FAIR AGRICULTURE - responsAbility · Some cooperatives and buyers struggled to pro- ... their workers or buy fertiliser, although the government has ... Number of fair agriculture

*responsAbility Fair Agriculture Fund – Investment fund associated with particular risk. Exclusion of liability outside Switzerland: for qualified and professional investors only

FAIR AGRICULTURE

Summary

Market Review Limited impact of weather phenomenon La Niña – decreasing cocoa prices – demonetisation in India

Fund Activity End of strong coffee season – increased demand for financing in Asia-Pacific – first-time investment in a sustainable fishing company importing from Indonesia

Fund Performance Performance impact of provisions – lower cash level

Key Figures

Fund volume (USD) 213'464'590

Net performance 4Q (Class B, USD, %) -0.47

Net performance 12 months (Class B, USD, %) 0.53

Number of farmers of fair agriculture organisations 1'001'037

Outlook Higher demand from coffee, cocoa and cashew producers expected – strong pipeline in Central America – lower default rates projected in 2017

Focus AMRU Rice: Organic rice from Cambodia

responsAbility Fair Agriculture Fund – Quarterly Report 2

Market Review Limited impact of weather phenomenon La Niña – decreasing cocoa prices – demonetisation in India The last quarter of 2016 saw the election of Donald Trump as the next US president and a subsequent strong increase in US interest rates, suggesting a bright outlook for the world econ-omy. This optimism is based on stimulating economic policies (at least for the US) promised by the new US administration. However, as indicated in the Outlook section, uncertainties and regional differences prevail. The prices of many agricultural commodities were relatively stable over the last quarter. Events like Trump’s election or La Niña – the weather phenomenon that usually follows El Niño (see Focus Article 3Q 2016) – apparently had no direct impact on agricultural commodities. That said, the price of cocoa has decreased considerably over the past three months: Cocoa contracts on the main futures markets have lost around 20% on average, due partly to the good harvest outlook in Asia and Ivory Coast. However, as many producers struggled with lower cocoa prices and proces-sors required less liquidity to buy crops from farmers – particu-larly in Ivory Coast – investments were limited. On 8 November 2016, the Indian government cancelled the legal tender of high-denomination bank notes with immediate effect, in a radical move to curb the use of black money and force the informal economy into the mainstream. The can-celled INR 500 (USD 7.5) and INR 1,000 (USD 15) notes make up about 86% of the cash circulating in the country. While this policy should have a positive economic impact over the mid to long term, it put such economic sectors as real es-tate, gold and agriculture under severe short-term pressure. Demonetisation hit just as farmers were attempting to sell their produce from the autumn harvest and were gearing up for the next crop. Some cooperatives and buyers struggled to pro-cure the necessary cash to purchase from farmers. As a result of the cash shortage, many farmers have been unable to pay their workers or buy fertiliser, although the government has passed measures to allow them to use old bank notes to pur-chase seeds.

Fund Activity End of strong coffee season – increased demand for financing in Asia-Pacific – first-time investment in a sustainable fishing company importing from Indonesia

The Fund disbursed a total of USD 55 million in the last quar-ter of 2016, 17% less than in the third quarter and 26% less than during the record year-earlier quarter.

The fourth quarter was marked by the end of a strong South American and East African coffee financing season and a slow start to the Central American coffee season. As a result, the share of coffee-related disbursements decreased from 39% to 29% over the last quarter, with disbursements of USD 11 mil-lion in South and Central America, USD 3 million in East Af-rica and USD 2 million in Southeast Asia.

With a share of 13% of total disbursements, cocoa was the second most important commodity. The Fund’s cocoa deals were almost equally allocated between the Philippines, Uganda and Ivory Coast.

Cashew nuts also accounted for 13% of total disbursements during the last quarter, financed across Asia.

On a regional level, Asia-Pacific accounted for almost half (45%) of total disbursements. Among other commodities, the Fund mainly financed cashew and rice producers in seven countries across the region. The decline in the South American allocation to 20% of total disbursements was largely due to the end of the coffee season. The Fund placed new invest-ments in quinoa producers in Peru.

