Swiss Opportunity Fund

November 2017 Swiss Opportunity Fund

FACT SHEET / PERFORMANCE –0.37%

Switzerland’s stock market ultimately sustained its positive mo- The Swiss Opportunity Fund retreated 0.37%. A brief analysis of mentum in November in the wake of its strong October perfor- the performance attribution for the Swiss Opportunity Fund in mance. On the surface, it appears that the market was just as November shows how heterogeneous portfolio developments stable in November as in the preceding months, but beneath the were: Clariant (+6%, action by White Tale), EFG (+8.1%, positive surface there was considerable turbulence. Not only was the past roadshow), Georg Fischer (+3.9%, positive roadshow), HBM month split into a period of correction followed by a rebound, Healthcare (+3.6%), Roche (+7.5%, good trial data), Sunrise individual stocks experienced wide price fluctuations. (+6.2%) and Valora (+4%, successful rights issue) continued to stand out on the upside. On the downside, we were completely November thus deflated some of the exuberance displayed by surprised by Sonova’s weak performance (-14.3%), which can be the market during the previous two months. The question blamed on rating downgrades and profit-taking. We are still opti- whether stocks have run too far too fast is certainly warranted. A mistic about the hearing care manufacturer's mid- and long-term correction has become a major talking point in view of record- potential. Other laggards were Swatch (-8.4%, despite a positive low volatility, lofty valuations and the strong gains stocks have interview with the CEO), Dufry (-4.5%, worries about HNA exit) made during the past two months. On the other hand, global and Sulzer (-9.2%). leading economic indicators continued to point up in November and there’s little reason to doubt that the world economy is shift- Portfolio activity was relatively low . We took profits in Kühne & ing into an even higher gear. With the economy building up more Nagel and AMS. steam, who would dare cash out now and wait for the market to Our overall assessment did not change from the previous month. go off the rails? The outlook for both the economy and corporate Buy-the-dip is still the prevailing mentality with buyers swooping earnings is simply too good to justify a pessimistic stance. in whenever prices are weak. We expect this to continue too. At month’s end the SPI TR Index was up 0.67% and the SPIEX TR Stocks are nevertheless vulnerable on the downside. After all, a was down -0.1%, which partially corrects the outperformance of lot of good news has been priced in. If the news turns out to be the mid and small cap segments in the previous month. The per- bad, for example regarding the efforts in Washington to cut tax- formance disparity can largely be traced to the good perfor- es, we could be in for a prolonged period of weakness. mance of Roche (positive clinical readouts), Novartis and Nestlé.

NET-PERFORMANCE SINCE 1.1.2014 (VS SPIEX AND SPI)

300

SOF/SPIEX/SPI 280

260

240

220

200

180

160

Jul17 Jul14 Jul15 Jul16

Jan 14Jan Jan15 Jan16 Jan17

Jun14 Jun16 Jun15 Jun17

Okt14 Okt15 Okt16 Apr14 Apr15 Apr16 Apr17 Okt17

Feb15 Feb17 Feb14 Sep14 Sep15 Feb16 Sep16 Sep17

Dez13 Dez14 Dez15 Dez16

Mai14 Mai16 Mai15 Mai17

Aug14 Aug15 Aug16 Aug17

Mrz14 Mrz15 Mrz16 Mrz17

Nov14 Nov15 Nov16 Nov17

LARGEST POSITIONS PERFORMANCE

Performance SOF SPIEX Difference SPI Difference CLARIANT AG - REG 4.58% September -0.37% -0.10% -0.27% 0.67% -1.04% LINDT & SPRÜNGLI PS 4.14% 2017 YTD 24.40% 27.82% -3.42% 19.06% 5.34% S O N O V A 4.02% S C H I N D L E R 3.17% 2016 6.56% 8.50% -1.94% -1.41% 7.97% VIFOR PHARMA 3.09% 2015 4.57% 11.01% -6.44% 2.68% 1.89% SWISS PRIME SITE 3.02% 2014 12.74% 13.00% -0.26% KÜHNE + NAGEL 2.96% LOGITECH INTER - R 2.44% 2013 21.45% 24.60% -3.15% PARTNERS GROUP 2.41% EFG INTERNAT AG 2.14% Performance SOF SPIEX Difference SPI Difference R O C H E G S 2.12% 12 months 27.22% 30.55% -3.33% 23.79% 3.43% FISCHER(GEO) - REG 2.12% FORBO HOLDIN - REG 2.08% 3 yrs p.a. 11.46% 15.58% -4.12% 5.88% 5.58% A M S A G 2.05% 5 yrs p.a. 13.87% 17.31% -3.44% 11.21% 2.66% SWATCH GROUP - BR 2.05% 10 yrs p.a. 5.90% 6.43% -0.53% 4.08% 1.82% 0% 1% 2% 3% 4% 5%

