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CS Investment Funds 1

Investment Company with Variable Capital under Luxembourg Law

Prospectus
12 December 2016

CS Investment Funds 1
Investment Company with Variable Capital under Luxembourg Law

Contents

1. Information for Prospective Investors ................................................................................................................................................... 3
2. CS Investment Funds 1 – Summary of Share Classes (1)....................................................................................................................... 4
3. The Company ...................................................................................................................................................................................... 13
4. Investment Policy ................................................................................................................................................................................ 13
5. Investment in CS Investment Funds 1 ................................................................................................................................................. 14
i. General Information on the Shares ................................................................................................................................................. 14
ii. Subscription of Shares .................................................................................................................................................................. 16
iii. Redemption of Shares .................................................................................................................................................................. 16
iv. Conversion of Shares .................................................................................................................................................................... 17
v. Suspension of the Subscription, Redemption and Conversion of Shares and the Calculation of the Net Asset Value ................................ 17
vi. Measures to Combat Money Laundering ......................................................................................................................................... 17
vii. Market Timing .............................................................................................................................................................................. 17
viii. Prohibited Persons, Compulsory Redemption and Transfer of Shares ................................................................................................. 17
6. Investment Restrictions ...................................................................................................................................................................... 18
7. Risk Factors ........................................................................................................................................................................................ 21
8. Net Asset Value................................................................................................................................................................................... 26
9. Expenses and Taxes ........................................................................................................................................................................... 27
i. Taxes .......................................................................................................................................................................................... 27
ii. Expenses .................................................................................................................................................................................... 27
iii. Performance Fee ......................................................................................................................................................................... 27
10. Accounting Year ................................................................................................................................................................................. 27
11. Appropriation of Net Income and Capital Gains .................................................................................................................................. 27
12. Lifetime, Liquidation and Merger......................................................................................................................................................... 28
13. General Meetings ................................................................................................................................................................................ 28
14. Information for Shareholders .............................................................................................................................................................. 28
15. Management Company ....................................................................................................................................................................... 28
16. Investment Managers and Sub-Investment Manager .......................................................................................................................... 28
17. Depositary........................................................................................................................................................................................... 28
18. Central Administration ........................................................................................................................................................................ 29
19. Regulatory Disclosure ......................................................................................................................................................................... 29
20. Data Protection Policy ......................................................................................................................................................................... 31
21. Certain Regulatory and Tax Matters .................................................................................................................................................... 31
22. Main Parties ........................................................................................................................................................................................ 33
23. Subfunds ............................................................................................................................................................................................ 34
Credit Suisse (Lux) Absolute Return Bond Fund ........................................................................................................................................ 34
Credit Suisse (Lux) Contingent Capital Euro Fund ..................................................................................................................................... 36
Credit Suisse (Lux) European Sovereign Plus Bond Fund ........................................................................................................................... 37
Credit Suisse (Lux) Focused Bond Fund................................................................................................................................................... 38
Credit Suisse (Lux) AgaNola Global Convertible Bond Fund ........................................................................................................................ 41
Credit Suisse (Lux) Global High Yield Bond Fund ...................................................................................................................................... 42
Credit Suisse (Lux) Global Inflation Linked Bond Fund ............................................................................................................................... 44
Credit Suisse (Lux) Global Securitized Bond Fund ..................................................................................................................................... 45
Credit Suisse (Lux) Global Value Bond Fund ............................................................................................................................................. 46
Credit Suisse (Lux) Premium Credit Core Bond Fund ................................................................................................................................. 48
24. Information for Investors in Switzerland ............................................................................................................................................. 50

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CS Investment Funds 1
Investment Company with Variable Capital under Luxembourg Law

1. Information for Prospective Investors
This prospectus (“Prospectus”) is valid only if accompanied by the latest
key investor information document (“Key Investor Information Document”),
the latest annual report, and also the latest semi-annual report if this was
published after the latest annual report. These documents shall be
deemed to form part of this Prospectus. Prospective investors shall be
provided with the latest version of the Key Investor Information Document
in good time before their proposed subscription of shares in the CS
Investment Funds 1 (the “Company”).
This Prospectus does not constitute an offer or solicitation to subscribe
shares (“Shares”) in the Company by anyone in any jurisdiction in which
such offer or solicitation is not lawful or in which the person making such
offer or solicitation is not qualified to do so or to anyone to whom it is
unlawful to make such offer or solicitation.
Information which is not contained in this Prospectus, or in the documents
mentioned herein which are available for inspection by the public, shall be
deemed unauthorized and cannot be relied upon.
Potential investors should inform themselves as to the possible tax
consequences, the legal requirements and any foreign exchange
restrictions or exchange control requirements which they might encounter
under the laws of the countries of their citizenship, residence or domicile
and which might be relevant to the subscription, holding, conversion,
redemption or disposal of Shares. Further tax considerations are set out in
Chapter 9, “Expenses and Taxes”.
Prospective investors who are in any doubt about the contents of this
Prospectus should consult their bank, broker, solicitor, accountant or other
independent financial adviser.
This Prospectus may be translated into other languages. To the extent
that there is any inconsistency between the English-language Prospectus
and a version in another language, the English-language Prospectus shall
prevail, unless stipulated otherwise by the laws of any jurisdiction in which
the Shares are sold.
Investors should read and consider the risk discussion in Chapter 7, “Risk
Factors”, before investing in the Company.
Some of the Share classes may be listed on the Luxembourg Stock
Exchange.

The Company’s Shares have not been, and will not be, registered under
the United States Securities Act of 1933 (the “1933 Act”), as amended,
or the securities laws of any of the states of the United States of America.
Therefore, the Shares of the Subfunds described in this Prospectus may
not be offered or sold directly or indirectly in the United States of America,
except pursuant to an exemption from the registration requirements of the
1933 Act. The Shares may not be directly or indirectly offered or sold to or
for the benefit of a “U.S. person” as described in Chapter 5, “Investment
in CS Investment Funds 1”, section viii, “Prohibited Persons, Compulsory
Redemption and Transfer of Shares” of the Prospectus.

No application has been submitted or will be submitted, nor any
registration has been or will be sought, by the Management Company to
or from any of the Indian governmental or regulatory authorities in
connection with the advertising, offer, distribution or sale of the Shares in
or from India and the Management Company does not intend to or will not,
directly or indirectly, advertise, offer, distribute or sell the Shares to
persons resident in India. Subject to certain limited exceptions, the Shares
may not be purchased by persons resident in India and purchase of the
Shares by such persons are subject to legal and regulatory restrictions.
Persons into whose possession this Prospectus or any Shares may come
must inform themselves about, and observe, any such restrictions.
Specific provisions may apply with respect to each subfund, as set out in
Chapter 23, “Subfunds”.

The Management Company (as described below) will not disclose any
confidential information concerning investors unless it is required to do so
by applicable laws or regulations.
Specific provisions may apply with respect to each subfund, as set out in
Chapter 23, “Subfunds”.

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CS Investment Funds 1
Investment Company with Variable Capital under Luxembourg Law

2. CS Investment Funds 1 – Summary of Share Classes (1)

Maximum Maximum Maximum
Maximum Perfor-
Subfund Currenc Minimum Share Adjustment of distribution fee management
Share Class sales mance
(Reference Currency) y holding Type (2) the Net Asset (per annum) fee
charge fee
Value (per annum) (3)

Credit Suisse (Lux) “A” USD n/a D 2.00% 5.00% n/a 1.20% (8)

Absolute Return Bond Fund “AH” (7) (7)
n/a D 2.00% 5.00% n/a 1.20% (8)

(USD) “B” USD n/a CG 2.00% 5.00% n/a 1.20% (8)

“B” (10) (10)
n/a CG 2.00% 5.00% n/a 1.20% (8)

“B” (10) EUR n/a CG 2.00% 5.00% n/a 1.20% (8)

“BH” (7) (7)
n/a CG 2.00% 5.00% n/a 1.20% (8)

“BH” (7) EUR n/a CG 2.00% 5.00% n/a 1.20% (8)

“CA” (15) USD n/a D 2.00% n/a 0.70% 1.20% (8)

“CA” (10) (15) (10)
n/a D 2.00% n/a 0.70% 1.20% (8)

“CAH” (7) (15) (7)
n/a D 2.00% n/a 0.70% 1.20% (8)

“CAH” (7) (15) EUR n/a D 2.00% n/a 0.70% 1.20% (8)

“CAH” (7) (15) CHF n/a D 2.00% n/a 0.70% 1.20% (8)

“CB” (15) USD n/a CG 2.00% n/a 0.70% 1.20% (8)

“CB” (10) (15) (10)
n/a CG 2.00% n/a 0.70% 1.20% (8)

“CBH” (7) (15) (7)
n/a CG 2.00% n/a 0.70% 1.20% (8)

“CBH” (7) (15) EUR n/a CG 2.00% n/a 0.70% 1.20% (8)

“CBH” (7) (15) CHF n/a CG 2.00% n/a 0.70% 1.20% (8)

“DB” (4) USD n/a CG 2.00% n/a n/a n/a (5) n/a
“DBH” (4) (7) (7)
n/a CG 2.00% n/a n/a n/a (5) n/a
“DBH” (4) (7) CHF n/a CG 2.00% n/a n/a n/a (5) n/a
“DBH” (4) (7) EUR n/a CG 2.00% n/a n/a n/a (5) n/a
“DP” (4) USD n/a CG 2.00% n/a n/a n/a (6) (8)

“EA” (11) USD n/a D 2.00% 3.00% n/a 0.60% (8)

“EAH” (7) (11) (7)
n/a D 2.00% 3.00% n/a 0.60% (8)

“EB” (11) USD n/a CG 2.00% 3.00% n/a 0.60% (8)

“EBH” (7) (11) (7)
n/a CG 2.00% 3.00% n/a 0.60% (8)

“EBH” (7) (11) CHF n/a CG 2.00% 3.00% n/a 0.60% (8)

“EBH” (7) (11) EUR n/a CG 2.00% 3.00% n/a 0.60% (8)

"IA" USD 500’000 D 2.00% 3.00% n/a 0.60% (8)

"IAH” (7) (7)
– D 2.00% 3.00% n/a 0.60% (8)

“IA25” USD 25,000,000 D 2.00% 1.00% n/a 0.30% (8)

“IAH25”(7) (7)
n/a D 2.00% 1.00% n/a 0.30% (8)

“IB” USD 500’000 CG 2.00% 3.00% n/a 0.60% (8)

“IBH” (7) (7)
– CG 2.00% 3.00% n/a 0.60% (8)

“IBH” (7) CHF 500’000 CG 2.00% 3.00% n/a 0.60% (8)

“IBH” (7) EUR 500’000 CG 2.00% 3.00% n/a 0.60% (8)

“IB25” USD 25,000,000 CG 2.00% 1.00% n/a 0.30% n/a
“IBH25”(7) (7)
- CG 2.00% 1.00% n/a 0.30% n/a
“MA” (11) USD 25’000’000 D 2.00% 1.00% n/a 0.30% (8)

“MAH” (7) (11) (7)
25’000’000 D 2.00% 1.00% n/a 0.30% (8)

“MB” (11) USD 25’000’000 CG 2.00% 1.00% n/a 0.30% (8)

“MBH” (7) (11) (7)
25’000’000 CG 2.00% 1.00% n/a 0.30% (8)

“SA” (13) USD 1’000’000 D 2.00% 1.00% n/a 0.30% (8)

“SAH” (7) (13) (7)
– D 2.00% 1.00% n/a 0.30% (8)

“SB” (13) USD 1’000’000 CG 2.00% 1.00% n/a 0.30% (8)

“SBH” (7) (13) (7)
– CG 2.00% 1.00% n/a 0.30% (8)

“SBH” (7) (13) EUR 1’000’000 CG 2.00% 1.00% n/a 0.30% (8)

“SBH” (7) (13) CHF 1’000’000 CG 2.00% 1.00% n/a 0.30% (8)

“UA” (12) USD n/a D 2.00% 5.00% n/a 0.90% (8)

“UAH” (7) (12) (7)
n/a D 2.00% 5.00% n/a 0.90% (8)

“UB” (12) USD n/a CG 2.00% 5.00% n/a 0.90% (8)

“UBH” (7) (12) (7)
n/a CG 2.00% 5.00% n/a 0.90% (8)

“UBH” (7) (12) EUR n/a CG 2.00% 5.00% n/a 0.90% (8)

“UBH” (7) (12) CHF n/a CG 2.00% 5.00% n/a 0.90% (8)

“XA” (14) USD (14)
D 2.00% 5.00% n/a 1.20% n/a
“XAH” (7) (14) (7) (14)
D 2.00% 5.00% n/a 1.20% n/a
“XB” (14) USD (14)
CG 2.00% 5.00% n/a 1.20% n/a
“XBH” (7) (14) (7) (14)
CG 2.00% 5.00% n/a 1.20% n/a
“XAP” (14) USD (14)
D 2.00% 5.00% n/a 1.00% (8)

“XAHP” (7) (14) (7) (14)
D 2.00% 5.00% n/a 1.00% (8)

“XBP” (14) USD (14)
CG 2.00% 5.00% n/a 1.00% (8)

“XBHP” (7) (14) (7) (14)
CG 2.00% 5.00% n/a 1.00% (8)

Credit Suisse (Lux) “DB” (4) EUR n/a CG 2.00% n/a n/a n/a (5) n/a
Contingent Capital Euro “DBH” (4) (7) (7)
n/a CG 2.00% n/a n/a n/a (5) n/a
Fund “DBH” (4) (7) CHF n/a CG 2.00% n/a n/a n/a (5) n/a
(EUR)
“DBH” (4) (7) USD n/a CG 2.00% n/a n/a n/a (5) n/a
“EA” (11) EUR n/a D 2.00% 3.00% n/a 0.50% n/a
“EAH” (7) (11) (7)
n/a D 2.00% 3.00% n/a 0.50% n/a
“EB” (11) EUR n/a CG 2.00% 3.00% n/a 0.50% n/a

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CS Investment Funds 1
Investment Company with Variable Capital under Luxembourg Law

Maximum Maximum Maximum
Maximum Perfor-
Subfund Currenc Minimum Share Adjustment of distribution fee management
Share Class sales mance
(Reference Currency) y holding Type (2) the Net Asset (per annum) fee
charge fee
Value (per annum) (3)