With a share of total disbursements of about 20%, Sub-Sa-haran Africa also played an important role in the fourth quarter of 2016, mainly due to financings of cocoa companies in Uganda and Ivory Coast.

During the fourth quarter, the Fund invested in 19 different commodities, including a first-time investment in a company specialising in sustainable tuna fishing importing from Indone-sia.


Fund Performance

Performance impact of provisions – lower cash level

The Fund volume decreased by 4% in the fourth quarter com-pared with the previous quarter and stood at USD 213 million at the end of December 2016. Year-on-year, the Fund volume increased by more than USD 35 million, or 20%.

The Fund's cash position declined to 13.5% as of the end of 2016, compared to 16.6% at the end of the previous quarter.

The Fund recorded a negative quarterly net return of -0.47% in US dollar terms. The annual return amounted to 0.53% (USD B Class).

Provisions had a negative impact of 0.96% in the quarter un-der review. As already indicated in previous quarters, substan-tial provisions had to be created for a rice, wheat and pulses producer in the Asia-Pacific region, which suffered from the downturn in the rice market and its impact on sales. The coun-terparty is a large Fund position and the provisions had a ma-jor impact on the Fund’s performance. Furthermore, provisions had to be increased for positions in Sub-Saharan Africa, Asia and Latin America. One provision had to be created for a new position – a cashew producer in Sub-Saharan Africa – due to shipment delays.

In 2016, provisions had a negative impact of -3.03% on the Fund’s annual performance. There were no structural problems but rather cyclical issues leading to increased provisioning for single exposures that struggled to adjust to the general drop in commodity prices over the past two years. Lower income re-sulted in thinner capacity to cover fixed costs and service debt, which caused the default risk to increase. In most provi-sioned cases, the borrowers could not refinance local bank lines, which impacted their business operations and resulted in operational losses. Commodity prices have partially re-bounded in 2016, and businesses have in general adjusted to lower prices (and hence income). As a result, the default risk is expected to decrease in 2017.

The average weighted interest rate of the portfolio remained stable at around 8.5%.

The Fund is now invested in 49 countries, more than 126 counterparties and 52 commodities.


Key Figures as of 4Q 2016

Fund data/Net performance(1) Class B (USD)

Class B (CHF)

Class B (EUR)

Class B1V

(CHF)

Class B2V

(EUR)

Class B3V

(USD)

Class I (CHF)

Class I (EUR)

Class I (USD)

Quarterly return (%) -0.47 -0.93 -0.83 -0.85 -0.73 -0.38 -0.79 -0.68 -0.31 Return YTD (%) 0.53 -1.23 -0.68 -0.91 -0.80 0.24 -0.66 -0.12 1.13 Since inception (%) 13.19 8.70 10.69 2.56 -0.80 0.24 11.93 3.80 1.59

Return (p.a.) since inception (%) 2.60 1.68 2.05 1.05 -0.96 0.29 2.28 1.67 1.36 1 year 0.53 -1.23 -0.68 -0.91 n/a n/a -0.66 -0.12 1.13 3 years 7.39 3.81 5.36 n/a n/a n/a 5.69 n/a n/a 5 years n/a 8.83 10.81 n/a n/a n/a 12.04 n/a n/a Strongest month since inception (%) 0.58 0.55 0.60 0.52 0.22 0.33 0.62 0.57 0.36 Weakest month since inception (%) -0.21 -0.38 -0.33 -0.35 -0.29 -0.17 -0.33 -0.27 -0.15 No. of months with positive performance 50 48 50 21 3 4 49 20 8 No. of months with negative performance 8 11 10 8 7 6 10 7 6

Fonds volume (USD) 213'464'590 Return volatility (USD, %)(2) 0.61 Sharpe ratio (USD)(3) 3.27