ALLOCATION BY SECTORS STATISTICS

Banken/Banks/banques over 3 years SOF SPIEX SOF vs SPI SPI Risk Ratio p.a. 12.41 14.79 12.41 12.72 Dienstleistung/Services Tracking Error 5.07 5.61 5% 2% 7% Diverses/Miscellaneous/Divers Information ratio -0.43 0.22 10% Alpha -0.18 1.96 16% Gesundheitswesen/Healthcare Sharpe Ratio 0.61 0.66 0.61 0.49 7% Industriegüter/Industrial Goods 3% Materials/matériaux 9% FUND FACTS 16% Nahrungsmittel/Food & Beverage Fund Domicile Switzerland Technologie/Technology 25% Investment Manager Santro Invest SA, Pfäffikon/SZ Versicherung/Insurance Custodian Bank Bank J. Safra Sarasin AG, Basle Konsumgüter & Haushaltswaren/Personal Administrator LB(Swiss) Investment AG, Zurich & Household Goods Date of Inception July 1, 2005 Fund Currency CHF Reporting Period Calendar Year Issuance / Redemption Daily Swiss Sec. Number / ISIN 2.177.802 / CH0021778029

Total Net Asset Value CHF mn 70.1 COSTS Degree of Investment 93.10% Net Asset Value per share CHF 254.35 Management Fee 1.25% p.a Last dividend payout 22.03.10 gross 0.6 Performance Fee 10% of the OP vs SPIEX 12.03.13 gross 0.92 Redemption Fee None 18.03.15 gross 1.6 Total Expense Ratio (TER) 1.39% p.a. (as per 30.06.2017)

FUND DESCRIPTION The Swiss Opportunity Fund is an actively managed Swiss equity fund. Over the cycle around 2/3 of the fund will be invested in medium or smaller sized companies that are either located in Switzerland or foreign companies whose shares are only listed in the Swiss equity market and are not part of the SMI (Swiss Market Index). Therefore, we chose the SPIEX (SPI without SMI stocks) as benchmark. Depending on the economic cycle and individual company valuations, the structure of the portfolio can deviate substantially from the index. If we expect a weak economy we might overweight defensive stocks greatly, in an expected upswing we will strongly increase the weightings of the cyclical companies, in particular small caps. We generally prefer to invest in companies with a convincing management team, sound balance sheet and a strong position in their markets. Their strategy should enable the company to generate a long-term sustainable economic value added (EVA). As the outcome of this we expect to achieve a better total return together with a lower risk rate compared to the benchmark.

This document does not constitute and should not be construed as an offer, or solicitation of an offer, to buy or sell any securities or other financial instruments or to engage in any other investment transac- tion. Shares of the investment fund described herein, the Swiss Opportunity Fund (the “Fund”), may be offered solely on the basis of the information and representations expressly set forth in the relevant confidential Prospectus / ‘Fondsvertrag’, and no other information or representations may be relied upon in connection with the offering of the shares. No investment in the Fund may be made or will be accepted save on the basis of the aforementioned Prospectus / ‘Fondsvertrag’. While every effort has been made to ensure the accuracy of the information contained herein, it may not be relied upon as such and no representations, express or implied, are made as to the completeness, accuracy or timeliness of the information. The price and value of investments as well as any income derived from them may fluctuate. Past performance is not necessarily an indication of future performance, future returns are not guaranteed, and a loss of original capital may occur, including a permanent and unrecoverable loss. The investments discussed herein may be unsuitable for investors depending on their specific investment objectives and financial position as well as on the laws of the countries of their citizenship, residence, incorporation or domicile. Investors must independently evaluate each particular investment product in light of their own objectives, risk profile and circumstances and seek, where appropriate, professional advice including tax advice. The information contained in this document should not be deemed to constitute the provision of financial, investment or other professional advice in any way. These performance data do not take account of commissions and costs incurred on the issue and redemption of units.