“EBH” (7) (11) (7)
n/a CG 2.00% 3.00% n/a 0.50% n/a
“EBH” (7) (11) CHF n/a CG 2.00% 3.00% n/a 0.50% n/a
“EBH” (7) (11) USD n/a CG 2.00% 3.00% n/a 0.50% n/a
“IA” EUR 500’000 D 2.00% 3.00% n/a 0.60% n/a
“IAH” (7) (7)
500’000 D 2.00% 3.00% n/a 0.60% n/a
“IAH” (7) CHF 500’000 CG 2.00% 3.00% n/a 0.60% n/a
“IAH” (7) SGD 500’000 CG 2.00% 3.00% n/a 0.60% n/a
“IAH” (7) USD 500’000 CG 2.00% 3.00% n/a 0.60% n/a
“IA25” EUR 25,000,000 D 2.00% 1.00% n/a 0.40% n/a
“IAH25”(7) (7)
n/a D 2.00% 1.00% n/a 0.40% n/a
“IB” EUR 500’000 CG 2.00% 3.00% n/a 0.60% n/a
“IBH” (7) (7)
500’000 CG 2.00% 3.00% n/a 0.60% n/a
“IBH” (7) CHF 500’000 CG 2.00% 3.00% n/a 0.60% n/a
“IBH” (7) SGD 500’000 CG 2.00% 3.00% n/a 0.60% n/a
“IBH” (7) USD 500’000 CG 2.00% 3.00% n/a 0.60% n/a
“IB25” EUR 25,000,000 CG 2.00% 1.00% n/a 0.40% n/a
“IBH25”(7) (7)
- CG 2.00% 1.00% n/a 0.40% n/a
“MA” (11) EUR 25’000’000 D 2.00% 1.00% n/a 0.40% n/a
“MAH” (7) (11) (7)
– D 2.00% 1.00% n/a 0.40% n/a
“MB” (11) EUR 25’000’000 CG 2.00% 1.00% n/a 0.40% n/a
“MBH” (7) (11) (7)
– CG 2.00% 1.00% n/a 0.40% n/a
“QA”(9) EUR n/a D 2.00% 5.00% n/a 1.20% n/a
“QAH” (7) (9) (7)
n/a D 2.00% 5.00% n/a 1.20% n/a
“QB” (9) EUR n/a CG 2.00% 5.00% n/a 1.20% n/a
“QBH” (7) (9) (7)
n/a CG 2.00% 5.00% n/a 1.20% n/a
“QBH” (7) (9) CHF n/a CG 2.00% 5.00% n/a 1.20% n/a
“QBH” (7) (9) USD n/a CG 2.00% 5.00% n/a 1.20% n/a
“SA” (13) EUR 1’000’000 D 2.00% 1.00% n/a 0.40% n/a
“SAH” (7) (13) (7)
1’000’000 D 2.00% 1.00% n/a 0.40% n/a
“SAH” (7) (13) USD 1’000’000 CG 2.00% 1.00% n/a 0.40% n/a
“SAH” (7) (13) CHF 1’000’000 CG 2.00% 1.00% n/a 0.40% n/a
“SB” (13) EUR 1’000’000 CG 2.00% 1.00% n/a 0.40% n/a
“SBH” (7) (13) (7)
1’000’000 CG 2.00% 1.00% n/a 0.40% n/a
“SBH” (7) (13) USD 1’000’000 CG 2.00% 1.00% n/a 0.40% n/a
“SBH” (7) (13) CHF 1’000’000 CG 2.00% 1.00% n/a 0.40% n/a
Credit Suisse (Lux) “A” EUR n/a D 2.00% 5.00% n/a 1.20% n/a
European Sovereign Plus “AH” (7) (7)
n/a D 2.00% 5.00% n/a 1.20% n/a
Bond Fund “B” EUR n/a CG 2.00% 5.00% n/a 1.20% n/a
(EUR)
“BH” (7) (7)
n/a CG 2.00% 5.00% n/a 1.20% n/a
“CA” (15) EUR n/a D 2.00% n/a 0.70% 1.20% n/a
“CA” (10) (15) (10)
n/a D 2.00% n/a 0.70% 1.20% n/a
“CAH” (7) (15) (7)
n/a D 2.00% n/a 0.70% 1.20% n/a
“CAH” (7) (15) USD n/a D 2.00% n/a 0.70% 1.20% n/a
“CAH” (7) (15) CHF n/a D 2.00% n/a 0.70% 1.20% n/a
“CB” (15) EUR n/a CG 2.00% n/a 0.70% 1.20% n/a
“CB” (10) (15) (10)
n/a CG 2.00% n/a 0.70% 1.20% n/a
“CBH” (7) (15) (7)
n/a CG 2.00% n/a 0.70% 1.20% n/a
“CBH” (7) (15) USD n/a CG 2.00% n/a 0.70% 1.20% n/a
“CBH” (7) (15) CHF n/a CG 2.00% n/a 0.70% 1.20% n/a
“DB” (4) EUR n/a CG 2.00% n/a n/a n/a (5) n/a
“DBH” (4) (7) (7)
n/a CG 2.00% n/a n/a n/a (5) n/a
“DBH” (4) (7) CHF n/a CG 2.00% n/a n/a n/a (5) n/a
“DBH” (4) (7) USD n/a CG 2.00% n/a n/a n/a (5) n/a
“EA” (11) EUR n/a D 2.00% 3.00% n/a 0.70% n/a
“EAH” (7) (11) (7)
n/a D 2.00% 3.00% n/a 0.70% n/a
“EB” (11) EUR n/a CG 2.00% 3.00% n/a 0.70% n/a
“EBH” (7) (11) (7)
n/a CG 2.00% 3.00% n/a 0.70% n/a
“EBH” (7) (11) CHF n/a CG 2.00% 3.00% n/a 0.70% n/a
“EBH” (7) (11) USD n/a CG 2.00% 3.00% n/a 0.70% n/a
"IA" EUR 500'000 D 2.00% 3.00% n/a 0.70% n/a
"IAH” (7) (7)
– D 2.00% 3.00% n/a 0.70% n/a
“IA25” EUR 25,000,000 D 2.00% 0.50% n/a 0.30% n/a
“IAH25”(7) (7)
n/a D 2.00% 0.50% n/a 0.30% n/a
“IB” EUR 500’000 CG 2.00% 3.00% n/a 0.70% n/a
“IBH” (7) (7)
– CG 2.00% 3.00% n/a 0.70% n/a
“IBH” (7) CHF 500’000 CG 2.00% 3.00% n/a 0.70% n/a
“IBH” (7) USD 500’000 CG 2.00% 3.00% n/a 0.70% n/a
“IB25” EUR 25,000,000 CG 2.00% 0.50% n/a 0.30% n/a
“IBH25”(7) (7)
n/a CG 2.00% 0.50% n/a 0.30% n/a
“MA” (11) EUR 25’000’000 D 2.00% 0.50% n/a 0.30% n/a
“MAH” (7) (11) (7)
25’000’000 D 2.00% 0.50% n/a 0.30% n/a

5

00% 5.90% n/a “UB” (12) EUR n/a CG 2.00% n/a 1.00% 5.50% (8) “CAH” (7) (15) (7) n/a D 2.00% 1.40% (8) “QA”(9) USD n/a D 2.40% (8) “MBH” (7) (11) (7) 25’000’000 CG 2.000.50% (8) (USD) “B” USD n/a CG 2.00% n/a Credit Suisse (Lux) “A” USD n/a D 2.00% n/a 0.00% n/a n/a n/a (6) (8) “EA” (11) USD n/a D 2.35% (8) “XAH” (7) (14) (7) (14) D 2.00% 5.00% n/a 0.00% 5.00% n/a 0.00% n/a 0.00% n/a 1.15% (8) “XA” (14) USD (14) D 2.50% (8) “CA” (10) (15) (10) n/a D 2.00% 0.00% n/a 0.00% n/a 0.70% 1.50% (8) “CAH” (7) (15) CHF n/a D 2.30% n/a “MBH” (7) (11) (7) 25’000’000 CG 2.00% n/a 1.00% 5.00% n/a 0.00% n/a 0.00% n/a 0.90% n/a “XA” (14) EUR (14) D 2.00% n/a 0.00% 5.00% n/a 1.75% (8) “IA25” USD 25.75% (8) “IBH” (7) (7) – CG 2.00% 1.70% 1.00% 3.00% n/a 0.00% 5.00% n/a 0.00% 5.40% (8) “MAH” (7) (11) (7) 25’000’000 D 2.00% n/a 1.00% n/a n/a n/a (5) n/a “DBH” (4) (7) (7) n/a CG 2.90% n/a “UAH” (7) (12) (7) n/a D 2.00% 1.40% (8) “MB” (11) USD 25’000’000 CG 2.00% n/a 0.000.00% 3.70% 1.75% (8) “EBH” (7) (11) (7) n/a CG 2.00% n/a 1.75% (8) “EB” (11) USD n/a CG 2.00% n/a 1.00% 3.15% (8) “UAH” (7 (12) (7) n/a D 2.00% 5.20% (8) “QAH” (7) (9) EUR n/a D 2.00% n/a n/a n/a (5) n/a “DBH” (4) (7) CHF n/a CG 2.00% n/a 0.70% 1.75% (8) “IAH” (7) (7) – D 2.75% (8) “EBH” (7) (11) EUR n/a CG 2.00% n/a 1.00% 3.50% (8) “DB” (4) USD n/a CG 2.40% (8) “SB” (12) USD 1’000’000 CG 2.40% (8) “SAH” (7) (12) (7) – D 2.00% n/a 1.00% n/a 0.00% n/a 0.00% 5.20% (8) “QAH” (7) (9) (7) n/a D 2.70% 1.00% n/a 0.50% (8) “B” (10) (10) n/a CG 2.00% n/a 1.00% n/a 0.00% n/a 0.50% (8) “CBH” (7) (15) CHF n/a CG 2.00% n/a “XAH” (7) (14) (7) (14) D 2.00% 5.00% n/a 1.50% (8) “CBH” (7) (15) EUR n/a CG 2.50% (8) Focused Bond Fund “AH” (7) (7) n/a D 2.00% n/a 0.50% (8) “CB” (15) USD n/a CG 2.00% 3.00% 5.50% n/a 0.00% n/a 1.35% (8) “XB” (14) USD (14) CG 2.40% (8) “IB” USD 500’000 CG 2.15% (8) “UBH” (7) (12) (7) n/a CG 2.00% 1.000 CG 2.00% n/a 1.75% (8) “IBH” (7) EUR 500’000 CG 2.00% n/a 1.00% 5.00% n/a 0.75% (8) “IA” USD 500’000 D 2.00% 1.00% n/a 1.00% n/a 0.00% n/a 0.00% 5.40% (8) “SBH” (7) (12) EUR – CG 2.75% (8) “IBH” (7) CHF 500’000 CG 2.50% (8) “B” (10) EUR n/a CG 2.00% 3.00% n/a n/a n/a (5) n/a “DBH” (4) (7) EUR n/a CG 2.75% (8) “EBH” (7) (11) CHF n/a CG 2.00% 1.40% (8) “IAH25”(7) (7) n/a D 2.00% 1.00% n/a 0.40% (8) “IBH25”(7) (7) n/a CG 2.00% 5.40% (8) “UA” (12) USD n/a D 2.00% 5.20% (8) “QAH” (7) (9) CHF n/a D 2.35% (8) “XBH” (7) (14) (7) (14) CG 2.00% n/a 0.35% (8) 6 .00% n/a 0.00% 1.00% n/a 0.00% n/a 0.00% n/a 1.00% n/a 0.00% 5.00% n/a 0.00% n/a 1.00% 1.50% (8) “CB” (10) (15) (10) n/a CG 2.20% (8) “QB” (9) USD n/a CG 2.00% 1.15% (8) “UB” (12) USD n/a CG 2.50% (8) “CAH” (7) (15) EUR n/a D 2.00% n/a 0.00% n/a n/a n/a (5) n/a “DP” (4) USD n/a CG 2.00% 5.75% (8) “EAH” (7) (11) (7) n/a D 2.70% 1.00% 5.00% n/a 0.00% n/a 1.00% n/a 1.20% (8) “QBH” (7) (9) (7) n/a CG 2.00% 1.00% 5.00% 3.00% 5.00% 5.00% n/a “XBH” (7) (14) (7) (14) CG 2. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Maximum Maximum Maximum Maximum Perfor- Subfund Currenc Minimum Share Adjustment of distribution fee management Share Class sales mance (Reference Currency) y holding Type (2) the Net Asset (per annum) fee charge fee Value (per annum) (3) “MB” (11) EUR 25’000’000 CG 2.50% (8) “CBH” (7) (15) (7) n/a CG 2.00% 3.70% 1.00% n/a 1.00% n/a 0.00% 1.00% n/a 1.70% 1.20% (8) “SA” (12) USD 1’000’000 D 2.00% n/a 0.00% n/a “XB” (14) EUR (14) CG 2.00% 5.00% 0.90% n/a “UBH” (7) (12) (7) n/a CG 2.00% n/a 0.00% 1.00% n/a 0.00% n/a 1.00% n/a 0.40% (8) “MA” (11) USD 25’000’000 D 2.50% (8) “BH” (7) (7) n/a CG 2.00% n/a 1.00% 5.00% n/a 0.70% 1.00% 3.40% (8) “SBH” (7) (12) (7) – CG 2.00% 3.40% (8) “SBH” (7) (12) CHF – CG 2.00% 5.00% n/a 0.00% 3.70% 1.50% (8) “CA” (15) USD n/a D 2.75% (8) “IB25” USD 25.000 D 2.00% 5.00% n/a 1.30% n/a “UA” (12) EUR n/a D 2.00% 5.50% n/a 0.00% n/a 0.00% 1.00% 5.00% 3.