(1) Return figures and total return are calculated under the assumption that the Swiss federal withholding tax delivered is immediately reinvested in the collective investment scheme without deductions. Past performance is not a guarantee or indicator of current or future performance. This performance data is calculated net of all fees and commissions but it does not take into account the commissions and costs incurred on the issue and redemption of units.; (2) Annualized since inception USD B-class; (3) calculated by taking into account the annualized monthly return volatility since inception and the average 6mth LIBOR USD rate (risk free)

Selected assets correlation (2011–2016)

MSCI World Index 6mths US Libor JP Morgan Emerging Corporate Bond Index (USD)

responsAbility Fair Agriculture Fund (USD)

0.1181 -0.5637 0.1273

Largest country exposure In % NAV Geographical allocation In % of investments

Peru 13.2 Asia Pacific 30.4 Cambodia 7.6 South America 24.4 India 6.7 Sub-Saharan Africa 15.1 United Arab Emirates 5.6 Other 12.0 Colombia 4.3 Middle East & North Africa 7.6 Uganda 4.2 Central America 5.7 Nicaragua 3.4 Central Asia 3.3 Egypt 3.3 Eastern Europe 1.5 Cote d'Ivoire 3.1 Malaysia 2.8 Number of countries 49

Commodity allocation(4) In % of investments Asset classes In % NAV

Coffee 21.1 Fixed Income 86.5 Fresh Fruits and Vegetables 17.9 Cash & cash equivalent(5) 13.5 Nuts 10.0

(5) Cash: Cash current accounts and money market 10.4% Cash equivalent: Value of hedging contracts, collateral cash, accrued interest investments, other assets and liabilities 3.1%

Grains 8.7 Cocoa 6.6 Oilseeds 6.6 Dried Fruit 6.3 Spices 3.8 Edible Oils 3.4 Other 15.5 (4) excluding investments in financial intermediaries

Social performance indicators 4Q 2016 4Q 2015

Number of fair agriculture organisations 126 110 Number of farmers of fair agriculture or-ganisations

1'001'037 611'079


Development of Portfolio Development of total return and fund volume(1)

(1) Return figures and total return are calculated under the assumption that the Swiss federal withholding tax delivered is immediately reinvested in the collective investment scheme without deductions. Past performance is not a guarantee or indicator of current or future performance. This performance data is calculated net of all fees and commissions but it does not take into account the commissions and costs incurred on the issue and redemption of units. Maturity breakdown as of 4Q 2016

Average time to maturity: 16.92 months

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(2) Cash: Cash current accounts and money market 10.4% Cash equivalent: Value of hedging contracts, collateral cash, accrued interest investments, other assets and liabilities 3.1%

Further portfolio data will be sent to interested investors on request. Please e-mail [email protected] with your name and the name of the fund you are interested in.

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mailto:[email protected]


Outlook Higher demand from coffee, cocoa and cashew producers ex-pected – strong pipeline in Central America – lower default rates projected in 2017

Donald Trump’s election as the new president of the US is ex-pected to have significant implications for global financial markets. Impacts on agricultural investments will likely be less pronounced.

In the US, we expect increased fiscal spending, reduced regu-lation, and rising Fed interest rates. Tax reform and a domestic agenda focused on reflation should support the USD. This could benefit many exporting economies, depending on whether the USD strengthens on the back of a faster-growing US economy and the associated rally in commodity prices or on the back of inflows into USD-denominated assets due to higher risk aversion.

The first part of the year should be characterised by stronger headwinds with the USD strengthening and US interest rates rising, protectionist policies in the US and a delayed pick-up in economic growth in emerging and developing markets.

Rising interest rates will likely lead to a slight increase in aver-age yields on investments. However, refinancing rates will only reflect the higher interest rates with a time lag.

The expected increase in coffee, cocoa and cashew prices should boost financing demand as farmers will likely produce more while processors will need more liquidity to buy crops from farmers. Lower default risks are expected in 2017. How-ever, the heightened uncertainty resulting from the new US ad-ministration and its protectionist policies could have a signifi-cant impact on Latin American economies over the coming years, with Central America most exposed to shifting US poli-cies on trade and immigration.

