 3-month LIBOR USD USD 3-month LIBOR GBP GBP 3-month LIBOR ABSOLUTE RETURN EMERGING BOND* USD USD 3-month LIBOR 3-month LIBOR GBP GBP 3-month LIBOR CHF CHF 3-month LIBOR Servicing Fee A servicing fee ( Servicing Fee ) will be debited by the Management Company to each sub-fund and/or share class. The Servicing Fee constitutes remuneration for the following services rendered by the Management Company or its appointees and delegates: Custody and Administration Services: business activities in accordance with custody and sub-custody services, registrar and transfer agency, central administration (fund administration, fund accounting), principal paying agent; Operational Management: remuneration of the Management Company for the operational management and supervision of the business activities of the Company; risk management; remuneration and expenses of the Board of Directors of the Company; expenses in relation to the convening of general meetings of shareholders; notary fees; Sales and Marketing: sales and marketing expenses, further distribution support, licence fees; Regulatory: public charges; taxes (particularly the taxe d abonnement); mandatory fund documents (prospectus, KIID, annual and semi-annual reports); auditing fees; costs associated with registration and reporting to supervisory authorities in different distribution countries; listing fees; publication costs for NAVs and corporate actions; Other Services: legal and tax services; paying agents and representatives; insurance premiums; and any other costs incurred by the Management Company on behalf of the Company. The Management Company may charge the Servicing Fee to individual sub-funds and/or share classes of a given sub-fund in varying ratios, or may waive it entirely. The annual maximum Servicing Fee is shown in the prospectus. The Management Fee and the Servicing Fee are both calculated on the basis of the asset value of the respective sub-fund and/or share class and debited to such sub-fund and/or such share class on each valuation day (as defined in the section Calculation of asset value of the prospectus, and will be payable monthly in arrears. Since the change to the fee structure, the Management Fee and Servicing Fee together constitute the Total Expense Ratio (TER) of the respective sub-fund and/or share class. The Management Fee and the Servicing Fee are both capped. Any costs exceeding this cap are borne by the Management Company. Formation expenses Capitalised formation expenses of new sub-funds can be written off in those sub-funds over a period of five years in equal amounts. * See Appendix I. 17