00% n/a 0.20% n/a “CA” (10) (15) (10) n/a D 2.00% 0.00% n/a 0.70% 1.00% 3.50% n/a 0.70% 1.80% n/a “FA” (17) USD n/a D 2.00% n/a “UBH” (7) (12) EUR n/a CG 2.00% 3.00% n/a 1.20% n/a 7 .00% n/a “UAH” (7) (12) (7) n/a D 2.65% n/a “MA” (11) USD 25’000’000 D 2.60% (8) “IBHP” (7) (7) – CG 2.00% 3.00% n/a 0.20% n/a Bond Fund “B” USD n/a CG 2.70% 1.60% (8) “IBHP” (7) CHF 500’000 CG 2.00% n/a 0.80% n/a “EB” (11) USD n/a CG 2.00% n/a 0.00% 3.20% n/a “CBH” (7) (15) (7) n/a CG 2.00% 3.60% (8) “IAHP” (7) (7) – D 2.00% n/a 0.80% n/a “IBH” (7) EUR 500’000 CG 2.00% n/a 1.00% 3.00% n/a n/a n/a (5) n/a “DBH” (4) (7) (7) n/a CG 2.00% n/a 1.20% n/a “CBH” (7) (15) CHF n/a CG 2.00% n/a 0.20% n/a “CA” (15) USD n/a D 2.65% n/a “MBH” (7) (11) (7) 25’000’000 CG 2.00% 3.20% n/a “BH” (7) (7) n/a CG 2. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Maximum Maximum Maximum Maximum Perfor- Subfund Currenc Minimum Share Adjustment of distribution fee management Share Class sales mance (Reference Currency) y holding Type (2) the Net Asset (per annum) fee charge fee Value (per annum) (3) Credit Suisse (Lux) “A” USD n/a D 2.00% n/a 1.00% n/a 1.00% 3.00% n/a 0.70% 1.00% n/a “UBH” (7) (12) (7) n/a CG 2.20% n/a “CBH” (7) (15) EUR n/a CG 2.00% n/a 0.00% 0.20% n/a (USD) “BH” CHF n/a CG 2.00% n/a “XAH” (7) (14) (7) (14) D 2.20% n/a “CAH” (7) (15) EUR n/a D 2.00% n/a 0.00% 5.50% n/a 0.00% 5.00% n/a 1.00% n/a 0.20% n/a “BH” (7) CHF n/a CG 2.00% n/a 1.50% n/a 0.70% n/a “IA” USD 500’000 D 2.00% n/a 1.00% 5.70% n/a “FAH” (7) (17) (7) n/a D 2.00% n/a 1.60% (8) “IB25” USD 25.00% n/a 0.00% n/a 1.00% 3.00% 3.00% 5.20% n/a (USD) “BH” (7) (7) n/a CG 2.70% 1.00% n/a 0.00% n/a n/a n/a (5) n/a “DBH” (4) (7) CHF n/a CG 2.20% n/a “CAH” (7) (15) CHF n/a D 2.00% n/a 1.00% n/a “UB” (12) USD n/a CG 2.50% n/a 0.00% 3.60% (8) “IA25” USD 25.70% n/a “FBH” (7) (17) (7) n/a CG 2.00% 3.00% n/a 1.65% n/a “IBH25”(7) (7) n/a CG 2.00% 3.20% n/a AgaNola Global Convertible “AH” (7) (7) n/a D 2.20% n/a “DB” (4) USD n/a CG 2.00% n/a 0.00% 5.00% n/a 0.000 D 2.80% n/a “EAH” (7) (11) (7) n/a D 2.00% n/a 0.00% n/a 1.60% (8) “IBHP” (7) EUR 500’000 CG 2.00% n/a 0.00% 5.50% n/a 0.00% n/a 0.70% 1.00% n/a 1.00% n/a n/a 0.80% n/a “EAH” (7) (11) EUR n/a D 2.20% n/a Global High Yield Bond “AH” (7) (7) n/a D 2.80% n/a “IBH” (7) (7) – CG 2.00% n/a Credit Suisse (Lux) “A” USD n/a D 2.65% n/a “MB” (11) USD 25’000’000 CG 2.00% 5.80% n/a “IAP” USD 500’000 D 2.00% n/a 1.50% n/a 0.80% n/a “EAH” (7) (11) CHF n/a D 2.00% 5.00% n/a n/a 0.80% n/a “EBH” (7) (11) CHF n/a CG 2.70% n/a “FBH” (7) (17) EUR n/a CG 2.00% n/a n/a 0.00% 3.00% n/a n/a 0.00% n/a 1.00% 0.20% n/a Fund “B” USD n/a CG 2.65% n/a “MAH” (7) (11) (7) 25’000’000 D 2.00% 5.00% 5.00% 0.65% n/a “IB” USD 500’000 CG 2.00% n/a 0.80% n/a “IBP” USD 500’000 CG 2.00% 3.70% 1.00% n/a “XB” (14) USD (14) CG 2.00% n/a 1.00% n/a 0.70% 1.00% n/a 0.80% n/a “IBH” (7) CHF 500’000 CG 2.00% 0.65% n/a “UA” (12) USD n/a D 2.00% 0.20% n/a “CB” (10) (15) (10) n/a CG 2.00% n/a 1.00% 0.00% n/a 1.00% n/a 1.70% 1.00% n/a “XBH” (7) (14) (7) (14) CG 2.00% 5.00% n/a 1.00% 0.00% 5.70% n/a “FBH” (7) (17) CHF n/a CG 2.70% 1.00% 5.00% 5.00% n/a “XA” (14) USD (14) D 2.00% n/a n/a n/a (5) n/a “EA” (11) USD n/a D 2.00% n/a 0.00% 5.00% n/a 0.000 CG 2.00% n/a n/a n/a (5) n/a “DBH” (4) (7) EUR n/a CG 2.20% n/a “BH” EUR n/a CG 2.00% 5.20% n/a “CA” (15) USD n/a D 2.20% n/a “CA” (10) (15) (10) n/a D 2.00% n/a 0.00% 3.00% n/a n/a 0.00% n/a 0.50% n/a 0.70% 1.00% n/a 0.00% 5.00% n/a 0.00% 5.65% n/a “IAH25”(7) (7) n/a D 2.00% n/a “UBH” (7) (12) CHF n/a CG 2.00% n/a 0.80% n/a “EBH” (7) (11) (7) n/a CG 2.00% n/a 0.00% n/a n/a 0.00% n/a 0.00% 3.20% n/a “CAH” (7) (15) (7) n/a D 2.00% 5.00% 3.20% n/a “CB” (15) USD n/a CG 2.000.00% 5.70% 1.000.00% n/a 0.00% 3.80% n/a “EBH” (7) (11) EUR n/a CG 2.50% n/a 0.80% n/a “IAH” (7) (7) – D 2.00% n/a 0.70% n/a “FB” (17) USD n/a CG 2.00% 5.00% 3.

70% 1.50% n/a 0.00% n/a 1.00% 0.40% n/a “MA” (11) USD 25’000’000 D 2.00% n/a 0.20% n/a “CBH” (7) (15) CHF n/a CG 2.00% n/a 0.00% n/a Bond Fund “AH” (7) EUR n/a D 2.50% 1.90% n/a “UB” (12) USD n/a CG 2.00% n/a Global Inflation Linked “AH” (7) (7) n/a D 2.00% 5.00% 5.70% 1.60% n/a “EAH” (7) (11) (7) n/a D 2.70% n/a “EB” (11) USD n/a CG 2.50% 1.00% n/a n/a n/a (5) n/a “DBH” (4) (7) (7) n/a CG 2.00% n/a 0.00% n/a “CAH” (7) (15) EUR n/a D 2.00% n/a 0.00% n/a n/a n/a (5) n/a “DBD” (4) (15) USD n/a CG 2.00% n/a 0.00% 3.00% 3.000 CG 2.00% 3.00% n/a “CAH” (7) (15) (7) n/a D 2.00% n/a “CB” (15) USD n/a CG 2.00% n/a 0.00% n/a 0.50% 1.00% n/a 0.60% n/a “EB” (11) USD n/a CG 2.70% 1.70% n/a “EBH” (7) (11) CHF n/a CG 2.20% n/a “CAH” (7) (15) CHF n/a D 2.00% 5.00% n/a 1.40% n/a “UA” (12) USD n/a D 2.000 D 2.00% n/a 1.00% 0.00% n/a 0.00% n/a “CBH” (7) (15) EUR n/a CG 2.00% n/a 0.00% n/a 0.50% n/a 0.70% 1.00% n/a 0.40% n/a “IBH25”(7) (7) n/a CG 2.70% 1.70% n/a “IBH” (7) (7) – CG 2.90% n/a “UAH” (7) (12) (7) n/a D 2.00% 3.00% 3.000.40% n/a “MBH” (7) (11) (7) 25’000’000 CG 2.00% n/a 0.00% n/a 0.50% 1.00% n/a 1.00% 3.00% n/a 0.00% 3.00% 3.50% n/a 0.00% 3.60% n/a “EBH” (7) (11) CHF n/a CG 2.50% 1.70% n/a “IBH” (7) EUR 500’000 CG 2.00% n/a 0.00% 5.00% n/a “XAH” (7) (14) (7) (14) D 2.00% 3.00% n/a 0.00% 3.00% 5.70% n/a “IBH” (7) CHF 500’000 CG 2.00% 0.40% n/a “MB” (11) USD 25’000’000 CG 2.00% n/a 0.90% n/a “UBH” (7) (12) (7) n/a CG 2.00% 3.00% 3.50% 1.00% n/a 0.00% n/a “CBH” (7) (15) (7) n/a CG 2.70% n/a “IA25” USD 25.00% n/a 0.40% n/a “IB” USD 500’000 CG 2.90% n/a “XA” (14) USD (14) D 2.00% n/a 0.00% n/a 0.70% 1.00% n/a 0.00% n/a n/a n/a (5) n/a “DBH” (4) (7) (7) n/a CG 2.40% n/a “IAH25”(7) (7) n/a D 2.00% 5.00% n/a n/a n/a (5) n/a “DP” (4) USD n/a CG 2.00% 0.00% n/a 0.00% n/a “BH” (7) EUR n/a CG 2.50% n/a 0.00% n/a 0.00% n/a “CA” (10) (15) (10) n/a D 2.50% n/a 0.50% n/a 0.00% 3.00% 3.00% n/a 1.00% n/a “DB” (4) USD n/a CG 2.00% n/a 0.00% n/a 1.20% n/a “CAH” (7) (15) EUR n/a D 2.70% n/a “EBH” (7) (11) (7) n/a CG 2.60% n/a “EBH” (7) (11) (7) n/a CG 2.70% 1.20% n/a “CBH” (7) (15) (7) n/a CG 2.00% 5.70% n/a “IAH” (7) (7) – D 2.00% n/a n/a n/a (5) n/a “DBDH” n/a n/a (4)(7)(15) (7) CG 2.00% n/a 0.00% n/a 0.70% n/a “IA” USD 500’000 D 2.00% 3.00% n/a n/a n/a (5) n/a “DBH” (4) (7) EUR n/a CG 2.00% 0.00% n/a 0.00% n/a “CAH” (7) (15) CHF n/a D 2.00% 3.50% 1.00% n/a n/a n/a (5) n/a “DBH” (4) (7) CHF n/a CG 2.00% 5.00% n/a 1.50% 1.20% n/a “CBH” (7) (15) EUR n/a CG 2.00% n/a n/a n/a (5) n/a “DBH” (4) (7) EUR n/a CG 2.70% n/a “EAH” (7) (11) (7) n/a D 2.50% 1.00% n/a “CA” (15) USD n/a D 2.00% n/a “CB” (10) (15) (10) n/a CG 2.70% n/a “EBH” (7) (11) EUR n/a CG 2.00% n/a 1.00% n/a n/a n/a (6) (8) “EA” (11) USD n/a D 2.00% n/a 1.00% n/a “XBH” (7) (14) (7) (14) CG 2.50% 1.00% n/a n/a (5) n/a “EA” (11) USD n/a D 2.00% n/a “BH” (7) (7) n/a CG 2.00% n/a 1.00% n/a “XB” (14) USD (14) CG 2.00% 5.40% n/a “MAH” (7) (11) (7) 25’000’000 D 2.70% 1.20% n/a “DB” (4) USD n/a CG 2.00% 5.00% n/a Credit Suisse (Lux) “A” USD n/a D 2.00% n/a 0.00% n/a 0.00% n/a 0.00% n/a n/a (5) n/a “DBDH” n/a n/a (4)(7)(15) CHF CG 2.00% n/a “CBH” (7) (15) CHF n/a CG 2.20% n/a “CB” (10) (15) (10) n/a CG 2.00% 0.50% n/a 0.00% n/a 0. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Maximum Maximum Maximum Maximum Perfor- Subfund Currenc Minimum Share Adjustment of distribution fee management Share Class sales mance (Reference Currency) y holding Type (2) the Net Asset (per annum) fee charge fee Value (per annum) (3) “CAH” (7) (15) (7) n/a D 2.00% n/a 0.00% 5.00% 0.00% 5.70% n/a “IB25” USD 25.00% n/a (USD) “B” USD n/a CG 2.000.00% n/a 0.00% n/a 0.20% n/a “CB” (15) USD n/a CG 2.00% n/a 0.60% n/a 8 .00% n/a n/a n/a (5) n/a “DBH” (4) (7) CHF n/a CG 2.00% 5.00% 0.00% 5.00% n/a 0.50% n/a 0.00% n/a 0.

