Asset Backed Securities

Asset Management – SFI Group Asset Backed Securities

Robert Wakiyama, Multi Credit & Unconstrained November 2014 Specialized Fixed Income Group Overview

USD 10 billion assets under management Comprehensive Offering 24 investment professionals with an average of 13 years of experience

Global Developed and Emerging Market credit Absolute solutions across sectors and rating categories Return

Relative and absolute return solutions with Multi Credit & Emerging customized benchmarks and investment guidelines Unconstrained Markets Investment process with a fundamental and relative value bottom-up security selection and top-down SFI Group macro strategy

Tailor-made investment solutions for UHNW clients, family offices, independent asset managers, UHNW Asia pension funds and corporations Solutions

Risk management, investment controlling and Global best execution are an integrated part of the Convertibles investment process

Sophisticated client reporting Sources: Credit Suisse As of 31.10.2014

Asset Management The disclaimer at the end is also applicable to this page. November 2014 2 Content

Introduction into Asset Backed Securities

Market Overview

ECB Covered Bond & ABS Purchase Program

Investor Considerations

Credit Suisse (Lux) Global Securitized Bond Fund

Asset Management The disclaimer at the end is also applicable to this page. November 2014 3 Tailwind for a Neglected Asset Class Central Banks Drive the Revival of the Securitized Bond Market

Reuters

Financial Times

Bloomberg

Sources: Bloomberg, Financial Times, Reuters

Asset Management The disclaimer at the end is also applicable to this page. November 2014 4 Explaining Asset Backed Securities Corporate Bonds versus ABS

Corporate Bond Investment Asset Backed Security Investment Deutsche Bank Senior Unsecured Bond: German Mortgage Portfolio originated by DB:

Investor has to trust the management decisions No company management is involved. The investor of the company, how to use the investment best has to know the investment and to generate cashflows to repay the investment + interests Investor has a transparent look-trough of the investment and knows detailed parameter Investor has to understand the reporting standards and its changes by a monthly reporting

Cushion for loss absorption (equity) is calculated on Investor has to trust the originator for a due diligent risk weighted assets and special reporting standards credit process and servicing

Cushion for loss absorption: how many mortgages at which recovery rate could default without any loss for the investment Source: Credit Suisse

Asset Management The disclaimer at the end is also applicable to this page. November 2014 5 Securitized Bonds Covered Bonds vs. ABS

Covered Bonds Asset Backed Securities

Assets remain on the issuer’s balance sheet, Assets (true sale) will be transferred out of the but legally and economically isolated. balance sheet into an SPV.

Protected by Protected by

1. the claim against the issuer bank 1. solvency of a diversified pool of consumers

2. preferred claim to a defined pool of liabilities 2. pledged asset of the consumer

3. solvency of borrowers of the liability pool 3. lower ranked notes

SPV

Eligible issue of Senior Assets Assets Assets Covered Bonds Mezzanine ...Equity

1 Simplified illustration. Source: Credit Suisse

Asset Management The disclaimer at the end is also applicable to this page. November 2014 6 Explaining Asset Backed Securities Who is Using ABS?

Example: Volkswagen Example: Italian Banks

150.0 100.0 50.0

in in bnUSD 0.0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Issuance Italian ABS

Volkswagen is one of the most active issuer of ABS Over 25 Italian banks issued in the last 10 years ABS. globally (USD 16 bn outstanding ABS). The issuance of The issuance of ABS provide: ABS provide:

Diversification and building track record of securitized Diversification of funding and building track record funding of securitized funding

Increase RoE buy selling lower yielding assets 2nd/3rd tier corporates access to the capital market

Refinancing leasing and auto loans in local currency Increase RoE buy selling lower yielding assets (mortgages)

Reduce RWA Source: AFME & SIFMA, Volkswagen Credit Suisse As of 10.11.2014

Asset Management The disclaimer at the end is also applicable to this page. November 2014 7 Content

Introduction into Asset Backed Securities

Market Overview

ECB Covered Bond & ABS Purchase Program

Investor Considerations

Credit Suisse (Lux) Global Securitized Bond Fund

Asset Management The disclaimer at the end is also applicable to this page. November 2014 8 Global Securitized Market Important Asset Class with USD 8 trillion Outstanding

US is still the biggest and most active market with a share of 66%.