The deal pipeline is strong mainly due to the Central American coffee season. As a result, liquidity levels should decrease fur-ther. Moreover, there will be harvesting seasons in South America for Brazil nuts or in Africa and Asia for cashew nuts.


Focus

AMRU Rice: Organic rice from Cambodia

A Cambodian company that produces organic rice for export has been going from strength to strength, doubling its output of fair trade organic rice every year.

Cambodia is an agricultural country, with over 50 percent of the population working in rice production. In 2015, the aver-age annual income of 1,020 dollars was considerably more than it was 10 years ago, but still merely one-eighth of the worldwide average. This is partly the result of the guerrilla war waged by the Khmer Rouge, which continued right until the end of the 20th century. Today, with a parliamentary democ-racy and King Norodom Sihamoni as the elected monarch, there is enough stability that the country is free from political crisis and is considered a safe travel destination.

In 2015, Cambodia’s rice farmers harvested 9.2 million tonnes of rice, putting this important grain at the top of the country’s produce list. Many families grow the rice they eat on land that they inherited from their ancestors. Any surplus rice is sold at local markets, providing an important supplement to their income.

A few years ago, the first producers began exporting rice. Since then, production of this traditional food product has blos-somed. Rice farmers are organising cooperatives and are pro-ducing more professionally and effectively. Fair trade and or-ganic rice is meeting with high demand in Europe and the USA. Producing rice at a more professional level and for export offers represents a major opportunity for Cambodia. However, to continue this success, more funding is needed. Key factors requiring investment include warehouses in the growing re-gions, improvements in production efficiency and training for farmers.

AMRU Rice – a business idea that took off from the start

responsAbility investee AMRU Rice receives this funding in the shape of export and working capital finance. “Without this support I wouldn’t be able to keep up the fast pace,” says Sa-ran Song, the company’s founder and chairman. Indeed, his company has been growing at a phenomenal rate – not just continuously, but exponentially. Year after year, AMRU Rice is doubling the amount of organic rice it produces, surprising even Song himself. “We didn’t expect such huge growth when we started the company,” he says. Now he is determined to sustain this pace until 2020.

After turning down a scholarship in the United States because he saw better opportunities for himself in Cambodia, Saran Song completed an MBA and founded an NGO. The son of Cambodian rice farmers then realised that he could have a ma-jor impact by setting up his own company and in 2011 founded AMRU Rice with the aim of improving the lives of the

economically disadvantaged rice farmers in the north of his country.

Song decided to focus on exporting organic rice, which is more lucrative because the margins are higher. In return, he could pay the farmers far more than they had ever received for their harvest. As the contract farmers who now work for AMRU Rice had never used pesticides or GMOs, they were in an excellent position to fulfil organic certification requirements right from the start. 2013 saw the first harvest of AMRU Rice’s contract farmers who embraced Song’s business idea with great enthu-siasm. “For a tonne of rice, we pay USD 350 instead of the usual USD 200,” Song says. And the farmers profit straight away. “They get more money for the next harvest, rather than in three or five years’ time. We are improving the lives of our contract farmers now, not just at some point in the future.”

Factory workers at the biggest production facility in Kampong Thom

Seeds, training and investments to keep up with demand growth

Producing organic rice means more work for the farmers, for example gathering pests by hand instead of using pesticides. In the training programmes offered by AMRU Rice, the farmers learn to produce their own organic fertiliser and how to use it properly.

AMRU Rice also supports its suppliers financially. “In the first year, we provide free seedlings for farmers in a poor financial situation,” says Saran Song. “In the second year, they pay for 50 percent of the seedlings themselves with their earnings from the first year and in the third year they carry the costs themselves.”