00% n/a 0.40% n/a “MBH” (7) (11) (7) 25’000’000 CG 2.00% 5.50% 0.50% n/a 0.60% n/a “IBH” (7) EUR 500’000 CG 2.00% 0.75% n/a “CBH” (7) (15) CHF n/a CG 2.50% n/a 0.000.00% 0.00% 3.00% 3.00% 3.00% 3.00% 3.50% n/a 0.000.75% n/a “UAH” (7) (12) EUR n/a D 2.00% 0.00% 5.75% n/a “UAH” (7) (12) (7) n/a D 2.00% 5.00% 3.50% 0.40% n/a “IBH25”(7) (7) n/a CG 2.00% n/a 0.40% n/a “MB” (11) USD 25’000’000 CG 2.75% n/a “CAH” (7) (15) EUR n/a D 2.50% 0.00% n/a 0.00% n/a 0.50% n/a 0.00% n/a 0.000 D 2.00% n/a n/a n/a (5) n/a “DBH” (4) (7) EUR n/a CG 2.00% n/a 0.40% n/a “MAH” (7) (11) (7) 25’000’000 D 2.00% n/a 0.50% n/a 0.00% 3.00% 0.75% n/a “DB” (4) USD n/a CG 2.00% n/a 0.00% n/a 0.75% n/a “CB” (15) USD n/a CG 2.00% 3.00% n/a 0.00% 3.00% 5.60% n/a “UB” (12) USD n/a CG 2.50% n/a 0.25% n/a “IB” USD 500’000 CG 2.00% 5.00% 5.25% n/a “MAH” (7) (11) (7) 25’000’000 D 2.00% n/a 0.00% 5.00% n/a 0.50% n/a 0.00% n/a 0.00% 0.00% n/a 0.00% n/a 0.00% 3.00% 3.00% n/a 0.00% 5.00% 3.75% n/a “CAH” (7) (15) CHF n/a D 2.40% n/a “IB” USD 500’000 CG 2.60% n/a “XA” (14) USD (14) D 2.80% n/a “XAH” (7) (14) (7) (14) D 2.50% n/a 0.50% 0.00% n/a 0.00% 5.00% n/a 0.00% 3.40% n/a “UA” (12) USD n/a D 2.50% 0.45% n/a “IAH” (7) (7) – D 2.00% 3.50% n/a 0.00% n/a 0.50% n/a 0.00% n/a 0.00% 0.40% n/a “MA” (11) USD 25’000’000 D 2.00% 3.45% n/a “IBH” (7) (7) – CG 2.25% n/a “UA” (12) USD n/a D 2.00% 0.45% n/a “IB25” USD 25.50% n/a 0.00% 0.00% 0.00% 0.00% n/a 0.00% n/a 0.000 CG 2.50% n/a 0.75% n/a (USD) “BH” (7) (7) n/a CG 2.00% n/a 0.00% n/a n/a n/a (5) n/a “DBH” (4) (7) CHF n/a CG 2.75% n/a “CBH” (7) (15) EUR n/a CG 2.00% n/a 0.75% n/a “CA” (15) USD n/a D 2.60% n/a “UAH” (7) (12) (7) n/a D 2.00% n/a 0.00% 5.40% n/a “MBH” (7) (11) EUR 25’000’000 CG 2.000 CG 2.00% n/a 0.00% n/a 0.80% n/a Credit Suisse (Lux) “A” USD n/a D 2.50% n/a 0.000.45% n/a “EBH” (7) (11) EUR n/a CG 2.00% 0.00% n/a 0.00% n/a 0.70% n/a 9 .00% n/a 0.75% n/a “UBH” (7) (12) EUR n/a CG 2.00% n/a 0.00% 5.00% n/a 0.000.45% n/a “EAH” (7) (11) (7) n/a D 2.60% n/a “IAH” (7) (7) – D 2.00% 5.80% n/a “XBH” (7) (14) (7) (14) CG 2.25% n/a “MBH” (7) (11) (7) 25’000’000 CG 2.45% n/a “IBH” (7) GBP 500’000 CG 2.00% n/a 0.00% 3.50% n/a 0.00% 0.00% n/a n/a n/a (5) n/a “EA” (11) USD n/a D 2.00% n/a 0.50% n/a 0.40% n/a “IAH25”(7) (7) n/a D 2.75% n/a “CAH” (7) (15) (7) n/a D 2.60% n/a “UBH” (7) (12) (7) n/a CG 2.00% 5. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Maximum Maximum Maximum Maximum Perfor- Subfund Currenc Minimum Share Adjustment of distribution fee management Share Class sales mance (Reference Currency) y holding Type (2) the Net Asset (per annum) fee charge fee Value (per annum) (3) “EBH” (7) (11) EUR n/a CG 2.60% n/a “IBH” (7) CHF 500’000 CG 2.25% n/a “MA” (11) USD 25’000’000 D 2.00% n/a 0.50% 0.60% n/a “IA” USD 500’000 D 2.45% n/a “IBH” (7) EUR 500’000 CG 2.45% n/a “IA” USD 500’000 D 2.45% n/a “IA25” USD 25.00% 0.00% 5.25% n/a “IAH25”(7) (7) n/a D 2.00% n/a 0.00% n/a 0.00% 0.00% 0.75% n/a “CA” (10) (15) (10) n/a D 2.60% n/a “IBH” (7) (7) – CG 2.00% n/a 0.00% n/a 0.45% n/a “EB” (11) USD n/a CG 2.75% n/a “UBH” (7) (12) (7) n/a CG 2.25% n/a “MB” (11) USD 25’000’000 CG 2.75% n/a “XA” (14) USD (14) D 2.00% 5.75% n/a “UB” (12) USD n/a CG 2.75% n/a “CBH” (7) (15) (7) n/a CG 2.00% 3.75% n/a Global Securitized Bond “AH” (7) (7) n/a D 2.00% n/a 0.60% n/a “IB25” USD 25.00% 3.45% n/a “EBH” (7) (11) (7) n/a CG 2.00% n/a 0.45% n/a “IBH” (7) CHF 500’000 CG 2.75% n/a “CB” (10) (15) (10) n/a CG 2.50% 0.60% n/a “IA25” USD 25.00% n/a 0.00% n/a 0.00% 5.000 D 2.00% n/a 0.00% n/a 0.00% 5.00% n/a n/a n/a (5) n/a “DBH” (4) (7) (7) n/a CG 2.00% n/a 0.00% 0.25% n/a “IBH25”(7) (7) n/a CG 2.45% n/a “EBH” (7) (11) CHF n/a CG 2.40% n/a “MBH” (7) (11) ILS 100’000’000 CG 2.50% n/a 0.00% n/a 0.75% n/a Fund “B” USD n/a CG 2.50% n/a 0.00% 0.00% 3.00% 3.00% 5.00% n/a 0.50% n/a 0.00% n/a 0.00% 0.50% 0.50% 0.80% n/a “XB” (14) USD (14) CG 2.00% 5.50% 0.

00% n/a “CAH” (7) (15) EUR n/a D 2.25% n/a “MB” (11) USD 25’000’000 CG 2.00% n/a “BH” (7) CHF n/a CG 2.75% n/a “UAH” (7) (12) CHF n/a D 2.00% 5.55% n/a “IBH” (7) (7) – CG 2.00% 3.50% 1.00% 0.50% n/a 0.00% n/a “CAH” (7) (15) (7) n/a D 2.75% n/a “UAH” (7) (12) (7) n/a D 2.00% n/a “BH” (7) EUR n/a CG 2.00% n/a 0.00% n/a “B” USD n/a CG 2.00% n/a 1.00% 5.00% n/a “CBH” (7) (15) EUR n/a CG 2.00% n/a 0.00% n/a 0.00% n/a 0.00% 0.90% n/a “XBH” (7) (14) (7) (14) CG 2.55% n/a “IBH” (7) CHF 500’000 CG 2.00% n/a 0.00% n/a 0.00% 5.00% 5.25% n/a “MA” (11) USD 25’000’000 D 2.00% 5.50% 1.00% n/a 0.25% n/a “IBH25”(7) (7) n/a CG 2.00% n/a 0.00% 5.00% 3.00% 0.00% n/a 0.55% n/a “IA25” USD 25.00% n/a “AH” (7) (7) n/a D 2.00% 3.50% 1.00% n/a 0.00% n/a 0.00% n/a 0.75% n/a “UBH” (7) (12) (7) n/a CG 2.00% n/a “CA” (10) (15) (10) n/a D 2.55% n/a “EBH” (7) (11) CHF n/a CG 2.50% n/a 0.50% 1.00% n/a 1.00% 3.70% n/a “XBH” (7) (14) (7) (14) CG 2.25% n/a “UA” (12) USD n/a D 2.00% 3.70% n/a “XB” (14) USD (14) CG 2.00% n/a 0.25% n/a “IAH25”(7) (7) n/a D 2.50% 1.00% n/a “BH” (7) (7) n/a CG 2.00% n/a 0.00% 5.00% n/a Global Value Bond Fund “AH” EUR n/a D 2.50% 1.00% 3.50% n/a 0.00% n/a 0.75% n/a “UBH” (7) (12) EUR n/a CG 2.00% n/a 1.00% n/a 0.75% n/a “UBH” (7) (12) CHF n/a CG 2.00% n/a 0.00% 5.00% 3.75% n/a “XA” (14) USD (14) D 2.00% 5.00% 5.00% n/a 0.00% 0.90% n/a “XB” (14) USD (14) CG 2.00% 3.25% n/a “MAH” (7) (11) (7) 25’000’000 D 2.55% n/a “EB” (11) USD n/a CG 2.55% n/a “IAH” (7) (7) – D 2.00% n/a n/a n/a (5) n/a “DBH” (4) (7) CHF n/a CG 2.00% n/a n/a n/a (5) n/a “DBH” (4) (7) EUR n/a CG 2.50% 1.75% n/a “UB” (12) USD n/a CG 2.00% n/a 0.70% n/a Credit Suisse (Lux) “A” USD n/a D 2.50% 1.55% n/a “EAH” (7) (11) (7) n/a D 2.50% n/a 0.00% 0.00% n/a 1.00% n/a 0.00% n/a 1.00% n/a n/a n/a (5) n/a “DBH” (4) (7) (7) n/a CG 2.00% n/a 0.00% 5.00% n/a (USD) “AH” CHF n/a D 2.00% 5.00% n/a 1.000 D 2.00% 0.00% 5.00% n/a “CB” (15) USD n/a CG 2.00% 5.00% n/a 0.00% n/a 0.00% 0.50% n/a 0.00% n/a 0.000.00% n/a 0.00% 3.50% n/a 0.25% n/a “IB” USD 500’000 CG 2. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Maximum Maximum Maximum Maximum Perfor- Subfund Currenc Minimum Share Adjustment of distribution fee management Share Class sales mance (Reference Currency) y holding Type (2) the Net Asset (per annum) fee charge fee Value (per annum) (3) “XAH” (7) (14) (7) (14) D 2.00% 5.00% 3.00% 5.55% n/a “IB25” USD 25.00% n/a “DB” (4) USD n/a CG 2.00% 5.00% n/a 1.00% 5.55% n/a “EBH” (7) (11) (7) n/a CG 2.00% 0.00% n/a 0.00% n/a 0.00% 3.55% n/a “EBH” (7) (11) EUR n/a CG 2.00% n/a “CBH” (7) (15) (7) n/a CG 2.00% n/a 1.00% n/a “CB” (10) (15) (10) n/a CG 2.00% 5.00% 5.00% n/a 0.00% n/a 0.50% 1.75% n/a “UAH” (7) (12) EUR n/a D 2.25% n/a “MBH” (7) (11) (7) 25’000’000 CG 2.000 CG 2.90% n/a “XAH” (7) (14) (7) (14) D 2.00% n/a 0.00% 5.50% 1.00% 5.00% n/a 0.90% n/a 10 .000.00% 5.00% n/a 0.00% 5.50% n/a 0.50% n/a 0.00% n/a “CA” (15) USD n/a D 2.00% n/a n/a n/a (5) n/a “EA” (11) USD n/a D 2.00% n/a 0.00% n/a “AH” SGD n/a D 2.00% n/a 1.00% n/a 0.00% n/a “CAH” (7) (15) CHF n/a D 2.55% n/a “IBH” (7) EUR 500’000 CG 2.00% n/a “CBH” (7) (15) CHF n/a CG 2.00% n/a 0.00% n/a 0.55% n/a “IA” USD 500’000 D 2.00% 3.00% n/a 0.

payable to the Management Company covering all fees and expenses excluding the fees payable to the Depositary. QBH. DBD.50% n/a 0. MBH. Class DB.15% p.30% n/a “MAH” (7) (11) (7) 25’000’000 D 2. as defined by the Management Company. CBH.00% n/a 0.70% 1.30% n/a “IB” EUR 500’000 CG 2. CBH. IBHP.90% n/a “XA” (14) EUR (14) D 2.20% n/a (EUR) “BH” (7) (7) n/a CG 2.000. XAHP..00% n/a 0.70% 1. MAH.00% n/a “XAH” (7) (14) (7) (14) D 2. with a subsidiary of Credit Suisse Group AG.30% n/a “MB” (11) EUR 25’000’000 CG 2.00% n/a “XBH” (7) (14) (7) (14) CG 2. IBH25. UBH.00% n/a “XB” (14) EUR (14) CG 2.00% 5.70% 1. DBH and DP Shares may also be acquired by institutional investors who have concluded an advisory agreement or any similar agreement.00% 5.00% 5. (7) The Company may decide on the issue of Class AH.00% 3.00% 3. SBH. IAHP. IBH.00% n/a 0.00% n/a n/a n/a (5) n/a “DBH” (4) (7) USD n/a CG 2.20% n/a “CAH” (7) (15) USD n/a D 2.70% n/a “EBH” (7) (11) USD n/a CG 2.30% n/a “MBH” (7) (11) (7) 25’000’000 CG 2.00% 0.70% n/a “EB” (11) EUR n/a CG 2. MAH.00% 5. MBH.00% n/a 0.00% 3. SAH and SBH Shares to be issued in any additional freely convertible currency will be the equivalent in such freely convertible currency of the amount set out in Chapter 2.00% n/a 0.00% n/a 1.20% n/a Fund “B” EUR n/a CG 2. IBH.03% p.70% 1.20% n/a “CAH” (7) (15) CHF n/a D 2. DBDH.00% 3. IBH25.70% n/a “IA” EUR 500'000 D 2.50% n/a 0.00% n/a 0. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Maximum Maximum Maximum Maximum Perfor- Subfund Currenc Minimum Share Adjustment of distribution fee management Share Class sales mance (Reference Currency) y holding Type (2) the Net Asset (per annum) fee charge fee Value (per annum) (3) Credit Suisse (Lux) “A” EUR n/a D 2.00% 0.15% p. but not more than 0.00% n/a 0.00% n/a 1.70% n/a “EBH” (7) (11) (7) n/a CG 2. EBH.00% 3.00% 5.00% n/a 0.00% 3. IBHP. XBH and XBHP Shares will be defined separately between the distributor and/or financial intermediary and the Management Company.00% 5.70% n/a “IA25” EUR 25.00% 0.20% n/a “CBH” (7) (15) (7) n/a CG 2.70% n/a “IBH” (7) (7) – CG 2.70% 1.00% 3. (5) Class DB.70% n/a “EBH” (7) (11) CHF n/a CG 2. payable to the Management Company.00% 0.20% n/a “DB” (4) EUR n/a CG 2. The initial minimum investment and holding amount of any Class IAH. IAH25. (2) CG = capital growth / D = distribution (3) The management fee actually payable will be disclosed in the respective annual or semi-annual report.00% 0.20% n/a Premium Credit Core Bond “AH” (7) (7) n/a D 2.90% n/a “UAH” (7) (12) (7) n/a D 2.00% n/a 0.30% n/a “UA” (12) EUR n/a D 2. EAH.00% n/a 0.70% n/a “IBH” (7) CHF 500’000 CG 2. EBH. with a subsidiary of Credit Suisse Group AG. subject to the prior consent of the Company.20% n/a “CAH” (7) (15) (7) n/a D 2.00% n/a 0. IAH25.00% 3.00% n/a 0.70% 1.30% n/a “MA” (11) EUR 25’000’000 D 2.00% 3.00% n/a n/a n/a (5) n/a “DBH” (4) (7) (7) n/a CG 2.a. XAHP.00% 5. The initial minimum investment and holding amount of any Class XAH. IAHP.20% n/a “CA” (10) (15) (10) n/a D 2. XAHP. IBH. of at least 0. IAH25. SAH.70% 1.00% n/a 0.50% n/a 0.00% 5. CAH.00% 5.00% 0. “Information for Shareholders”.00% n/a (1) This Summary of Share Classes should not be relied upon as a substitute for reading the Prospectus. UAH.20% n/a “CB” (15) EUR n/a CG 2.00% n/a 0. UBH. MBH. XAH.00% n/a 1.20% n/a “CA” (15) EUR n/a D 2. Shareholders have to check with the agents mentioned in Chapter 14. if Shares of Class AH. DBH.70% 1. QAH. at the sole discretion of the Management Company. payable to the Management Company covering all fees and expenses excluding the fees payable to the Depositary. CAH. QAH.00% n/a 0. “Summary of Share Classes” in the Subfund's Reference Currency.50% n/a 0.00% n/a 0.70% 1.000 CG 2. DBDH.20% n/a “CBH” (7) (15) CHF n/a CG 2.00% n/a 0. (4) Class DB. QBH. IBHP.a.00% n/a 1. DBDH.00% n/a 1. DBDH. IAHP.00% n/a 0. as defined by the Management Company.70% n/a “IB25” EUR 25.50% n/a 0.30% n/a “IBH25”(7) (7) n/a CG 2.00% 0.50% n/a 0.00% 5.70% n/a “IAH” (7) (7) – D 2.50% n/a 0.00% 5.00% n/a 1.03% p. DBH. Moreover.50% n/a 0. 11 . IAH. UAH.30% n/a “IAH25”(7) (7) n/a D 2.00% 3. XBH and XBHP Shares in any additional freely convertible currencies as well as on their initial offering price at any time. SBH. IAH.00% n/a 0.00% 3. XBH and XBHP have been issued in additional currencies in the meantime before submitting a subscription application.000 D 2.00% n/a 1.00% n/a 0. but not more than 0. BH.90% n/a “UBH” (7) (12) (7) n/a CG 2.00% n/a 0.a.90% n/a “UB” (12) EUR n/a CG 2.20% n/a “CB” (10) (15) (10) n/a CG 2. (6) Class DP Shares are not subject to a management fee but only to an all-in management service fee. DBD.70% 1.00% n/a 0.00% n/a n/a n/a (5) n/a “EA” (11) EUR n/a D 2.00% n/a n/a n/a (5) n/a “DBH” (4) (7) CHF n/a CG 2. DBH and DP Shares may only be acquired by those investors who have concluded a discretionary asset management agreement.70% n/a “IBH” (7) USD 500’000 CG 2.00% n/a 0. MAH. IBH25. XAH. and a performance fee.00% n/a 1. BH.20% n/a “CBH” (7) (15) USD n/a CG 2.70% n/a “EAH” (7) (11) (7) n/a D 2.00% 0.00% n/a 0.00% 5. DBDH and DBH Shares are not subject to a management fee but only to an all-in management service fee.a.00% n/a 0.00% n/a 0. DBD. of at least 0. SAH.000.00% 3.

