# Swisscanto (LU)
## General Information (cont.)
Swisscanto (LU) Equity Fund Sustainable Emerging Markets
| ISIN number: | Class AT: | LU0338548034 |
| --- | --- | --- |
| ISIN number: | Class BT: | LU0999461055 |
| ISIN number: | Class DT: | LU0338548117 |
| ISIN number: | Class GT: | LU0866273294 |
| ISIN number: | Class JT: | LU1458526925 |
| ISIN number: | Class MT: | LU2099034824 |
| ISIN number: | Class NT: | LU0866272569 |
| Security number: | Class AT: | 3650277 |
| Security number: | Class BT: | 23115375 |
| Security number: | Class DT: | 3650280 |
| Security number: | Class GT: | 20252840 |
| Security number: | Class JT: | 33386918 |
| Security number: | Class MT: | 51747447 |
| Security number: | Class NT: | 20252839 |

Swisscanto (LU) Portfolio Fund Responsible Dynamic 0-50*
| ISIN number: ISIN number: ISIN number: ISIN number: | Class AT: Class BT: Class DT: Class GT**: | LU0562145853 LU0999461139 LU0562149921 LU2013747584 |
| --- | --- | --- |
| Security number: | Class AT: | 12041875 |
| Security number: | Class BT: | 23115403 |
| Security number: | Class DT: | 12041876 |
| Security number: | Class GT**: | 48459308 |

Swisscanto (LU) Commodity Fund ex-Agriculture & Livestock***
| ISIN number: | Class ATH CHF: | LU1559916587 |
| --- | --- | --- |
| ISIN number: | Class CTH CHF: | LU1663713763 |
| ISIN number: | Class DAH EUR: | LU1555831269 |
| ISIN number: | Class DTH CHF: | LU1532539860 |
| ISIN number: | Class GTH CHF: | LU1532539944 |
| Security number: | Class ATH CHF: | 35548276 |
| Security number: | Class CTH CHF: | 37844101 |
| Security number: | Class DAH EUR: | 35465529 |
| Security number: | Class DTH CHF: | 35001823 |
| Security number: | Class GTH CHF: | 35001908 |

* See note 12
** The class was closed on 29 June 2020
*** Sub-fund Swisscanto (LU) Commodity Fund ex-Agriculture & Livestock was liquidated on 15 December 2020.

## Activity Report

## Equity Fund Sustainable Emerging Markets Market review
Emerging market stocks were generally down in the period under review and underperformed global equities in USD. During the first half of the financial year, the trend on the markets was positive thanks to improved macroeconomic conditions in many developing countries, rising corporate profits and a relatively stable political climate, supported by relatively strong currencies.
The outbreak of the Covid-19 virus in the last quarter of the financial year not only posed an immense challenge for the health of the world's population but also triggered massive economic shock waves. This led to sharp falls in share prices worldwide in March 2020.

### Review of relevant categories
Regionally, Asian emerging markets were by far the best performers, particularly in the last three months of the period under review. Eastern Europe, the Middle East and Africa underperformed emerging markets overall. By country, Taiwan, China, South Korea and Russia were the best performers during the year.
Investor sentiment towards China was spurred on by continued strong economic performance and a relatively swift response to the Covid-19 outbreak. The indices in Korea and Taiwan are technology heavy. Technology is a less capital- intensive sector and should benefit from the digitisation of work processes in the wake of the public health crisis. Currencies of Latin American countries such as Brazil, Mexico and Chile fell sharply during the crisis. Indonesia and South Africa were also among the weakest countries.

### Performance review
The fund outperformed its benchmark (MSCI Emerging Markets Index) during the reporting period. At regional level, our positions in India, South Africa and South Korea provided the largest relative contributions. There were negative contributions from China, Russia and Indonesia.
At stock level, there were positive contributions from our positions in the technology sector (Samsung Electronics, TSMC, SK Hynix), in India (Hindustan Unilever, Indraprashta Gas) and in China (Nari Technologies, Guangdong Investments, Xinyi Solar).
There were negative contributions from our positions in Latin America (Gentera, Banco do Brasil, Duratex), Indonesia (Telekomunikasi Indonesia, Bank Rakyat) and the Philippines (Ayala Land).