Although AMRU Rice has been doubling its production every year, demand is growing at an even faster rate and AMRU Rice is struggling to keep up because of its limited capacities. Each year, the demand for organic rice in Europe covers the amount of rice produced by AMRU Rice right down to the last grain – despite the company’s rapid growth. Indeed, customers are putting pressure on Saran Song because they want to buy more than he can currently supply. To cater to this demand, Saran Song will be investing USD 5 million in building mass storage for organic rice as well as drying, milling and processing facili-ties near the farms between 2017 and 2019.


The entrepreneur recently expanded his portfolio and opened a separate factory to produce products such as rice noodles and rice paper. For these product segments, he can also buy rice from farmers who do not meet or have not yet achieved the premium standards for organic rice. Around 10 percent of the rice produced by AMRU Rice is consumed in Cambodia – alt-hough it is not certified as organic, the quality is still very high thanks to the healthy soil which is untouched by pesticides.

Improving the lives of rice farmers and their families

AMRU Rice currently buys its rice from 18 cooperatives (as of the end of 2016). The Samakee Rohas Meanchey Cooperative in the heart of Cambodia, about 300 kilometres from the capi-tal of Phnom Penh, is one of them. The cooperative’s presi-dent, Heng Sopheap, negotiated a three-year framework agree-ment with AMRU Rice in 2014. This has made the cooperative more attractive for farmers in the area, which comprises four villages with 234 families.

Above, right: the cooperative’s president, Heng Sopheap

Currently 104 farmers belong to the cooperative. In 2016, they supplied approximately 250 tonnes of organic rice to AMRU Rice, earning around 26,500 US dollars – approxi-mately 5,000 dollars – or 20 percent – more than they would have earned with their standard quality rice at the local mar-ket. In addition, the guarantee that AMRU Rice will buy their rice gives these farmers an entirely new form of income secu-rity.

The farmers use their higher, more predictable incomes to in-vest in productivity enhancements and tools or machines for the field work. For many of them, the higher income also means that they can put their children through university in-stead of sending them to work in the field as soon as they fin-ish high school.

The president of the Samakee Rohas Meanchey Cooperative, Heng Sopheap, foresees additional growth. Firstly, some of the farmers still have reserves of land and, thanks to higher productivity, will be able to afford to grow rice on it in future. Secondly, a growing number of farmers in the area are inter-ested in doing more than just producing enough rice to sustain themselves and their families.

AMRU Rice (2016 figures)

Established: 2011

Location: Cambodia

Business activities: Sourcing, processing and exporting rice that is organic and/or sustainably produced according to inter-national certification standards

Production volume: 11,000 metric tonnes

Farmers: 2,500

Cooperatives: 18

Owner: Saran Song

Employees: approx. 200


Fund Facts

Fund name responsAbility Fair Agriculture Fund

Fund domicile and type Switzerland, contractual investment fund of the type “Other funds for alternative investments” associated with a particular risk

Asset manager responsAbility Investments AG, Zurich

Fund management company Credit Suisse Funds AG, Zurich

Fund administration Credit Suisse AG, Zürich

Custodian bank Credit Suisse AG, Zürich

Inception date (fund) 21 December 2011

Fund currency USD, hedged CHF and EUR classes available

Target net return in fund cur-rency

3–5% p.a. over a horizon of five years. The target return is not a projection, prediction, or guarantee of future performance, and there is no guarantee that the target return will be achieved.

Distribution No distribution, returns are reinvested

Valuation (NAV calculation) Monthly, one bank working day after the last bank working day of the month

Subscription of units Monthly, requests must be submitted before the last bank working day of each month

Redemption of units Monthly, subject to two months’ notice

Approved for distribution to private investors

Switzerland

Approved for distribution to professional, semiprofessional and qualified investors

Switzerland and Singapore

Retrocessions For the class B1V (CHF), B2V (EUR), B3V (USD), I1 (CHF), I2 (EUR) and I3 (USD) no retrocession fee is paid

Classes Valor ISIN Total Expense Ra-tio (TER)

Investors Minimum sub-scription

Inception date (classes)