Global Securitized Bond Market Forms of Securitization Secured bank funding 1% Covered 16% 19% Bonds (Pfandbriefe)

Mortgage Assets other Various 8% than Financial Mortgages Assets MBS ABS CDO (Mortgage (Asset Backed (Collateralized 56% Backed Securities) Debt

Covered Bonds US MBS US ABS European ABS other ABS Securities) Obligation) Sources: Bloomberg, Sifma, Barclays, Credit Suisse As of 10.11.2014

Asset Management The disclaimer at the end is also applicable to this page. November 2014 9 European ABS Market Outstanding European ABS at 2007 Level

European ABS offer investors a broadly diversified and liquid alternative to invests in floating rate notes

Over 90% of European ABS are Floating Rate Notes (for comparison: market size of European corporate FRN only USD 0,32 trn)

New Issuance Outstanding

1.4 3.5

1.2 3.0

1.0 2.5 0.8 2.0

0.6 trn USD 1.5 in in in in trn USD 0.4 1.0 0.2 0.5

0.0 0.0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Issuance European ABS Outstanding European ABS

Sources: Bloomberg, Sifma, Barclays, Credit Suisse As of 10.11.2014

Asset Management The disclaimer at the end is also applicable to this page. November 2014 10 European ABS Market 2014 - First Time more Upgrades than Downgrades

2/3 of outstanding European ABS are rated AAA and AA. Even senior tranches of peripheral European issuer can receive ratings above the sovereign rating due to a high credit protection (e.g., some new issued Italian Senior Auto ABS are rated AA by S&P)

2014: the upgrade to downgrade ratio shifted for the first time positive for European ABS Current Outstanding Rating Rating Changes since 2007

1% 7% 4000 1% 2869 3% 2000 5% 0

9% 46% -2000 -1311 -4000 10% -6000 -8000

18%

2005 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 AAA AA A BBB BB B CCC CC C NR Upgraded Downgraded Sources: Bloomberg, Citi, Moody’s, S&P, Fitch, Credit Suisse As of 10.11.2014

Asset Management The disclaimer at the end is also applicable to this page. November 2014 11 European ABS Market Current and Historical Spreads

Yield pick up versus other high rated credit solutions with low interest rate sensitivity such as floating rate notes and short term bonds

2007–2009 undifferentiated illiquidity crisis of the asset class turning since 2009 into a performance correlated to the underlying risk Current Senior ABS Spreads Historical Spreads

180 700 600

150

500 120 400 90 300 200 60 premium Risk Risk Premium Risk 100 30 -

April-07 April-08 April-09 April-10 April-11 April-12 April-13 April-14

October-06 October-07 October-08 October-09 October-10 October-11 October-12 October-13 October-14

FR RMBS FR

NL RMBS NL UK RMBS UK

IT RMBS IT Covered Bonds 5y UK RMBS

EU CLO AAA CLO EU

UK RMBS NC RMBS UK

UK Credit Card Credit UK

EU Auto Senior Auto EU

IT RMBS Senior RMBS IT SP RMBS senior RMBS SP

EU CMBS Senior CMBS EU Sources: Bloomberg, Barclays, Moody’s, S&P, Fitch, Credit Suisse POR RMBS Senior RMBS POR As of 10.11.2014

Asset Management The disclaimer at the end is also applicable to this page. November 2014 12 Global Securitized Bond Market Low Defaults in European ABS, Zero Defaults in Covered Bonds

Default probability of prime European ABS and corporate bonds is historically comparable

Focus Universe Excluded 10 years Corporates Covered EMEA APAC US ABS US Global Global US ABS Bonds ABS ABS ex CMBS CLO CDO Subprime Subprime Aaa 0.0 0.0 0.1 0.0 1.2 0.5 0.0 24.1 9.8 Aa 0.4 0.0 3.4 0.1 6.4 4.1 0.0 39.1 52.1 A 2.6 0.0 3.5 3.8 7.9 14.8 0.1 47.9 74.6 Baa 6.1 0.0 8.5 11.2 26.3 23.8 3.4 55.3 81.6 Ba 22.2 – 19.1 30.8 54.7 51.8 13.8 52.9 87.5 B 34.9 – 27.7 48.2 56.2 74.4 31.2 45.3 100.0 Caa–C 80.7 – 56.3 – 100.0 88.8 – 55.4 100.0