FB and FBH Shares may only be acquired by investors who have concluded a discretionary asset management agreement with a subsidiary of Credit Suisse Group AG. (11) Class EA. IAH25. DBDH. Therefore. EAH. at the sole discretion of the Management Company. CBH. IAH25. EAH. BH. DBH. UAH and UBH Shares are exclusively reserved for investors who subscribe Shares of this Class via a financial intermediary domiciled in the United Kingdom. UB. the Net Asset Value of Share Classes DBD and DBDH does not develop in the same way as that of other Share Classes in the relevant Subfund without shorter duration. SBH. MBH. EBH. CB and CBH Shares may be offered for distribution in Italy through certain distributors and/or financial intermediaries domiciled in Italy. CAH. SAH. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law With Share Class AH. IBH. QBH. XAHP. CAH. IAH. XAP. QB and QBH Shares may only be acquired by professional investors within the meaning of annex II of the Markets in Financial Instruments Directive 2004/39/EC (“MiFID”) or qualified investors within the meaning of Article 10 paras 3 and 4 of the Swiss Collective Investment Schemes Act (“CISA”) in conjunction with Article 6 and 6a of the Swiss Collective Investment Schemes Ordinance (“CISO”). IBHP. EB. SAH. XBH and XBHP Shares may be offered for distribution in certain countries through certain distributors and/or financial intermediaries at the discretion of the Management Company. XAHP. CAH. XAHP. XBH and XBHP – calculated in the Subfund’s Reference Currency – against the respective Alternate Currency by means of forward foreign exchange transactions. SAH. which serve as seeding Share Classes. DBDH. XAH. XBP. UAH UBH. XBH and XBHP the risk of an overall depreciation of the Subfund’s Reference Currency against the Alternate Currency of the Share Class is reduced significantly by hedging the Net Asset Value of the respective Share Class AH. The initial minimum investment and holding amount will be defined separately between the distributor and/or financial intermediary and the Management Company. set at the discretion of the Management Company. DBH. IAH. MB and MBH Shares may only be acquired by institutional investors. subject to minimum raised volume during the subscription period prior to inception. EBH. IBH25. MA. EBH. QAH. IBH25. IBHP. UBH. XAH. (14) Class XA. XAH. CBH. (13) Class SA. (12) Class UA. QBH. “Subfunds”. XB. SB and SBH Shares may be created at the inception of a Subfund. (15) Within Share Classes DBD and DBDH the interest rate risk is mitigated by reducing the duration of the Net Asset Value through the use of derivative instruments. These Classes may be issued in any additional freely convertible currencies as well as on their initial offering price at any time. UAH. Germany or the Netherlands. IAHP. or who have concluded a written agreement with a financial intermediary which explicitly provides for the acquisition of trailer fee-free classes. MBH. (10) The Company does not intend to enter into forward currency contracts to hedge the exchange-rate risks relating to these Alternate Currency Classes. 12 . The Net Asset Value of the Shares of these Alternate Currency Classes does not develop in the same way as that of the Share Classes issued in the Reference Currency. FAH. EAH. BH. IAHP. QAH. MAH. (17) Class FA. (8) The performance fee is set out in Chapter 23. IBH. QAH. SBH. MAH. MAH. (9) Class QA. (16) Class CA.

amendments of the Articles of Incorporation will be announced in In the context of securities lending revenues. the corresponding details shall be exceeds the value of the amount exposed to risk. The last amendments of the Articles of Incorporation took place on Securities Lending October 10. Zurich. Its comparable with those for direct investments in time deposits and money articles of incorporation (“Articles of Incorporation”) were first published in market instruments.250. All time to time enter into securities lending transactions. The share capital of the are credited to the principal. 2007 as a SICAV in accordance with The reference currency is the currency in which the performance and the Luxembourg Law dated February 13. The assets of investors. Investment Policy created solely for internal management purposes and do not constitute a The primary objective of the Company is to provide investors with an separate legal entity. The counterparties to efficient portfolio in relation to the establishment.SIF on August 21. “Subfunds”. The rights of each participating stipulated by the Law of December 17. and Moreover. a written record is kept of that portion of the assets in the pool described in Chapter 23. one subfund (a “Subfund”). The Company has appointed Credit Suisse Fund Management S. The terms of The Subfunds will ensure that its counterparty delivers collateral in the any offering of new Shares shall be set out in Chapter 2. Each of the jointly managed Subfunds shall remain entitled to its the Subfunds are invested. set out in this Prospectus. shall at any time exceed EUR 1. “Subfunds”. “Summary of form of securities compliant with the applicable Luxembourg regulations Share Classes” and Chapter 23. at all times. 2014 and have been published in the “Mémorial”. “Information for Shareholders”. the income generated by the accordance with Chapter 14.A. “Subfunds”. “Subfunds”. “Investment Restrictions”. and in Chapter 2. a Subfund may from binding version is deposited with the Trade and Companies Register. “Investment in CS Investment Appropriate haircuts on the collateral value are applied in accordance with Funds 1”. assets for the liabilities of another Subfund. B 131 404. 2007”). different characteristics than the currently existing Classes. in accordance with the principle of risk own specific assets. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law 3. In this capacity. hold units/shares in administrative tasks are performed by Credit Suisse Fund Services undertakings for collective investment in transferable securities which are (Luxembourg) S. with reference Subfunds will be invested in accordance with the investment restrictions as to the Subfund’s original share in this pool. Recueil des Sociétés et Associations on September 25. and in line with the requirements foreseen under “Collateral Policy” The characteristics of each possible Share Class are further described in foreseen in Chapter 19.000. in consideration of market fluctuations and other risks Law of December 17. The Company was originally established under the designation of CS Fixed Reference Currency Income SICAV . and becomes transactions is credited to the participating Subfunds except for the direct legally binding for all shareholders (“Shareholders”) subsequent to their and indirect costs as well as any liability linked to the transactions which approval by the general meeting of Shareholders. “Summary of Share Classes”. operation or liquidation of a Subfund are management techniques should be subject to prudential supervision rules limited to the assets of that Subfund. 2010 and set out in this Subfund to the jointly managed assets shall relate to each individual Prospectus in Chapter 6. creates a new Class or type of Share. The rights the return of the securities lent in a manner that enables it. managers (“Investment Managers”) named in Chapter 23. Article 41 of the Law of December 17. A new Class or type of Share may have The Subfunds will not receive cash collateral. 2010”) transposing Directive 2009/65/EC of the investment objective of the relevant Subfunds will be achieved. each Subfund may. Each Subfund represents a portfolio The Subfunds will ensure that the volume of the securities lending containing different assets and liabilities and is considered to be a transactions is kept at an appropriate level or that it is entitled to request separate entity in relation to the Shareholders and third parties. 2010 on undertakings for collective investment (see Chapter 7. The Management Company does not receive any of the securities lending The Company has an umbrella structure and therefore consists of at least revenue. Collective Management of Assets Information about the performance of the individual Share Classes of the For the purpose of efficient management of the Company and where the Subfunds is contained in the Key Investor Information Document. the Mémorial. The legally Subject to the investment restrictions set out below. The assets jointly managed in the pools may be diversification. the Company’s Board of Directors may opt to manage all or part of the assets of certain Subfunds in common. If the Board of Directors establishes a new Subfund and/or collateral valued at market price. European Parliament and of the Council of July 13. undertakings for collective investment in transferable securities. the Liquid Assets Management Company acts as investment manager. in transferable securities and other assets as specified in divided and transferred to all the participating Subfunds at any time. subject to Directive 2009/65/EC and which in turn invest in short-term The Company is registered with the Luxembourg Trade and Companies time deposits and money market instruments and whose returns are Register (registre de commerce et des sociétés) under no. investment funds (“Law of February 13. regulations and administrative provisions relating to may not recover the value of their initial investment. they cannot be directly accessed by opportunity to invest in professionally managed portfolios. in any convertible currency. as the management company (“Management Company”). 2013.4) the Shares in the existing Subfunds. The legal entity acting as securities lending Company corresponds to the total net asset value of the Company and principal on behalf of the Subfunds is Credit Suisse AG. in particular in Chapter 5. The Company changed The Reference Currencies of the individual Subfunds are specified in its statute to Part I of the Law of December 17. If the assets of several Subfunds are pooled in order to be managed The investment objective and policy of the individual Subfunds are jointly. 2007. (société d’investissement à capital variable. The assets of the individual which can be allocated to each of the Subfunds concerned. 2010. 2007 relating to specialized net asset value of the Subfunds are calculated (“Reference Currency”). the Risk Management Process of the Management Company. In order to achieve this. The Board of Directors may at any a) “Investment Restrictions”. Such pools are 4. 2010 on June 21. time create and issue new classes (“Classes”) or types of Shares within The counterparty risk may be disregarded provided that the value of the any Subfund. 2009 on the The value of investments may go down as well as up and investors coordination of laws. administrator and The Subfunds may hold ancillary liquid assets in the form of sight and time distributor of the Company’s Shares. taking into account appropriate haircuts. “Summary of Share Classes”. this Prospectus. investment policies so permit. Therefore. The risk exposure to the counterparty arising from securities lending The board of directors of the Company (“Board of Directors”) may at any transactions and OTC financial derivative instruments should be combined time establish new Subfunds with Shares having similar characteristics to when calculating the counterparty risk limits foreseen under Chapter 6. “Summary of Share Classes” and Chapter 23. on an ancillary basis. “Risk Factors”) there can be no guarantee that the (“Law of December 17. The Company The investment objective for each Subfund is to maximize the The Company is an undertaking for collective investment in transferable appreciation of the assets invested. to of Shareholders and creditors concerning a Subfund or which have arisen meet its redemption obligations. “Regulatory Disclosure”. The individual Subfunds shall be denominated as indicated in Chapter 2. Additional investments made for the jointly 13 . Assets so managed shall be referred to hereinafter as a “pool”. SICAV) subject to Part I of the However. position in the respective pool. the securities in the legal form of an investment company with variable capital Company shall assume a fair and reasonable degree of risk. No Subfund will be liable with its considered by the CSSF as equivalent to those prescribed by EU law. The Management Company has deposits with first-class financial institutions and money market delegated the above-mentioned tasks as follows: instruments which do not qualify as transferable securities and have a term Tasks relating to investment advice are performed by the investment to maturity not exceeding 12 months. Chapter 2.A.