B1 (CHF) 14258736 CH0142587366 approx. 3.5% p.a. All investors

1 unit (CHF/EUR/USD 100 at inception)

December 2011

B2 (EUR) 14258737 CH0142587374 approx. 3.5% p.a. All investors December 2011

B3 (USD) 14258738 CH0142587382 approx. 3.5% p.a. All investors February 2012

B1V (CHF) 24418700 CH0244187008 approx. 3.1% p.a. Investors who place subscriptions of units with a distribution agent in the United Kingdom or the Netherlands or who have concluded a written agreement with a distribution agent in which the acquisition of classes for which no distribution fees are charged is explicitly intended

1 unit (CHF/EUR/USD 100 at inception)

July 2014

B2V (EUR) 29797430 CH0297974302 approx. 3.1% p.a. February 2016

B3V (USD) 29797434 CH0297974344 approx. 3.1% p.a. February 2016

I1 (CHF) 14258739 CH0142587390 approx. 2.9% p.a.

Only for qualified investors in the sense of the Swiss Federal Act on Collective Investment Schemes

CHF 1,000,000 November 2011

I2 (EUR) 14258740 CH0142587408 approx. 2.9% p.a. EUR 1,000,000 September 2014

I3 (USD) 29797435 CH0297974351 approx. 2.9% p.a. USD 1,000,000 October 2015


Risk disclosure:

The responsAbility Fair Agriculture Fund is a contractual investment fund governed by Swiss law of the category «Other funds for alternative investments» bearing a particular risk. The investment fund invests in assets by which the direct or indirect fair-trade-oriented institutions in less developed countries are financed or refinanced. The risks of the investment fund are not comparable to the risks of securities funds. The inventors’ attention is expressly drawn to the risks expounded in the prospectus or investment fund agreement, respectively, and to the lower liquidity and the more difficult assessability of the investments of the fund which are usually not listed and not traded. The investors must assume that up to 75% of the assets of the investment fund may be invested directly or indirectly in the raw commodity coffee and up to 40% in a single country or up to 100% of the assets of the investment fund on one single continent (for example South America). The investors must particularly be prepared and able to accept capital losses including a total loss. Consequently the shares in the responsAbility Fair Agriculture Fund should only ac-count for a minor slice of the investor’s portfolio and the shares should be held in a diversified portfolio.

Legal disclaimer

This information material was produced by responsAbility Investments AG (hereinafter “responsAbility”). This information material relates to re-sponsibility Fair Agriculture Fund (further referred to as the “Product“). The information contained in this information material (hereinafter “infor-mation”) is based on sources considered to be reliable, but its accuracy and completeness are not guaranteed. The information is subject to change at any time and without obligation to notify the investors. Unless otherwise indicated, all figures are unaudited and are not guaranteed. For full details of Product features and of the opportunities, risks, and costs associated with the Product, please see the corresponding legal doc-uments, i.e., to the extent applicable and available, the sales prospectus, the annual and half-yearly reports (further referred to collectively as the “Product Documents”). Any action derived from this information is always at the investors’ own risk. This information material is for information purposes only, and is not an official confirmation of terms. The value of an investment and any income from it are not guaranteed. Changes in the assumptions may have a substantial impact on the return. Past performance is no indication of current or future performance. The performance data does not take account of commission charged on issue and redemption of the units. An annual fee shall be charged for the administration and asset management services provided as part of this financial product. The maximum amount of this management fee shall be based on the prospectus. As distribution fee, a specific percentage of the equity holding at the end of the year may be paid to responsAbility or third parties. The maximum amount of such a distribution fee shall be based on the prospectus. Furthermore, responsAbility shall not receive or pay either one-time or recurring remuneration to other distributors in connection with this financial product. This information is not intended as an offer or a recommendation or an invitation to purchase or sell financial instruments or financial services and does not release the recipient from making his/her own assessment. In particular, the recipient is advised to assess the information, with the assistance of an advisor if necessary, with re-gard to its compatibility with his/her own circumstances in view of any legal, regulatory, tax, and other implications. The fund targets investments that are associated with a higher risk than investments in more developed markets or countries. Emerging markets exist in countries that display at least one of the following features: a degree of political instability; relatively unpredictable trends in growth and financial market development; a financial market that is still at a developing stage; a weak economy. As a rule, investments in emerging markets are exposed to greater risks. These include political and economic risks and risks relating, for example, to soundness, exchange rates, market liquidity, legal regulations, set-tlement, markets, shareholders, and creditors. Investors should be willing and financially able to accept the risk features of the investments de-scribed in this information material. Commodity investments are prone to wider fluctuations in value than conventional investments, and may entail additional investment risks. responsAbility and/or the members of its board of directors and employees may have a participation in the investment fund (or any related investments) and may add to or sell these positions from time to time. Additionally, the members of the board of directors and employees of responsAbility may serve as members of boards of directors of the investments in which the investment fund is in-vested. This information material is expressly not intended for persons who, due to their nationality or place of residence, are not permitted ac-cess to such information under applicable law. The financial product specified in this information material is not licensed for distribution in the United States of America. As a result, it may not be offered, sold, or delivered there. Neither the present information material nor copies thereof shall be sent or taken to the United States of America, or issued in the US or to a US person (in the terms of Regulation S of the United States Securities Act of 1933, in the respective current version). This information material may not be reproduced, stored in a retrieval system, or trans-mitted, in part or in full, in any form or by any means, whether electronically, mechanically, photocopied, or otherwise, without the prior written consent of responsAbility.

