Swiss Small & Mid Cap Fund Class A zMonthly November 20

US elections and vaccines send share prices soaring Performance since Launch (as of 30/11/2020) The world’s leading stock markets achieved their best-ever No- vember performance last month. They were in a euphoric mood thanks to the outcome of the US elections: Joe Biden as Presi- dent-elect, but no blue sweep. The success story reported by US pharmaceuticals group Pfizer and German partner Biontech concerning a highly effective vaccine against Covid-19 sparked a further surge in share prices. A short while later, Moderna and AstraZeneca likewise published promising data for their coro- navirus vaccine. Market participants now think there are very few, if any, obstacles to a return to normality in the second half zCapital Swiss Small & Mid Cap Fund A SPI Extra® (indexed) of 2021. The result was a sharp jump in the price of stocks bad- ly affected by the pandemic, including , Flughafen Zürich Performance (as of 30/11/2020) and Valora; at the same time, Covid-19 winners such as Logi- tech and saw profit-taking. The recovery in automotive MTD (Fund / Benchmark) 8.9% / 10.8% production is proceeding more rapidly than anticipated. Tradi- YTD 6.2% / 4.8% tional supplier Autoneum expressed confidence about develop- 1 year 8.4% / 6.8% ments in the second half of the year, while fastening technology 3 years p.a. 5.6% / 4.7% manufacturer SFS increased its guidance. The fund was up 5 years p.a. 10.6% / 9.9% 8.9% in November (SPI Extra +10.8%). 10 years p.a. 10.5% / 9.2% Since launch p.a. 11.7% / 9.3% Sunrise acquisition completed The acquisition of Sunrise by UPC (Liberty Global) was ap- Sectors (as of 30/11/2020) proved by the regulator as expected, marking the completion of the transaction. We used the proceeds to increase our exposure in stocks such as Temenos, , SoftwareOne, AMS, Swatch Group, , DKSH and Georg Fischer.

A little too much optimism Although the pandemic is hitting large parts of the Western world with full force, investors have set aside concerns about Covid-19. Hopes rest on the rapid immunisation of large sec- tions of the population. The vaccine news has even been causing political developments in Washington to take a back seat. Mar- kets were unfazed by the prospect of another round of obstruc- tion politics in the form of a Democrat President Biden and a potentially Republican Senate. Investors are seemingly willing to look very far into the future – a strategy helped by cheap money. Largest Positions (as of 30/11/2020) Optimism among the increasingly important private traders is high, while cautionary voices are fading. A good story is enough 1 Logitech 5.9% for an investment idea in the current environment. Those who 2 & Sprüngli 5.8% pay attention to valuation belong to the old guard. The pace of 3 Schindler 4.9% the recovery has taken us by surprise. This is likely to be due in 4 Julius Baer 4.7% part to the aggressive covering of short positions in cyclical 5 Baloise 3.8% stocks. We reiterate our view that the real economy faces diffi- 6 3.6% cult months ahead, and that the upturn could prove structurally 7 Temenos 3.1% weaker than desired due to exploding debt mountains. In other 8 2.8% words, it would be a good thing if markets were to take a 9 Kühne + Nagel 2.7% breather. 10 PSP Swiss Property 2.7% 11 ams 2.3% 12 SIG Combibloc 2.3% 13 Clariant 2.2% 14 Georg Fischer 2.0% 15 BKW 2.0%

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

Investment Strategy Portfolio Structure (as of 30/11/2020) The zCapital Swiss Small & Mid Cap Fund invests in Swiss Net Asset Value CHF 3,806.37 per Share A small and mid-cap stocks and measures itself against the SPI Total Assets CHF 1040 m Extra® (all SPI® stocks without SMI® or without the 20 Investment Exposure 90.5% largest securities). The fund assets are invested in a broadly Number of Companies 56 diversified portfolio of 50 to 70 companies. zCapital strives to consistently exceed the benchmark return with a long-term, Statistics 3 Years (as of 30/11/2020) active investment style. Investment decisions are based on Volatility Fund / Index p.a. 15.5% / 16.5% fundamental company analyses, considering and assessing Tracking Error 2.1% corporate governance and other key ESG aspects. Macroeco- Information Ratio 0.3 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 31/05/2020 1.51% 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,

Yearly Performance (as of 30/11/2020)

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% 6.2% 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% 4.8%

Monthly Performance (as of 30/11/2020) 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% 2.1% 0.5% 4.6% 0.7% -4.0% 8.9% 6.2% SPI Extra® 0.0% -7.9% -11.5% 6.2% 6.5% 1.3% 0.6% 5.6% 0.2% -4.7% 10.8% 4.8%

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.