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DEFENSIVE funds bond funds equity funds strategy funds REAL VALUE funds special funds Quarterly Report 2 / 2017 LLB Fund Overview Quarterly report · 2 / 2017 Quarterly report · 2 / 2017 Contents 2 – 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Overview Editorial Fund portrait Retrocession-free pricing model Overview of fund range Risk / return spectrum Investment philosophy Price development of our funds Performance of market indices, trading and valuation Fund factsheets LLB Defenisve (CHF) LLB Defensive (EUR) LLB Defensive (USD) LLB Bonds CHF LLB Bonds EUR LLB Bonds USD LLB Bonds Euro Alternative (CHF) LLB Bonds Global Class P LLB Bonds Global Class H CHF LLB Bonds Global Class H EUR LLB Bonds Global Class H USD LLB Bonds Inflation Linked Class P LLB Bonds Inflation Linked Class H CHF LLB Bonds Inflation Linked Class H EUR LLB Bonds Inflation Linked Class H USD LLB Convertible Bonds Class H CHF LLB Convertible Bonds Class H EUR LLB Convertible Bonds Class H USD LLB Bonds Strategy CEEMENA (EUR) Class I (T) LLB Equities Switzerland (CHF) LLB Equities Europe (EUR) LLB Equities Dividend Pearls Europe (EUR) LLB Equities North America (USD) LLB Equities Pacific (JPY) LLB Equities Dividend Pearls Global (CHF) LLB Equities Regio Bodensee (CHF) Bank Linth Regiofonds Zürichsee (CHF) LLB Equities Fit for Life (CHF) LLB Equities Real Estate Global (CHF) Class P LLB Strategy Fixed Income (CHF) LLB Strategy Conservative (CHF) 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 LLB Strategy BPVV (CHF) LLB Strategy Yield (CHF) LLB Strategy Balanced (CHF) LLB Strategy Fixed Income (EUR) LLB Strategy Conservative (EUR) LLB Strategy Yield (EUR) LLB Strategy Balanced (EUR) LLB Strategy Yield (USD) LLB Strategy Balanced (USD) LLB Inflation Protect (CHF) LLB Inflation Protect (EUR) LLB Alternative Strategy Global Class H CHF LLB Alternative Strategy Global Class H EUR LLB Alternative Strategy Global Class H USD LLB Strategy Global Trend (CHF) 59 62 General LLB fund glossary Legal information Quarterly report · 2 / 2017 Editorial Dear Readers Most investors can look back with relief on the first half of 2017. Investments paid off, and holding unnecessary liquidity was «punished» with lower returns. As already in the first quarter, all LLB strategy funds generated positive returns across the board. Investing in higher risks was compensated with outperformance in Swiss Francs: LLB Strategy Fixed Income (CHF) 0.3 %, LLB Strategy Conservative (CHF) 0.9 %, LLB Strategy Yield (CHF) 1.9 %, and LLB Strategy Balanced (CHF) 3.2 %. The returns on strategy funds in Euros were slightly lower than these levels. Returns in the first half of the year came from «risk assets» such as equities, high-yield bonds, and emerging market bonds. Highlights were Equities Asia at 21.6 %, followed by Equities Emerging Markets at 17.2 % and Equities Switzerland at 13.0 %. These returns resulted from the significantly improved macroeconomic environment, especially also in Europe. The traditional bond markets generated only slightly positive or even negative yields. Among currencies, the weakness of the USD was striking at –5.7% and the decline of the JPY at –2.1%. In our strategy products, we largely hedge these risks, however. Thank you for your trust in our investment solutions. We wish you pleasant summer months. Yours faithfully Dr. Thomas Mächtel Head of Business Management LLB Asset Management AG Quarterly report · 2 / 2017 Do we really live in an era with no alternative? LLB Alternative Strategy Global Fund In these challenging times for investors, alternative investment strategies can offer investors risk-return characteristics that distinguish themselves from traditional long-only equity and bond investments. In a mixed portfolio, they are thus able to provide an added value to the investor's portfolio. It used to be the case that various barriers to entry made it difficult to invest in hedge funds. But now significant minimum volumes for subscriptions as well as long subscription and especially redemption periods are things of the past. Today, capital investors can take advantage of the LLB Alternative Strategy Global Fund, an instrument that combines all the advantages of the modern UCITS framework. High product liquidity and transparency are of special significance in this regard. The fund provides attractive conditions for accessing the world of alternative strategies already with a single fund unit. The LLB Alternative Strategy Global Fund was clearly positioned as a fund of funds to allow investors to diversify their target fund managers and to obtain a suitable and active mix of alternative investment styles. The LLB Alternative Strategy Global Fund is situated in the environment of liquid alternative strategies, which exhibit a wide variety. These strategies include long/short equity, equity market neutral, global macro, and event-driven, but also a wide range of fixed income approaches. When constructing the fund's portfolio, we want to invest in as many different styles as possible. This means the focus is primarily on weighting the individual styles, not on a binary 0/1 decision on a sub-strategy. Given the large number of investment styles and fund managers, we look for interesting and promising strategies within the alternative investment universe, but without losing sight of the associated risks. We try to identify the strengths in the investment processes of external managers and at the same time appraise potential weaknesses. Our selection process focuses on five different factors, which we summarise as the 5 P's: Philosophy, People, Process, Portfolio, and Performance. Performance and the volatility thereof are the logical consequence of the first four factors. Understanding how alternative managers think, how they implement their ideas, and how they manage risks is the focus of our analysis. The goal is to find process-oriented and creative fund managers that are able to achieve good investment results while offering good «downside» protection. We also accompany each individual investment with a suitable risk management approach at the umbrella fund level. With the continuous growth of the universe of alternative strategies, we are convinced that new investment techniques and interesting fund managers will continue to be found in the UCITS format. The options may range from brilliant strategies with substantial global macro expertise and mathematicians with the ability to model CTA strategies to «stockpickers» with a good feel for the market and analytic grounding. The LLB Alternative Strategy Global Fund is tax-transparent and is licensed for distribution in Liechtenstein, Switzerland, Germany, and Austria. The fund complies with all UCITS standards concerning investor restrictions, risk management, and distribution in the EU. It invests globally. The foreign currency risks are largely hedged from the perspective of the reference currency CHF, EUR, or USD. With the LLB Alternative Strategy Global Fund, investors have an outstanding product at their disposal, as underscored by the Hedge Fund Award 2017. This also disproves the TINA principle – there is an alternative. LLB Alternative Strategy Global Fund 175 98 170 97 165 96 160 95 155 94 150 93 145 92 ASM / Bloomberg 140 Apr 16 Jun 16 91 Sep 16 Dec 16 Fund volume in EUR millions (right scale) Mar 17 May 17 Fund price in EUR Quarterly report · 2 / 2017 4 – 5 More transparency thanks to retrocession-free pricing model At the beginning of July 2014, the LLB introduced a pioneering pricing model that does without commission fees for own funds and third-party funds – both in asset management and investment advice. For selected strategy products and bond funds, a performance- or interest-based fee model has been introduced. The LLB's product range and price structure is based on changing client needs as well as new and foreseeable regulatory requirements, so that the fee structure for instance has also been simplified. By waiving or crediting commission fees for clients, cost transparency is created and potential conflicts of interest are avoided. This also makes LLB funds significantly cheaper. «Active» funds at «passive» prices Clients benefit from attractive, performance-based conditions for LLB funds, which regularly receive awards from independent third parties for their above-average performance. For own funds, the LLB is eliminating commission fees entirely, making the funds significantly cheaper. This means clients receive professionally, actively managed and risk-controlled funds at prices that are comparable with those of passive ETFs. The low fees also have a positive impact on the longer-term performance of the funds. Performance fees for selected LLB strategy funds Alongside the existing performance fee in asset management, the LLB is one of the first banks in Europe to employ a performance fee for selected LLB strategy funds. In addition to a fixed basic fee of 0.20 % p.a., a share of one tenth of positive net performance up to a maximum of 1.20 % is charged (see figure). Investors pay this variable fee share only if the fund assets develop positively after all costs are deducted. Current performance fee pricing for LLB strategy funds Fixed rate of 0.2 % p.a. plus 10 % of positive net performance up to a maximum of 1.20 %. 1.40 % (TER) Performance fee TER 1.20 % 1.00 % 0.80 % Interest-based fee for selected bond and money market funds Another fair and innovative variable fee has been developed for LLB bond funds in CHF, EUR, and USD as well as our money market funds. The cost burden is based on the current interest rate environment. When the interest rate level is low, investors can profit from especially favourable conditions – compare the information on the total expense ratio for the individual funds. This pricing leads to very attractive conditions compared to competitors: For instance, the fee burden of LLB Defensive (CHF) is only 0.1 %. LLB Bonds CHF is at 0.26 % and LLB Equities Switzerland (CHF) is at 0.6 % (all values as of 30 September 2015 measured in terms of total expense ratio [TER]). More transparent without retrocessions In the investment business, complex compensation structures often exist among product providers, banks, and investors. It is customary for fund providers to pay banks commission fees or retrocessions. Fund providers compensate banks in this way for services the banks provide in connection with the advice and care of their clients. In this way, banks are subsidising the securities conditions. This limits cost transparency for clients. If, in addition, banks no longer recommend the best products to their clients because of these payments, but instead those products for which they receive the highest commission, a conflict of interest may arise. There is a danger that clients are no longer given independent advice. Examples for the strategy funds: LLB Strategy Conservative, Yield, and Balanced Annual performance * Fixed TER Variable TER component component Total –5.0 % 0.2 % 0.0 % 0.2 % +5.0 % 0.2 % 0.5 % 0.7 % +15.0 % 0.2 % 1.0 % 1.2 % *The business year of our investment funds ends on 30 September (TER = total expense ratio) 0.60 % 0.40 % 0.20 % 0.00 % –2 % 0 % 2% 4% Quarterly report · 2 / 2017 6% 8 % 10 % 12 % 14 % 16 % 18 % 20 % Net return Overview of fund range Portfolio modules and special funds We offer our clients an attractive range of products. This encompasses over 35 funds. The overall fund volume amounts per 31.12.2016 CHF 5.4 billion (excluding doublecounts in fund-of-funds). Our funds' performance has already been distinguished many times by prestigious fund rating agencies in various categories (e. g. Bond Global, Equities Small and Mid Caps Switzerland). LLB funds are managed by LLB Asset Management AG, the asset manager of the LLB Group. Portfolio modules We recommend our equity and bond funds as building blocks for various portfolios. The extensive range of funds enables our clients' many different requirements to be optimally covered. Our clients benefit from our outstanding, broadly diversified funds. Special funds for your portfolio In addition to portfolio modules, we offer satellites consisting of equity- and special funds. These products enable special client wishes to be fulfilled. Each of these funds represents an independent investment solution that is suitable for adding variety to many portfolios. Good performance and low costs In comparison with competitors, our range of funds is distinguished by good performance and unusually low costs. This fact is confirmed by the periodic external comparisons carried out by independent fund rating agencies. 6 – 7 Portfolio modules Ref. currency CHF Ref. currency EUR Ref. currency USD / other Defensive funds LLB Defensive (CHF) LLB Defensive (EUR) LLB Defensive (USD) Bond funds LLB Bonds CHF LLB Bonds EUR LLB Bonds USD LLB Bonds Euro Alternative (CHF) LLB Bonds Global Class P LLB Bonds Infl. Linked Class P LLB Bonds Global Class H CHF LLB Bonds Global Class H EUR LLB Bonds Global Class H USD LLB Bonds Infl. Linked Class H CHF LLB Bonds Infl. Linked Class H EUR LLB Bonds Infl. Linked Class H USD LLB Convertible Bonds Class H CHF LLB Convertible Bonds Class H EUR LLB Convertible Bonds Class H USD LLB Bonds Strategy CEEMENA (EUR) Cl. I (T) Equity funds LLB Equities Switzerland (CHF) LLB Equities Europe (EUR) LLB Eq. North America (USD) LLB Equities Dividend Pearls Global (CHF) LLB Equities Dividend Pearls Europe (EUR) LLB Equities Pacific (JPY) LLB Eq. Real Estate Global (CHF) Cl. P Strategy funds LLB Strategy Fixed Income (CHF) LLB Strategy Fixed Income (EUR) LLB Strategy Conservative (CHF) LLB Strategy Conservative (EUR) LLB Strategy BPVV (CHF) LLB Strategy Yield (CHF) LLB Strategy Yield (EUR) LLB Strategy Yield (USD) LLB Strategy Balanced (CHF) LLB Strategy Balanced (EUR) LLB Strategy Balanced (USD) Ref. currency CHF Ref. currency EUR Ref. currency USD / other Equity funds LLB Equities Regio Bodensee (CHF) Bank Linth Regiofonds Zürichsee (CHF) LLB Equities Fit for Life (CHF) Real value funds LLB Inflation Protect (CHF) LLB Inflation Protect (EUR) Special funds LLB Alternative Strategy Global Class H CHF LLB Alternative Strategy Global Class H EUR LLB Strategy Global Trend (CHF) Satellites LLB Alternative Strategy Global Class H USD Cl. P = Unit class for private clients Cl. H = In the H classes foreign currency risks from the perspective of the relevant reference currency are hedged at least 80 %. Quarterly report · 2 / 2017 Risk / return spectrum of LLB funds The risk and return parameters of the individual funds differ according to the various asset classes. Generally, the higher the expected returns on the financial markets, the higher the risks. To clearly illustrate this interrelationship, we have shown the minimum investment horizon of our funds in the following table. This table is to be LLB funds interpreted in such a manner that in the most unfavourable case if the stated time period is not observed, losses in the value of assets are possible. In order to attain the expected long-term, average returns with the asset classes, the assets have to remain invested for a correspondingly longer period. Minimum investment horizon Defensive funds LLB Defensive (CHF) / (EUR) / (USD) 6 months Bond funds LLB Bonds CHF / EUR / USD 2 years LLB Bonds Euro Alternative (CHF) LLB Bonds Global Class P / H CHF / H EUR / H USD LLB Bonds Inflation Linked Class P / H CHF / H EUR / H USD LLB Convertible Bonds Class H CHF / H EUR / H USD 6 years LLB Bonds Strategy CEEMENA (EUR) Class I (T) Equity funds LLB Equities Switzerland (CHF) 10 years LLB Equities Europe (EUR) LLB Equities Dividend Pearls Europe (EUR) LLB Equities North America (USD) LLB Equities Pacific (JPY) LLB Equities Dividend Pearls Global (CHF) LLB Equities Regio Bodensee (CHF) Bank Linth Regiofonds Zürichsee (CHF) LLB Equities Fit for Life (CHF) LLB Equities Real Estate Global (CHF) Class P Strategy funds LLB Strategy Fixed Income (CHF) / (EUR) 3 years LLB Strategy Conservative (CHF) / (EUR) LLB Strategy BPVV (CHF) LLB Strategy Yield (CHF) / (EUR) / (USD) 4 years LLB Strategy Balanced (CHF) / (EUR) / (USD) 6 years Real value funds LLB Inflation Protect (CHF) / (EUR) 4 years Special funds LLB Alternative Strategy Global Class H CHF / H EUR / H USD 5 years LLB Strategy Global Trend (CHF) 6 years Quarterly report · 2 / 2017 Investment philosophy Quant / value investing The LLB's funds are managed by LLB Asset Management AG. This company has extensive experience and an excellent track record in the management of complex portfolios. LLB Asset Management specializes in strategic asset structuring, security selection and portfolio construction in the key equity and bond markets. We understand this to mean the following: Strategic asset structuring – the key to successful investing In our strategic asset allocation we formulate a made-tomeasure portfolio which takes into consideration the client's requirements, particularly expected returns, risk tolerance, liquidity requirements and the investment horizon. Our aim here is to maximize returns in the long term without exceeding the client's risk tolerance. We broadly diversify our funds according to asset classes and individual securities. This enables risks with specific securities to be reduced and generates additional earnings potential. We actively manage foreign currency exposures and implement over or under-weightings on the basis of thorough analyses. Secondary and parallel markets are covered in cooperation with professional external specialists. Security selection – systematic analysis leads to an efficient portfolio In selecting securities our portfolio managers are guided by quantitative and qualitative aspects. Modern information technology enables the investment universe to be examined according to quantitative criteria, whereby the concept of value is always at the forefront. This process is based on the fact that value investing generates higher returns for investors oriented towards the medium to long term. Promising securities are then subjected to a further fundamental analysis. Portfolio construction – minimizing risk for an efficient portfolio When constructing a portfolio, particular attention is paid to attaining an optimal relationship between risk and return. We carefully weigh potential returns against associated risks using a sophisticated optimization procedure. The goal of our risk management is to combine quantitative and fundamentally attractive securities in a portfolio that promises investment success while at the same time strictly limiting the probability and scope of any underperformance. YTD performance per 30.06.2017 of LLB funds in % (fund currency) 16.0 % 14.0 % 12.0 % 10.0 % 8.0 % 6.0 % 4.0 % 2.0 % 0.0 % –2.0 % LLB Equities Regio Bodensee (CHF) Bank Linth Regiofonds Zürichsee (CHF) LLB Equities Switzerland (CHF) LLB Equities North America (USD) LLB Equities Pacific (JPY) LLB Convertible Bonds Class H USD LLB Equities Fit for Life (CHF) LLB Equities Europe (EUR) LLB Equities Dividend Pearls Europe (EUR) LLB Strategy Balanced (USD) LLB Convertible Bonds Class H CHF LLB Strategy Yield (USD) LLB Convertible Bonds Class H EUR LLB Bonds Inflation Linked Class P LLB Equities Real Estate Global (CHF) Class P LLB Strategy Balanced (CHF) LLB Alternative Strategy Global Class H USD LLB Bonds USD LLB Bonds Global Class H USD LLB Strategy Balanced (EUR) LLB Strategy Yield (CHF) LLB Alternative Strategy Global Class H EUR LLB Bonds Strategy CEEMENA (EUR) Class I (T) LLB Alternative Strategy Global Class H CHF LLB Strategy BPVV (CHF) LLB Strategy Yield (EUR) LLB Bonds Inflation Linked Class H USD LLB Strategy Global Trend (CHF) LLB Strategy Conservative (CHF) LLB Defensive (USD) LLB Bonds Global Class H EUR LLB Equities Dividend Pearls Global (CHF) Class T LLB Strategy Conservative (EUR) LLB Bonds Global Class H CHF LLB Inflation Protect (CHF) LLB Strategy Fixed Income (CHF) LLB Strategy Fixed Income (EUR) LLB Defensive (EUR) LLB Inflation Protect (EUR) LLB Bonds EUR Class T LLB Bonds CHF Class T LLB Defensive (CHF) LLB Bonds Inflation Linked Class H EUR LLB Bonds Inflation Linked Class H CHF LLB Bonds Euro Alternative (CHF) LLB Bonds Global Class P –4.0 % Quarterly report · 2 / 2017 8 – 9 Price development of LLB funds per 30.06.2017 CHF millions Price 2017 2016 Last 3 years Last 5 years Since inception Defensive funds LLB Defensive (CHF) 53.4 101.41 –0.11 % 0.11 % –0.15 % 0.41 % 1.41 % LLB Defensive (EUR) 110.4 114.19 0.18 % 0.23 % 0.51 % 1.80 % 14.19 % LLB Defensive (USD) 112.4 119.73 0.76 % 0.64 % 1.69 % 2.43 % 19.73 % Bond funds LLB Bonds CHF Cl. T 757.3 1 152.35 –0.10 % 0.99 % 3.57 % 7.40 % 52.35 % LLB Bonds EUR Cl. T 248.0 110.03 –0.09 % 3.28 % 6.88 % 15.64 % 115.20 % 1 LLB Bonds USD 83.8 236.18 2.47 % 2.92 % 6.56 % 