Singapore: The offer or invitation of the shares (the “Shares”) of the Product which is the subject of this marketing material, does not relate to a collective investment scheme which is authorised under Section 286 of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”) or recognised under Section 287 of the SFA. The Product is not authorised or recognised by the Monetary Authority of Singapore (the “MAS”) and the Shares are not allowed to be offered to the retail public. This marketing material and any other document or material issued in connection with the offer or sale is not a prospectus as defined in the SFA and accordingly, statutory liability under the SFA in relation to the content of pro-spectuses does not apply, and you should consider carefully whether the investment is suitable for you. This marketing material has not been registered as a prospectus with the MAS. Accordingly, this marketing material and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of Shares may not be circulated or distributed, nor may Shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional inves-tor under Section 304 of the SFA, (ii) to a relevant person pursuant to Section 305(1), or any person pursuant to Section 305(2), and in accord-ance with the conditions specified in Section 305 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. Where Shares are subscribed or purchased under Section 305 of the SFA by a relevant person which is: (a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or (b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor,


securities (as defined in Section 239(1) of the SFA) of that corporation or the beneficiaries’ rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the Shares pursuant to an offer made under Section 305 of the SFA except: (1) to an institutional investor or to a relevant person defined in Section 305(5) of the SFA, or to any person arising from an offer referred to in Section 275(1A) or Section 305A(3)(i)(B) of the SFA; (2) where no consideration is or will be given for the transfer; (3) where the transfer is by operation of law; (4) as specified in Section 305A(5) of the SFA; or (5) as specified in Regulation 36 of the Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005 of Singapore.

Switzreland: The Product is licensed as an investment fund under Swiss law for distribution in Switzerland as a contractual investment fund of the type “Other funds for alternative investments” associated with a particular risk. The prospectus, the management regulations, and the annual and semiannual reports may be obtained free of charge from Credit Suisse Funds AG in Zurich, Credit Suisse AG in Zurich, and from any distribu-tion partner. Representative in Switzerland is Credit Suisse Funds AG, Uetlibergstrasse 231, CH-8070 Zurich and paying agent in Switzerland is Credit Suisse AG, Paradeplatz 8, CH-8001 Zurich.

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responsAbility Investments AG Josefstrasse 59, 8005 Zurich, Switzerland Phone +41 44 250 99 30, Fax +41 44 250 99 31 www.responsAbility.com