attaching to the relevant securities are “Summary of Share Classes”. DP. by the Management Company or (iii) the Management Company decides Details of the characteristics of capital-growth Shares are included in on the basis of reasonable grounds to cease the offering of the Share Chapter 11. 2010. XBP. IBH. MAH. their value will not be taken into consideration for the Share Classes”. QAH. SB. IAP. Management Company covering all fees and expenses excluding the fees acquire and/or hold securities to be issued or issued by one or more payable to the Depositary will be charged. QBH. DBH. XAP. DBDH. QA. CAH. MB. DBDH. reached a critical size in terms of assets under management determined UB. UBH. DBD. IBP. domiciled in the United Kingdom. subject to the conditions provided for charge. SA. QA. Subfund. EAH. and 2010. reduced management fee as specified in Chapter 2 “Summary of Share UA. as defined by the Management Company. Notice on the closing of the seeding Share Classes shall be published as described in Chapter 14. Furthermore. DBD. MB and MBH Shares are subject acquisition is contemplated may be invested in aggregate in shares to initial minimum investment and holding requirements and benefit from of other target Subfunds of the Company. EBH. FAH. exclusively as book entries. EB and EBH Shares benefit from the reduced – in any event. “Summary of Share Classes”. FAH. BH. XA. B. professional investors within the meaning of annex II of the Markets in IAH25. and institutional investors according to Article 174 (2) c) of the Law of – no more than 10% of the assets of the target Subfund whose December 17. not transferable without the approval of the Company. UBH. UA. DBH. XBP. “Appropriation of Net Collective Investment Schemes Act (“CISA”) in conjunction with Article 6 Income and Capital Gains”. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law managed Subfunds shall be allocated to these Subfunds in an amount Shares held by the investor at that time shall be either compulsorily proportionate to their participation while assets. subject to initial minimum investment and holding requirements and benefit growth Shares or distribution Shares. “Summary of Share Classes”. SAH. DB. General Information on the Shares redeemed or. CBH. or who The Share Classes which are issued within each Subfund. FB and 5. and the reduced management fee and sales charge as specified in Chapter 2. Class FA. – voting rights. acquired by institutional investors (according to Article 174 (2) c) of the Asset management clients who meet the conditions set out in this Law of December 17. “Appropriation of Net Income and Capital Gains”. Class DB. QAH. Class. DBD. XBH and XBHP Shares. set at discretion of the Management Company. CA. in particular Article 41. – the target Subfund does not. FB and FBH Shares are CBH. Share Classes dedicated to a specific type of Investors securities dealers and fund management companies of collective Class DB. investors who subscribe Shares of this Class via a financial intermediary UB. another Share Class. DBDH. Class DP Shares Subfunds of the Company under the following conditions: are subject to a performance fee to be paid to the Management Company. FB. EB. EB and EBH Shares may only be acquired by institutional and without prejudice to the appropriate processing in the accounts investors according to Article 174 (2) c) of the Law of December 17. FAH. XBH and XBHP Classes”. see Chapter 9. invest in the Subfund invested Class MA. IB. IB25. CBH. CAH. CAH. certain other fees. XAHP. UA. IAP. IBH25. XA. IA25. XBP. the assets of the Subfunds. EA. subject to a minimum raised volume during the subscription All Share Classes are only available in uncertificated form and will exist period prior to inception. which serve as seeding Share Classes. DB. suspended for as long as they are held by the Subfund concerned Class EA. with a 3ter CISA. CB. MA. which have been sold. Moreover. IBP. together with have concluded a written agreement with a financial intermediary which the related fees and sales charges as well as the Reference Currency are explicitly provides for the acquisition of trailer fee-free classes. CA. SBH. Company. XAH. 3 CISA are regulated financial intermediaries such as banks. MBH. QB. 2010) who have concluded an advisory agreement provision are deemed to be qualified investors pursuant to Article 10 para. “Summary of Company. UB and UBH Shares are subject to a sales charge and not be charged. regulated insurance companies. QB and QBH Shares are exclusively reserved for Class A. Distribution Shares Class QA. XAH. UB UBH. DBD DBDH. UB and UBH Shares are exclusively reserved for which may not issue Class A. SB and SBH Shares may be created at the inception of a “Expenses and Taxes”. EBH. investors who have concluded a discretionary asset management public-law entities and pension funds with a professional treasury unit. FA. AH. SAH. converted into another shall be deducted from each participating Subfund’s assets accordingly. advisory experience in the financial sector with managing the financial resources on agreement or any similar agreement. XAP. QBH. and FBH Shares shall not be subject to a sales charge and benefit from a IBH25. DBD. A redemption fee will Class UA. charges and expenses shall be paid out of “Summary of Share Classes". Class FA. MB and MBH Shares may only be acquired by in this target Subfund. Where such a discretionary asset management agreement has been terminated. XB. XB. DBD. except the Subfund Credit Suisse (Lux) Contingent Capital Euro Fund. FB and FBH Shares may only be acquired by investors verifying the minimum threshold of the net assets imposed by the who have concluded a discretionary asset management agreement with a Law of December 17. B. XBH and XBHP Shares are capital-growth Shares. time set by the Management Company has elapsed. Class DB. The Share Class remains open to Capital-growth Shares subscriptions until any of the following events occurs: (i) certain period of Class B. 3bis CISA. In addition. AH. DBH and DP Class XA. FAH. IA. MB. IBH. XAHP. Share Class. Class DB. Details of the characteristics of investors within the meaning of Article 10 paras. EA. DBH and DP Shares are not transferable without the Company’s approval. UAH. or any similar agreement. Class FA. DBH and DP Shares may also be deemed to be qualified investors pursuant to Article 10 para. for as long as these securities are held by the management fee and sales charge as specified in Chapter 2. subject to the prior consent of the the conditions set out in this provision and in Article 6 and 6a CISO are Company. UAH. XA. in turn. EAH. Wealthy individuals who meet Credit Suisse Group AG. XAP. Class UA. Moreover. Cross-investments between Subfunds of the Company DBH and DP Shares shall not be subject to a management fee or sales The Subfunds of the Company may. 2010. Qualified investors within the meaning of Article 10 para. and agreement. SB. set out in Chapter 2. XB. A company or public-law entity or pension fund has a subsidiary of Credit Suisse Group AG. FAH. and 6a of the CISO. XAH and Financial Instruments Directive 2004/39/EC (“MiFID”) or qualified XAHP Shares are distributing Shares. BH. (ii) the Subfund has FBH. IB25. FA. Class SA. MAH. converted into Each Subfund may issue Shares of Classes A. DBDH. EAH. MAH. IBHP. DBDH. XBH and XBHP Shares may be offered for distribution in certain countries through certain distributors 14 . IBHP. FB. CB. EAH. MBH. Class DB. IAHP. with a subsidiary of companies with a professional treasury unit. as defined by the Management a permanent basis. if any. XAHP. SBH. CA. XAH. DBH and DP Shares may only be acquired by investment schemes and central banks. CB. In addition. SA. IAHP. Germany or the Netherlands. XBP. AH. XB. shall benefit from a reduced management fee as specified in Chapter 2. XAP. DBD. according to the request of investor. DBDH. as defined by the Management Company. IAH25. redeemed or. QAH. calculation of the net assets of the Company for the purposes of Class FA. 3 and 4 of the Swiss distribution Shares are included in Chapter 11. UAH. MA. professional treasury unit if it entrusts at least one qualified person with Where such a discretionary asset management agreement. These types of Share Classes are The Shares which make up each such Share Class will be either capital. FB FBH. from a reduced management fee and sales charge as specified in Chapter 2. however an all-in management service fee payable to the in the Law of December 17. For further information. UAH. subscribe. Class MA. IAH. IA25. FAH. SAH. UAH. IAH. Investment in CS Investment Funds 1 FBH Shares held by the investor at that time shall be either compulsorily i. BH. subsidiary of Credit Suisse Group AG. “Information to Shareholders”. 2010. IB. has been terminated. and the periodic reports. according to the request of the investor. IA. EB. QB. DP. MAH. Class EA.

FAH. IBH. MAH. No The Company may enter into forward currency contracts for. IBH25. IB25. IBHP. QAH. IBH25. Classes DBD and DBDH are shorter duration Share Classes. IBP. SAH. IAHP. XB. SBH. QBH. IBH. the net asset value of the respective Share Classes AH. DBDH. XA. These type of Share Classes benefit from a reduced Classes DBD and DBDH will have a shorter duration than the benchmark management fee and sales charge as specified in Chapter 2. UBH. XAH. BH. one or more Share XBH and XBHP are subject to the management fee and sales charge as Classes denominated in a currency other than the Subfund’s Reference set out in Chapter 2 “Summary of Share Classes”. XAHP. XAH. “Summary of used for other Share Classes in the relevant Subfund. AH. IBH. fractional shares will be issued in respect of this Subfund. EBH. SAH. CB. MBH. SAH. IB. IBHP. MB. UAH. (except for the Reference Currency) versus the alternate currency will not Except in case of Alternate Currency Share Classes. XBHP Shares are issued in one or more alternate currencies. 2 “Summary of Share Classes”. IBHP. any additional freely convertible currencies at an initial issue price to be Within this approach. XBH and XBHP Shares are subject to an initial given that the hedging objective will be achieved. CHF 1000. FAH. IAHP. as set out in XA. UA. such subscription monies shall be Classes are subject to mark-up fees as set out in Chapter 9. FBH. IA. FBH. the depository of their choice (for example. UA. XB. XBP. no assurance can be given that the hedging objective will be minimum initial investment and holding requirements as set out in Chapter achieved.000 and/or GBP 10. “Summary of Share Classes”. QBH. IAH25. IAHP. QBH. EAH. UAH. FB. IBH25. IBH25. UB and UBH of the Subfund Currency. XBH to EUR 1000. “Expenses”. to mirror the performance of the Share Class in the The Company may. XAHP. SAH. QAH. IBHP. whereas no sales charge is applicable. Share Classes with exposure to shorter duration adversely affect the Net Asset Value of the other Share Classes. “Summary of Share Classes”). CAH. IAH25. at the discretion of the central administration (“Central foreign exchange transactions in relation to Share-Class Hedging may be Administration”). Class AH. Hedged Share Classes Depending on the Subfund. IAH. IA25. XBH and XBHP amounts to EUR 100. IAH25. IBHP. XAHP. The Company may at any time issue. MBH. CAH. SGD 1000 and/or and XBHP. Share Classes shall be hedged or will only be partially hedged. XAH. CBH. CAH. denominated. BH. UAH. There is a possibility Share Classes”. within a Subfund. BH. SBH. UAH. SAH. IAHP. XAHP. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law and/or financial intermediaries at the discretion of the Management The duration of Share Classes DBD and DBDH are either oriented Company. DBDH. IB. (“Depositary”). XBP. FAH. The results and the costs of such transactions will be allocated to IBH25. CB and CBH Shares may be offered for distribution in view of the Investment Manager. at the sole discretion of the Management In case of orienting towards a benchmark. BH. the initial issue price of Share Classes A. Currency. overall depreciation of the Subfund’s Reference Currency against the DBD. IAP. SAH. CHF 10. Furthermore. IAH. QBH. Net Asset Value does not develop in the same way as that of other Share Classes even if issued in the Reference Currency of the relevant Subfund. SA. to actively deviate from the benchmark duration depending on the market Class CA. MBH. the respective Subfund and its characteristics. as asset value (“Net Asset Value”). at any time. CAH. XAHP. The issue of each further Alternate Currency Class is specified Share Classes CAH and CBH are subject to the management fee and in Chapter 2. QAH. FBH. BH.000. DBH. GBP 100 and/or SGD 100 and Share Classes DB.000. SB SBH. IAH. MA. UBH. EBH. IAHP. “Subscription of Shares”. FA. B. IAH. BH. “Summary of Share Classes”. BH. In order to reduce the risk of an CHF 100. QAH. swaps. the initial issue price of MBH. IB25. IA25. distribution fee as set out in Chapter 2. it aims to reduce the effects of currency relate (as specified in Chapter 2. which seek Shares may be held through collective depositories. IAH. DBDH. The Investors may. The 2. Further details are set out in Chapter 5 Share Classes AH. exposure to changes of interest rates and the risks involved and additonal distribution fee as specified in Chapter 2. QA. CAH. QB. XAHP. MAH. IBHP. in exceptional cases. CBH. movements on a share class but it cannot eliminate them entirely. The Investment Manager will seek to reduce the duration risk of the Minimum Holding portfolio through the use of derivative instruments. IAHP. EBH. EAH. CBH. SBH. MBH. IAH25. far as possible. IAH. MAH. DBH. MBH. CA. IBP. DBH. SBH. XAH. XBH and XBHP through the use After the initial offering. IBH. EB. alternate currency of the Share Classes AH. decide on the issue of Share Classes in Subfund’s Reference Currency minus any hedge costs. IAH. These types of Share Classes are subject to a management fee consequence. expense of. and at the sales charge is applicable. USD 100. MA. Classes of the relevant Subfund. XAH. IAHP. Italy through certain distributors and/or financial intermediaries domiciled Shareholders of the Classes DBD and DBDH should be aware that as a in Italy. minimum investment and holding amount and benefit from reduced Class DBD and DBDH Shares are not subject to a management fee and management fees and sales charges (if applicable) as specified in Chapter sales charge as set out in Chapter 2.A. The initial minimum investment and holding amount will be towards the duration of its benchmark or to a target duration of no more defined separately between the distributor and/or financial intermediary than six months. Currency. No assurance can be XAHP. EBH. IBH. IBH. FAH. “Summary of Share Classes”. UAH. or Shares may be held by Shareholders directly in a registered account kept for the Company and its Shareholders by the Company’s Central 15 . XBH and XBHP Shares is subject to the However. SB and SBH amounts MAH. Chapter 2. “Summary of Share Classes”. MAH. MBH. CBH. Share Classes AH. IAP. SBH. CAH. USD 10. XAH. The net asset value of the Shares of this The Net Asset Value of the Shares of these Alternate Currency Classes alternate currency class (“Alternate Currency Class”) does not develop in does not develop in the same way as that of the Share Classes issued in the same way as that of the Share Classes issued in the Reference the Reference Currency. IBHP. XAP. USD 1000. MAH. Unless otherwise determined by the Company. QAH. the respective Share Classes DBD and DBDH only. MAH. will be hedged against the respective alternate currency of Credit Suisse (Lux) Focused Bond Fund amounts to EUR 10. IAH25. UBH. B. IAH25. IBH. IAH25. MBH. QBH. SBH. UB. DP. EA. In the case of Subfunds with Alternate Currency Classes. pay the subscription monies for Shares in a convertible executed by Credit Suisse AG acting as a principal in this respect (“the currency other than the currency in which the relevant Share Class is Principal”). the currency risk of the investment currencies determined by the Company. DBH. DBDH. UBH. ILS 10000 depending on the currency denomination of the Share Class in CAH. XAH. EAH. UBH. no FBH. In such cases. CA. UBH. DBH. XAH. XAP. to reduce the interest rate risk (“duration risk”) of the portfolio of the Shareholders shall receive a confirmation in relation to their Shares from relevant Subfund. EBH. By derogation to the foregoing. Investors are made aware that be denominated in the Reference Currency of the Subfund to which they currency hedging is never perfect. IBH. QAH. QBH. CBH. their bank or broker). and the Management Company. UAH. XBH and Share Classes A. IAH25. ii. limited to futures and Class IA.000. GBP 1000. Shares may be subscribed at the applicable net of forward foreign exchange transactions. FBH. MB. FAH. XAHP. Hedged Share (Luxembourg) S. “Summary of Share Classes”. CB. CBH. “Expenses automatically converted by the Depositary into the currency in which the and Taxes” section ii. the currency hedging transactions for one Share Class may. “Summary of may be different for these Share Classes when compared to other Share Share Classes”. IBH25. relevant Shares are denominated. this Alternate Currency Class in order to minimize the effect of Subscription of IAH. MAH. Issue Price EAH. EAH. UAH. price fluctuations in this alternate currency. SAH. SA. EBH. IBH25.. IBHP. IAHP. XBH and XBHP as calculated in the Subfund’s Reference AH. DBDH. EAH. The aim of this approach is. the benchmark of the Share Company. IBH25. As soon as the receipt is determined by Credit Suisse There is an additional cost to Hedged Share Classes. SAH.