Investment Focus

1 CLOs (Collateralized Loan Obligations): ABS secured with senior secured loans. For illustrative purpose only. Sources: Moody’s, Credit Suisse

Asset Management The disclaimer at the end is also applicable to this page. November 2014 13 Content

Introduction into Asset Backed Securities

Market Overview

ECB Covered Bond & ABS Purchase Program

Investor Considerations

Credit Suisse (Lux) Global Securitized Bond Fund

Asset Management The disclaimer at the end is also applicable to this page. November 2014 14 ECB Covered Bond & ABS Purchase Program Instrument to Control More Directly the Monetary Base

The impact of the interaction could be (1) potential squeeze of funding cost and (2) increased return on equity, which remains with the issuing bank

Target is (1) to incentivize banks to sell more assets in ABS from the balance sheet & (2) issue new loans to the real economy

Asset Backed Security1 Current cost of funding Potential Impact of ABSPP

Senior Notes Libor +1.1% Libor +0.5% Rating AAA

Mezzanine Notes Libor + 2,1% Libor + 1.5% Rating A

Equity (retained Excees Excees from the issuer) Spread (9%) Spread (15%)

1 Simplified illustration. For illustration purpose only. Assumption of an average yield on the mortgage portfolio of 2%. Source: Credit Suisse

Asset Management The disclaimer at the end is also applicable to this page. November 2014 15 ECB Covered Bond & ABS Purchase Program Ambitious Target for New Purchase Program

The ECB started it’s 3rd purchase program end of October 2014 and bought within the first 3 weeks already EUR 10bn European covered bonds.

Expected start of the ABS purchase program end of November

ECB Purchase Program: targets (in bn EUR) ECB Purchase Program: realized (in bn EUR)

1200 80 1000 60 800 600 40 400 20 200 0 0 2009/2011 2011/2012 2014/2016 2009/2011 2011/2012 2014/2016

Covered Bond PP 1 Covered Bond PP 2 Covered Bond PP 3 Covered Bond PP 1 Covered Bond PP 2 ABS PP Target Covered Bond PP 3 ABS PP

Sources: Bloomberg, ECB, Credit Suisse As of 10.11.2014

Asset Management The disclaimer at the end is also applicable to this page. November 2014 16 Key Developments in the ABS Market

Investor sentiment Awareness of inherent risks of the asset class

Risk retention Issuer of ABS in Europe have to retain a certain portion of the first loss tranche of each investment. This exposes issuers directly to the risk of each transactions and can mitigate the risk of moral hazard and a negative selection bias of the assets in ABS.

Transparency Central banks introduced new measures to address information asymmetry with the securitization process. The new transparency requirements for ABS are now considerably above the requirements for other assets classes, e.g., Covered bonds.

Regulatory environment The regulatory framework in Europe and US currently differ in essential points. An international alignment would be more supportive for an efficient and liquid market.

Source: Credit Suisse

Asset Management The disclaimer at the end is also applicable to this page. November 2014 17 Content

Introduction into Asset Backed Securities

Market Overview

ECB Covered Bond & ABS Purchase Program

Investor Considerations

Credit Suisse (Lux) Global Securitized Bond Fund

Asset Management The disclaimer at the end is also applicable to this page. November 2014 18 Investor Considerations Low Interest Rate Sensitivity Thanks to Floating Rate Structure

ABS provide a liquid investment solution to reduce interest rate risk

Attractive relative value for short term high rated credit risk

Performance after announcement of the FED tapering

110 3.0

108 2.5

106 2.0

104

Performance 1.5

102 Interest% Ratein

1.0 100

98 0.5 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14

CS Global Securitized Bond Fund Barclays Global Agg Corp A 5 year US government yield (rhs)

Historical performance indications and financial market scenarios are no reliable indicator for current or future Sources: Barclays Global Agg Index, Credit Suisse performance. Performance indications do not consider commissions levied at subscription and/or redemption. As of 31.10.2014

Asset Management The disclaimer at the end is also applicable to this page. November 2014 19 Investor Considerations Low Correlation to Other Asset Classes

ABS show low return correlations to equities and other fixed income asset classes. Hence, adding securitized assets allows for additional alpha sources while simultaneously reducing risk.