## Activity Report (cont.)
| ISIN number: | Class AT: | LU0338548034 |
| --- | --- | --- |
| ISIN number: | Class BT: | LU0999461055 |
| ISIN number: | Class DT: | LU0338548117 |
| ISIN number: | Class GT: | LU0866273294 |
| ISIN number: | Class JT: | LU1458526925 |
| ISIN number: | Class MT: | LU2099034824 |
| ISIN number: | Class NT: | LU0866272569 |
| Security number: | Class AT: | 3650277 |
| Security number: | Class BT: | 23115375 |
| Security number: | Class DT: | 3650280 |
| Security number: | Class GT: | 20252840 |
| Security number: | Class JT: | 33386918 |
| Security number: | Class MT: | 51747447 |
| Security number: | Class NT: | 20252839 |
| Subfund performance 1 April 2020 - 31 March 2021 | Class AT: | 63.72% |
|  | Class BT: | 64.98% |
|  | Class DT*: | 66.48% |
|  | Class GT*: | 66.73% |
|  | Class JT*: | 66.31% |
|  | Class MT: | 67.03% |
|  | Class NT*: | 68.05% |

* The performance of the institutional unit classes is calculated using the net asset value assessment (unswung net asset value). By contrast, the remaining classes are calculated using the modified net asset value (swung net asset value).

## Activity Report (cont.)

## Portfolio Fund Responsible Dynamic 0-50* Market review
The equity markets were boosted at the start of the second quarter by better-than-expected corporate earnings and economic data. May ended in the red as a result of the new tariffs levied on China by the US. In June, the markets were boosted by the prospect of interest rate cuts by the US Federal Reserve.
The second quarter reporting season was solid, allowing for a rise in share prices in July. The trade war between the US and China flared up again in August, leading to a sharp fall in bond yields. Government bond yields in Switzerland, as well as in most European countries, hit new record lows. The situation settled down again in September. Fears of a recession subsided and the markets were hopeful that solutions to the geopolitical problems might be possible. Yields recovered and the equity markets also moved upwards.
In October, the rapprochement between the US and China in their trade war boosted the equity markets. Nevertheless, the Fed cut interest rates again at the end of October in order to avoid an economic downturn, characterising the move as an "insurance cut". The positive mood continued on the equity markets in November and December and many indices reached new record highs.
Following a strong start for the stock markets in the new year, the mood was quickly dampened by the first reports of the coronavirus in China. Stock markets initially continued their record-breaking run in February until reports that northern Italy had also been hit by the virus caused an abrupt shift in the mood. In March, the equity markets suffered the heaviest losses since the financial crisis.

### Review of relevant categories
Government bond yields fell during the period under review, in some cases sharply. Q4 was the only quarter to witness an upwards move in yields, which was quickly snuffed out by the coronavirus crisis in the first quarter. The FTSE World Government Bond Index gained around 3% during the period under review in CHF and over 6% in USD. Meanwhile, corporate bonds delivered only a slightly positive return during the year in CHF, with credit spreads widening significantly in the first quarter.
Equity performance differed greatly from one region to the next. Swiss equities were the best performers. The SPI Index was marginally up by 0.7% at the end of the period under review. The biggest losers included emerging market equities (-13% in local currency) and eurozone equities (-16% in local currency). US and Japanese equities were somewhere in the middle with drops of -7% and -9% respectively.
In terms of foreign currencies, the Swiss franc rose sharply in value against practically all major currencies during the period under review. The British pound lost around 8.8% against the Swiss franc from the start of Q2 2019 to the end of Q1 2020, the euro 5.3% and the US dollar 3.8%. The best performer against the Swiss franc was the Japanese yen, which was down -0.3%.