“Net Asset Value”).) shall be borne by the investor. except for Subscriptions and redemptions of fractions of Shares shall be permitted up Share Classes CA. “Subfunds”. FAH. on a Banking Day shall be dealt with on Day on which receipt of the subscription application is determined by the the following Banking Day. the Company may. “Subfunds”. Each payment of the relevant Share Class. Shares may be objective. which may only be purchased by issue price of such Shares was determined. The Shares shall be issued by the Company upon receipt of the issue In the case of large redemption applications. A holding of fractional Shares shall entitle the Shareholder to MAH. CBH. in principle redeem Shares on any Banking Day. “Summary denominated. Shares shall be bank accounts. expenses. DBH and DP Shares. SB. or other circumstances beyond the Depositary’s control make it impossible commissions. IAH25.m. advisory agreement or any similar agreement. on a Banking Day shall be requirement for that Class as set out in Chapter 2. (Central European Time). EB. FBH. account with other depositories approved by the Company or. if possible. and may in particular prohibit or limit the sale of Shares to The Company may divide or merge the Shares in the interest of the individuals or corporate bodies in certain countries or regions if such sales Shareholders. Conversely. SBH. investors who have signed a discretionary asset management. in another convertible the Management Company. If. the Company may. (Central European Time). UA. Shares held in a Shareholder’s account kept by the Central The Company. less any redemption fee where applicable. (except on 24 December and 31 December where the Subfunds are closed for new subscription applications). MBH. at the sole discretion of the Depositary. (Central European Time) on a Banking Day. Payment shall be effected by bank transfer to the Company’s Unless otherwise specified in Chapter 23. reject all or several offered transferable securities and otherwise in Chapter 23. Management Company and the Central Administration are Administration may at any time be transferred to an account with a entitled to refuse any subscription application in whole or in part for any depository. if applicable. Redemption applications for Shares held through a Administration or a distributor authorized by the Company to accept depository must be submitted to the depository concerned. by cash in the currency that is legal tender in the currency of payment to the currency of denomination less fees and country where payment is to be made. December 17. “Subfunds”. according to the request of investor. calculated on the Valuation Day following “Summary of Share Classes”. if requested by the investor and management. “Subfunds”. Day. at the iii. institution participating in the securities and fund clearing systems. SA. to transfer the redemption price. broker fees. “Subfunds”. redemption applications before 3 p. where new ii. Shares held by a depository may be transferred to an holding requirement may be waived in any particular case at the sole account of the Shareholder with the Central Administration or to an discretion of the Company. the amount to be paid shall be the proceeds of conversion 16 . reason. XA. Central Administration or the relevant Distributor before 3 p. “Summary of Share deemed to have been received prior to 3 p. These Shareholders will be registered by the Central of Share Classes”. Whether and to what extent the redemption price is lower or higher than provided the offered transferable securities and assets correspond to the the issue price paid depends on the development of the Net Asset Value investment policy and restrictions of the relevant Subfund. The Board of Directors may. as defined by at the sole discretion of the Central Administration. FA. DB. All costs caused by such contribution in statutory provisions such as foreign exchange or other transfer restrictions kind (including the costs for the valuation report. etc. holding in a particular Share Class falling below the minimum holding Subscription applications received after 3 p. unless stated sole discretion. The applicable maximum sales charge levied in Class of the Subfund (based on the calculation method as described in connection with the Shares of the Company is indicated in Chapter 2. It might occur clearing UB. as defined by the Management banks and other financial institutions engaged in the distribution of the Company. 2010 as payment for subscription (“contribution in kind”). IB25. with an institutions will be unable to process holdings of fractional Shares. QAH.m. Further details are set out in the subscription application redeemed at the relevant Net Asset Value per Share calculated on the form. the Company may decide to price with the correct value date by the Depositary. must be received by the Central Administration or the Distributor before Unless otherwise specified in Chapter 23. EBH. advisory Charges to be paid due to the subscription of Shares shall accrue to the agreement or any similar agreement. This does not apply where specific assets without giving reasons.m. at the Net Asset Value per Share of the relevant Share charges and any taxes. Luxembourg (“Banking Day”). XAP. DP. Unless otherwise specified in Chapter 23. Subscription amounts shall be paid in the currency in which into another Share Class if the corresponding discretionary asset the relevant Shares are denominated or. received within two Banking Days after the Valuation Day on which the Class DB. IBH25. payment must be redemption of all Shares of the Class held by the Shareholder. DBH. QB. the proceeds of conversion from the check or. MB. Such minimum initial investment and Administration. MA. Unless otherwise specified in Chapter 23. “Subfunds”. decide that the without undue delay. question.m. If the payment is made in a currency other than the one in which the Payment shall be made by means of remittance to a bank account or by relevant Shares are denominated. at its own discretion. at its Banking Days following calculation of the redemption price. Fractional Shares shall not be entitled to voting EAH. of Shares in return for a contribution in kind is part of a valuation report Payment of the redemption price of the Shares shall be made within two issued by the auditor of the Company. Redemption applications shall be settled on the Valuation Day following the Banking applications received after 3 p. with a subsidiary of Credit Suisse Group AG. the Management Company may decide to suspend the issue of subscribed on any day on which banks are normally open for business in Shares on a permanent or temporary basis. “Net Asset Value”. such Banking Day. treat such redemption application as though it were an application for the Unless otherwise specified in Chapter 23. Notwithstanding the settle redemption applications once it has sold corresponding assets above. converted the investor. Chapter 8. XB. the Company shall which is calculated on the next Valuation Day (as defined in Chapter 8. currency. on the following Banking Classes”. Redemption of Shares Net Asset Value per Share of the relevant Share Class of the Subfund. on the same day shall be settled at the same price. Unless applications for the subscription or redemption of Shares (“Distributor”) otherwise specified in Chapter 23. XAHP. (Central If the execution of a redemption application would result in the investor’s European Time). “Subfunds”. IA25. QBH. (except on 24 December “Net Asset Value”) following such Banking Day according to the method and 31 December where the Subfunds are closed for new redemption described in Chapter 8. without further notice to the Shareholder. rights. XBH and XBHP. shall be either Shares. “Subfunds”. Investors should verify whether this is the case. Valuation Day following the Banking Day on which receipt of the The Company may in the interest of the Shareholders accept transferable redemption application is determined by the respective Distributor or the securities and other assets permitted by Part I of the Law of Central Administration before 3 p. proportional rights in relation to such Shares. Where such a measure is necessary. plus the applicable initial sales applications). UAH. XAH. has been terminated. subscription 3 p.m. DBD.m. UBH. DBDH. SAH. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Administration. FB. if not otherwise subscription application will only be accepted once these monies are specified in Chapter 23. Subscription of Shares investments would adversely affect the achievement of the investment Unless otherwise specified in Chapter 23. CAH. subscription Redemption applications must be submitted to the Central Administration applications must be submitted in written form to the Central or a Distributor.m. Moreover. XBP. to three decimal places. “Subfunds”. EA. after conversion of the amount in exchange commission shall be allocated to the purchase of Shares. QA. all redemption applications received received by the Depositary. payment is to be The minimum value or number of Shares which must be held by a made in a currency other than the one in which the relevant Shares are Shareholder in a particular Share Class is set out in Chapter 2. CB. Any taxes incurred on the issue of Shares shall also be charged to compulsorily redeemed or. might be detrimental to the Company or if a subscription in the country concerned is in contravention of applicable laws.

or appropriate. or such disposal would advantage of time differences and/or imperfections or deficiencies in the be detrimental to the interests of Shareholders. or For the purpose of this section: e) in any other circumstance or circumstances beyond the control and – “US Person” means a person that is a “U. in a national or resident of the United States of America or any of its territories. person” as defined in responsibility of the Board of Directors. a freely disposable because a political. or who have already applied for. the foreign exchange and conversion verification requirement equivalent to that existing under Luxembourg law. Prohibited Person. Furthermore. not affect the calculation of the Net Asset Value of the other Subfunds if The Company is entitled to compulsorily redeem all Shares held by a none of the above conditions apply to such other Subfunds. Permitted financial sector operators from Member States of the EU and/or FATF (Financial Action Task Force on Money Laundering) are generally v. a person that is “in the United otherwise have suffered. Prohibited Persons. articles of association Administration or the Distributor before 3 p. at any time. the Company may. monetary method through which an investor systematically subscribes and redeems or any other event beyond the control of the Company does not or converts Shares of Classes within a short time period. The company’s representatives and (where the shares Subfunds are closed for new conversion applications). redemption and conversion of Shares of a Subfund: provide the financial sector operator is obliged to monitor compliance with a) where a substantial proportion of the assets of the Subfund cannot the identity verification requirement on the part of its branches and be valued. without regulations aimed at combating money laundering and terrorist financing. or when trading on such stock exchange or market is restricted or suspended. Shareholders in a current and future statutory or professional regulations applicable in particular Share Class of a Subfund may at any time convert all or part of Luxembourg aimed at combating money laundering and terrorist financing. fees incurred will be taken into consideration and deducted. “Information for Shareholders” if. SB and identity card of the subscriber (and the beneficial owner/s of the SBH are not permitted. or method of determination of the Net Asset Value. official of the country in which such individual is domiciled. Internal Revenue Code other detriment which the Company or its Shareholders might not of 1986. the national Chapter 2. where a failure to do so Regulation S of the Securities Act of 1933. conversion b) Where the subscriber is a company.e. by taking permit the disposal of the Subfund’s assets.m. The same applies to their branches The Company may suspend the calculation of the Net Asset Value and/or and subsidiary companies in countries other than those mentioned above. the suspension is and exchange commission. which has been properly verified by a suitably qualified converted. available for transactions because restrictions on foreign exchange or other types of restrictions make asset transfers impracticable or it viii. shall be dealt with on the following the general public) shareholders must then observe the disclosure Banking Day. Unless otherwise specified in Chapter 23. a person that is a “United States person” as liability to taxation or suffering other pecuniary disadvantages or defined in Section 7701(a)(30) of the U. “Summary of Share Classes”. Measures to Combat Money Laundering iv. economic. Upon payment of the redemption price. as set out below. further identification documentation to be received by the Distributor or the Central Administration before 3 related to a subscription application or to refuse to accept subscription p. other than usual public holiday. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law from the currency of denomination to the currency of payment less all fees the opinion of the Board of Directors of the Company. Conversion shall take place on the basis of the applicable requirements given in point a) above.g. vi. 17 . the corresponding Share shall Suspension of the calculation of the Net Asset Value of one Subfund shall cease to be valid.m. Conversion issued by a company are not sufficiently broadly distributed among applications received after 3 p. SAH. a certified copy of the applications must be completed and submitted to the Central company’s registration documentation (e. a copy of the passport or Conversions of other Share Classes into Share Classes SA. States” as defined in Rule 202(a)(30)-1 under the U. to verify requirement for the Share Class into which such Shares are converted the identity of the purchaser and beneficial owner as follows: (see Chapter 2. Conversion of Shares The Distributors are obliged by the Company to ensure compliance with all Unless otherwise specified in Chapter 23. Notice of the suspension shall be Futures Trading Commission Rule 4. the issue.S. Net Asset Value per Share calculated on the Valuation Day following the The Central Administration of the Company is however entitled at its own Banking Day on which receipt of the conversion application is determined discretion to request. published as described in Chapter 14. (except on 24 December and 31 December where the register.S. Conversions of Shares will only be made on applications upon the submission of all documentary evidence. Commodities notified of the suspension without delay. as amended might result in the Company or its Shareholders incurring any (“Regulation S”). if the Net Asset Value in both relevant Share Classes is The Distributors shall ensure that their sales offices adhere to the calculated. their Shares into Shares of the same Class of another Subfund or into These regulations stipulate that the Distributors are under obligation. the subscription. Suspension of the Subscription. or a person that is not a “Non- redemption or conversion of Shares in the respective Subfund shall be United States Person” as such term is defined in U.S. Compulsory Redemption and Transfer of can be objectively demonstrated that transactions cannot be Shares effected at normal foreign exchange rates. military. as amended (the “Code”). Advisers Act of 1940. Distributors which are not operators in the financial sector or which are Where Shares denominated in one currency are converted into Shares operators in the financial sector but are not subject to an identity denominated in another currency. Market Timing b) where a substantial proportion of the assets of the Subfund is not The Company does not permit practices related to “Market Timing” (i. or vii. “Subfunds”. a) Where the subscriber is an individual. including without limitation. (Central European Time) on or incorporation) and an excerpt from the relevant commercial a Banking Day. “Summary of Share Classes”) are complied with. Investment Investors applying for. further notice to the Shareholder. treat such conversion application as The Central Administration is responsible for observing the aforementioned though it were an application for the conversion of all Shares held by the verification procedure in the event of purchase applications submitted by Shareholder in that Share Class.7. the necessary measures to protect the other investors of the d) where a substantial proportion of the assets of the Subfund is not Company. (Central European Time). and must properly enforce. if other factor makes a valuation impossible. provided that the to submitting any application form to the Central Administration. the Distributors below the minimum holding requirement for that Class set out in accept that they are subject to. as amended. a Valuation Day. The Central Where processing an application for the conversion of Shares would result Administration and the Company shall at all times be entitled to request in the relevant Shareholder’s holding in a particular Share Class falling evidence of compliance from the Distributor. likely to last for longer than one week. It therefore reserves the c) where a substantial proportion of the assets of the Subfund cannot right to reject subscription and conversion applications from an investor be valued because disruption to the communications network or any who the Company suspects of using such practices and to take. because a stock exchange or market is closed on a day subsidiary companies. prior Shares of another Class in the same Subfund. “Subfunds”. Redemption and Conversion deemed to be subject to an identity verification requirement equivalent to of Shares and the Calculation of the Net Asset Value that existing under Luxembourg law.m. aforementioned verification procedure at all times. possessions or other areas subject to its jurisdiction. The fee charged for such conversions shall not Shares where the subscriber is acting on behalf of another exceed half the initial sales charge of the Class into which the Shares are individual).S.