A multi asset class portfolio offers a higher degree of diversification and better risk/return characteristics

Corporate Government Inflation Emerging ABS Equities High Yield Bonds Bonds Linked Market

ABS 1.00

Equities 0.03 1.00

Corporate Bonds 0.20 (0.10) 1.00

Government Bonds 0.01 (0.36) 0.75 1.00

Inflation Linked 0.10 (0.19) 0.69 0.77 1.00

High Yield 0.22 0.64 0.41 (0.05) 0.07 1.00

Emerging Market 0.06 0.44 0.51 0.27 0.29 0.72 1.00

Historical performance indications and financial market scenarios are no reliable Sources: Bloomberg, Credit Suisse, JP Morgan, Citigroup, Barclays indicator for current or future performance. Fas of 30.09.2009–31.08.2014

Asset Management The disclaimer at the end is also applicable to this page. November 2014 20 Investor Considerations Conservative Investment Approach

Cash Liquidity Fixed Income High Yield and Short 7% Term

6% Emerging Market High Yield Senior Secured 5% Loans

Yield

Yield Credit Suisse 3% Global Securitized US Broad IG 2% Bd Fd

US IG Global Government 1% 1-3y Floating Rate Notes 0% Cash 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% VolatilityVolatility Historical performance indications and financial market scenarios are no reliable indicator for current or future performance. For illustrative purpose only. Sources: Barclays, JPM, Citigroup, Credit Suisse

Asset Management The disclaimer at the end is also applicable to this page. November 2014 21 Content

Introduction into Asset Backed Securities

Market Overview

ECB Covered Bond & ABS Purchase Program

Investor Considerations

Credit Suisse (Lux) Global Securitized Bond Fund

Asset Management The disclaimer at the end is also applicable to this page. November 2014 22 Credit Suisse (Lux) Global Securitized Bond Fund Fund Performance (Net) versus Peers

130

120

110

100

60 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14

CS Global Securitized Bond Fund USD Julius Baer ABS Fund Legg Mason Adj Rate Income Fund Amundi ABS fund

Historical performance indications and financial market scenarios are no reliable indicator for current or future performance. Performance indications do not consider commissions levied at Sources: Bloomberg, Credit Suisse subscription and/or redemption. As of 31.10.2014

Asset Management The disclaimer at the end is also applicable to this page. November 2014 23 Credit Suisse (Lux) Global Securitized Bond Fund Portfolio Overview

Key Figures Maturity in Years Industry Sector Allocation Reference Currency USD 00-01 12.0% RMBS 25.8% BM type HEDGED 01-02 10.8% CLO 16.8% Portfolio Yield 1.41% 02-03 18.4% COMMERCIAL MBS 14.3% Modified Duration 0.25 03-04 19.2% COVERED BOND 8.1% Number of Positions 285 04-05 21.9% RMBS NC 8.0% Average Rating AA- 05-07 11.3% STUDENT LOAN ABS 5.4% Average maturity in years 3.75 07-10 5.5% AUTOMOBILE ABS 5.3% Top 10 issuer cumulated 20.4% 10-15 0.7% BANKS 4.1% Largest Position 1.59% 15-20 0.2% SME ABS 3.6% Current AuM in m 1356 20+ 0.0% CREDIT CARD ABS 3.2%

Data as of 31.10.14 0% 20% 40% OTHER 5.4%

Asset Management The disclaimer at the end is also applicable to this page. November 2014 24 Credit Suisse (Lux) Global Securitized Bond Fund Portfolio Overview

Top Positions Country Allocation Rating Allocation SIENA 2010-7 A3 1.6% UNITED KINGDOM 20.8% AAA 51.2% STORM 2014-3 A2 1.2% UNITED STATES 20.1% AA+ 12.1% CHSNT 2014-1 A 1.2% ITALY 12.4% AA 9.4% BCARD 2014-1X A 1.2% PAN-EUROPE 11.3% AA- 2.1% OKK 1 A 1.1% NETHERLANDS 8.6% A+ 3.8% WESTPAC BANKING 1.1% GERMANY 5.0% A 12.8% BSCMS 2005-T20 A4A 1.1% AUSTRALIA 4.6% A- 9.3% ALBA 2011-1 A2 1.1% LUXEMBOURG 4.5% BBB+ 0.4% GFUND 2014-1 A2 1.1% FRANCE 3.9% BBB -1.5% TAURS 2013-GMF1 B 1.0% NORWAY 3.3% BBB- 0.5% PARGN 20 A 0.9% PORTUGAL 1.4% BB+ 0.0% MODA 2014-1 A 0.9% SWEDEN 1.3% BB 0.0% BERAB 3 A 0.9% OTHER 2.8% < BB 0.0%