### Performance review
Over the period under review as a whole, the fund delivered a gross performance of -4.55%. This negative performance was due to the first quarter of 2020, when the fund fell by -8.35%. The biggest negative contribution to performance was from equities (around -2.5%). The second-biggest contributor to negative performance was foreign exchange, with a fall of around -1.8% due to the strong Swiss franc. Bond positions made a small positive contribution to performance overall. The contribution from other investments (commodities and alternative risk premiums) was slightly negative. The proportion of equities fluctuated significantly during the period under review, driven by changing market risks. They reached their highest level at the start of January at around 45%. At the end of March, they were still around 17%. A drastic reduction in equity exposure at the end of February and start of March following increased market volatility helped to contain the losses.
* See note 12

## Activity Report (cont.)
| ISIN number: ISIN number: ISIN number: ISIN number: | Class AT: Class BT: Class DT: Class GT**: | LU0562145853 LU0999461139 LU0562149921 LU2013747584 |
| --- | --- | --- |
| Security number: | Class AT: | 12041875 |
| Security number: | Class BT: | 23115403 |
| Security number: | Class DT: | 12041876 |
| Security number: | Class GT**: | 48459308 |
| Subfund performance 1 April 2020 - 31 March 2021 | Class AT: | 9.64% |
|  | Class BT: | 10.07% |
|  | Class DT***: | 10.25% |
|  | Class GT***: | 4.15% |

* See note 12
** The class was closed on 29 June 2020
*** The performance of the institutional unit classes is calculated using the net asset value assessment (unswung net asset value). By contrast, the remaining classes are calculated using the modified net asset value (swung net asset value).

## Activity Report (cont.)

## Commodity Fund ex-Agriculture & Livestock* Market review
Last year was characterised by a synchronised global economic slowdown. The US was the last of the big economies to succumb to this trend. Manufacturing in particular found itself in a worrying situation. The escalation of the trade war between the US and China was undoubtedly one of the main reasons for this development. Both parties swapped further threats and tariffs, although at least negotiations between the two countries carried on. The US Federal Reserve cut the fed funds rate for the third time in October 2019. The ECB also put together another stimulus package, although its effectiveness was increasingly called into question. In January 2020, the US and China reached a partial agreement to settle the trade dispute, cutting the punitive tariffs on Chinese exports to the US for the first time since the conflict began. The slowdown in manufacturing came to an end and survey results showed growing confidence. However, this optimism was short-lived. The coronavirus outbreak spread rapidly in China in January 2020 and economic activity more or less ground to a halt. The virus then spread from east to west and quickly turned into the greatest challenge of the post-war period. Government measures to prevent the uncontrolled spread of coronavirus brought entire industries and wider society to a standstill all over the world. Businesses and schools were shut, borders closed and stay-at-home orders imposed on entire regions. This caused the global economy to shrink at an extraordinary rate and more severely than during the 2008/2009 financial crisis.

### Review of relevant categories
Crude oil prices moved sideways for most of last year, with Brent crude hitting a high of around USD 75 per barrel and a low of around USD 55. Price movements were defined predominantly by production cuts by OPEC+ states. Saudi Aramco floated on the stock market in December 2019 and Saudi Arabia's production cutbacks led to an increase in crude oil prices. The coronavirus outbreak led to a slump in demand for crude oil in January and February 2020, and prices started to fall. No agreement could be reached at the OPEC+ meeting at the start of March. On the contrary, instead of reducing production, Saudi Arabia and Russia began to increase production and trigger a price war. In addition to the demand shock, there was now also a supply shock, and crude oil prices plummeted.
At the end of March, Brent crude oil stood at USD 22 per barrel.
Gold was the only commodity that performed well during the period under review, ending the period close to its highest levels. Uncertainty about global growth due to COVID-19 and the massive liquidity injections by central banks hugely supported the gold price.
To begin with, the slowdown in industrial activity as a result of the trade war between the US and China led to a downward trend in industrial metals. Then came COVID-19 and the virus resulted in industrial metals prices being very close to cost limits.

### Performance review
Since its inception and in 2019/2020, the fund has outperformed its benchmark, the Bloomberg Commodity ex- Agriculture and Livestock Capped Index. The fund's exposure to the energy and precious metals segment provided positive performance contributions, while the positions in the industrial metals segment were a drag on performance.

