Swiss Small & Mid Cap Fund Class A zMonthly April 20

Remarkable optimism Performance since Launch (as of 30/04/2020) Equity markets softened slightly in the first few days of April, before investors’ sentiment took a U-turn and leading indices booked significant price gains as the month progressed. The turnaround was partly founded on hopes that the spread of the coronavirus pandemic had peaked for the time being and that the decision taken by various countries to partially ease lock- downs would constitute the first steps towards normality. In ad- dition, central bank support measures provided enough ammu- nition to fuel the upward trend on markets. The US Federal Re- serve, for instance, announced liquidity assistance amounting to zCapital Swiss Small & Mid Cap Fund A SPI Extra® (indexed) USD 2.3 trillion, including the purchase of junk bonds for the first time. Investors attached much more weight to these Performance (as of 30/04/2020) measures than they did to the current economic situation. The International Monetary Fund, for example, is talking about the MTD (Fund / Benchmark) 5.7% / 6.2% worst recession since the 1930s. This is underscored by record YTD -11.3% / -13.5% claims for unemployment benefits in the US, the fact that pur- 1 year -3.0% / -5.9% chasing manager indices have tumbled to all-time lows, worsen- 3 years p.a. 2.8% / 1.4% ing consumer sentiment, and a collapse in the price of oil. Tech- 5 years p.a. 7.8% / 6.6% nology stocks did particularly well in the Q1 earnings season. 10 years p.a. 9.3% / 7.6% Investors were pleased to see an unexpectedly strong rise in or- Since launch p.a. 10.6% / 8.0% der intake for vacuum valve manufacturer VAT Group. Shares in sensor chip producer AMS leapt on the back of an optimistic Sectors (as of 30/04/2020) outlook for the current quarter. The fund was up 5.7% in April (SPI Extra +6.2%).

AMS capital increase We participated in the AMS capital increase, and through fur- ther purchases expanded our position from underweight to overweight. At the same time, we reduced our exposures in OC Oerlikon, Flughafen Zürich, Kühne+Nagel and Belimo.

Exaggerated confidence? A series of discussions with company representatives over the course of the month enabled us to paint a clearer picture of the effects of the current crisis. The main priority for companies has been to secure liquidity, thereby ensuring they can remain solvent over a protracted period. In a next step, a large number Largest Positions (as of 30/04/2020) of them will be cutting back on investment and reducing their costs. Most managers expect the slump seen in the current 1 & Sprüngli 7.0% quarter to be followed only by a gradual recovery in the second 2 Partners Group 6.5% half of the year, although visibility remains very poor. Guidance 3 Schindler 4.8% for 2020 has consequently been abandoned in many instances. 4 Baloise 4.2% Furthermore, many firms with cyclical business models are pre- 5 4.2% paring to make structural changes. Investors – particularly re- 6 Temenos 3.2% tail investors – are more optimistic about the situation. They are 7 Julius Baer 2.9% confident that a drug for treating Covid-19 will soon be available 8 2.6% and that rapid progress can be made towards developing a vac- 9 2.5% cine. This would pave the way for a rapid return to economic 10 Kühne + Nagel 2.5% normality. We have considerable doubts about such a scenario 11 2.2% and are sticking to our cautious positioning. 12 PSP Swiss Property 2.2% 13 2.2% 14 EMS-Chemie 2.1% 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 30/04/2020) The zCapital Swiss Small & Mid Cap Fund invests in Swiss Net Asset Value CHF 3,181.32 per Share A small and mid-cap stocks and measures itself against the SPI Total Assets CHF 824 m Extra® (all SPI® stocks without SMI® or without the 20 Investment Exposure 90.1% 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 30/04/2020) active investment style. Investment decisions are based on Volatility Fund / Index p.a. 14.7% / 15.5% fundamental company analyses, considering and assessing Tracking Error 1.9% corporate governance and other key ESG aspects. Macroeco- Information Ratio 0.6 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 30/04/2020)

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% -11.3% 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% -13.5%

Monthly Performance (as of 30/04/2020) 2020 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year Fund 0.4% -7.4% -9.8% 5.7% -11.3% SPI Extra® 0.0% -7.9% -11.5% 6.2% -13.5%

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.