Swiss Small & Mid Cap Fund Class A zMonthly May 20

Liquidity driving the markets Performance since Launch (as of 29/05/2020) The ongoing recovery of global stock markets since mid-March continued. The positive sentiment was temporarily dulled by the resurfacing dispute between the US and China. However, mar- ket setbacks triggered by US President Trump’s threat to im- pose new punitive tariffs and the announcement of new re- strictions on network equipment maker Huawei proved short- lived. A pessimistic speech by US Fed chief Jerome Powell – in which he warned of a protracted period of economic weakness and significant downside risks – likewise resulted in only tem- porary profit-taking. On 18 May, an announcement of Biotech zCapital Swiss Small & Mid Cap Fund A SPI Extra® (indexed) company Moderna caused a surge in global share prices. Initial clinical trials with a vaccine showed positive results in terms of Performance (as of 29/05/2020) preventing Covid-19. This raised hopes that a vaccine might be- come available as early as this autumn. At the same time, the MTD (Fund / Benchmark) 5.9% / 6.5% market paid no heed to poor economic numbers. Investors con- YTD -6.0% / -7.9% tinued to be driven towards equities by unparalleled fiscal pack- 1 year 6.2% / 4.4% ages and ever-increasing liquidity injections on the part of cen- 3 years p.a. 3.6% / 2.5% tral banks. Due to the coronavirus crisis, dental implants man- 5 years p.a. 8.9% / 7.9% ufacturer anticipates a more difficult environment 10 years p.a. 10.4% / 8.8% long-term and is therefore shedding nine percent of its global Since launch p.a. 11.1% / 8.5% workforce. By contrast, was buoyed by trends such as videoconferencing and work from home, with quarterly num- Sectors (as of 29/05/2020) bers exceeding investor expectations. The fund was up 5.9% in May (SPI Extra +6.5%).

SoftwareOne position increased We continued to expand our position in SoftwareOne shares via a placing by the firm’s legacy shareholders. We also increased our positions in DKSH, Georg Fischer and AMS. On the other hand, we reduced our exposure to VZ Holding, Logitech, Strau- mann and Orior.

Real economy under pressure We remained in close communication with the companies in May to obtain a broad picture of the developments in the real economy. The outlook remains very gloomy. Our analysis is confirmed by the KOF Economic Barometer, which hit the low- Largest Positions (as of 29/05/2020) est point in its history in May. This was primarily down to the manufacturing sector as well as indicators concerning foreign 1 & Sprüngli 6.9% demand. However, investors took a significantly more optimistic 2 Partners Group 6.4% view of the situation and are willing to look far into the future. 3 Schindler 4.9% This is the only way the sharp rise in share prices and valua- 4 Logitech 4.5% tions can be justified. Confidence in the safety net cast by cen- 5 Baloise 3.8% tral banks has additionally fuelled risk appetite. Accordingly, 6 Temenos 3.5% the capital markets continued to decouple from the real econ- 7 Julius Baer 3.0% omy. We expect a negative news flow from companies in the 8 3.0% near term and wait for lower share prices to provide buying op- 9 2.4% portunities. 10 Kühne + Nagel 2.3% 11 EMS-Chemie 2.3% 12 Straumann 2.1% 13 Swiss Prime Site 2.1% 14 PSP Swiss Property 2.0% 15 Allreal 1.9%

zCapital AG Baarerstrasse 82 6300 Zug T + 41 41 729 80 80 www.zcapital.ch

Investment Strategy Portfolio Structure (as of 29/05/2020) The zCapital Swiss Small & Mid Cap Fund invests in Swiss Net Asset Value CHF 3,370.07 per Share A small and mid-cap stocks and measures itself against the SPI Total Assets CHF 875 m Extra® (all SPI® stocks without SMI® or without the 20 Investment Exposure 90.2% largest securities). The fund assets are invested in a broadly Number of Companies 57 diversified portfolio of 50 to 70 companies. zCapital strives to consistently exceed the benchmark return with a long-term, Statistics 3 Years (as of 29/05/2020) active investment style. Investment decisions are based on Volatility Fund / Index p.a. 15.0% / 15.9% fundamental company analyses, considering and assessing Tracking Error 2.0% corporate governance and other key ESG aspects. Macroeco- Information Ratio 0.4 nomic factors are also included in the decision-making pro- cess.

Termsheet Fund-Name zCapital Swiss Small & Mid Cap Fund (Class A) Asset Manager zCapital AG, Zug Swiss Security Number / ISIN 4534164 / CH0045341648 Price Publications www.zcapital.ch, www.swissfunddata.ch, www.fundinfo.com Bloomberg / Reuters ZCAPSWI SW Equity / 4534164.S Benchmark SPI Extra® (Swiss small & mid cap equities) Morningstar-Rating Minimum Investment / Reference Currency No minimum investment required / CHF Fund Type / Distribution Swiss Securities Fund / Authorized for public distribution in and Germany Fund Management Company / Custodian Bank LLB Swiss Investment AG, Zürich / Bank Julius Bär & Co. AG, Zürich Management Fee 1.5% p.a., of which 0.1% donated to charities which engage in "Children and Education" (incl. Fund Management and Custodian Fees) Issue Fee / Redemption Fee None / 0.4% in favour of the fund Total Expense Ratio (TER) as of 30/11/2019 1.50% Soft Closing The investment strategy of the Fund is capacity constrained. Therefore, the Fund is currently closed for new investors. Subscriptions and Redemptions On each bank working day at Net Asset Value (NAV). Subscriptions and redemptions which are placed with the Custodian Bank by 3.45 pm CET on a bank business day (Order Day), are processed on the next bank working day (Valuation Day) based on the Order Day’s closing price. Auditor PricewaterhouseCoopers AG, Zurich

Yearly Performance (as of 29/05/2020)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Fund -14.5% 40.2% 23.4% -18.4% 17.8% 26.0% 15.2% 12.8% 9.3% 29.0% -14.4% 28.7% -6.0% SPI Extra® -18.5% 29.6% 20.1% -19.1% 13.9% 27.7% 11.4% 11.0% 8.5% 29.7% -17.2% 30.4% -7.9%

Monthly Performance (as of 29/05/2020) 2020 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year Fund 0.4% -7.4% -9.8% 5.7% 5.9% -6.0% SPI Extra® 0.0% -7.9% -11.5% 6.2% 6.5% -7.9%

This document is promotion material. This document of zCapital Ltd does not constitute an offer or recommendation for the purchase or sale of investment funds. The information herein is subject to change at any time. No liability is accepted for any incorrect information. Past performance is not a reliable indicator of current or future performance. The performance figures do not include commissions and costs, which arise at subscription and redemption of units. According to Swiss law, the zCapital Swiss Small & Mid Cap Fund falls into the category of “Securities Fund”. Investors are advised of the risks described in the fund prospectus. Investors have to be prepared to accept and be in a financial position to bear (possibly substantial) losses. The legal fund documents are available free of charge from zCapital Ltd, Baarerstrasse 82, 6300 Zug, Switzerland or on the website www.zcapital.ch. With respect to any sales restrictions, investors should seek independent advice on the applicable legal, financial or tax principles in the country concerned. This document is not intended for natural persons or legal entities for whom the use would breach the legal system of their state on account of their nationality or the domicile of the respective person or for other reasons. This applies in particular to persons with residence or domicile in the USA, Great Britain and Japan.