## Activity Report (cont.)
| ISIN number | Class ATH CHF: | LU1559916587 |
| --- | --- | --- |
| ISIN number | Class CTH CHF: | LU1663713763 |
| ISIN number | Class DAH EUR: | LU1555831269 |
| ISIN number | Class DTH CHF: | LU1532539860 |
| ISIN number | Class GTH CHF: | LU1532539944 |
| Security number: | Class ATH CHF: | 35548276 |
| Security number: | Class CTH CHF: | 37844101 |
| Security number: | Class DAH EUR: | 35465529 |
| Security number: | Class DTH CHF: | 35001823 |
| Security number: | Class GTH CHF: | 35001908 |
| Subfund performance 1 April 2019 - 15 December 2020*** | Class ATH CHF: | 25.96% |
|  | Class CTH CHF: | 26.74% |
|  | Class DAH EUR**: | 26.88% |
|  | Class DTH CHF**: | 26.80% |
|  | Class GTH CHF**: | 26.88% |

*Sub-fund Swisscanto (LU) Commodity Fund ex-Agriculture & Livestock was liquidated on 15 December 2020.
**The performance of the institutional unit classes is calculated using the net asset value assessment (unswung net asset value). By contrast, the remaining classes are calculated using the modified net asset value (swung net asset value).
*** Percentages reflect the effect of dividend payments.
| Swisscanto (LU) |  |
| --- | --- |
| Statement of Net Assets |
| as at 31 March 2021 |
|  | Swisscanto (LU) | Swisscanto (LU) | Consolidated |
|  | Equity Fund | Portfolio Fund |  |
|  | Sustainable | Responsible |  |
|  | Emerging Markets | Dynamic 0-50* |  |
| Note | USD | CHF | CHF |
| ASSETS |  |  |  |
| Investment portfolio including options (purchased options) at market value	(2) | 464,077,916 | 28,457,146 | 465,224,077 |
| Bank balance | 13,092,020 | 1,187,722 | 13,509,277 |
| Outstanding subscription monies | 9,469 | 8,285 | 17,197 |
| Receivables from securities revenue | 1,470,185 | 213,116 | 1,596,781 |
| Unrealized profit on futures	(8) | 0 | 75,279 | 75,279 |
| TOTAL ASSETS | 478,649,590 | 29,941,548 | 480,422,611 |
| LIABILITIES |  |  |  |
| Options (written options) at market value | 0 | 3,640 | 3,640 |
| Liabilities from securities purchases | 1,443,574 | 149,658 | 1,508,278 |
| Outstanding payments from the repurchase of stock | 14,760 | 6,088 | 19,979 |
| Unrealised loss on forward foreign exchange contracts	(7) | 0 | 145,607 | 145,607 |
| Bank interest and other liabilities | 1,958,858 | 78,940 | 1,922,519 |
| TOTAL LIABILITIES | 3,417,192 | 383,933 | 3,600,023 |
| NET ASSETS AT THE END OF THE |  |  |  |
| FISCAL YEAR | 475,232,398 | 29,557,615 | 476,822,588 |
| Net asset value per unit |  |  |  |
| Class AT | 180.81 | 108.74 |  |
| Class BT | 152.44 | 111.94 |  |
| Class DT | 198.74 | 114.50 |  |
| Class GT | 158.34 | - |  |
| Class JT | 195.36 | - |  |
| Class MT | 125.76 | - |  |
| Class NT | 150.62 | - |  |
| Number of units in circulation |  |  |  |
| Class AT | 144,350 | 265,706 |  |
| Class BT | 7,208 | 43 |  |
| Class DT | 51,694 | 5,773 |  |
| Class GT | 19,099 | - |  |
| Class JT | 3,160 | - |  |
| Class MT | 56,158 | - |  |
| Class NT | 2,835,337 | - |  |
| *  See note 12 |  |  |  |

Translation (ENFR, 2021-03-31):
# Swisscanto (LU)
## Table des matières

### Page
* Voir note 12