Asset Management The disclaimer at the end is also applicable to this page. November 2014 25 Credit Suisse (Lux) Global Securitized Bond Fund Avoid High Risk Bucket within Second Tier Assets

Italian ABS

6.0% 2.0% 5.0% 1.5% 4.0% 3.0% 1.0% 2.0% 0.5% 1.0% 0.0% 0.0% 0–1 1–3 3–5 5–7 7+ AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+

CS Global Securitized Bond Fund BM CS Global Securitized Bond Fund BM UK RMBS Non-conforming

3.5% 8.0% 3.0% 2.5% 6.0% 2.0% 4.0% 1.5% 1.0% 2.0% 0.5% 0.0% 0.0% 0–1 1–3 3–5 5–7 7+ AA+ AA AA- A+ A A- BBB+ BBB BBB-

CS Global Securitized Bond Fund BM CS Global Securitized Bond Fund BM Data for illustrative purpose only. Sources: Bloomberg, Credit Suisse

Asset Management The disclaimer at the end is also applicable to this page. November 2014 26 Summary

Market Highlights Fund Highlights Central banks highlight the importance Conservative investment approach of ABS and provide the basis of being focusing on securitizations of prime assets an active player in the ABS market with high seniority allows the generation of low volatile returns The floating rate profile of ABS provides a protection against rising interest rates The fund has daily liquidity and targets an average AA-rating Securitized bonds offer diversification benefits due to low correlation to other Current portfolio yield offers a pick-up asset classes versus floating rate notes and short term bonds

Broad diversification across countries, collateral types and issuers to limit credit risk

Source: Credit Suisse Historical performance indications and financial market scenarios are no reliable indicator for current or future performance. As of 31.10.2014

Asset Management The disclaimer at the end is also applicable to this page. November 2014 27 Credit Suisse (Lux) Global Securitized Bond Fund Key Facts

Fund name Credit Suisse (Lux) Global Securitized Bond Fund Domicile Luxembourg Platform Credit Suisse Investment Funds 1 Investment Advisor Credit Suisse Asset Management, Zurich Currency share classes USD/EUR/CHF/GBP (hedged share classes – other currencies and distribution share classes available on request) Investment objective The fund targets sustainable returns with limited volatility Benchmark Barclays 50% US ABS FRN + 50% Pan Euro ABS FRN ex Spain Minimum investment EB and EBH classes: one unit; IB and IBH classes: 1,000,000 (in share class currency) EU taxation In Scope Liquidity and subscriptions Daily, with cutoff at 3:00 p.m. CET

Share Classes Management Fee Expected TER1 Valor no. ISIN Number Institutional/HNWI IB (USD, accumulating) 0.42% 0.57% 23727978 LU1034382256 Institutional/HNWI IBH (EUR hedged, accumulating) 0.42% 0.57% 23729139 LU1034382413 Institutional/HNWI IBH (CHF hedged, accumulating) 0.42% 0.57% 23729088 LU1034382330 Institutional/HNWI IBH (GBP hedged, accumulating) 0.42% 0.57% 23729148 LU1034382504 Institutional/discretionary EB (USD, accumulating) 0.42% 0.55% 3679006 LU0340000263 Institutional/discretionary EBH (EUR hedged, accumulating) 0.42% 0.55% 3679016 LU0340000933 Institutional/discretionary EBH (CHF hedged, accumulating) 0.42% 0.55% 3679019 LU0340001154

1 Estimated expected TER, including custody, admin, tax d’abo, others. Source: Credit Suisse

Asset Management The disclaimer at the end is also applicable to this page. November 2014 28 Investment Management Team Credit Suisse (Lux) Global Securitized Bond Fund (1/2)

Oliver R. Gasser Dominique Gilgen Head Multi Co-Manager of the CS (Lux) Global Credit Solutions Securitized Bond Fund

Securitization Expertise: Since 2002 Securitization Expertise: Since 2009 Focus on US & European CMBS and RMBS Focus on European RMBS & CMBS as well as Structuring Balance Sheet Securitization Consumer ABS Senior PM multi-credit strategies/asset allocation advise Macroeconomic ABS strategy

Previous Positions: Previous Positions: 2002–2007 Head Structuring Securitization at UBS loan Research assistant at the institute of financial management book (focus on RMBS, CMBS and B/S CLOs). at the University of Bern, responsible for the development 1990–2002 Fixed Income Trading and Sales of quantitative models and tools for resolving financial and at Credit Suisse. economic question.