11.05 % 136.18 % LLB Bonds Euro Alternative (CHF) 29.4 106.55 –0.98 % 2.87 % 1.91 % –5.59 % 34.48 % LLB Bonds Global Class P 442.9 1 84.14 –2.34 % 4.22 % 14.07 % 9.40 % 48.81 % LLB Bonds Global Class H CHF 442.9 101.30 0.45 % 1.87 % – – 1.30 % LLB Bonds Global Class H EUR 442.9 101.55 0.75 % 1.98 % – – 1.55 % LLB Bonds Global Class H USD 442.9 1 104.02 2.20 % 2.41 % – – 4.02 % LLB Bonds Inflation Linked Class P 318.2 1 128.19 3.40 % 1.33 % –4.09 % 0.35 % 28.19 % LLB Bonds Inflation Linked Class H CHF 318.2 101.80 –0.63 % 4.33 % – – 1.80 % LLB Bonds Inflation Linked Class H EUR 318.2 102.01 –0.62 % 5.16 % – – 2.01 % LLB Bonds Inflation Linked Class H USD 318.2 1 105.93 0.95 % 6.51 % – – 5.93 % LLB Convertible Bonds Class H CHF 298.7 1 106.50 4.51 % 3.77 % – – 6.50 % LLB Convertible Bonds Class H EUR 298.7 125.12 4.02 % 4.81 % 13.97 % 36.42 % 25.12 % LLB Convertible Bonds Class H USD 298.7 110.58 6.26 % 5.52 % – – 10.58 % LLB Bonds Strategy CEEMENA (EUR) Cl. I (T) 117.0 1 138.25 1.62 % 11.84 % 18.22 % 30.25 % 46.58 % LLB Equities Switzerland (CHF) 205.0 249.05 10.52 % –2.49 % 12.87 % 64.39 % 149.05 % LLB Equities Europe (EUR) 179.6 122.18 6.02 % 2.18 % 17.65 % 60.51 % 138.96 % 1 1 1 1 1 1 Equity funds LLB Equities Dividend Pearls Europe (EUR) LLB Equities North America (USD) LLB Equities Pacific (JPY) LLB Equities Dividend Pearls Global (CHF) Cl. T 17.8 94.43 5.27 % 0.48 % – – –2.45 % 185.4 303.24 7.36 % 12.01 % 17.68 % 73.16 % 203.24 % 87.0 12'874.00 7.29 % 0.50 % 23.07 % 105.59 % 28.74 % 145.05 0.66 % 13.15 % 22.77 % 59.05 % 45.05 % 104.1 1 LLB Equities Regio Bodensee (CHF) 98.3 433.75 14.79 % 16.10 % 42.12 % 136.89 % 333.75 % Bank Linth Regiofonds Zürichsee (CHF) 87.3 308.55 14.09 % 16.40 % 45.85 % 121.98 % 208.55 % LLB Equities Fit for Life (CHF) 17.3 171.60 6.19 % 5.35 % 37.72 % 91.62 % 71.60 % LLB Equities Real Estate Global (CHF) Cl. P 97.9 80.65 3.20 % 2.76 % 19.84 % 38.69 % –19.35 % Quarterly report · 2 / 2017 1 Price development of LLB funds per 30.06.2017 CHF millions Price 2017 2016 Last 3 years Last 5 years Since inception Strategy funds LLB Strategy Fixed Income (CHF) 47.1 113.00 0.27 % 2.55 % 3.34 % 8.81 % 13.00 % LLB Strategy Conservative (CHF) 32.2 102.45 0.89 % 2.21 % – – 2.45 % LLB Strategy BPVV (CHF) 19.1 125.00 1.58 % 1.82 % 3.14 % 14.63 % 38.50 % LLB Strategy Yield (CHF) 177.5 130.65 1.87 % 2.11 % 3.44 % 16.86 % 30.65 % LLB Strategy Balanced (CHF) 99.3 120.05 3.18 % 2.20 % 4.76 % 26.57 % 20.05 % LLB Strategy Fixed Income (EUR) 20.9 124.02 0.18 % 3.31 % 6.97 % 14.02 % 24.02 % LLB Strategy Conservative (EUR) 8.3 101.09 0.63 % 3.12 % – – 1.09 % LLB Strategy Yield (EUR) 73.4 162.78 1.02 % 3.66 % 8.03 % 22.32 % 62.78 % LLB Strategy Balanced (EUR) 54.0 148.19 2.17 % 4.38 % 10.19 % 32.80 % 48.19 % LLB Strategy Yield (USD) 9.8 102.70 4.22 % 3.42 % – – 2.70 % LLB Strategy Balanced (USD) 7.5 104.30 5.09 % 4.37 % – – 4.30 % LLB Inflation Protect (CHF) 20.8 100.40 0.35 % 3.25 % –3.60 % –0.64 % 0.40 % LLB Inflation Protect (EUR) 6.3 105.05 0.09 % 4.08 % –1.46 % 2.90 % 5.05 % LLB Alternative Strategy Global Class H CHF 177.6 1 95.05 1.60 % –4.05 % – – –4.95 % LLB Alternative Strategy Global Class H EUR 177.6 1 96.29 1.80 % –3.41 % – – –3.71 % LLB Alternative Strategy Global Class H USD 177.6 100.16 2.68 % –2.30 % – – 0.16 % 94.40 0.91 % 2.13 % –4.60 % – 5.59 % Real value funds Special funds LLB Strategy Global Trend (CHF) 1 1 20.3 Total assets of all share classes Quarterly report · 2 / 2017 10 – 11 Performance of indices, trading and valuation Overview Equity indices (total return) per 30.06.2017 2017 2016 Last 3 years Last 5 years SPI (CHF) 12.97 % –1.41 % 19.78 % 79.80 % SPI Small and Mid Cap (CHF) 18.41 % 9.01 % 47.11 % 128.07 % MSCI Europe (EUR) 7.21 % 3.23 % 21.25 % 74.64 % MSCI USA (USD) 9.53 % 11.61 % 31.04 % 97.62 % MSCI Pacific (JPY) 7.18 % 1.28 % 25.67 % 114.48 % MSCI World (CHF) 4.61 % 9.81 % 28.01 % 78.41 % Bond indices (total return) per 30.06.2017 2017 2016 Last 3 years Last 5 years SBI Foreign AAA-BBB (Swiss Bond Index CHF) –0.08 % 1.09 % 4.04 % 10.16 % JP Morgan EMU Government Bonds (EUR) –0.84 % 3.13 % 10.12 % 29.45 % 1.97 % 1.11 % 6.85 % 7.13 % –3.76 % 4.61 % 18.41 % 11.10 % JP Morgan United States Government Bonds (USD) JP Morgan Global Government Bonds (EUR) Convertible bond indices (total return) per 30.06.2017 Thomson Reuters Convertible Bonds Global Vanilla (EUR) Thomson Reuters Convertible Bonds Global Investment Grade Hedged (EUR) Trading Orders can be placed with your client adviser from 8.30 a. m. to 3.30 p. m.; they must be received by the Trading Department by 4.00 p. m. at the latest. Orders received after this deadline will be processed on the next following workday. Subscriptions and redemptions of LLB fund units may also be made through other banks. Simply inform your client adviser at the other bank of the security number and name of the corresponding LLB fund. Valuation / value date Funds are valued in accordance with forward pricing guidelines. This means that you receive the closing price on the day you place an order. The value date is the trading day plus three days. Quarterly report · 2 / 2017 2017 2016 Last 3 years Last 5 years –0.14 % 7.22 % 27.86 % 60.32 % 3.80 % 5.79 % 15.67 % 47.20 % Exception LLB Equities Pacific (JPY): Because the Japanese market closes at 8.00 a. m., you will receive the closing price of the next trading day. The value date is the trading day plus three days. DEFENSIVE funds LLB Defensive (CHF) per 30.06.2017 Mirko Mattasch Fund Manager since 16.03.2009 Peter Goller Co-Manager since 01.03.2016 Investment policy Fund information The fund invests in a broadly diversified portfolio of money market instruments and money market-like securities. The investment policy is based on a yield-oriented strategy (interest income) with a very high level of security. The fund's assets are only invested in investment grade fixed- or variable-interest investments having a duration of at most 12 months. The fund is suitable for investors who are risk-averse and who would like access to their invested assets on short notice. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 101.41 CHF 53.4 million CHF Daily 3257583 LI0032575834 A0RLU0 LLBGELD LE Inception date Legal form of fund Fund domicile Management company Custodian bank 16 March 2009 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total Expense Ratio TER calculation 0.10 % p. a. (per 31.03.2017) 0.10 % + 10 % of 3-mo LIBOR Risk and performance Fund NAV performance over 5 years 104 103 102 101 100 99 98 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Ratings AAA 25 % AA 29 % 2017 –0.1 % Previous year 0.1 % Last 3 years –0.2 % Last 5 years 0.4 % Volatility last 5 years 0.4 % Peer-Group 1 –0.4 % –0.8 % –1.8 % –1.9 % 0.2 % Current average yield to maturity–0.20 % p. a. Current duration7.84 months Interest rate spread, durationadjusted 0.55 % BBB 17 % A 29 % Key benefits ◆ Active management at very attractive fees ◆ The politic of negative interest rates leads to no interest on time deposits and call money ◆ LLB Defensive (CHF) represents an interesting alternative for defensive investors with an investment horizon from 6 months on 1 Maturities 0 – 1 month 1 – 3 month 3 – 6 month 6 – 12 month > 12 month 28 % 7% 19 % 16 % 30 % Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE CHF Money Market). Quarterly report · 2 / 2017 12 – 13 DEFENSIVE funds LLB Defensive (EUR) per 30.06.2017 Roger Wohlwend Fund Manager since 01.01.2017 Robert Tanner Co-Manager since 01.10.2006 Investment policy Fund information The fund invests in short-dated fixed-interest investments and employs corresponding derivatives in order to attain a money market-type portfolio. With respect to returns, it is oriented towards six-monthly money market yields. The fund's assets are only invested in investment grade, fixed- and variable-interest securities. In addition to short-dated bonds, the fund can also employ notes as well as interest rate and currency swaps. It is aimed at investors having an investment horizon of at least six months. The fund offers an attractive alternative to traditional time deposits and call money in the individual reference currency. The fund is suitable for investors who seek somewhat higher returns than are available in the money market. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg EUR 114.19 EUR 100.9 million EUR Daily 2153524 LI0021535245 AOERMN LLBDIEU LE Inception date Legal form of fund Fund domicile Management company Custodian bank 20 June 2005 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio TER calculation 0.12 % p. a. (per 31.03.2017) 0.125 % + 10 % of 3-mo LIBOR Risk and performance Fund NAV performance over 5 years 118 116 114 112 110 108 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Ratings AAA 8 % BBB 13 % AA 35 % A 44 % Key benefits ◆ Active management at very attractive fees ◆ More attractive yield of LLB Defensive (EUR) compared to time deposit interest rates in EUR ◆ Traditional time deposits and call money investments have become even less attractive after the ECB decision to start a QE-program Quarterly report · 2 / 2017 2017 Previous year Last 3 years Last 5 years Volatility last 5 years 0.2 % 0.2 % 0.5 % 1.8 % 0.2 % Current average yield to maturity 0.02 % p. a. Current Duration 9 months DEFENSIVE funds LLB Defensive (USD) per 30.06.2017 Robert Tanner Fund Manager since 01.10.2006 Peter Goller Co-Manager since 20.06.2005 Investment policy Fund information The fund invests in short-dated fixed-interest investments and employs corresponding derivatives in order to attain a money market-type portfolio. With respect to returns, it is oriented towards six-monthly money market yields. The fund's assets are only invested in investment grade, fixed- and variable-interest securities. In addition to short-dated bonds, the fund can also employ notes as well as interest rate and currency swaps. It is aimed at investors having an investment horizon of at least six months. The fund offers an attractive alternative to traditional time deposits and call money in the individual reference currency. The fund is suitable for investors who seek somewhat higher returns than are available in the money market. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg USD 119.73 USD 117.2 million USD Daily 2153526 LI0021535260 AOERMP LLBDIUS LE Inception date Legal form of fund Fund domicile Management company Custodian bank 20 June 2005 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio TER calculation 0.21 % p. a. (per 31.03.2017) 0.125 % + 10 % of 3-mo LIBOR Risk and performance Fund NAV performance over 5 years 122 120 118 116 114 112 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Ratings AAA 40 % BBB 2 % AA 29 % 2017 Previous year Last 3 years Last 5 years Volatility last 5 years 0.8 % 0.6 % 1.7 % 2.4 % 0.1 % Current average yield to maturity1.48 % p. a. Current Duration 5 months A 29 % Key benefits ◆ Active management at very attractive fees ◆ Feds more restrictive monetary policy will lead to higher yields ◆ More attractive yield of LLB Defensive (USD) compared with time deposit interest rates in USD ◆ Protection against a rise in long-term US Dollar interest rates ◆ An alternative to traditional time deposits and call money investments Quarterly report · 2 / 2017 14 – 15 bond funds LLB Bonds CHF Cl. T & A per 30.06.2017 Mirko Mattasch Fund Manager since 01.01.2008 Peter Goller Co-Manager since 01.01.2007 Investment policy Fund information The fund invests in fixed-interest investments (bonds, money market instruments and credit balances) that are denominated in Swiss Francs. It is oriented towards the Swiss Foreign Bond Index (SBI Foreign) as the benchmark. The fund's management pays particular attention to covering the entire market from government bonds to attractive corporate issuers, regions and sectors. The fund's assets are only invested in investment grade fixed- and variable-interest securities. Interest earnings are continuously reinvested in class T (accumulating) and distributed in class A. The fund is suitable for investors pursuing a yield-orientated but safety-conscious strategy who wish to achieve the highest possible interest earnings in addition to capital preservation. Net asset value per unit Cl. T / A Fund assets (all classes) Reference currency Traded Security number Cl. T / A ISIN Cl. T / A WKN Cl. T / A Bloomberg Cl. T / A CHF 152.35 / CHF 135.45 CHF 757.3 million CHF Daily 1325569 / 3254330 LI0013255695 / LI0032543303 964824 / A0RLUX LLBOBCH LE / LLBOBCA LE Inception date Legal form of fund Fund domicile Management company Custodian bank 7 January 1997 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG NAV performance over 5 years Investment manager LLB Asset Management AG Representative in Switzerland LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Paying agent in Switzerland Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach End of financial year 30 September Class T = Accumul., A = Distribut. Dividend distributions Cl. T / A None / 15.12.2016 CHF 1.60 Licensed for distribution in Cl. T / A: LI, CH, DE, AT Tax transparency inCl. T / A: LI, CH, DE, AT Auditors PricewaterhouseCoopers AG 156 154 152 150 148 146 144 142 Total expense ratio TER calculation 0.25 % p. a. (per 31.03.2017) 0.25 % + 10 % of 5-y swap CHF Risk and performance Fund 140 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. The NAV performance shown is based on the total return prices of class T. Ratings AAA 22 % AA 36 % Peer-Group 2 2017 –0.1 % Previous year 1.0 % Last 3 years 3.6 % Last 5 years 7.4 % Volatility last 5 years 1.6 % Current average yield to maturity0.09 % p. a. Current duration4.25 years Interest rate spread, durationadjusted 0.56 % Maturities BBB 12 % A 30 % 0 – 3 years 3 – 5 years 5 – 7 years 7 – 10 years > 10 years Key benefits Fund ratings 1 ◆ Active management at very attractive fees ◆ Cost-efficient alternative for yield-oriented investors ◆ In an environment of low interest rates, active management of bond portfolios becomes essential Lipper preservation score (overall) Lipper expense score (overall) 1 2 The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE CHF Bond). Quarterly report · 2 / 2017 38 % 22 % 20 % 15 % 5% Leader 4 –0.3 % 1.0 % 3.1 % 7.8 % 2.0 % bond funds LLB Bonds EUR Cl. T & A per 30.06.2017 Roger Wohlwend Fund Manager since 01.01.2017 Robert Tanner Co-Manager since 01.01.2007 Investment policy Fund information The fund invests in fixed-interest investments (bonds, money market instruments and credit balances) that are denominated in Euros. It is oriented towards the JP Morgan EMU Government Bond Index as the benchmark. The fund's management pays particular attention to covering the entire market from government bonds to attractive corporate issuers, regions and sectors. The fund's assets are only invested in investment grade fixed- and variable-interest securities. Interest earnings are continuously reinvested in class T (accumulating) and distributed in class A. The fund is suitable for investors pursuing a yield-orientated but safety-conscious strategy who wish to achieve the highest possible interest earnings in addition to capital preservation. Net asset value per unit Cl. T / A Fund assets (all classes) Reference currency Traded Security number Cl. T / A ISIN Cl. T / A WKN Cl. T / A Bloomberg Cl. T / A EUR 110.03/ EUR 86.92 EUR 226.6 million EUR Daily 1325568 / 3255064 LI0013255687 / LI0032550647 964825 / A0RLUY LLBOBEU LE / LLBOBEA LE Inception date Legal form of fund Fund domicile Management company Custodian bank 7 January 1997 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG NAV performance over 5 years Investment manager LLB Asset Management AG Representative in Switzerland LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Paying agent in Switzerland Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach End of financial year 30 September Class T = Accumul., A = Distribut. Dividend distributions Cl. T / A None / 15.12.2016 EUR 2.42 Licensed for distribution in Cl. T / A: LI, CH, DE, AT Tax transparency inCl. T / A: LI, CH, DE, AT Auditors PricewaterhouseCoopers AG 114 112 110 108 106 104 102 100 98 96 Total expense ratio TER calculation 0.25 % p. a. (per 31.03.2017) 0.25 % + 10 % of 5-y swap EUR Risk and performance Fund 94 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. The NAV performance shown is based on the total return prices of class T. Ratings AAA 19 % AA 28 % Peer-Group 2 2017 –0.1 % Previous year 3.3 % Last 3 years 6.9 % Last 5 years 15.6 % Volatility last 5 years 2.7 % –0.2 % 2.2 % 4.9 % 17.1 % 2.9 % Current average yield to maturity0.80 % p. a. Current duration6.04 years Interest rate spread, durationadjusted 0.78 % Maturities BBB 15 % A 38 % 0 – 3 years 3 – 5 years 5 – 7 years 7 – 10 years > 10 years Key benefits Fund ratings 1 ◆ Active management at very attractive fees ◆ The European debt crisis showed that active management of bond portfolios is necessary to ensure investment success ◆ Broadly diversified portfolio ◆ The fund invests in top-quality issuers Lipper preservation score (overall) Lipper expense score (overall) Morningstar stars (3 years) 1 2 17 % 22 % 28 % 21 % 12 % Leader Leader 4 The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE EUR Diversified Bond). Quarterly report · 2 / 2017 16 – 17 bond funds LLB Bonds USD per 30.06.2017 Mirko Mattasch Fund Manager since 01.08.2008 Peter Goller Co-Manager since 05.01.2009 Investment policy Fund information The fund invests in fixed-interest investments (bonds, money market instruments and credit balances) that are denominated in US Dollars. It is oriented towards the JP Morgan US Government Bond Index as the benchmark. The fund's management pays particular attention to covering the entire market from government bonds to attractive corporate issuers, regions and sectors. The fund's assets are only invested in investment grade fixed- and variable-interest securities; up to 10 % of the fund's assets can be invested in other Dollar currencies (CAD, AUD, NZD). Both interest earnings and capital gains are continuously reinvested in the fund. The fund is suitable for investors pursuing a yield-orientated but safety-conscious strategy who wish to achieve the highest possible interest earnings in addition to capital preservation. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg USD 236.18 USD 87.4 million USD Daily 1325567 LI0013255679 964826 LLBOBUS LE Inception date Legal form of fund Fund domicile Management company Custodian bank 30 December 1997 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio TER calculation 0.38 % p. a. (per 31.03.2017) 0.25 % + 10 % of 5-y swap USD Risk and performance Fund NAV performance over 5 years 240 235 230 225 220 215 210 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Ratings AAA 26 % AA 28 % Peer-Group 2 2017 2.5 % Previous year 2.9 % Last 3 years 6.6 % Last 5 years 11.1 % Volatility last 5 years 2.8 % Current average yield to maturity 2.54 % p. a. Current duration5.38 years Interest rate spread, durationadjusted 0.62 % Maturities BBB 12 % A 34 % 0 – 3 years 3 – 5 years 5 – 7 years 7 – 10 years > 10 years 37 % 23 % 14 % 6% 20 % Fund ratings 1 Key benefits ◆ Active management at very attractive fees ◆ Suitable for yield-oriented investors ◆ Compared to CHF and EUR high yield to maturity ◆ The current interest rate environment and the end of the ultraexpansive monetary policy requires an active management 1 2 Lipper total return score (10 years) Lipper consistent return score (overall) Lipper preservation score (3 years) Lipper expense score (overall) Morningstar stars (3 years) Feri Trust Rating The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE USD Diversified Bond). Quarterly report · 2 / 2017 4 4 4 Leader 4 B 2.3 % 2.0 % 4.1 % 8.4 % 3.0 % bond funds LLB Bonds Euro Alternative (CHF) Mirko Mattasch Co-Manager since 01.03.2016 per 30.06.2017 Peter Goller Fund Manager since 01.01.2007 Investment policy Fund information The fund invests globally in bonds of first-class issuers excluding those denominated in Euros. It is oriented towards the JP Morgan Global Government Bond Index as the benchmark. The fund's portfolio contains currencies such as the US Dollar, Swiss Franc, Pound Sterling and Danish Krone. In addition, the fund practices active currency management. The fund's assets are only invested in highquality, fixed- and variable-interest securities (minimum A Rating). The fund is suitable for investors who seek a well-diversified, firstclass alternative to bonds denominated in Euros and who wish to profit from the interest rate differentials between the various currencies. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 106.55 CHF 29.4 million CHF Daily 674526 LI0006745264 964815 LLBEALT LE Inception date Legal form of fund Fund domicile Management company Custodian bank 22 August 1997 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG NAV performance over 5 years Investment manager LLB Asset Management AG Representative in Switzerland LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Paying agent in Switzerland Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach End of financial year 30 September Dividend distributions None, reinvested Licensed for distribution in LI, CH, DE, AT Tax transparency inLI, CH, DE, AT Auditors PricewaterhouseCoopers AG 150 145 140 135 130 125 120 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Until 29 November 2004 there were annual dividend/coupons distributions. The NAV performance shown is based on total return prices. Therefore the net asset value per unit devia tes from the value of the NA V performance of both classes. Ratings AAA 32 % AA 33 % Total expense ratio 0.55 % p. a. (per 31.03.2017) Risk and performance Fund 2017 –1.0 % Previous year 2.9 % Last 3 years 1.9 % Last 5 years –5.3 % Volatility last 5 years 5.0 % Peer-Group 2 –1.1 % 2.6 % 3.0 % 2.0 % 6.8 % Current average yield to maturity1.68 % p. a. Current duration4.49 years Currency exposure A 35 % Key benefits ◆ Active management at very attractive fees ◆ Focus on high quality borrowers (minimum rating A) ◆ Yields in Swiss Franc not attractive ◆ Chances for currency gains due to overvalued Swiss Franc USD JPY CHF DKK GBP NOK SEK CAD AUD MXN ZAR Other currencies 30 % 17 % 14 % 12 % 10 % 4% 4% 4% 2% 1% 1% 1% Fund ratings 1 Lipper preservation score (overall) Lipper expense score (overall) 1 2 Leader Leader The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Global Bond). Quarterly report · 2 / 2017 18 – 19 bond funds LLB Bonds Global Class P per 30.06.2017 Robert Tanner Fund Manager since 24.01.2007 Investment policy Fund information The fund invests globally in the bonds of first-class issuers. It is oriented towards the JP Morgan Global Government Bonds Index as the benchmark. The management strives to attain a broad coverage of the overall market, which ranges from investments in government bonds to a selection of attractive corporate issuers. The fund conducts active currency management. In addition to the core currencies Euro, Pound Sterling, US Dollar and Japanese Yen, investments are also considered in other interesting marginal currencies in Eastern Europe, Asia or Latin America. The fund's assets are only invested in investment grade fixed- and variable-interest securities. Both interest earnings and capital gains are continuously reinvested. The fund is suitable for investors, who want to achieve the highest possible interest earnings by means of a first-class, globally diversified, yield-oriented but at the same time safety-conscious strategy. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg NAV performance over 5 years 88 86 84 82 80 78 Mirko Mattasch Co-Manager since 01.03.2016 EUR 84.14 EUR 404.7 million EUR Daily 916371 LI0009163713 964817 LLBGBND LE Inception date 24 January 2007 Legal form of fund SICAV (UCITS V) Fund domicile Liechtenstein Management companyLLB Fund Services AG Custodian bank Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.55 % p. a. (per 31.03.2017) Risk and performance Fund 76 74 72 70 68 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Peer-Group 2 2017 –2.3 % Previous year 4.2 % Last 3 years 14.1 % Last 5 years 9.4 % Volatility last 5 years 5.7 % Current average yield to maturity1.74 % p. a. Current duration5.42 years Currency exposure Ratings AAA 24 % AA 28 % BBB 18 % A 30 % EUR USD JPY GBP AUD NZD CAD NOK MXN CHF 42 % 37 % 7% 6% 2% 2% 1% 1% 1% 1% Fund ratings 1 Key benefits ◆ Active management at very attractive fees ◆ Higher yields in foreign currencies versus Swiss Franc ◆ Broadly diversified, cost-efficient international bond portfolio ◆ In an environment of low interest rates, active management of bond portfolios becomes essential 1 2 Lipper consistent return score (3 years) Lipper preservation score (3 years) Lipper expense score (overall) The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Global Bond). Quarterly report · 2 / 2017 4 Leader Leader –2.9 % 4.1 % 14.4 % 12.1 % 6.8 % bond funds LLB Bonds Global Class H CHF per 30.06.2017 Robert Tanner Fund Manager since 24.01.2007 Investment policy Fund information The fund invests globally in the bonds of first-class issuers. It is oriented towards the JP Morgan Global Government Bonds Index as the benchmark. The management strives to attain a broad coverage of the overall market, which ranges from investments in government bonds to a selection of attractive corporate issuers. In addition to the core currencies Euro, Pound Sterling, US Dollar and Japanese Yen, investments are also considered in other interesting marginal currencies in Eastern Europe, Asia or Latin America. The fund's assets are only invested in investment grade fixed- and variableinterest securities. Both interest earnings and capital gains are continuously reinvested. Foreign currency risks are largely hedged from the CHF perspective. The fund is suitable for investors, who want to achieve the highest possible interest earnings by means of a firstclass, globally diversified, yield-oriented but at the same time safety-conscious strategy. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg Mirko Mattasch Co-Manager since 01.03.2016 CHF 101.30 EUR 404.7 million CHF Daily 29091146 LI0290911465 A142W1 LLBOGHC LE Inception date 30 October 2015 Legal form of fund SICAV (UCITS V) Fund domicile Liechtenstein Management companyLLB Fund Services AG Custodian bank Liechtensteinische Landesbank AG 102 Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG 101 Total expense ratio 0.55 % p. a. (per 31.03.2017) 100 Risk and performance Fund NAV performance since inception 104 103 2017 Previous year Since inception 99 98 O N D J F M A M J J A S O N D J F M A M J The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Ratings AAA 24 % AA 28 % BBB 18 % A 30 % 0.5 % 1.9 % 1.3 % Current average yield to maturity0.32 % p. a. Current duration5.42 years Maturities 0 – 3 years 3 – 5 years 5 – 7 years 7 – 10 years > 10 years 30 % 24 % 25 % 14 % 7% Key benefits ◆ Active management at very attractive fees ◆ Broadly diversified, cost-efficient international bond portfolio ◆ In an environment of low interest rates, active management of bond portfolios becomes essential ◆ Higher yields in foreign currencies versus corresponding Swiss franc bonds ◆ Active hedging of foreign currency risks Quarterly report · 2 / 2017 20 – 21 bond funds LLB Bonds Global Class H EUR Robert Tanner Fund Manager since 24.01.2007 per 30.06.2017 Investment policy Fund information The fund invests globally in the bonds of first-class issuers. It is oriented towards the JP Morgan Global Government Bonds Index as the benchmark. The management strives to attain a broad coverage of the overall market, which ranges from investments in government bonds to a selection of attractive corporate issuers. In addition to the core currencies Euro, Pound Sterling, US Dollar and Japanese Yen, investments are also considered in other interesting marginal currencies in Eastern Europe, Asia or Latin America. The fund's assets are only invested in investment grade fixed- and variableinterest securities. Both interest earnings and capital gains are continuously reinvested. Foreign currency risks are largely hedged from the EUR perspective. The fund is suitable for investors, who want to achieve the highest possible interest earnings by means of a firstclass, globally diversified, yield-oriented but at the same time safety-conscious strategy. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg Mirko Mattasch Co-Manager since 01.03.2016 EUR 101.55 EUR 404.7 million EUR Daily 29091152 LI0290911523 A142W2 LLBOGHE LE Inception date 30 October 2015 Legal form of fund SICAV (UCITS V) Fund domicile Liechtenstein Management companyLLB Fund Services AG Custodian bank Liechtensteinische Landesbank AG 102 Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG 101 Total expense ratio 0.55 % p. a. (per 31.03.2017) 100 Risk and performance Fund NAV performance since inception 104 103 2017 Previous year Since inception 99 98 O N D J F M A M J J A S O N D J F M A M J The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Ratings AAA 24 % AA 28 % BBB 18 % A 30 % Key benefits ◆ Active management at very attractive fees ◆ Broadly diversified, cost-efficient international bond portfolio ◆ In an environment of low interest rates, active management of bond portfolios becomes essential ◆ Higher yields in foreign currencies versus corresponding Euro bonds ◆ Active hedging of foreign currency risks Quarterly report · 2 / 2017 0.8 % 2.0 % 1.6 % Current average yield to maturity0.74 % p. a. Current duration5.42 years Maturities 0 – 3 years 3 – 5 years 5 – 7 years 7 – 10 years > 10 years 30 % 24 % 25 % 14 % 7% bond funds LLB Bonds Global Class H USD per 30.06.2017 Robert Tanner Fund Manager since 24.01.2007 Investment policy Fund information The fund invests globally in the bonds of first-class issuers. It is oriented towards the JP Morgan Global Government Bonds Index as the benchmark. The management strives to attain a broad coverage of the overall market, which ranges from investments in government bonds to a selection of attractive corporate issuers. In addition to the core currencies Euro, Pound Sterling, US Dollar and Japanese Yen, investments are also considered in other interesting marginal currencies in Eastern Europe, Asia or Latin America. The fund's assets are only invested in investment grade fixed- and variableinterest securities. Both interest earnings and capital gains are continuously reinvested. Foreign currency risks are largely hedged from the USD perspective. The fund is suitable for investors, who want to achieve the highest possible interest earnings by means of a firstclass, globally diversified, yield-oriented but at the same time safety-conscious strategy. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg Mirko Mattasch Co-Manager since 01.03.2016 USD 104.02 EUR 404.7 million USD Daily 29091154 LI0290911549 A142W3 LLBOGHU LE Inception date 30 October 2015 Legal form of fund SICAV (UCITS V) Fund domicile Liechtenstein Management companyLLB Fund Services AG Custodian bank Liechtensteinische Landesbank AG 103 Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG 102 Total expense ratio 0.55 % p. a. (per 31.03.2017) 101 Risk and performance Fund 100 2017 Previous year Since inception NAV performance since inception 105 104 99 O N D J F M A M J J A S O N D J F M A M J The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Ratings AAA 24 % AA 28 % BBB 18 % A 30 % 2.2 % 2.4 % 4.0 % Current average yield to maturity2.75 % p. a. Current duration5.42 years Maturities 0 – 3 years 3 – 5 years 5 – 7 years 7 – 10 years > 10 years 30 % 24 % 25 % 14 % 7% Key benefits ◆ Active management at very attractive fees ◆ Broadly diversified, cost-efficient international bond portfolio ◆ In an environment of low interest rates, active management of bond portfolios becomes essential ◆ Active hedging of foreign currency risks Quarterly report · 2 / 2017 22 – 23 bond funds LLB Bonds Inflation Linked Class P per 30.06.2017 Robert Tanner Fund Manager since 24.01.2007 Investment policy Fund information The fund invests in an internationally diversified portfolio of inflation-linked bonds, notes and other debt certificates, as well as money market instruments. It is oriented towards the Barclays World Inflation Linked Total Return Index as the benchmark. The fund's assets are only invested in investment grade fixed- and variable-interest securities. Both interest earnings and capital gains are continuously reinvested. The fund is suitable for investors, who want to achieve the highest possible interest earnings while simultaneously ensuring capital preservation (inflation-linked) by means of a first-class, globally diversified, yield-oriented but at the same time safety-conscious strategy. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg USD 128.19 USD 331.8 million USD Daily 2861487 LI0028614878 A0MKEF LLBOILP LE Inception date Legal form of fund Fund domicile Management company Custodian bank 24 January 2007 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.50 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 136 134 132 130 128 126 124 122 120 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Allocation by currency CHF 1 % USD 48 % JPY 2 % Asia / Pacific ex Japan 2 % 2017 3.4 % Previous year 1.3 % Last 3 years –4.1 % Last 5 years 0.4 % Volatility last 5 years 4.7 % Current average real yield to maturity0.11 % p. a. Current duration9.48 years Maturities Other currencies 1 % Europe other currencies 3 % GBP 25 % Mirko Mattasch Co-Manager since 01.03.2016 EUR 18 % 0 – 3 years 3 – 5 years 5 – 7 years 7 – 10 years > 10 years 24 % 17 % 18 % 15 % 26 % Fund ratings 1 Key benefits ◆ Active management at very attractive fees ◆ Portfolio diversification in a separate asset class ◆ Excess liquidity sparks inflation fears in the longer term ◆ Protection against loss of purchasing power due to compensation of inflation ◆ Very good issuer quality (government issuers) 1 The fund ratings refer to the preceding month. Quarterly report · 2 / 2017 Lipper total return score (overall) Lipper consistent return score (overall) Lipper preservation score (overall) Lipper expense score (overall) 4 4 4 Leader bond funds LLB Bonds Inflation Linked Class H CHF per 30.06.2017 Robert Tanner Fund Manager since 24.01.2007 Investment policy Fund information The fund invests in an internationally diversified portfolio of inflation-linked bonds, notes and other debt certificates, as well as money market instruments. It is oriented towards the Barclays World Inflation Linked Total Return Index as the benchmark. The fund's assets are only invested in investment grade fixed- and variable-interest securities. Both interest earnings and capital gains are continuously reinvested. Foreign currency risks are largely hedged from the CHF perspective. The fund is suitable for investors, who want to achieve the highest possible interest earnings while simultaneously ensuring capital preservation (inflation-linked) by means of a first-class, globally diversified, yield-oriented but at the same time safety-conscious strategy. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg CHF 101.80 USD 331.8 million CHF Daily 29091157 LI0290911572 A142W4 LLOILHC LE Inception date Legal form of fund Fund domicile Management company Custodian bank 30 October 2015 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG 101 Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG 100 Total expense ratio 0.50 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance since inception 106 105 104 103 102 99 98 O N D J F M A M J J A S O N D J F M A M J The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Mirko Mattasch Co-Manager since 01.03.2016 2017 –0.6 % Previous year 4.3 % Since inception 1.8 % Current average real yield to maturity–1.60 % p. a. Current duration9.48 years Ratings AAA 56 % AA 36 % Maturities 0 – 3 years 3 – 5 years 5 – 7 years 7 – 10 years > 10 years 24 % 17 % 18 % 15 % 26 % A3% BBB 5 % Key benefits ◆ Active management at very attractive fees ◆ Portfolio diversification in a separate asset class ◆ Excess liquidity sparks inflation fears in the longer term ◆ Protection against loss of purchasing power due to compensation of inflation ◆ Very good issuer quality (government issuers) ◆ Active hedging of foreign currency risks Quarterly report · 2 / 2017 24 – 25 bond funds LLB Bonds Inflation Linked Class H EUR per 30.06.2017 Robert Tanner Fund Manager since 24.01.2007 Investment policy Fund information The fund invests in an internationally diversified portfolio of inflation-linked bonds, notes and other debt certificates, as well as money market instruments. It is oriented towards the Barclays World Inflation Linked Total Return Index as the benchmark. The fund's assets are only invested in investment grade fixed- and variable-interest securities. Both interest earnings and capital gains are continuously reinvested. Foreign currency risks are largely hedged from the EUR perspective. The fund is suitable for investors, who want to achieve the highest possible interest earnings while simultaneously ensuring capital preservation (inflation-linked) by means of a first-class, globally diversified, yield-oriented but at the same time safety-conscious strategy. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg EUR 102.01 USD 331.8 million EUR Daily 29091158 LI0290911580 A142W5 LLOILHE LE Inception date Legal form of fund Fund domicile Management company Custodian bank 30 October 2015 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.50 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance since inception 106 105 104 103 102 101 100 99 98 97 O N D J F M A M J J A S O N D J F M A M J The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Mirko Mattasch Co-Manager since 01.03.2016 2017 –0.6 % Previous year 5.2 % Since inception 2.0 % Current average real yield to maturity–1.15 % p. a. Current duration9.48 years Ratings AAA 56 % AA 36 % Maturities 0 – 3 years 3 – 5 years 5 – 7 years 7 – 10 years > 10 years A3% BBB 5 % Key benefits ◆ Active management at very attractive fees ◆ Portfolio diversification in a separate asset class ◆ Excess liquidity sparks inflation fears in the longer term ◆ Protection against loss of purchasing power due to compensation of inflation ◆ Very good issuer quality (government issuers) ◆ Active hedging of foreign currency risks Quarterly report · 2 / 2017 24 % 17 % 18 % 15 % 26 % bond funds LLB Bonds Inflation Linked Class H USD Mirko Mattasch Co-Manager since 01.03.2016 per 30.06.2017 Robert Tanner Fund Manager since 24.01.2007 Investment policy Fund information The fund invests in an internationally diversified portfolio of inflation-linked bonds, notes and other debt certificates, as well as money market instruments. It is oriented towards the Barclays World Inflation Linked Total Return Index as the benchmark. The fund's assets are only invested in investment grade fixed- and variable-interest securities. Both interest earnings and capital gains are continuously reinvested. Foreign currency risks are largely hedged from the USD perspective. The fund is suitable for investors, who want to achieve the highest possible interest earnings while simultaneously ensuring capital preservation (inflation-linked) by means of a first-class, globally diversified, yield-oriented but at the same time safety-conscious strategy. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg USD 105.93 USD 331.8 million USD Daily 29091159 LI0290911598 A142W6 LLOILHU LE Inception date Legal form of fund Fund domicile Management company Custodian bank 30 October 2015 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.50 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance since inception 109 108 107 106 105 104 103 102 101 100 99 98 O N D J F M A M J J A S O N D J F M A M J The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. 2017 Previous year Since inception 1.0 % 6.5 % 5.9 % Current average real yield to maturity0.52 % p. a. Current duration9.48 years Ratings AAA 56 % AA 36 % Maturities 0 – 3 years 3 – 5 years 5 – 7 years 7 – 10 years > 10 years 24 % 17 % 18 % 15 % 26 % A3% BBB 5 % Key benefits ◆ Active management at very attractive fees ◆ Portfolio diversification in a separate asset class ◆ Excess liquidity sparks inflation fears in the longer term ◆ Protection against loss of purchasing power due to compensation of inflation ◆ Very good issuer quality (government issuers) ◆ Active hedging of foreign currency risks Quarterly report · 2 / 2017 26 – 27 bond funds LLB Convertible Bonds Class H CHF per 30.06.2017 Simon Öhri Fund Manager since 01.04.2014 Timo Gruber Co-Manager since 01.02.2016 Investment policy Fund information The fund invests in a globally diversified portfolio of investment grade convertible bonds. It is oriented towards the Thomson Reuters Convertible Bonds Global Investment Grade Hedged Index as benchmark. Foreign currency risks are at least 80 % hedged from the reference currency perspective. The fund invests in favourably valued convertible bonds, which can benefit particularly strongly from upward movements of the stock markets but which, at the same time, are hedged as far as possible against any price setbacks. The fund is suitable for investors, who appreciate having convertible bonds in their portfolio because of their yield-enhancing and riskreducing attributes. Investors can benefit from the opportunities on the stock markets without having to bear the full risks associated with equities. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg CHF 106.50 EUR 272.9 million CHF Daily 29091162 LI0290911622 A142F6 LLBWAHC LE Inception date Legal form of fund Fund domicile Management company Custodian bank 30 October 2015 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.60 % p. a. (per 31.03.2017) plus performance fee Risk and performance Fund NAV performance since inception 110 108 106 104 102 100 98 96 94 92 90 O N D J F M A M J J A S O N D J F M A M J The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. 2017 Previous year Since inception Peer-Group 1 4.5 % 3.8 % 6.5 % 2.0 % –1.5 % –0.6 % Allocation by regions Sector allocation Information technology 17 % Real estate 14 % Materials 1 % Healthcare 7 % Telecommunications 3 % Energy 5 % Consumer discretionary 11 % Consumer staples 2 % Utilities 3 % Industrials 18 % Financials 19 % Key benefits ◆ Active management at very attractive fees ◆ Very good issuer quality in the portfolio ◆ Convertible bonds offer an attractive risk / reward ratio relative to other traditional assets (stocks and straight bonds) ◆ The fund has got the critical size to get an allocation in attractive new convertible bonds issues ◆ Active hedging of foreign currency risks 1 America Europe Japan Asia Other regions Largest holdings Security Maturity Curr.Weight 1.750 % 2.625 % 7.500 % 1.000 % 4.750 % 2.750 % 3.750 % 1.050 % 3.250 % 1.250 % 19.06.2024 15.05.2041 no maturity 27.03.2022 15.04.2020 15.10.2042 15.05.2021 16.08.2017 01.08.2039 21.10.2023 DP World Notes Novellus Systems Wells Fargo Series -L- Aabar Invest Prospect Capital Anthem Deb Spirit Realty Capital Siemens FinNv Intel Debs Steinhoff Fin. Peer-Group = Median of the peer group, provided by Morningstar (Europe/Africa/Asia OE Convertible Bond - Global, CHF Hedged). Quarterly report · 2 / 2017 42 % 33 % 7% 7% 11 % USD USD USD EUR USD USD USD USD USD USD 3.5 % 3.4 % 3.4 % 2.8 % 2.6 % 2.5 % 2.2 % 2.1 % 2.1 % 2.1 % bond funds LLB Convertible Bonds Class H EUR Simon Öhri Fund Manager since 01.04.2014 per 30.06.2017 Timo Gruber Co-Manager since 01.02.2016 Investment policy Fund information The fund invests in a globally diversified portfolio of investment grade convertible bonds. It is oriented towards the Thomson Reuters Convertible Bonds Global Investment Grade Hedged Index as benchmark. Foreign currency risks are at least 80 % hedged from the reference currency perspective. The fund invests in favourably valued convertible bonds, which can benefit particularly strongly from upward movements of the stock markets but which, at the same time, are hedged as far as possible against any price setbacks. The fund is suitable for investors, who appreciate having convertible bonds in their portfolio because of their yield-enhancing and riskreducing attributes. Investors can benefit from the opportunities on the stock markets without having to bear the full risks associated with equities. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg EUR 125.12 EUR 272.9 million EUR Daily 2861470 LI0028614704 A0MKED LLBWANP LE Inception date Legal form of fund Fund domicile Management company Custodian bank 24 January 2007 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio (incl. performance fee) Total expense ratio (excl. performance fee) 0.65 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 130 125 120 115 110 105 100 95 28 – 29 0.60 % p. a. (per 31.03.2017) 90 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Sector allocation Information technology 17 % Real estate 14 % Materials 1 % Healthcare 7 % Telecommunications 3 % Energy 5 % Consumer discretionary 11 % Consumer staples 2 % Utilities 3 % Industrials 18 % Financials 19 % Key benefits ◆ Active management at very attractive fees ◆ Very good issuer quality in the portfolio ◆ Convertible bonds offer an attractive risk / reward ratio relative to other traditional assets (stocks and straight bonds) ◆ The fund has got the critical size to get an allocation in attractive new convertible bonds issues ◆ Active hedging of foreign currency risks 2017 4.0 % Previous year 4.8 % Last 3 years 14.0 % Last 5 years 36.4 % Volatility last 5 years 5.2 % 2 3.0 % 0.3 % 6.2 % 30.7 % 5.4 % Allocation by regions America Europe Japan Asia Other regions 42 % 33 % 7% 7% 11 % Largest holdings Security Maturity Curr.Weight 1.750 % 2.625 % 7.500 % 1.000 % 4.750 % 2.750 % 3.750 % 1.050 % 3.250 % 1.250 % 19.06.2024 15.05.2041 no maturity 27.03.2022 15.04.2020 15.10.2042 15.05.2021 16.08.2017 01.08.2039 21.10.2023 DP World Notes Novellus Systems Wells Fargo Series -L- Aabar Invest Prospect Capital Anthem Deb Spirit Realty Capital Siemens FinNv Intel Debs Steinhoff Fin. USD USD USD EUR USD USD USD USD USD USD 3.5 % 3.4 % 3.4 % 2.8 % 2.6 % 2.5 % 2.2 % 2.1 % 2.1 % 2.1 % Fund rating 1 Morningstar stars (3 years) 1 Peer-Group 2 5 The fund ratings refer to the preceding month. Peer-Group = Median of the peer group, provided by Morningstar (Europe/Africa/Asia OE Convertible Bond - Global, EUR Hedged). Quarterly report · 2 / 2017 bond funds LLB Convertible Bonds Class H USD per 30.06.2017 Simon Öhri Fund Manager since 01.04.2014 Timo Gruber Co-Manager since 01.02.2016 Investment policy Fund information The fund invests in a globally diversified portfolio of investment grade convertible bonds. It is oriented towards the Thomson Reuters Convertible Bonds Global Investment Grade Hedged Index as benchmark. Foreign currency risks are at least 80 % hedged from the reference currency perspective. The fund invests in favourably valued convertible bonds, which can benefit particularly strongly from upward movements of the stock markets but which, at the same time, are hedged as far as possible against any price setbacks. The fund is suitable for investors, who appreciate having convertible bonds in their portfolio because of their yield-enhancing and riskreducing attributes. Investors can benefit from the opportunities on the stock markets without having to bear the full risks associated with equities. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg USD 110.58 EUR 272.9 million USD Daily 29091163 LI0290911630 A142F7 LLBWAHU LE Inception date Legal form of fund Fund domicile Management company Custodian bank 30 October 2015 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio (incl. performance fee) Total expense ratio (excl. performance fee) 0.63 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance since inception 115 110 105 100 95 90 O N D J F M A M J J A S O N D J F M A M J 0.60 % p. a. (per 31.03.2017) The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. 2017 6.3 % Previous year 5.5 % Since inception 11.6 % Sector allocation Allocation by regions Information technology 17 % Real estate 14 % Materials 1 % Healthcare 7 % Telecommunications 3 % Energy 5 % Consumer discretionary 11 % Consumer staples 2 % Utilities 3 % Industrials 18 % Financials 19 % Key benefits ◆ Active management at very attractive fees ◆ Very good issuer quality in the portfolio ◆ Convertible bonds offer an attractive risk / reward ratio relative to other traditional assets (stocks and straight bonds) ◆ The fund has got the critical size to get an allocation in attractive new convertible bonds issues ◆ Active hedging of foreign currency risks 1 America Europe Japan Asia Other regions 4.1 % 2.3 % 4.7 % 42 % 33 % 7% 7% 11 % Largest holdings Security Maturity Curr.Weight 1.750 % 2.625 % 7.500 % 1.000 % 4.750 % 2.750 % 3.750 % 1.050 % 3.250 % 1.250 % 19.06.2024 15.05.2041 no maturity 27.03.2022 15.04.2020 15.10.2042 15.05.2021 16.08.2017 01.08.2039 21.10.2023 DP World Notes Novellus Systems Wells Fargo Series -L- Aabar Invest Prospect Capital Anthem Deb Spirit Realty Capital Siemens FinNv Intel Debs Steinhoff Fin. Peer-Group = Median of the peer group, provided by Morningstar (Europe/Africa/Asia OE Convertible Bond - Global, USD Hedged). Quarterly report · 2 / 2017 Peer-Group 1 USD USD USD EUR USD USD USD USD USD USD 3.5 % 3.4 % 3.4 % 2.8 % 2.6 % 2.5 % 2.2 % 2.1 % 2.1 % 2.1 % bond funds LLB Bonds Strategy CEEMENA (EUR) Cl. I (T) Christoph von Bonin Fund Manager since 10.06.2010 per 30.06.2017 Friedrich Maier Co-Manager since 10.06.2010 Investment policy Fund information The fund primarily invests in bonds (hard currencies and local currency) from the Central & Eastern Europe, Middle East & Northern Africa (CEEMENA) regions. The fund strives for relatively high current returns and takes higher volatility into account. The investment universe predominantly encompasses government bonds, quasisovereigns (bonds whose credit ratings make them equivalent to government bonds) as well as supranational issuers. Additionally, debt securities of companies close to the state and banks may be taken into account. While the fund invests in fixed- and variableinterest bonds across the entire range of credit ratings, the average rating of the fund will always end up being investment grade (minimum rating). The fund is suitable for investors wanting diversified investments in the debt securities markets of Central & Eastern Europe and its peripheral regions. Net asset value per unit Cl. I (T) Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg EUR 138.25 EUR 106.9 million EUR Daily 24477707 AT0000A17Z45 A1110S LLBANIT AV Inception date Legal form of fund Fund domicile Management company Custodian bank 10 June 2010 Capital investment fund pursuant to §20 (UCITS V) of the Austrian InvFG Austria Allianz Invest KAGmbH Allianz Investmentbank AG NAV performance over 5 years 150 145 140 135 130 125 120 115 Based on total return prices of the class T and as of 10.06.2014 on total return prices of the class I (T) 110 2012 2013 2014 2015 2016 2017 The value development shown provides no guarantee of future performance. A unit's value may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. The NAV performance shown is based on the total return prices of class T and as of 10.06.2014 on total return prices of the class I (T). Ratings AAA 10 % BBB 14 % Investment manager Liechtensteinische Landesbank (Österreich) AG Representative in Liechtenstein LLB Fund Services AG Äulestrasse 80, 9490 Vaduz Paying agent in Liechtenstein Liecht. Landesbank AG Städtle 44, 9490 Vaduz Representative in Switzerland LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Paying agent in Switzerland Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach End of financial year 30 September ClassT = accumulative Dividend distributions None Licensed for distribution in LI, CH, AT Tax transparency in LI, CH, DE, AT Auditors KPMG Total expense ratio 0.72 % p. a. (per 31.03.2017) Risk and performance Fund Peer-Group 2 2017 1.6 % Previous year 11.8 % Last 3 years 18.2 % Last 5 years 30.3 % Volatility last 5 years 5.5 % 2.1 % 1.9 % 6.6 % 16.9 % 5.8 % Current average yield to maturity4.37 % p. a. Current duration3.87 years Currency exposure Others 34 % BB 42 % Key benefits ◆ Active management at very attractive fees ◆ Invests in government bonds or bonds of issuers close to the state from the CEEMENA growth region ◆ Benefits from the risk premiums for hard currency bonds and the higher returns in local bond markets 1 2 EUR RUB PLN HUF TRY USD RON CHF 57 % 11 % 9% 6% 6% 5% 4% 2% Fund ratings 1 Lipper total return score (5 years) Lipper preservation score (3 years) Lipper expense score (overall) Morningstar stars (3 years) Leader Leader 4 5 The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Emerging Europe Bond). Quarterly report · 2 / 2017 30 – 31 equity funds LLB Equities Switzerland (CHF) per 30.06.2017 Christian Zogg Fund Manager since 01.08.1998 Investment policy Fund information The fund invests in Swiss equities. It is oriented towards the Swiss Performance Index (SPI) as the benchmark. The fund's management pays particular attention to achieving a broad coverage of the overall market, with investments ranging from pharmaceuticals and food stocks to financials and cyclical industrials. Along with blue chips, small and mid caps are also considered for investments. The selection of the assets in the portfolio is based on quantitative and fundamental analysis, whereby quantitative methods are given a high importance. The fund is suitable for investors who wish to cover the Swiss stock market within the scope of a strategy focused on long-term capital growth, while at the same time minimizing the associated risks. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 249.05 CHF 205.0 million CHF Daily 1325570 LI0013255703 964823 LLBAKCH LE Inception date Legal form of fund Fund domicile Management company Custodian bank 7 January 1997 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG 180 Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG 160 Total expense ratio 0.60 % p. a. (per 31.03.2017) 140 Risk and performance Fund 2017 Previous year Last 3 years Last 5 years Volatility last 5 years NAV performance over 5 years 260 240 220 200 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Sector allocation Clock and watch industry 4 % Chemicals 4 % Holding and finance companies 5 % Banks and other credit institutes 13 % Food a.non-alcoholic beverages 12 % Insurance cos. 11 % Various sectors 11 % Pharmaceuticals and cosmetics 32 % Building materials and construction 4 % Electrical engineer. and electronics 4 % Novartis AG, registered 16.9 % GS Roche Holding AG 12.2 % Nestle SA, registered 12.0 % UBS Group AG, registered 6.1 % Zurich Insurance Group AG, reg. 4.8 % Credit Suisse Group, registered 4.5 % ABB Ltd., registered 3.8 % Swiss Re AG, registered 3.4 % Cie Financiere Richemont SA, reg. 2.7 % LafargeHolcim Ltd., registered 2.7 % ◆ Active management at very attractive fees ◆ Stocks are very attractively valued in comparison to bonds ◆ Higher dividend yield thanks to partial tax exemption ◆ Stock selection supported by our quant model ◆ Small and mid caps are added for variety Fund ratings 1 1 2 Leader 4 The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Switzerland Large-Cap Equity). Quarterly report · 2 / 2017 10.5 % –2.5 % 12.9 % 64.4 % 11.1 % Largest holdings Key benefits Lipper preservation score (overall) Lipper expense score (overall) Thomas Kühne Co-Manager since 30.05.2014 Peer-Group 2 12.8 % –0.3 % 19.7 % 76.7 % 10.9 % equity funds LLB Equities Europe (EUR) per 30.06.2017 Dr. Karlheinz Gfall Fund Manager since 01.11.2002 Manfred Jakob Co-Manager since 01.04.2014 Investment policy Fund information The fund invests in European equities. It is oriented towards the MSCI Europe as the benchmark. The fund's management pays particular attention to achieving a broad coverage of the overall market, with investments ranging from base materials stocks and cyclical industrials to pharmaceuticals and food shares as well as high tech stocks and financials. The selection of the assets in the portfolio is based on quantitative and fundamental analysis, whereby quantitative methods are given a high importance. The fund is suitable for investors who wish to cover the European stock market within the scope of a strategy focused on long-term capital growth, while at the same time minimizing the associated risks. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg EUR 122.18 EUR 164.1 million EUR Daily 1325564 LI0013255646 964820 LLBAKEU LE Inception date Legal form of fund Fund domicile Management company Custodian bank 7 January 1997 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.70 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 130 120 110 100 90 80 70 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Sector allocation Information technology 6 % Consumer discretionary 12 % Real estate 1 % Materials 7 % Utilities 2 % Industrials 12 % Financials 22 % Energy 7 % Telecommunications 5 % Consumer staples 13 % Healthcare 13 % ◆ Active management at very attractive fees ◆ In terms of valuation, the most favourable developed market ◆ High dividend yield ◆ Stocks are attractively valued in comparison with interest rates ◆ Quantitative oriented value philosophy Fund rating 1 1 2 Peer-Group 2 6.9 % –0.3 % 18.0 % 64.7 % 11.5 % Allocation by countries United Kingdom France Germany Switzerland Netherlands Spain Italy Sweden Denmark Other countries 24 % 20 % 17 % 9% 7% 5% 4% 3% 3% 8% Largest holdings Key benefits Lipper expense score (overall) 2017 6.0 % Previous year 2.2 % Last 3 years 17.7 % Last 5 years 60.5 % Volatility last 5 years 11.6 % Leader Novartis AG, registered GS Roche Holding AG HSBC Holdings Plc. Siemens AG, registered Bayer AG, registered Nestle SA, registered Unilever NV Sanofi SA SAP AG Allianz AG, registered 2.1 % 2.0 % 2.0 % 1.9 % 1.8 % 1.7 % 1.7 % 1.6 % 1.5 % 1.5 % The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Europe Large-Cap Blend Equity). Quarterly report · 2 / 2017 32 – 33 equity funds LLB Equities Dividend Pearls Europe (EUR) Dr. Karlheinz Gfall Fund Manager since 29.05.2015 per 30.06.2017 Manfred Jakob Co-Manager since 29.05.2015 Investment policy Fund information The fund invests in European equities, which are expected to have an above-average dividend yield. It is oriented towards the MSCI Europe as the benchmark. The fund's management has a strategy which selects on the basis of a specially developed selection process equities with above-average dividend yield. Here, the sustainability and the tax treatment of dividend payments are given increased attention. It invests in a broadly diversified portfolio, while taking into account a certain sector and country diversification. A qualitative analysis will complete the selection process of the model. The fund is particularly suitable for investors who wish to achieve a steady income in addition to a long-term capital growth. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg EUR 94.43 EUR 16.3 million EUR Daily 27956652 LI0279566520 A14TF5 LLBDEUR LE Inception date Legal form of fund Fund domicile Management company Custodian bank 29 May 2015 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September 15.12.2016 EUR 2.00 LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.75 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance since inception 105 100 95 90 85 80 75 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. The NAV performance shown is based on total return prices. Therefore the net asset value per unit devia tes from the value of the NA V performance of both classes. 2017 5.3 % Previous year 0.5 % Since inception –2.5 % Allocation by countries Healthcare 10 % France United Kingdom Germany Spain Switzerland Sweden Italy Finland Norway Other countries Consumer staples 8 % Largest holdings Sector allocation Consumer discretionary 6 % Information technology 4 % Materials 6 % Utilities 8 % Industrials 12 % Financials 28 % Real estate 4 % Energy 10 % Telecommunications 4 % Key benefits ◆ Active management at very attractive fees ◆ Through stocks with high dividend yield periodically revenues, which are distributed annually ◆ Expected lower volatility than the overall market ◆ A selection of stocks with less risk through proprietary strategy 1 Unilever NV Rio Tinto Plc. UPM-Kymmene Corp. Danske Bank AS Nexity Cat -A- Intesa Sanpaolo Az. di Risp. Münchener Rückvers. AG, registered Engie SA Grupo Logista Credit Agricole SA Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Europe Equity Income). Quarterly report · 2 / 2017 26 % 20 % 12 % 8% 7% 6% 6% 4% 4% 7% 2.7 % 2.1 % 2.1 % 2.1 % 2.1 % 2.1 % 2.1 % 2.1 % 2.1 % 2.0 % Peer-Group 1 5.8 % –0.1 % –2.0 % equity funds LLB Equities North America (USD) Simon Öhri Fund Manager since 01.05.2016 per 30.06.2017 Timo Gruber Co-Manager since 01.03.2013 Investment policy Fund information The fund invests in US and Canadian equities. It is oriented towards the MSCI USA as the benchmark. The fund's management pays particular attention to achieving a broad coverage of the overall market, with investments ranging from basic materials stocks and cyclical industrials to pharmaceuticals and food shares as well as high tech stocks and financials. The selection of the assets in the portfolio is based on quantitative and fundamental analysis, whereby quantitative methods are given a high importance. The fund is suitable for investors who wish to cover the North American stock market within the scope of a strategy focused on long-term capital growth, while at the same time minimizing the associated risks. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg USD 303.24 USD 193.3 million USD Daily 1325563 LI0013255638 964822 LLBAKNA LE Inception date Legal form of fund Fund domicile Management company Custodian bank 7 January 1997 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.70 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 320 300 280 260 240 220 200 180 160 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Sector allocation Healthcare 16 % Real estate 2 % Energy 7 % Materials 3 % Consumer staples 7 % Industrials 10 % Information technology 22 % Telecommunication 2 % Utilities 2 % Consumer discretionary 12 % Financials 17 % Key benefits ◆ Active management at very attractive fees ◆ US stocks represent almost 50 % of world market capitalization ◆ Stocks are attractively valued in comparison with interest rates ◆ US Dollar is undervalued, long-term currency gains are to be expected ◆ Quantitative oriented value philosophy 1 2 2017 Previous year Last 3 years Last 5 years Volatility last 5 years Peer-Group 2 7.4 % 12.0 % 17.7 % 73.2 % 10.6 % 8.3 % 9.2 % 20.8 % 74.5 % 10.5 % Largest holdings Apple Inc. Microsoft Corp. Johnson & Johnson Amazon.com Inc. JP Morgan Chase & Co. General Electric Co. Citigroup Inc. Bank of America Corp. Unitedhealth Group Inc. Oracle Corp. 3.7 % 3.0 % 2.5 % 2.2 % 2.0 % 1.8 % 1.7 % 1.7 % 1.5 % 1.5 % Fund ratings 1 Lipper preservation score (overall) Lipper expense score (overall) 4 Leader The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE US Large-Cap Blend Equity). Quarterly report · 2 / 2017 34 – 35 equity funds LLB Equities Pacific (JPY) per 30.06.2017 Christoph Hilfiker Fund Manager since 01.01.2007 René Hensel Co-Manager since 01.08.2007 Investment policy Fund information The fund invests at least two-thirds in Pacific equities. It is oriented towards the MSCI Pacific as the benchmark. The fund's management pays particular attention to achieving a broad coverage of the overall region, with investments ranging from base materials stocks and cyclical industrials to pharmaceuticals and food shares as well as high tech stocks and financials. The selection of the assets in the portfolio is based on quantitative and fundamental analysis, whereby quantitative methods are given a high importance. The fund is suitable for investors who wish to invest in the long-term growth opportunities offered by the Pacific region while at the same time minimizing the associated risks. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg JPY 12'874.00 JPY 10.2 billion JPY Daily 1325561 LI0013255612 964821 LLBAKJP LE Inception date Legal form of fund Fund domicile Management company Custodian bank 5 January 1999 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.75 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 14000 13000 12000 11000 10000 9000 8000 7000 6000 5000 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Sector allocation Building materials and construction 4 % Real estate 10 % Electronics a. semiconductors 6 % Various services 4 % Various sectors 36 % Vehicles 7 % Banks and other credit institutes 11 % Largest holdings Various trading companies 4 % Holding and finance companies 14 % ◆ Active management at very attractive fees ◆ Quantitative oriented value philosophy ◆ The high cash resources and low borrowed capital levels of the companies in the Pacific region increase share repurchases and dividend payments ◆ Favourably valued companies will benefit from M&A activity ◆ «Abenomics» is taking full effect ◆ A bet on rising earnings The fund ratings refer to the preceding month. Quarterly report · 2 / 2017 Allocation by countries Japan Australia Hong Kong Singapore Other countries Chemicals 4 % Key benefits 1 2017 7.3 % Previous year 0.5 % Last 3 years 23.1 % Last 5 years 105.6 % Volatility last 5 years 17.0 % Mitsubishi UFJ Fin. Group Inc. Toyota Motor Corp. Sojitz Corp. Nippon Telegraph & Telephone Corp. Sumitomo Mitsui Fin. Group Inc. Taisei Corp. Tokio Marine Holdings Inc. Kinden Corp. Dai-ichi Life Insurance Co. Ltd. GentingSingapore Plc. 75 % 13 % 5% 3% 4% 2.7 % 2.1 % 2.0 % 1.7 % 1.7 % 1.5 % 1.5 % 1.4 % 1.4 % 1.4 % Fund ratings 1 Lipper expense score (overall) Leader equity funds LLB Equities Dividend Pearls Global (CHF) Cl. T & A per 30.06.2017 Manfred Jakob Fund Manager since 09.03.1998 Investment policy Fund information The fund invests in a broadly diversified portfolio of stocks, with the aim of attaining the highest overall return. At least two thirds of the fund's assets are invested in stocks and securities. In terms of stock selection global leading companies with a high dividend yield respectively shareholder return are favoured. The fund is oriented towards the MSCI World Equities Index (in CHF), as a basis for the selection of potential shares. The fund is suitable for investors with a long-term investment horizon. Earnings are continuously reinvested in class T (accumulating) and distributed in class A. Net asset value per unit Cl. T / A Fund assets (all classes) Reference currency Traded Security number Cl. T / A ISIN Cl. T / A WKN Cl. T / A Bloomberg Cl. T / A CHF 145.05 / 142.05 CHF 104.1 million CHF Daily 847513 / 29104584 LI0008475134 / LI0291045842 964813 / A14ZM9 LLB50LD LE / LLB50LA LE Inception date Cl. T / A Legal form of fund Fund domicile Management company Custodian bank 9 March 98 / 30 September 15 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Class Dividend distributions Cl. T / A Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September T = Accumul., A = Distribut. None / 15.12.2016 CHF 3.00 LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.70 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 160 150 140 130 120 110 100 90 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. The NAV performance shown is based on the total return prices of class T. Sector allocation Pharmaceuticals and cosmetics 10 % Insurance cos. 11 % Energy and water utilities 5 % Electrical engineer. and electronics 7 % Electronics a. semiconductors 5 % Various sectors 30 % Oil and gas 8 % Telecommunications 6 % Food a.non-alcoholic beverages 6 % Banks and other credit institutes 12 % ◆ Active management at very attractive fees ◆ LLB dividend strategy combined with quantitative and qualitative research ◆ Equities with above-average dividend and shareholder yield ◆ Expected lower volatility than the overall market ◆ Broad diversification at the country and sectoral level Fund ratings 1 1 2 2017 Previous year Last 3 years Last 5 years Volatility last 5 years 0.7 % 13.2 % 22.8 % 59.1 % 12.0 % Peer-Group 2 3.5 % 6.1 % 15.8 % 52.1 % 10.8 % Allocation by currency USD EUR GBP CHF AUD JPY SEK 47 % 18 % 13 % 10 % 8% 2% 2% Largest holdings Key benefits Lipper total return score (10 years) Lipper consistent return score (overall) Lipper preservation score (overall) Lipper expense score (overall) Morningstar stars (overall) René Hensel Co-Manager since 01.07.2007 4 4 Leader Leader 4 McDonald's Corp. General Motors Boeing Co. Caterpillar Inc. Allianz AG, registered Suncorp Metway Ltd. Emerson Electric Co. HSBC Holdings Plc. Nordea Bank AB Pro Logis 2.6 % 2.6 % 2.6 % 2.4 % 2.4 % 2.3 % 2.3 % 2.3 % 2.2 % 2.2 % The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Global Equity Income). Quarterly report · 2 / 2017 36 – 37 equity funds LLB Equities Regio Bodensee (CHF) per 30.06.2017 Christian Zogg Fund Manager since 28.09.1998 Investment policy Fund information The fund invests in small and medium-sized companies (small and mid caps) located in the four countries of the Lake Constance region. The fund is oriented towards the SPI Small and Medium Companies Index as the benchmark. This region is characterized by above-average growth rates and it offers an interesting mix of different industries and service providers. The selection of the assets in the portfolio is based on quantitative and fundamental analysis, whereby quantitative methods are given a high importance. The fund is suitable for investors who wish to diversify their portfolio by adding small and mid caps. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 433.75 CHF 98.3 million CHF Daily 945366 LI0009453668 964827 LLBBODN LE Inception date Legal form of fund Fund domicile Management company Custodian bank 28 September 1998 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.75 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 450 400 350 300 250 200 150 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Sector allocation Industrials 33 % Materials 11 % 2017 14.8 % Previous year 16.1 % Last 3 years 42.1 % Last 5 years 136.9 % Volatility last 5 years 11.5 % Consumer staples 3 % Allocation by country Healthcare 8 % Switzerland / Liechtenstein Germany Austria Consumer discretionary 12 % Technology 13 % Financials 20 % Key benefits ◆ Active management at very attractive fees ◆ Small and mid caps have attractive valuations ◆ Suitable as addition to a blue-chip-portfolio ◆ An attractive, export-oriented economic area ◆ Higher dividend yield thanks to partial tax exemption ◆ Equity selection using our proprietary quantitative model Swiss Life Holding, registered Georg Fischer AG, registered Heidelbergcement AG Gurit Holding AG Bechtle AG Liechtensteinische Landesbank AG Helvetia Holding AG, registered Implenia AG, registered Sonova Holding AG, registered Cancom IT Systeme AG Lipper total return score (5 years) 4 Lipper preservation score (overall) Leader Lipper expense score (overall)4 Morningstar stars (5 years) 4 Feri Trust Rating A 2 The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Switzerland Small/Mid-Cap Equity). Quarterly report · 2 / 2017 69 % 29 % 2% Largest holdings Fund ratings 1 1 Thomas Kühne Co-Manager since 30.05.2014 4.9 % 4.3 % 4.2 % 4.2 % 4.1 % 4.0 % 3.9 % 3.7 % 3.6 % 3.6 % Peer-Group 2 17.6 % 10.1 % 44.6 % 126.2 % 10.9 % equity funds Bank Linth Regiofonds Zürichsee (CHF) per 30.06.2017 Christian Zogg Fund Manager since 15.2.2005 Investment policy Fund information The fund invests in small and medium-sized companies (small and mid caps) whose head offices or holding companies are in the region around Lake Zurich – specifically in the cantons of Glarus, Schwyz, St. Gallen, Zurich, Zug, Aargau, Schaffhausen, Thurgau, Appenzell Ausserrhoden, Appenzell Innerrhoden and Graubünden. It uses the Swiss Small & Middle Companies Index (SPISMC) as a benchmark and aims to maximize total return through active management. The selection of the assets in the portfolio is based on quantitative and fundamental analysis, whereby quantitative methods are given a high importance. The fund is suitable for investors who wish to diversify their portfolio by adding small and mid caps. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 308.55 CHF 87.3 million CHF Daily 1892554 LI0018925540 A0JK6D REGZURI LE Inception date Legal form of fund Fund domicile Management company Custodian bank 11 February 2005 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG 160 Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH LI, CH, DE, AT PricewaterhouseCoopers AG 140 Total expense ratio 0.75 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 320 300 280 260 240 220 200 180 120 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Sector allocation Machinery a. mech. engineering 11 % Pharmaceuticals and cosmetics 8 % Building materials and construction 5 % Electronics a. semiconductors 6 % Insurance cos. 10 % Various sectors 17 % Various captial goods 5 % Holding and finance companies 22 % Banks and other credit institutes 11 % Chemicals 5 % Thomas Kühne Co-Manager since 30.05.2014 2017 14.1 % Previous year 16.4 % Last 3 years 45.9 % Last 5 years 122.0 % Volatility last 5 years 10.4 % Peer-Group 2 17.6 % 10.1 % 44.6 % 126.2 % 10.9 % Largest holdings Swiss Life Holding, registered Georg Fischer AG, registered Implenia AG, registered Sonova Holding AG, registered Helvetia Holding AG, registered Aryzta AG, registered Vontobel Holding AG, registered Kardex AG, registered OC Oerlikon Corp., registered Metall Zug -B-, registered 5.2 % 4.8 % 4.6 % 4.5 % 4.4 % 3.6 % 3.6 % 3.5 % 3.3 % 3.2 % Key benefits ◆ Active management at very attractive fees ◆ Small and mid caps have attractive valuations ◆ Suitable as addition to a blue-chip-portfolio ◆ An attractive, export-oriented economic area ◆ Higher dividend yield thanks to partial tax exemption ◆ Equity selection using our proprietary quantitative model Fund ratings 1 Lipper preservation score (overall) Lipper expense score (overall) 1 2 Leader 4 The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Switzerland Small/Mid-Cap Equity). Quarterly report · 2 / 2017 38 – 39 equity funds LLB Equities Fit for Life (CHF) per 30.06.2017 René Hensel Fund Manager since 01.07.2007 Investment policy Fund information The fund invests worldwide in companies, whose business strategy is focused on the demographic shift in the structure of society and the changes in leisure activities. It is oriented towards the MSCI World Equity Index (Total Return CHF) as the benchmark. The fund's investments are concentrated on companies in the healthcare, food, leisure and financial service sectors. The selection of the assets in the portfolio is based on quantitative and fundamental analysis, whereby quantitative methods are given a high importance. The proportion of older people in the industrialized countries is increasing as a result of longer life expectancy. The demand for healthcare products and services will rise sharply in the coming decades. The fund is suitable for investors who wish to profit from these developments. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 171.60 CHF 17.3 million CHF Daily 434215 LI0004342155 964816 LLBFITL LE Inception date Legal form of fund Fund domicile Management company Custodian bank 26 April 1999 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.70 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 180 170 160 150 140 130 120 110 100 90 80 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Healthcare 10 % Holding and finance companies 8 % Hotels and restaurants 9 % Food a.non-alcoholic beverages 8 % Various sectors 7 % Pharmaceuticals and cosmetics 19 % Biotechnology 4 % Insurance cos. 11 % Banks and other credit institutes 20 % Key benefits ◆ Active management at very attractive fees ◆ Exploits investment opportunities arising from the shift in population structure ◆ Stocks from emerging markets are added for variety ◆ Quantitative oriented value philosophy Fund ratings 1 Lipper total return score (overall) Lipper consistent return score (overall) Lipper preservation score (overall) Morningstar stars (overall) Feri Trust Rating 1 2 2017 6.2 % Previous year 5.4 % Last 3 years 37.7 % Last 5 years 91.6 % Volatility last 5 years 11.5 % Allocation by country Sector allocation Retailing and dept. stores 4 % USA France Switzerland Japan Germany United Kingdom Thailand Netherlands Canada Other countries 52 % 8% 7% 5% 4% 3% 2% 2% 2% 15 % Largest holdings Johnson & Johnson Unitedhealth Group Inc. McDonald's Corp. JP Morgan Chase & Co. Pfizer Inc. Walt Disney Co. Amgen Inc. Allianz AG, registered CVS Caremark Corp. Anthem Inc. Leader Leader Leader 5 A The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Global Large-Cap Blend Equity). Quarterly report · 2 / 2017 Manfred Jakob Co-Manager since 26.04.1999 3.7 % 3.6 % 3.4 % 3.1 % 2.5 % 2.4 % 2.3 % 2.2 % 2.0 % 1.9 % Peer-Group 2 5.3 % 4.9 % 16.9 % 55.3 % 11.6 % equity funds LLB Equities Real Estate Global (CHF) Class P Bernhard Schmitt Fund Manager since 24.01.2007 per 30.06.2017 Thomas Kühne Co-Manager since 01.04.2016 Investment policy Fund information The fund invests in an internationally diversified portfolio of real estate companies. It is oriented toward the universe of the MSCI All Countries World Real Estate Index as the benchmark. The management strives to attain a broad coverage of the overall market. The term «real estate companies» includes those companies, which are engaged in the planning, construction, ownership, management, distribution or sale of residential, commercial or industrial real estate and properties as well as closed REITs (Real Estate Investment Trusts). Dividend earnings and capital gains are continuously reinvested. The selection of the assets in the portfolio is based on quantitative and fundamental analysis, whereby quantitative methods are given a high importance. The fund is suitable for investors who want to achieve global coverage of the real estate sector within the scope of a strategy focused on long-term capital growth, while at the same time minimizing the associated risks. Net asset value per unit Fund assets (all classes) Reference currency Traded Security number ISIN WKN Bloomberg CHF 80.65 CHF 97.9 million CHF Daily 2861494 LI0028614944 A0MKEH LLBAIGP LE Inception date Legal form of fund Fund domicile Management company Custodian bank 24 January 2007 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.70 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 85 80 75 70 65 60 55 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Allocation by countries Singapore 2 % USA 50 % Cayman Islands 4 % Germany 3 % France 4 % UK 3 % Australia 4 % Japan 10 % Hong Kong 8 % Other countries 12 % Key benefits ◆ Active management at very attractive fees ◆ Value-oriented investment style clearly central to investing ◆ 4 good reasons for real estate equities 1.High dividend yields remain purchasing argument 2.Good fundamental data for REITs – especially in the USA 3.Low interest rates still offer a favourable financing environment 4.Many real estate equities have attractive valuations 1 2 Peer-Group 2 2017 3.3 % Previous year 2.8 % Last 3 years 19.8 % Last 5 years 38.7 % Volatility last 5 years 10.5 % –0.2 % 1.8 % 15.0 % 36.2 % 11.3 % Allocation by subsectors REITs specialized Real estate diversified REITs retail Real estate development REITs office REITs residential REITs industry REITs diversified Real estate service Other subsectors 18 % 14 % 13 % 12 % 7% 7% 7% 6% 4% 12 % Largest holdings American Tower Corp. Public Storage Inc. Equinix Inc. Welltower Inc. ProLogis Weyerhaeuser Co. Cheung Kong Property Holding Ltd. The Link Real Estate Inv Trust Unibail Holding Boston Properties Inc. 3.4 % 3.1 % 3.0 % 2.8 % 2.3 % 2.3 % 2.2 % 2.1 % 2.1 % 2.1 % Fund ratings 1 Lipper preservation score (3 years) Lipper expense score (overall) Morningstar stars (overall) Leader Leader 4 The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Property – Indirect Global). Quarterly report · 2 / 2017 40 – 41 strategy funds LLB Strategy Fixed Income (CHF) per 30.06.2017 René Hensel Fund Manager since 04.04.2011 Investment policy Fund information The fund invests in a broadly diversified international portfolio of fixed income securities with the aim of attaining the highest overall return. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflationprotected and high yield bonds, emerging markets bonds, convertible bonds. At least 50 % of its total assets are invested in the Swiss Franc reference currency. The fund is suitable for investors, who want to benefit from active portfolio management in line with the LLB's investment policy. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 113.00 CHF 47.1 million CHF Daily 11645639 LI0116456398 A1H7E5 LLBSCHF LE Inception date Legal form of fund Fund domicile Management company Custodian bank 4 April 2011 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through TER fund-of-funds 0.83 % p. a. (per 31.03.2017) 0.40 % Risk and performance Fund NAV performance over 5 years 116 114 112 110 108 106 104 102 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Asset allocation Liquidity 13 % Bonds CHF 14 % Manfred Jakob Co-Manager since 04.04.2011 2017 Previous year Last 3 years Last 5 years Volatility last 5 years 0.3 % 2.6 % 3.3 % 8.8 % 2.6 % Allocation by currency Global bonds (incl. high yield, emerging markets and inflation linked) 62 % Convertible bonds 11 % CHF USD EUR GBP JPY Other currencies Fund rating 1 Lipper preservation score (overall) Key benefits ◆ Active management at very attractive fees ◆ Broadly diversified and professionally managed portfolio ◆ Immediate implementation of the well-proven LLB investment policy ◆ Cooperation with external specialists in specified markets 1 The fund ratings refer to the preceding month. Quarterly report · 2 / 2017 73 % 12 % 9% 2% 2% 2% Leader strategy funds LLB Strategy Conservative (CHF) per 30.06.2017 René Hensel Fund Manager since 29.05.2015 Manfred Jakob Co-Manager since 29.05.2015 Investment policy Fund information The fund invests in a broadly diversified, international securities portfolio with the aim of attaining the highest overall return. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflation-protected and high yield bonds, emerging markets bonds, convertible bonds, stocks in the reference currency and globally, emerging market stocks, real estate stocks. The fund's equity exposure fluctuates between 4 % and 15 % of its total assets. At least 50 % of its total assets are invested in the Swiss Franc reference currency. The fund is suitable for investors, who want to benefit from active portfolio management in line with the LLB's investment policy. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 102.45 CHF 32.2 million CHF Daily 27955013 LI0279550136 A14TF6 LLBSTKC LE Inception date Legal form of fund Fund domicile Management company Custodian bank 29 May 2015 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through (incl. performance fee) TER look-through (excl. performance fee) TER fund-of-funds 0.85 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance since inception 104 103 102 101 100 99 98 97 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Local and global bonds (incl. high yield, emerging markets and inflation linked) 70 % Local and global equities (incl. emerging markets and real estate) 9 % Convertible bonds 8 % Key benefits ◆ Active management at very attractive fees ◆ Broadly diversified and professionally managed portfolio ◆ Immediate implementation of the well-proven LLB investment policy ◆ Cooperation with external specialists in specified markets ◆ The addition of a moderate equity allocation improves the returnrisk ratio 1 0.20 % + 10 % of annual perf. 2017 Previous year Since inception Asset allocation Liquidity 13 % 0.64 % p. a. (per 31.03.2017) 0.9 % 2.2 % 2.5 % Peer-Group 1 1.9 % 0.9 % 1.0 % Allocation by currency CHF USD EUR GBP JPY Other currencies 71 % 12 % 11 % 2% 1% 3% Largest shareholdings Novartis AG, registered GS Roche Holding AG Nestle SA, registered UBS Group AG, registered Zurich Insurance Group AG, reg. ABB Ltd., registered Credit Suisse Group AG, registered Swiss Re AG, registered Cie Financiere Richemont SA, reg. LafargeHolcim Ltd, registered 0.6 % 0.4 % 0.4 % 0.2 % 0.2 % 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE CHF Cautious Allocation). Quarterly report · 2 / 2017 42 – 43 strategy funds LLB Strategy BPVV (CHF) per 30.06.2017 René Hensel Fund Manager since 11.03.2009 Manfred Jakob Co-Manager since 11.03.2009 Investment policy Fund information The investment policy of the LLB Strategy BPVV (CHF) follows the guidelines for the investment of vested pension benefits set out in the Occupational Pensions Ordinance (BPVV). The fund invests in a broadly diversified, international securities portfolio with the aim of attaining the highest overall return. Conceived of as a fund-offunds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflation-protected bonds, convertible bonds, stocks in the reference currency and globally, emerging market stocks, real estate stocks, commodities. Equity exposure is at most 30 % of the total assets. The fund is suitable for investors, who want to benefit from active portfolio management in line with the LLB's investment policy. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 125.00 CHF 19.1 million CHF Daily 3261934 LI0032619343 A0RLVH LLBPVVC LE Inception date Legal form of fund Fund domicile Management company Custodian bank 11 March 2009 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through TER fund-of-funds 0.91 % p. a. (per 31.03.2017) 0.45 % Risk and performance Fund NAV performance over 5 years 128 126 124 122 120 118 116 114 112 110 108 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Asset allocation Liquidity 8 % Convertible bonds 8 % Local and global bonds (incl. inflation linked) 59 % Local and global equities (incl. emerging markets and real estate) 24 % Alternative investments (incl. commodities) 1 % ◆ Active management at very attractive fees ◆ Broadly diversified and professionally managed portfolio ◆ Immediate implementation of the well-proven LLB investment policy ◆ Quantitative oriented value philosophy in the equities selection process ◆ Cooperation with external specialists in specified markets 2 2017 1.6 % Previous year 1.8 % Last 3 years 3.1 % Last 5 years 14.6 % Volatility last 5 years 3.9 % Allocation by currency Key benefits 1 CHF EUR USD GBP JPY Other currencies 71 % 12 % 9% 3% 1% 4% Largest shareholdings Novartis AG, registered GS Roche Holding AG Nestle SA, registered UBS Group AG, registered Zurich Insurance Group AG, reg. ABB Ltd., registered Credit Suisse Group AG, registered Swiss Re AG, registered Cie Financiere Richemont SA, reg. LafargeHolcim Ltd, registered 1.6 % 1.2 % 1.2 % 0.6 % 0.4 % 0.4 % 0.4 % 0.3 % 0.3 % 0.3 % Fund ratings 1 Lipper preservation score (overall) Lipper expense score (overall) The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE CHF Cautious Allocation). Quarterly report · 2 / 2017 Peer-Group 2 Leader Leader 1.9 % 0.9 % 3.7 % 14.1 % 3.6 % strategy funds LLB Strategy Yield (CHF) per 30.06.2017 René Hensel Fund Manager since 01.07.2007 Manfred Jakob Co-Manager since 15.07.1999 Investment policy Fund information The fund invests in a broadly diversified, international securities portfolio with the aim of attaining the highest overall return. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflation-protected and high yield bonds, emerging markets bonds, convertible bonds, stocks in the reference currency and globally, emerging market stocks, real estate stocks, commodities. To add variety and for diversification reasons, investments may possibly be made in alternative products. The fund's equity exposure fluctuates between 15 % and 30 % of its total assets. At least 50 % of its total assets are invested in the Swiss Franc reference currency. The fund is suitable for investors, who want to benefit from active portfolio management in line with the LLB's investment policy. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 130.65 CHF 177.5 million CHF Daily 812745 LI0008127453 964829 LLBVERC LE Inception date Legal form of fund Fund domicile Management company Custodian bank 15 July 1999 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through (incl. performance fee) TER look-through (excl. performance fee) TER fund-of-funds 1.11 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 135 130 125 120 115 110 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Asset allocation Liquidity 8 % Convertible bonds 8 % Local and global bonds (incl. high yield, emerging markets and inflation linked) 58 % Local and global equities (incl. emerging markets and real estate) 23 % Alternative investments (incl. hedge funds and commodities) 3 % Key benefits ◆ Active management at very attractive fees ◆ Broadly diversified and professionally managed portfolio ◆ Immediate implementation of the well-proven LLB investment policy ◆ Quantitative oriented value philosophy in the equities selection process ◆ Cooperation with external specialists in specified markets such as commodities or high yield bonds 1 2 0.69 % p. a. (per 31.03.2017) 0.20 % + 10 % of annual perf. Peer-Group 2 2017 1.9 % Previous year 2.1 % Last 3 years 3.4 % Last 5 years 16.9 % Volatility last 5 years 3.9 % 1.9 % 0.9 % 3.7 % 14.1 % 3.6 % Allocation by currency CHF EUR USD GBP JPY Other currencies 70 % 13 % 10 % 2% 1% 4% Fund ratings 1 Lipper total return score (5 years) Lipper consistent return score (5 years) Lipper preservation score (overall) Lipper expense score (overall) Feri Trust Rating 4 4 Leader Leader B The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE CHF Cautious Allocation). Quarterly report · 2 / 2017 44 – 45 strategy funds LLB Strategy Balanced (CHF) per 30.06.2017 René Hensel Fund Manager since 01.07.2007 Investment policy Fund information The fund invests in a broadly diversified, international securities portfolio with the aim of attaining the highest overall return. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflation-protected and high yield bonds, emerging markets bonds, convertible bonds, stocks in the reference currency and globally, emerging market stocks, real estate stocks, commodities. To add variety and for diversification reasons, investments may possibly be made in alternative products. The fund's equity exposure fluctuates between 35 % and 60 % of its total assets. At least 50 % of its total assets are invested in the Swiss Franc reference currency. The fund is suitable for investors, who want to benefit from active portfolio management in line with the LLB's investment policy. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 120.05 CHF 99.3 million CHF Daily 812751 LI0008127511 964831 LLBVZUC LE Inception date Legal form of fund Fund domicile Management company Custodian bank 15 July 1999 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through (incl. performance fee) TER look-through (excl. performance fee) TER fund-of-funds 1.41 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 125 120 115 110 105 100 95 90 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Asset allocation Liquidity 9 % Convertible bonds 4 % Local and global bonds (incl. high yield, emerging markets and inflation linked) 36 % Local and global equities (incl. emerging markets and real estate) 45 % Alternative investments (incl. hedge funds and commodities) 6 % Key benefits ◆ Active management at very attractive fees ◆ Broadly diversified and professionally managed portfolio ◆ Immediate implementation of the well-proven LLB investment policy ◆ Quantitative oriented value philosophy in the equities selection process ◆ Cooperation with external specialists in specified markets such as commodities or high yield bonds 1 2 0.74 % p. a. (per 31.03.2017) 0.20 % + 10 % of annual perf. Peer-Group 2 2017 3.2 % Previous year 2.2 % Last 3 years 4.8 % Last 5 years 26.6 % Volatility last 5 years 5.6 % Allocation by currency CHF EUR USD GBP JPY Other currencies 73 % 10 % 8% 3% 1% 5% Largest shareholdings Novartis AG, registered GS Roche Holding AG Nestle SA, registered UBS Group AG, registered Zurich Insurance Group AG, reg. Credit Suisse Group AG, registered ABB Ltd., registered Swiss Re AG, registered Cie Financiere Richemont SA, reg. LafargeHolcim Ltd, registered 3.3 % 2.5 % 2.4 % 1.2 % 0.9 % 0.9 % 0.8 % 0.7 % 0.5 % 0.5 % Fund ratings 1 Lipper preservation score (overall) Lipper expense score (overall) Feri Trust Rating The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE CHF Moderate Allocation). Quarterly report · 2 / 2017 Manfred Jakob Co-Manager since 15.07.1999 Leader Leader B 3.8 % 1.3 % 6.4 % 25.7 % 5.5 % strategy funds LLB Strategy Fixed Income (EUR) per 30.06.2017 René Hensel Fund Manager since 04.04.2011 Investment policy Fund information The fund invests in a broadly diversified international portfolio of fixed income securities with the aim of attaining the highest overall return. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflationprotected and high yield bonds, emerging markets bonds, convertible bonds. At least 50 % of its total assets are invested in the Euro reference currency. The fund is suitable for investors, who want to benefit from active portfolio management in line with the LLB's investment policy. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg EUR 124.02 EUR 19.1 million EUR Daily 11645645 LI0116456455 A1H66J LLBSEUR LE Inception date Legal form of fund Fund domicile Management company Custodian bank 4 April 2011 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through TER fund-of-funds 0.83 % p. a. (per 31.03.2017) 0.40 % Risk and performance Fund NAV performance over 5 years 126 124 122 120 118 116 114 112 110 108 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Asset allocation Liquidity 14 % Bonds EUR 19 % Manfred Jakob Co-Manager since 04.04.2011 2017 0.2 % Previous year 3.3 % Last 3 years 7.0 % Last 5 years 14.0 % Volatility last 5 years 2.9 % Allocation by currency Global bonds (incl. high yield, emerging markets and inflation linked) 56 % Convertible bonds 11 % EUR USD GBP JPY Other currencies 87 % 7% 2% 2% 2% Fund ratings 1 Lipper preservation score (overall) Lipper expense score (overall) Leader Leader Key benefits ◆ Active management at very attractive fees ◆ Broadly diversified and professionally managed portfolio ◆ Immediate implementation of the well-proven LLB investment policy ◆ Cooperation with external specialists in specified markets 1 The fund ratings refer to the preceding month. Quarterly report · 2 / 2017 46 – 47 strategy funds LLB Strategy Conservative (EUR) per 30.06.2017 René Hensel Fund Manager since 29.05.2015 Manfred Jakob Co-Manager since 29.05.2015 Investment policy Fund information The fund invests in a broadly diversified, international securities portfolio with the aim of attaining the highest overall return. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflation-protected and high yield bonds, emerging markets bonds, convertible bonds, stocks in the reference currency and globally, emerging market stocks, real estate stocks. The fund's equity exposure fluctuates between 4 % and 15 % of its total assets. At least 50 % of its total assets are invested in the Euro reference currency. The fund is suitable for investors, who want to benefit from active portfolio management in line with the LLB's investment policy. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg EUR 101.09 EUR 7.6 million EUR Daily 27955015 LI0279550151 A14TF7 LLBSKEU LE Inception date Legal form of fund Fund domicile Management company Custodian bank 29 May 2015 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through (incl. performance fee) TER look-through (excl. performance fee) TER fund-of-funds 0.95 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance since inception 102 101 100 99 98 97 96 95 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Local and global bonds (incl. high yield, emerging markets and inflation linked) 66 % Local and global equities (incl. emerging markets and real estate) 9 % Convertible bonds 9 % Key benefits ◆ Active management at very attractive fees ◆ Broadly diversified and professionally managed portfolio ◆ Immediate implementation of the well-proven LLB investment policy ◆ Cooperation with external specialists in specified markets ◆ The addition of a moderate equity allocation improves the returnrisk ratio 1 0.6 % 3.1 % 1.1 % Peer-Group 1 1.0 % 1.8 % –0.2 % Allocation by currency EUR USD GBP JPY CHF Other currencies 83 % 9% 3% 1% 1% 3% Largest shareholdings Novartis AG, registered GS Roche Holding AG Siemens AG, registered Bayer AG, registered Nestle SA, registered HSBC Holdings Plc. American Tower Corp. Royal Dutch Shell Plc. -A- Sanofi SA Unilever NV Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE EUR Cautious Allocation - Global). Quarterly report · 2 / 2017 0.20 % + 10 % of annual perf. 2017 Previous year Since inception Asset allocation Liquidity 16 % 0.64 % p. a. (per 31.03.2017) 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % 0.1 % strategy funds LLB Strategy Yield (EUR) per 30.06.2017 René Hensel Fund Manager since 01.07.2007 Manfred Jakob Co-Manager since 15.07.1999 Investment policy Fund information The fund invests in a broadly diversified, international securities portfolio with the aim of attaining the highest overall return. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflation-protected and high yield bonds, emerging markets bonds, convertible bonds, stocks in the reference currency and globally, emerging market stocks, real estate stocks, commodities. To add variety and for diversification reasons, investments may possibly be made in alternative products. The fund's equity exposure fluctuates between 15 % and 30 % of its total assets. At least 50 % of its total assets are invested in the Euro reference currency. The fund is suitable for investors, who want to benefit from active portfolio management in line with the LLB's investment policy. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg EUR 162.78 EUR 67.0 million EUR Daily 812750 LI0008127503 964830 LLBVERE LE Inception date Legal form of fund Fund domicile Management company Custodian bank Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors TER look-through (incl. performance fee) TER look-through (excl. performance fee) TER fund-of-funds 15 July 1999 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG 1.23 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 165 160 155 150 145 140 135 130 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Asset allocation Liquidity 9 % Convertible bonds 8 % Local and global bonds (incl. high yield, emerging markets and inflation linked) 57 % Local and global equities (incl. emerging markets and real estate) 23 % Alternative investments (incl. hedge funds and commodities) 3 % Key benefits 2 0.20 % + 10 % of annual perf. Peer-Group 2 2017 1.0 % Previous year 3.7 % Last 3 years 8.0 % Last 5 years 22.3 % Volatility last 5 years 3.9 % 1.0 % 1.8 % 6.1 % 18.5 % 3.9 % Allocation by currency ◆ Active management at very attractive fees ◆ Broadly diversified and professionally managed portfolio ◆ Immediate implementation of the well-proven LLB investment policy ◆ Quantitative oriented value philosophy in the equities selection process ◆ Cooperation with external specialists in specified markets such as commodities or high yield bonds 1 0.71 % p. a. (per 31.03.2017) EUR USD GBP JPY CHF Other currencies 80 % 10 % 3% 2% 1% 4% Largest shareholdings Apple Inc. GS Roche Holding AG Novartis AG, registered Microsoft Corp. HSBC Holdings Plc. Siemens AG, registered Bayer AG, registered Royal Dutch Shell Plc. -A- Sanofi SA Nestle SA, registered 0.2 % 0.2 % 0.2 % 0.2 % 0.2 % 0.2 % 0.2 % 0.2 % 0.2 % 0.2 % Fund ratings 1 Lipper total return score (10 years) Lipper consistent return score (10 years) Lipper expense score (overall) Morningstar stars (overall) Leader Leader Leader 4 The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE EUR Cautious Allocation). Quarterly report · 2 / 2017 48 – 49 strategy funds LLB Strategy Balanced (EUR) per 30.06.2017 René Hensel Fund Manager since 01.07.2007 Investment policy Fund information The fund invests in a broadly diversified, international securities portfolio with the aim of attaining the highest overall return. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflation-protected and high yield bonds, emerging markets bonds, convertible bonds, stocks in the reference currency and globally, emerging market stocks, real estate stocks, commodities. To add variety and for diversification reasons, investments may possibly be made in alternative products. The fund's equity exposure fluctuates between 35 % and 60 % of its total assets. At least 50 % of its total assets are invested in the Euro reference currency. The fund is suitable for investors, who want to benefit from active portfolio management in line with the LLB's investment policy. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg EUR 148.19 EUR 49.3 million EUR Daily 812755 LI0008127552 964832 LLBVZUE LE Inception date Legal form of fund Fund domicile Management company Custodian bank 15 July 1999 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through (incl. performance fee) TER look-through (excl. performance fee) TER fund-of-funds 1.54 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance over 5 years 155 150 145 140 135 Manfred Jakob Co-Manager since 15.07.1999 130 125 120 115 110 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Asset allocation Liquidity 9 % Convertible bonds 4 % Local and global bonds (incl. high yield, emerging markets and inflation linked) 36 % Local and global equities (incl. emerging markets and real estate) 45 % Alternative investments (incl. hedge funds and commodities) 6 % Key benefits ◆ Active management at very attractive fees ◆ Broadly diversified and professionally managed portfolio ◆ Immediate implementation of the well-proven LLB investment policy ◆ Quantitative oriented value philosophy in the equities selection process ◆ Cooperation with external specialists in specified markets such as commodities or high yield bonds 1 2 0.20 % + 10 % of annual perf. Peer-Group 2 2017 2.2 % Previous year 4.4 % Last 3 years 10.2 % Last 5 years 32.8 % Volatility last 5 years 5.2 % Allocation by currency EUR USD GBP JPY CHF Other currencies 80 % 8% 3% 2% 1% 6% Largest shareholdings Novartis AG, registered GS Roche Holding AG Nestle SA, registered Apple Inc. Microsoft Corp. HSBC Holdings Plc. Siemens AG, registered Royal Dutch Shell Plc. -A- Bayer AG, registered Johnson & Johnson 0.9 % 0.7 % 0.7 % 0.5 % 0.4 % 0.4 % 0.3 % 0.3 % 0.3 % 0.3 % Fund ratings 1 Lipper total return score (5 years) Lipper consistent return score (overall) Lipper expense score (overall) The fund ratings refer to the preceding month. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE EUR Moderate Allocation). Quarterly report · 2 / 2017 0.76 % p. a. (per 31.03.2017) 4 4 Leader 2.2 % 2.7 % 11.6 % 32.5 % 6.1 % strategy funds LLB Strategy Yield (USD) per 30.06.2017 René Hensel Fund Manager since 29.08.2014 Manfred Jakob Co-Manager since 29.08.2014 Investment policy Fund information The fund invests in a broadly diversified, international securities portfolio with the aim of attaining the highest overall return. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflation-protected and high yield bonds, emerging markets bonds, convertible bonds, stocks in the reference currency and globally, emerging market stocks, real estate stocks, commodities. To add variety and for diversification reasons, investments may possibly be made in alternative products. The fund's equity exposure fluctuates between 15 % and 30 % of its total assets. At least 50 % of its total assets are invested in the US Dollar reference currency. The fund is suitable for investors, who want to benefit from active portfolio management in line with the LLB's investment policy. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg USD 102.70 USD 10.2 million USD Daily 25028593 LI0250285934 A12ABM LLBSRUS LE Inception date Legal form of fund Fund domicile Management company Custodian bank 29 August 2014 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through (incl. performance fee) TER look-through (excl. performance fee) TER fund-of-funds 1.18 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance since inception 104 102 100 98 96 94 92 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Asset allocation Liquidity 5 % Convertible bonds 8 % Local and global bonds (incl. high yield, emerging markets and inflation linked) 59 % 0.20 % + 10 % of annual perf. 2017 Previous year Since inception 4.2 % 3.4 % 2.7 % Peer-Group 1 4.0 % 2.6 % 2.8 % Allocation by currency Local and global equities (incl. emerging markets and real estate) 24 % Alternative investments (incl. hedge funds and commodities) 4 % Key benefits ◆ Active management at very attractive fees ◆ Broadly diversified and professionally managed portfolio ◆ Immediate implementation of the well-proven LLB investment policy ◆ Quantitative oriented value philosophy in the equities selection process ◆ Cooperation with external specialists in specified markets such as commodities or high yield bonds 1 0.73 % p. a. (per 31.03.2017) USD EUR GBP JPY CHF Other currencies 78 % 12 % 3% 2% 1% 4% Largest shareholdings Apple Inc. Microsoft Corp. Johnson & Johnson Amazon.com Inc. JP Morgan Chase & Co. Novartis AG, registered Citi Group Inc. Bank of America Corp. General Electric Co. HSBC Holdings Plc. 0.3 % 0.2 % 0.2 % 0.2 % 0.2 % 0.2 % 0.1 % 0.1 % 0.1 % 0.1 % Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE USD Cautious Allocation). Quarterly report · 2 / 2017 50 – 51 strategy funds LLB Strategy Balanced (USD) per 30.06.2017 René Hensel Fund Manager since 29.08.2014 Investment policy Fund information The fund invests in a broadly diversified, international securities portfolio with the aim of attaining the highest overall return. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflation-protected and high yield bonds, emerging markets bonds, convertible bonds, stocks in the reference currency and globally, emerging market stocks, real estate stocks, commodities. To add variety and for diversification reasons, investments may possibly be made in alternative products. The fund's equity exposure fluctuates between 35 % and 60 % of its total assets. At least 50 % of its total assets are invested in the US Dollar reference currency. The fund is suitable for investors, who want to benefit from active portfolio management in line with the LLB's investment policy. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg USD 104.30 USD 7.8 million USD Daily 25029148 LI0250291486 A12ABN LLBSTRU LE Inception date Legal form of fund Fund domicile Management company Custodian bank 29 August 2014 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through (incl. performance fee) TER look-through (excl. performance fee) TER fund-of-funds 1.47 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance since inception 106 104 102 100 98 96 94 92 90 88 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Asset allocation Liquidity 9 % Convertible bonds 4 % Local and global bonds (incl. high yield, emerging markets and inflation linked) 35 % Local and global equities (incl. emerging markets and real estate) 46 % Alternative investments (incl. hedge funds and commodities) 6 % ◆ Active management at very attractive fees ◆ Broadly diversified and professionally managed portfolio ◆ Immediate implementation of the well-proven LLB investment policy ◆ Quantitative oriented value philosophy in the equities selection process ◆ Cooperation with external specialists in specified markets such as commodities or high yield bonds 0.20 % + 10 % of annual perf. 2017 Previous year Since inception USD EUR GBP JPY CHF Other currencies 5.1 % 4.4 % 4.3 % 77 % 10 % 3% 2% 1% 7% Largest shareholdings Apple Inc. Microsoft Corp. Johnson & Johnson Amazon.com Inc. GS Roche Holding AG Citi Group Inc. Novartis AG, registered JP Morgan Chase & Co. HSBC Holdings Plc. Bank of America Corp. Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE USD Moderate Allocation). Quarterly report · 2 / 2017 0.79 % p. a. (per 31.03.2017) Allocation by currency Key benefits 1 Manfred Jakob Co-Manager since 29.08.2014 0.6 % 0.5 % 0.4 % 0.4 % 0.3 % 0.3 % 0.3 % 0.3 % 0.3 % 0.3 % Peer-Group 1 6.7 % 3.1 % 5.9 % real value funds LLB Inflation Protect (CHF) per 30.06.2017 René Hensel Fund Manager since 14.10.2011 Manfred Jakob Co-Manager since 14.10.2011 Investment policy Fund information The fund invests in a broadly diversified, international securities portfolio with the aim of attaining the highest overall real return in the long term. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflation-protected bonds, real estate (indirect), stocks of developed markets, emerging market stocks, gold (indirect), commodities (indirect). To add variety and for diversification reasons, investments may possibly be made in high yield bonds, emerging markets bonds and alternative products. The fund's exposure in fixed- or variableinterest securities as well as liquidity fluctuates between 40 % and 90 % of its total assets. At least 80 % of its total assets are invested in the Swiss Franc reference currency. The fund is suitable for investors, who want to preserve the real value of their portfolio in phases with inflation but also to attain an adequate overall return in phases without inflation. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 100.40 CHF 20.8 million CHF Daily 13759253 LI0137592536 A1JHVD LLBIPCF LE Inception date Legal form of fund Fund domicile Management company Custodian bank 14 October 2011 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through TER fund-of-funds 0.86 % p. a. (per 31.03.2017) 0.45 % Risk and performance Fund NAV performance over 5 years 105 104 103 102 101 100 99 98 97 96 95 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Asset allocation Liquidity 27 % Local and global equities (incl. emerging markets and real estate) 18 % Gold 6 % Local and global bonds (incl. inflation linked) 40 % 2017 0.4 % Previous year 3.3 % Last 3 years –3.6 % Last 5 years –0.6 % Volatility last 5 years 2.8 % Allocation by currency CHF USD EUR GBP JPY Other currencies 82 % 6% 2% 1% 1% 8% Fund ratings 1 Lipper preservation score (overall) Lipper expense score (overall) Leader Leader Alternative investments (incl. commodities) 9 % Key benefits ◆ Active management at very attractive fees ◆ Offers protection in phases of increased inflation ◆ Designed flexibly to attain an adequate overall return in phases without inflation ◆ Broadly diversified and professionally managed portfolio ◆ Cooperation with external specialists in specified markets 1 The fund ratings refer to the preceding month. Quarterly report · 2 / 2017 52 – 53 real value funds LLB Inflation Protect (EUR) per 30.06.2017 René Hensel Fund Manager since 14.10.2011 Manfred Jakob Co-Manager since 14.10.2011 Investment policy Fund information The fund invests in a broadly diversified, international securities portfolio with the aim of attaining the highest overall real return in the long term. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various asset classes such as money market instruments, investment grade bonds, inflation-protected bonds, stocks of developed markets, emerging market stocks, gold, commodities. To add variety and for diversification reasons, investments may possibly be made in high yield bonds, emerging markets bonds and alternative products. The fund's exposure in fixed- or variable-interest securities as well as liquidity fluctuates between 40 % and 90 % of its total assets. At least 80 % of its total assets are invested in the Euro reference currency. The fund is suitable for investors, who want to preserve the real value of their portfolio in phases with inflation but also to attain an adequate overall return in phases without inflation. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg EUR 105.05 EUR 5.7 million EUR Daily 13759252 LI0137592528 A1JHVE LLBIPEU LE Inception date Legal form of fund Fund domicile Management company Custodian bank 14 October 2011 SICAV (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through TER fund-of-funds 0.90 % p. a. (per 31.03.2017) 0.45 % Risk and performance Fund NAV performance over 5 years 109 108 107 106 105 104 103 102 101 100 99 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Asset allocation Liquidity 29 % Local and global equities (incl. emerging markets) 13 % 2017 0.1 % Previous year 4.1 % Last 3 years –1.5 % Last 5 years 2.9 % Volatility last 5 years 3.3 % Allocation by currency EUR USD JPY CHF Other currencies 87 % 4% 1% 1% 7% Fund ratings 1 Gold 5 % Local and global bonds (incl. inflation linked) 45 % Alternative investments (incl. commodities) 8 % Key benefits ◆ Active management at very attractive fees ◆ Offers protection in phases of increased inflation ◆ Designed flexibly to attain an adequate overall return in phases without inflation ◆ Broadly diversified and professionally managed portfolio ◆ Cooperation with external specialists in specified markets 1 The fund ratings refer to the preceding month. Quarterly report · 2 / 2017 Lipper preservation score (overall) Lipper expense score (overall) 4 Leader special funds LLB Alternative Strategy Global Cl. H CHF per 30.06.2017 Bernhard Schmitt Fund Manager since 29.05.2015 Timo Gruber Co-Manager since 29.05.2015 Investment policy Fund information The fund invests in a broadly diversified international fund portfolio with the aim of an increase in value. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various target funds, which come from the universes of alternative- and absolute return-strategies. When selecting the target funds the analysis of the issuers, the assessment of the fund management respective fund manager as well as the fund size is of particular importance. Potential investments are selected quantitatively and qualitatively. There are five analytical groups which play an important role: investment philosophy, process, portfolio, investment professionals involved and the realized performance. Foreign currency risks are largely hedged from the CHF perspective. The fund is suitable for investors who wish to invest in alternative strategies. Net asset value per unit Fund assets (all classes) Reference currency Notice period Traded Security number ISIN WKN Bloomberg CHF 95.05 EUR 162.2 million CHF 6 days Weekly (on Wednesdays) 27958834 LI0279588342 A14TF9 LLASGHC LE Inception date Legal form of fund Fund domicile Management company Custodian bank 29 May 2015 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG NAV performance since inception Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through TER fund-of-funds 2.08 % p. a. (per 31.03.2017) 0.85 % + 10 % of annual perf. with high watermark Risk and performance Fund 101 100 99 98 97 96 95 94 93 92 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. 2017 1.6 % Previous year –4.1 % Since inception –5.0 % Style allocation Largest holdings Equity Market Neutral 15 % Commodity Trading Advisor 14 % Global Macro 21 % Fixed Income Arbitrage 9 % Multi Strategy 8 % Long Short Equity 21 % Boussard & Gavaudan Abs. Fund Greiff Special Situations Fund Trojan Fund DWS Concept Kaldemorgen Fund BDL Rempart Europe Fund RAM Systematic Long Short Fund SEB Asset Selection Fund Threadneedle Focus Credit Fund Peer-Group 1 1.3 % –5.1 % –6.8 % 8.0 % 8.0 % 7.8 % 6.3 % 6.1 % 5.8 % 5.7 % 5.7 % Event Driven 12 % Key benefits ◆ Active management at very attractive fees ◆ Profit from the performance of alternative investment strategies ◆ Added value out of a consistent and structured third fund selection process ◆ Identification of above-average fund managers based on the 5P analysis (philosophy, people, process, portfolio and performance) ◆ Continuous optimization and monitoring in fund-of-funds portfolio 1 Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Alt - Fund of Funds - Multistrategy). Quarterly report · 2 / 2017 54 – 55 special funds LLB Alternative Strategy Global Cl. H EUR per 30.06.2017 Bernhard Schmitt Fund Manager since 29.05.2015 Timo Gruber Co-Manager since 29.05.2015 Investment policy Fund information The fund invests in a broadly diversified international fund portfolio with the aim of an increase in value. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various target funds, which come from the universes of alternative- and absolute return-strategies. When selecting the target funds the analysis of the issuers, the assessment of the fund management respective fund manager as well as the fund size is of particular importance. Potential investments are selected quantitatively and qualitatively. There are five analytical groups which play an important role: investment philosophy, process, portfolio, investment professionals involved and the realized performance. Foreign currency risks are largely hedged from the EUR perspective. The fund is suitable for investors who wish to invest in alternative strategies. Net asset value per unit Fund assets (all classes) Reference currency Notice period Traded Security number ISIN WKN Bloomberg EUR 96.29 EUR 162.2 million EUR 6 days Weekly (on Wednesdays) 27955016 LI0279550169 A14TF8 LLASGHE LE Inception date Legal form of fund Fund domicile Management company Custodian bank 29 May 2015 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG NAV performance since inception Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through TER fund-of-funds 2.08 % p. a. (per 31.03.2017) 0.85 % + 10 % of annual perf. with high watermark Risk and performance Fund 101 100 99 98 97 96 95 94 93 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. 2017 1.8 % Previous year –3.4 % Since inception –3.7 % Style allocation Largest holdings Equity Market Neutral 15 % Commodity Trading Advisor 14 % Global Macro 21 % Fixed Income Arbitrage 9 % Multi Strategy 8 % Long Short Equity 21 % Boussard & Gavaudan Abs. Fund Greiff Special Situations Fund Trojan Fund DWS Concept Kaldemorgen Fund BDL Rempart Europe Fund RAM Systematic Long Short Fund SEB Asset Selection Fund Threadneedle Focus Credit Fund Event Driven 12 % Key benefits ◆ Active management at very attractive fees ◆ Profit from the performance of alternative investment strategies ◆ Added value out of a consistent and structured third fund selection process ◆ Identification of above-average fund managers based on the 5P analysis (philosophy, people, process, portfolio and performance) ◆ Continuous optimization and monitoring in fund-of-funds portfolio 1 Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Alt - Fund of Funds - Multistrategy). Quarterly report · 2 / 2017 8.0 % 8.0 % 7.8 % 6.3 % 6.1 % 5.8 % 5.7 % 5.7 % Peer-Group 1 1.9 % –2.7 % –3.1 % special funds LLB Alternative Strategy Global Cl. H USD per 30.06.2017 Bernhard Schmitt Fund Manager since 29.05.2015 Timo Gruber Co-Manager since 29.05.2015 Investment policy Fund information The fund invests in a broadly diversified international fund portfolio with the aim of an increase in value. Conceived of as a fund-of-funds, the fund's investment strategy consists of a combination of various target funds, which come from the universes of alternative- and absolute return-strategies. When selecting the target funds the analysis of the issuers, the assessment of the fund management respective fund manager as well as the fund size is of particular importance. Potential investments are selected quantitatively and qualitatively. There are five analytical groups which play an important role: investment philosophy, process, portfolio, investment professionals involved and the realized performance. Foreign currency risks are largely hedged from the USD perspective. The fund is suitable for investors who wish to invest in alternative strategies. Net asset value per unit Fund assets (all classes) Reference currency Notice period Traded Security number ISIN WKN Bloomberg USD 100.16 EUR 162.2 million USD 6 days Weekly (on Wednesdays) 27958839 LI0279588391 A14TGA LLASGHU LE Inception date Legal form of fund Fund domicile Management company Custodian bank 30 October 2015 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG NAV performance since inception Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH, DE, AT LI, CH, DE, AT PricewaterhouseCoopers AG TER look-through TER fund-of-funds 2.08 % p. a. (per 31.03.2017) 0.85 % + 10 % of annual perf. with high watermark Risk and performance Fund 102 101 100 99 98 97 96 95 O N D J F M A M J J A S O N D J F M A M J The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. 2017 2.7 % Previous year –2.3 % Since inception 0.2 % Style allocation Largest holdings Equity Market Neutral 15 % Commodity Trading Advisor 14 % Global Macro 21 % Fixed Income Arbitrage 9 % Multi Strategy 8 % Long Short Equity 21 % Boussard & Gavaudan Abs. Fund Greiff Special Situations Fund Trojan Fund DWS Concept Kaldemorgen Fund BDL Rempart Europe Fund RAM Systematic Long Short Fund SEB Asset Selection Fund Threadneedle Focus Credit Fund 8.0 % 8.0 % 7.8 % 6.3 % 6.1 % 5.8 % 5.7 % 5.7 % Event Driven 12 % Key benefits ◆ Active management at very attractive fees ◆ Profit from the performance of alternative investment strategies ◆ Added value out of a consistent and structured third fund selection process ◆ Identification of above-average fund managers based on the 5P analysis (philosophy, people, process, portfolio and performance) ◆ Continuous optimization and monitoring in fund-of-funds portfolio 1 Peer-Group = Median of the peer group of retail funds, provided by Morningstar (Europe/Africa/Asia OE Alt - Fund of Funds - Multistrategy). Quarterly report · 2 / 2017 56 – 57 special funds LLB Strategy Global Trend (CHF) per 30.06.2017 Manfred Jakob Fund Manager since 01.04.2014 Jürgen Reitz, Advisor to the fund manager since 25.07.2012 Investment policy Fund information The fund invests in a diversified portfolio across a variety of asset classes and currencies with the aim of attaining the highest possible return. As its core element, the fund utilizes a trend monitoring system which is employed to determine timing and extent of investments into the asset classes bonds, equities, commodities and gold. By employing futures, the actual degree of investment is adjusted to suit the corresponding trend quickly, precisely and in a cost-efficient manner. In addition, currency movements in relation to the fund's reference currency, the Swiss Franc, are analysed and hedged if necessary. The fund is suitable for investors who wish to benefit from an investment strategy adjusted to prevailing trends in the financial markets. Net asset value per unit Fund assets Reference currency Traded Security number ISIN WKN Bloomberg CHF 94.40 CHF 20.3 million CHF Daily 1798671 LI0017986717 AOB7KW LLBEQTR LE Inception date Legal form of fund Fund domicile Management company Custodian bank 25 July 2012 Investment Fund (UCITS V) Liechtenstein LLB Fund Services AG Liechtensteinische Landesbank AG Investment manager Representative in Switzerland Paying agent in Switzerland End of financial year Dividend distributions Licensed for distribution in Tax transparency in Auditors LLB Asset Management AG LB(Swiss) Investment AG Claridenstrasse 20, 8022 Zurich Bank Linth LLB AG Zürcherstrasse 3, 8730 Uznach 30 September None, reinvested LI, CH LI, CH, DE, AT PricewaterhouseCoopers AG Total expense ratio 0.75 % p. a. (per 31.03.2017) Risk and performance Fund NAV performance since inception 100 98 96 94 92 90 88 86 84 2012 2013 2014 2015 2016 2017 The value development shown here provides no guarantee of future performance. The value of a unit may rise or fall at any time. The performance data shown do not take into consideration the commissions and costs charged in connection with the issuing and redemption of units. Allocation by currency Asset allocation CHF USD EUR JPY Liquidity 34 % Gold 7 % Lipper preservation score (overall) Lipper expense score (3 years) Local and global equities 45 % Key benefits ◆ Active management at very attractive fees ◆ The fund reduces risk during downward phases ◆ In spite of its complex trend monitoring system the fund has a favourable cost structure ◆ The right investment for uncertain times 1 The fund ratings refer to the preceding month. Quarterly report · 2 / 2017 41 % 33 % 23 % 3% Fund ratings 1 Alternative investments (incl. commodities) 3 % Local and global bonds 11 % 2017 0.9 % Previous year 2.1 % Last 3 years –4.6 % Since inception 5.6 % Leader Leader LLB fund glossary Fund jargon Accounting currency The currency in which an investment fund's accounts are kept and in which fund units are issued and redeemed. Not to be confused with the reference or investment currency. into various sectors, countries and currencies. This enables the investment risk to be reduced while maintaining the same level of return. Duration All-inclusive management fee The fee paid to the fund management company for management, administration and portfolio management activities, as well as auditing, marketing and legal expenses in relation to the fund. The all-inclusive fee is expressed as a percentage of the fund's total assets and is debited to the fund on a daily basis. Duration is also a risk measurement with bonds. Usually expressed in terms of years, duration measure the sensitivity of fixed-interest instruments to changes in interest rates. If the interest rate level changes by one percent, the expected price fluctuation roughly corresponds to the duration in percent. Fixed-interest securities Asset allocation Depending on the type of fund, the distribution of assets into the various investment instruments (money market instruments, bonds, equities, real estate and alternative investments) as well as sectors, markets and currencies. Average residual term to maturity This term describes the average remaining time up to maturity of the bonds in a bond portfolio, weighted according to the invested capital. Average yield or return Using average annual yield, the earnings of investments having different durations can be compared. Usually, the value is used only for periods of longer than a year. The average yield shows the percentage income an investor would have to receive each year in order to attain the total income over the entire investment period. Benchmark A reference index against which a fund's performance is measured. Depending on the fund's orientation and investment policy, both standardized market indices and specially formulated reference parameters can be employed. Bond funds Funds which concentrate their investments in fixed-interest securities. They may also invest to a limited extent in convertible bonds and bonds with warrants. Conflict of interest In the investment business, it is common for fund providers to pay trailer fees or retrocessions to banks. Fund providers use these fees to compensate banks for services they provide in connection with client care and advice. Many banks subsidize their terms and conditions for investments in this way. This limits cost transparency for the client. Moreover, if banks no longer recommend the best products to clients because of these payments, opting instead to push products for which they receive the highest fees, a conflict of interest may arise. Creditworthiness The solvency or credit rating of a borrower (issuer) which indicates how secure its bonds are. Diversification The distribution of the invested capital into several investment media such as equities, bonds and money market instruments, and Securities such as debentures and bonds which bear a fixed-interest rate for their entire term. Fund assets / net assets The entire assets of a fund minus its accrued costs. In the case of a securities investment fund, the fund's assets comprise securities, bank deposits and other assets. Fund of funds Investment funds which invest their assets in units of other investment funds. Fund ratings Lipper assesses funds on the basis of an evaluation period of at least three years, as well as on the basis of the following independent criteria: ◆ Total return: measures a fund's performance over the last three years without risk relative to a specified comparison group. ◆ Consistent return: measures a fund's performance over the last three years with risk relative to a specified comparison group. ◆ Expense: measures the gross performance over the last three years. The lowest costs relative to a specified comparison group are also taken into consideration. ◆ Preservation: measures the sum of all negative monthly performances relative to the asset class. The funds are classified according to a rating system from one to five. The best 20 percent of funds in a comparison group are awarded the best score of five and the title of «Leader». The remaining funds are rated, in increments of 20 percent, from four down to one, whereby one is the worst score. The overall rating is based on the equal-weighted average of percentile ranks over the 3, 5 and 10 years period. See also www.lipperweb.com. Morningstar measures the performance with risk over the last three years. The 10 percent of funds which are the best performers are awarded five stars, the next 22.5 % are awarded four stars, the next 35 % receive three stars, the following 22.5 % two stars, down to the last 10 % of the funds which are awarded only one star. The overall rating is based on the weighted average of the ratings over each period (weighting 50 % over 10 years, 30 % over 5 years, 20 % over 3 years). See also www.morningstar.com. Feri Trust measures the performance with risk over the last five years. The funds are rated within a comparison group from A to E, whereby A represents «very good» and E «poor». The ratings are assigned in 20%-increments. See also www.feritrust.de. Quarterly report · 2 / 2017 58 – 59 Investment horizon The time period for which an investor wants to invest a portion of his / her assets. Investment strategy Investing assets according to a planned method, taking into consideration the investor's personal requirements and circumstances, particularly the client's personal ability to accept risks, risk tolerance and expected returns. Strategy funds / asset allocation funds / portfolio funds Investment funds which reflect the Liechtensteinische Landesbank's investment strategies for the various risk categories. Strategy funds invest worldwide in various investment instruments. Depending on the risk category, equities or bonds are overweighted. Investors can choose between three different reference currencies and three different risk categories. See «Mixed funds». Tax information Investment tactics Active deviation (using over or underweighting of individual asset classes), taking into consideration various factors and risks such as the economic situation, current market trends, interest rate and currency developments etc. Tax information showing the current tax rates for LLB funds for persons who are liable for tax in Switzerland, Austria and Germany is published on the internet under www.llb.li / LLB-Fonds / Publikationen. Total expense ratio (TER) Issuing commission The commission debited to the buyer of fund units. Mixed funds Funds which invest in both equities and fixed-interest securities. Usually ceilings are stipulated for the equity or bond portions. See also «Strategy funds / asset allocation funds / portfolio funds». Net asset value / NAV The net asset value per unit of the investment fund. See «Fund assets / net assets». A reference figure that compares the total expenses incurred in operating the fund with the average asset value of the fund at a given time. It includes the following fees and charges: management fees, safe custody fees, administration and auditing fees, costs of official publications, listing fees, legal advice fees, taxes. Total return The entire value appreciation in percent of a capital investment over a specified period of time. This is measured as the actual return on the invested capital, and is based on the fund's revenues and earnings (e. g. interest, dividends, realized price gains) and on price changes on the securities contained in the fund's portfolio. Performance See «Yield». Unit (participating share) The commission charged in favour of the fund to the investor when redeeming his / her fund units. A certificate of no par value representing a unit (share) in an investment fund. Under securities law, the unit is the certification of the investor's claims against the fund management for a share of the investment fund's assets and earnings. Redemption price Unit classes The price at which the fund is obliged to redeem fund units, which is then charged to the fund's assets. The redemption price corresponds to the net asset value minus any redemption commission. Several LLB bond funds are offered both as unit classes that distribute dividends and as unit classes that reinvest earnings. Redemption commission Reference currency The currency in which the investor usually thinks and calculates and pays his liabilities. In the case of an investment fund, the currency in which the fund's value appreciation is measured. Class «A»: This unit class designates funds, which periodically distribute a portion of their earnings in the form of a dividend. The dividends are equivalent to approximately the amount of the coupons and are always paid out after the end of the financial year. We offer the following funds in this asset class: LLB Bonds CHF, LLB Bonds EUR. Retrocession-free Fund providers use retrocessions to compensate banks for services they provide in connection with client care and advice. For reasons of cost transparency, the LLB has waived commission fees entirely for its own funds since 1 July 2014. It passes on 100 % of trailer fees for third-party funds to its clients – both in asset management and investment advice. The LLB is also anticipating regulatory developments in this way. Class «T»: In this unit class earnings are not distributed as dividends but rather reinvested in the fund. With all LLB funds, which are not designated as Class «A», the earnings are reinvested in the respective fund. Class «P»: Unit class for private clients. Class «LLB»: Unit class for institutional clients. Risk See «Volatility». Quarterly report · 2 / 2017 Class «H»: In the H classes foreign currency risks from the perspective of the relevant reference currency are hedged at least 80 %. Umbrella funds Investment funds which are composed of several segments or subfunds. All the subfunds together form a legal entity, so that only one licensing procedure is required for the umbrella fund. Volatility Volatility is a measure used to assess the degree of risk with a portfolio. It defines the fluctuation range within which a fund's yields will probably move. Statistically, it represents the annualized standard deviation of yield distribution expressed as a percentage. A high volatility of monthly yields is an indication of a higher fluctuation range of future earnings and a higher degree of uncertainty with respect to future value appreciation. This uncertainty is equivalent to a higher degree of risk. 60 – 61 Yield to maturity In addition to ordinary interest income, this also takes into consideration the price differences between the current market value and the probable redemption value of the investments (calculated nominal values) on the basis of the average remaining life of the portfolio. Quarterly report · 2 / 2017 Legal information General notice All the contents of this publication are for information purposes only and are directed exclusively at investors in Liechtenstein and Switzerland. The information contained in this publication constitutes neither an invitation nor an offer, nor a personal recommendation to buy or sell investment funds or to enter into transactions of any kind. The information in this publication neither takes into account the specific or future investment goals nor the tax or financial situation or individual needs of the recipient. Interested persons should consult a qualified expert before making investment decisions. Sales restrictions The contents of this publication are not directed or meant for persons subject to a jurisdiction that prohibits the distribution of the publication or the investment funds referred to therein (due to the nationality of the persons concerned, their domicile or any other reason). Persons who come into the possession of this publication must inform themselves about any possible restrictions and comply with them. In particular, the units of the investment funds described in this publication are not registered under the United States Securities Act of 1933 and, other than in connection with a transaction that does not violate that Act, may not be offered, sold, resold, or delivered, directly or indirectly, in the United States, to citizens or residents of the United States, or to corporate or other legal entities established or managed under the law of the United States. The term «United States» encompasses the United States of America, all of its constituent states, its territories and possessions, and all areas under its sovereign jurisdiction. Warning about risks Interested persons should be aware that the prices of investment funds may rise or may also fall. For this reason, information on historic performance is no guarantee for the current and future development of an investment fund. The performance shown does not take into account any commissions and costs charged for subscription and redemption of units. Commissions and costs adversely affect performance. Investments in foreign currencies are subject in addition to exchange rate fluctuations. Investments involving high volatility can be subject to high price fluctuations. These price fluctuations may equal or even exceed the value of the invested amount. The preservation of the invested capital cannot therefore be guaranteed. Interested persons can obtain further information about risks – depending on the business relationship – from either Liechtensteinische Landesbank AG or from the relevant group company. They can also be obtained from the brochure «Characteristics and risks of securities transactions» issued by the Liechtenstein Bankers Association, or from the brochure «Special risks in securities trading» issued by the Swiss Bankers Association. These brochures can also be downloaded from the internet at www.bankenverband.li or www.swissbanking.org. Fund documents Investment funds should in all cases only be bought after detailed study of the respective sales prospectus and the latest annual report (or semiannual report, where it is more up-to-date), as well as the other legally relevant documents (regulations/terms of contract/articles of association and possibly the simplified prospectus). These documents may be obtained free of charge for the investment funds referred to in this publication from Liechtensteinische Landesbank AG in Liechtenstein and in Switzerland from the representative for funds, LB(Swiss) Investment AG, Claridenstrasse 20, 8022 Zuerich. The documents for the Bank Linth Regiofonds Zürichsee (CHF) may be obtained free of charge from Bank Linth LLB Ltd. No warranty / No guarantee The information in this publication has been compiled by Liechtensteinische Landesbank AG and its Group companies with great care. The information and opinions presented here originate from sources which we deem to be reliable. Nevertheless, we provide no guarantee for the accuracy, completeness or currency of the information contained in this publication. The contents of the information contained in this publication may be changed at any time due to changed circumstances, whereby we are under no obligation to update once published information. We exclude all liability for losses or damages of any kind (both direct and indirect as well as consequential damages), which may arise from the use of this publication. Conflicts of interest Providing it is permitted pursuant to the prevailing legal and/or regulatory provisions, Liechtensteinische Landesbank AG, its Group companies, and its employees may invest in the securities or other instruments in which the investment funds referred to in this publication also invest, provide services to their issuers or approach them for orders, hold options on these securities or on investments connected with them, and have other material interests in them. Quarterly report · 2 / 2017 Important sources of information This publication was produced on the basis of the following information sources: ◆ primary research: original sources of the companies under consideration; ◆ secondary research: financial analyses of specialised brokers / analysts; ◆ publications in domestic and foreign media such as information services (e. g. Reuters, Bloomberg, Lipper, Morningstar etc.); ◆ business press (e. g. Börsenzeitung, Handelsblatt, FAZ, Financial Times etc.); ◆ published statistics. Basic methodical approaches to financial analysis Liechtensteinische Landesbank AG and its Group companies responsible for financial analysis, particularly LLB Asset Management AG, have defined the following basic methodical approaches to financial analysis: They produce only buy-side research for investment purposes. They do not produce or publish sell-side research. Great importance is attached to the quality of the securities. In the case of equities and bonds, a value-oriented selection process is applied. They conduct active fund and portfolio management and construct broadly diversified portfolios according to asset classes and individual securities. Foreign currencies are actively managed. In doing so, the focus is placed on the most important core markets; in fringe markets business cooperations are entered into with qualified specialists. Within the scope of financial analysis, quantitative and qualitative evaluation methods are applied for investment funds and individual securities. The quantitative parameters include, for example, performance over various time periods, volatility, maximum loss, etc. The qualitative parameters take into consideration, for example, an assessment of the investment processes, and of the management, etc. The parameters applied for the evaluation are subject to risks, and can change at any time without prior notice. Investment horizon The recommendations are based on well diversified portfolios. In the case of balanced portfolios, the recommended investment horizon extends from five to ten years, with equity portfolios it is generally over ten years. Internal organisational and regulatory measures to prevent conflicts of interest Liechtensteinische Landesbank AG and any of its Group companies concerned have implemented internal organisational measures to prevent possible conflicts of interest from arising and, if these do occur, to disclose them. Explanation Possible conflicts of interest are indicated by the following numbers placed next to the names of issuers: Liechtensteinische Landesbank AG and/or its Group companies 1. have more than a 5-percent stake in the issuer; 2. have substantial financial interests in relation to the issuer; 3. participated during the last twelve months in the management of aconsortium which placed financial instruments of the issuer in the form of a public offering; 4. act as a market-maker in the financial instruments of the issuer; 5. have during the last twelve months concluded an agreement for services in connection with investment banking services with issuers, who themselves or whose financial instruments are the subject of the financial analysis, or have received a performance or the promise of a performance from such an agreement; 6. have concluded an agreement for the production of financial analysis with issuers, who themselves or whose financial instruments are the subject of the financial analysis. Competent supervisory authority in the Principality of Liechtenstein FMA Financial Market Authority Liechtenstein Landstrasse 109, P. O. Box 279, 9490 Vaduz, www.fma-li.li Competent supervisory authority in Switzerland Swiss Financial Market Supervisory Authority FINMA Laupenstrasse 27, 3003 Berne, www.finma.ch Competent supervisory authority in Austria Austrian Financial Market Authority FMA Otto-Wagner-Platz 5, A-1090 Vienna, www.fma.gv.at Imprint 62 – 63 Editorial deadline 12 July 2017 Publication date 19 July 2017 Published Quarterly Editorial team Dr. Thomas Mächtel, Martin Beck, Franz Maurer, Lasko von Loesch Layout Franz Maurer, Nadja Good-Romer Sources for charts LLB Asset Management AG Datastream, Bloomberg Editorial address LLB Asset Management AG Städtle 7, 9490 Vaduz, Liechtenstein Dispatch Lasko von Loesch Telephone +423 236 95 25 E-mail [email protected] Quarterly report · 2 / 2017 Telephone +423 236 88 11 Fax +423 236 88 22 Internet www.llb.Ii E-mail [email protected] Bank Linth LLB AG Zürcherstrasse 3 · P. O. Box 168 8730 Uznach · Switzerland Telephone +41 844 11 44 11 Fax +41 844 11 44 12 Internet www.banklinth.ch E-mail [email protected] Liechtensteinische Landesbank (Österreich) AG Wipplingerstrasse 35 1010 Vienna · Austria Telephone +43 1 533 73 83-0 Fax +43 1 533 73 83-22 Internet www.llb.at E-mail [email protected] 20182E 07.17 Liechtensteinische Landesbank AG Städtle 44 · P. O. Box 384 9490 Vaduz · Liechtenstein