Dominique Gilgen qualified as Chartered Financial Analyst Mr. Gasser holds a Degree in BA from the University (CFA) and holds a Master of Science in Economics from of Applied Sciences Zurich and qualified as a Chartered the University of Bern with focus on financial market theory Financial Analyst (CFA) in 2006. and econometrics.

Asset Management The disclaimer at the end is also applicable to this page. November 2014 29 Investment Management Team Credit Suisse (Lux) Global Securitized Bond Fund (2/2)

Robert Wakiyama Laura Slater Co-Manager of the CS (Lux) Global Fixed Income Portfolio Manager Securitized Bond Fund Fund

Securitization Expertise: Since 2004 Focus on global CDOs & US ABS market Securitization Expertise: Since 2006 Covered Bonds specialist Focus on European Credit Card and Consumer ABS Structured Credit Modeling

Previous Positions: Previous Positions: 2007–2012 Fixed Income Portfolio Manager at Clariden 2004–2006 Fixed Income Portfolio Manager at VP Bank. Leu: In charge of the global ABS and CDO investments 2000–2004 Private Client Portfolio Manager at Bank Leu. of the Asset Management. 2004–2007 Analyst for CDO & ABS and Structured Credit Mrs. Slater graduated in Economics, Financial Planning Modeling at LBBW. and Asset Planning from the University of St. Gall in 1999 2000–2004 Risk Management & Private Banking and successfully qualified as a Certified International at LBBW. Investment Analyst (CIIA) in 2002.

Mr. Wakiyama graduated from the University of Hohenheim with a Masters degree in Economics.

Asset Management The disclaimer at the end is also applicable to this page. November 2014 30 Disclaimer

This document was produced by Credit Suisse AG and/or its affiliates (hereafter “CS”) with the greatest of care and to the best of its knowledge and belief. However, CS provides no guarantee with regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The opinions expressed in this document are those of CS at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are unaudited. This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own judgment. The recipient is in particular recommended to check that the information provided is in line with his/her own circumstances with regard to any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. This document may not be reproduced either in part or in full without the written permission of CS. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this document nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor’s reference currency. Historical performance indications and financial market scenarios are no reliable indicator for current or future performance. Performance indications do not consider commissions levied at subscription and/or redemption. Furthermore, no guarantee can be given that the performance of the benchmark will be reached or outperformed.

Discretionary mandates and/or investment products used within the framework of the mandates (e.g. alternative instruments, structured instruments and derivatives) may involve a high degree of complexity and risk, or may be subject to stock market fluctuations. Investment principal on bonds can be eroded depending on sale price or market price. In addition, there are bonds on which investment principal can be eroded due to changes in redemption amounts. Care is required when investing in such instruments.

CS Investment Funds 1- Credit Suisse (Lux) Global Securitized Bond Fund has been established under Luxembourg law as undertakings for collective investment in transferable securities (UCITS) subject to EU Directive 2009/65/EC, as amended. The representative in Switzerland is Credit Suisse Funds AG, Zurich. The paying agent in Switzerland is Credit Suisse AG, Zurich. Subscriptions are only valid on the basis of the current sales prospectus, the simplified prospectus, the bylaws and/or contractual terms and conditions and the most recent annual report (or semi-annual report, if more recent). The prospectus, simplified prospectus and/or the Key Investor Information Document (KIID), bylaws and/or the contractual terms and conditions and the annual and semi-annual reports are available free of charge from Credit Suisse Fund Services (Luxembourg) S.A., Luxembourg, from Credit Suisse Funds AG, Zurich or from any branch of Credit Suisse AG in Switzerland.

Asset Management The disclaimer at the end is also applicable to this page. November 2014 31