tax. the Board of Directors may at its discretion of the assets and liabilities. provided that: has fallen below the minimum investment and holding requirement – these other UCI are authorized under laws which provide for that Class as set out in Chapter 2. or under the laws. as c) transferable securities and money market instruments admitted amended. America. corporation. each Subfund shall be regarded as a created or organised in. other than an the meaning of Directive 2004/39/EC of the European estate or trust the income of which from sources outside the United Parliament and of the Council of April 21. a discretionary account or similar 1) Each Subfunds’ investments may comprise only one or more of the account (other than an estate or trust) held by a dealer or other following: fiduciary organized. (iv) equivalent to that required by EU law and that cooperation Shareholders who are not otherwise entitled to acquire or possess between the supervisory authorities is sufficiently ensured. The Board of Directors has the right to refuse any transfer. and maturing in no determines that it would result in a Prohibited Person holding Shares. the rules laid down in this Prospectus and upon redemption. if in the Member State of the European Union which is regulated. g) financial derivative instruments. “Summary of Share Classes”. for these purposes. that the term “U. pursuant to their management The Board of Directors may require any Shareholder to provide it with any regulations or instruments of incorporation. borrowing. The term “Prohibited transferable securities authorized according to Directive Person” includes but is not limited to (i) any Shareholder where any 2009/65/EC (“UCITS”) and/or other undertakings for of the representations and warranties made in connection with the collective investment within the meaning of Article 1. and in particular that the rules on asset (vii) any person who has failed to provide any information or segregation. if the registered office Any transfer of Shares may be rejected by the Central Administration and of the credit institution is situated in a third country. partnership or other entity For the purpose of this Chapter. registered office in a Member State or. including equivalent cash- settled instruments which are dealt in on a regulated market referred to under paragraphs a). acquired. invest more information that it may consider necessary for the purpose of determining than 10% of their total net assets in units/shares of other whether or not such owner of Shares is or will be a Prohibited Person. where the holding by such Shareholder in a particular Share Class whether or not established in a Member State. to official listing on a stock exchange in a non-Member State of – “Prohibited Person” means any person.S. lending and uncovered sales of declaration required by the Management Company or the Company transferable securities and money market instruments are within one calendar month of being requested to do so. provided that: 18 . compulsorily redeem the Shares in accordance with reporting period. regulatory or administrative disadvantages. these Shares. of the United States or separate UCITS within the meaning of Article 40 of the Law of any political sub-division thereof). breach of any law or regulation. that they are subject to supervision considered by the (iii) any investor which does not meet or ceases to meet investor supervisory authority responsible for the Company. trust. may not. d) recently issued transferable securities and money market or if as a result thereof the relevant Subfund may become exposed instruments. either alone or in conjunction with any other person. person (as such Subfund: term is used in Regulation S).S. equivalent to those laid down in EU law. trade or business within the United States) is not included in gross b) transferable securities and money market instruments dealt in income for the purpose of computing United States federal income on another market in a Member State which is regulated. partnership. person (as such regulated market is any market for financial instruments within term is used in Regulation S). limited liability the European Union or dealt in on another market in a non- company. assignment or f) deposits with a credit institution which are repayable on sale of Shares in its sole discretion if the Board of Directors reasonably demand or have the right to be withdrawn. more than 12 months. income and operations over the and without liability. registration or filing requirements in any jurisdiction with which it e) units or shares of undertakings for collective investment in would not otherwise be required to comply. (v) Shareholders who fail to comply with any – the level of protection for share-/unitholders of the other obligations associated with the holding of these Shares under the UCIs is equivalent to that provided for share-/unitholders in applicable regulations and this Prospectus. provided that the credit institution has its either as an immediate consequence or in the future. undertaking that application will be made for admission to fines or penalties that it would not have otherwise incurred or. b) and c) above and/or financial derivative instruments which are dealt in over-the- counter (“OTC derivatives”). whether Luxembourg or otherwise. registered under the United States Securities Act 1933. for a branch or agency of a United States bank or insurance company the purpose of this Chapter “Member State” means a Member that is operating outside the United States as a locally regulated State of the European Union (“EU”) or the States of the branch or agency engaged in the banking or insurance business European Economic Area (“EEA”) other than the Member and not solely for the purpose of investing in securities not States of the EU. may become required to comply with any within one year of issue. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law including the States and the Federal District of Columbia (“United 6. incorporated or resident in the United States. if it may result in a or Oceania. UCITS or other UCIs. as anti-money laundering rules. sole opinion of the Management Company. a non-discretionary account or December 17. similar account (other than an estate or trust) held by a dealer or The following provisions shall apply to the investments made by each other fiduciary for the benefit or account of a U. Investment Restrictions States”) (including any corporation. 2010. (vi) any US Person or a UCITS. estate or other corporate body. the Prohibited – the UCITS or other UCIs whose units/shares are to be Person will cease to be the owner of those Shares. 2004 on markets in States (which is not effectively connected with the conduct of a financial instruments as amended. If the Board of Directors discovers at any time that Shares are owned by a – the business activities of the other UCIs are reported in Prohibited Person. or any estate or trust. a fiduciary for the benefit or account of a non-U. equivalent to the requirements of Directive 2009/65/EC. provided that the terms of issue include an to tax or other legal. Africa existing Shareholders or of the relevant Subfund. person” shall not include operates regularly and is recognized and open to the public. (ii) paragraph 2. provided the transfer shall not become effective until the transferee has provided that it is subject to prudential rules considered by the the required information under the applicable know your customer and supervisory authority responsible for the Company. if as official listing on stock exchanges or markets as per paragraphs a result thereof the relevant Subfund or the Management Company. acquisition of the Shares was not true or has ceased to be true. the holding of Shares of operates regularly and is recognized and open to the public. semi-annual and annual reports to enable an assessment whether directly or indirectly. however. to be eligibility criteria and conditions set out in this Prospectus. the relevant Subfund may be detrimental to the interests of the and is established in a country in Europe. a) transferable securities and money market instruments admitted unless such account is held by a dealer or other professional to or dealt in on a regulated market. Asia. points a) and b) of Directive 2009/65/EC (“UCI”). a).S. b) or c) above and provided such admission takes place respectively the Company. provided.

the European Union or the The risk management of the Management Company supervises the European Investment Bank. are section 4) paragraph e). or risk exposure to a counterparty of a Subfund in an OTC – issued by other bodies belonging to the categories derivative transaction and/or efficient portfolio management approved by the supervisory authority responsible for the techniques may in aggregate not exceed the following Company. In movements and the time available to liquidate the positions. the total prudential supervision. each determined at any time. in on regulated markets referred to in paragraphs a). to be at least as stringent as those required by its total net assets in deposits made with the same body. interest rates. In addition. during the whole period of validity of the bonds. which enables it to monitor and measure at any time the risk of the c) The limit of 10% stipulated in section 4) paragraph a) is raised investment positions and their contribution to the overall risk profile to a maximum of 35% if the transferable securities or money of the portfolio and a process for accurate and independent market instruments are issued or guaranteed by a Member assessment of the value of OTC derivatives. or Financier. rates or currencies. provided that the exposure to the underlying case of bankruptcy of the issuer. provided the issue or issuer of such Subfund shall ensure that its global exposure to financial derivative instruments is itself regulated for the purpose of protecting instruments computed on a commitment basis does not exceed investors and savings. in compliance of these provision in accordance with the requirements case of a federal State. paragraph (1) of the Law of December 17. State. the of Article 41. and at a given h) money market instruments other than those dealt in on a confidence level. and provided that these investments are: 100% of its total net assets or that the global exposure computed – issued or guaranteed by a central. “Investment paragraph h) and provided that the issuer is a company Restrictions”. and position in the underlying asset of that derivative. European Central Bank. and belonging The standard commitment approach calculation converts the to the categories approved by the supervisory authority financial derivative position into the market value of an equivalent responsible for the Company. strategy. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law – the underlying consists of instruments within the meaning money market instrument embeds a derivative instrument. or is each Subfund shall not combine. regional or local based on a VaR method does not exceed either (i) 200% of the authority or by a central bank of a Member State. or by a public international body to which supervisory authority (Commission de Surveillance du Secteur one or more Member States belong. given time interval under normal market conditions. each Subfund may invest in financial capable of covering claims attaching to the bonds and which. “Subfunds”. a non-Member State or. institutions subject to prudential supervision. where this would lead to an entity which is dedicated to the financing of investing more than 20% of its total net assets in a single body. or whose capital and reserves amount to at least ten million – 5% of total net assets in other cases. (ii) efficient by public international bodies to which one or more Member portfolio management and/or (iii) implementing its investment States belong. by its public local authorities. in which the Company may invest The global exposure may be calculated through the commitment according to its investment objectives. sums deriving from the issue of those bonds must be shall also apply to the following subparagraphs. invest more than 10% of its total instruments issued by that body. b) or 4) a) No more than 10% of the total net assets of each Subfund c) above. shall not exceed 40% of the value of considered by the supervisory authority responsible for the its total net assets. closed by an offsetting transaction at any time at their fair VaR provides a measure of the potential loss that could arise over a value at the Company’s initiative. The EU law. in accordance with criteria defined value of transferable securities and money market instruments by EU law. or issued or guaranteed by an establishment issued by those issuers in which a Subfund invests more than that is subject to and complies with supervisory rules 5% of its total net assets. “Subfunds”. When calculating – the OTC derivatives are subject to reliable and verifiable global exposure using the commitment approach. is dedicated to the financing of the group. – exposures arising from OTC derivatives transactions 3) The Management Company applies a risk management process undertaken with that body. euro (EUR 10. these investments do not have to be combined to the net assets in bonds referred to in this paragraph which are limits laid down in section 4). This particular. – investments in transferable securities or money market 2) Each Subfund shall not. the Company may valuation on a daily basis and can be sold. group of companies comprising one or several listed Irrespective of the limits specified in section 4) paragraph a). derivative instrument shall be taken into account when complying 2010. would be used on a priority assets does not exceed in aggregate the investment limits laid down basis for the reimbursement of the principal and payment of the in section 4). the second or the third indent of this institution referred to in Chapter 6. liquidated or benefit from the effects of netting and hedging arrangements. approach or the Value-at-Risk (VaR) methodology as specified for – the counterparties to OTC derivative transactions are each Subfund in Chapter 23. which within a with financial institutions subject to prudential supervision. by a non-Member State or Each Subfund may. future market special public supervision designed to protect bondholders. or net assets in transferable securities or money market instruments – deposits made with that body. the counterparty risk. No Subfund may invest more than 20% of Company. securitization vehicles which benefit from a banking liquidity any of the following: line. financial indices.000. invested in accordance with the legal requirements in assets As part of its investment policy and within the limits laid down in which. in derivative instruments. use all financial derivative instruments within the limits laid d) The 10% limit stipulated in section 4) paragraph a) is raised to down by Part I of the Law of December 17. or may be invested in transferable securities or money market – issued or guaranteed by an establishment subject to instruments issued by the same issuer. section 1) paragraph f). The Law of December 17. for the purpose of (i) hedging. provided that investments in such instruments percentages: are subject to investor protection equivalent to that laid – 10% of total net assets if the counterparty is a credit down in the first. or other than those referred to in section 1). foreign exchange with the requirements of this section. the reference portfolio (benchmark) or (ii) 20% of the total net assets. 25% for bonds issued by a credit institution which has its The global exposure is calculated taking into account the current registered office in a Member State and is subject by law to value of the underlying assets. and whose value can be precisely Unless otherwise specified in Chapter 23. market and are liquid. If a Subfund invests in index-based financial derivative accrued interest. If a Subfund invests more than 5% of its total instruments. by one of the members making up of applicable circulars or regulation issued by the Luxembourg the federation. however.000) and which presents and publishes b) The 40% limit specified in section 4) paragraph a) is not its annual financial statements in accordance with the applicable to deposits and OTC derivative transactions made fourth Directive 78/660/EEC or is an entity. When a transferable security or a 19 . “CSSF”) or any other European authority authorized to – issued by an undertaking any securities of which are dealt issue related regulation or technical standards. 2010 provides for a regulated market and which are normally traded on the money confidence level of 99% with a time horizon of one month. companies. 2010.

or by a public international – transferable securities and money market instruments body to which one or more Member States of the issued or guaranteed by a Member State or its local European Union belong. preparation of consolidated financial statements in accordance 6) a) The Company’s assets may not be invested in securities with Directive 83/349/EEC as amended or restated or in carrying voting rights which enable the Company to exercise accordance with internationally recognized accounting rules. issued by public international bodies to which one or more g) Without prejudice to the limits laid down in section 7). money market instruments within the same group. enter into securities lending transactions. For 11) The Company may not carry out uncovered sales of transferable the purpose of application of this investment limit. unless the Affiliated Fund itself does not charge any market instruments issued by the same issuer or in deposits or management fee. conditions in particular in regulated markets where certain 7) The Company may not borrow any money for any Subfund except transferable securities or money market instruments are highly for: dominant. Companies the Subfund level and at the level of the other UCITS and/or UCI which belong to the same group for the purposes of the itself. the following restrictions shall apply: precious metals or certificates representing precious metals and – No more than 20% of a Subfund’s total net assets may be goods. c) and d) shall not be in Affiliated Funds may be charged at the level of the respective combined. pursuant to section 1) paragraph e). the limits Member States of the European Union belong. not may not in aggregate exceed 30% of the total net assets of a more than 10% of the assets of each Subfund shall be pledged or Subfund. “Subfunds”. paragraphs a) to e). the Subfund authorities. where under the legislation of that State. significant influence over the management of an issuer. the Company may not pledge the assets of the various compartments vis-à-vis third parties is ensured. Luxembourg regulations. directly or by delegation. the restriction shall not apply if the raised to 100% if the transferable securities and money gross amount of bonds or money market instruments. The limits management fee corresponding to the volume of these investments specified under paragraphs a). shall be regarded as a single issuer for the purpose of b) Moreover. policy the company from the non-Member State of the – it is published in an appropriate manner. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law issued by a single issuer. of 20% of its total net assets in transferable securities and – 25% of the units/shares of the same UCITS or other UCI. by the time of acquisition. be taken into account for the purpose of applying the limit of Unless specified otherwise in Chapter 23. when the aim of the Subfund’s investment European Union and which invests its assets mainly in policy is to replicate the composition of a certain stock or debt securities of issuing bodies having their registered office in securities index which is recognized by the supervisory authority that State. by the same accordance with their respective regulations for the purpose of management company or by any other company with which the guaranteeing settlement within these systems. derivative instruments made with this body carried out in Investors should note that for investments in units/shares of other accordance with paragraphs a). on the following basis: holding represents the only way in which the Company can – the composition of the index is sufficiently diversified. 10) The Company may not invest its assets directly in real estate. no 40% referred to under paragraph a) of this section. “Subfunds”. however. however. laid down in the present section 4) are raised to a maximum of – shares held by the Company in the capital of a company 20% for investments in shares and/or debt securities issued by which is incorporated in a non-Member State of the the same body. concerned must hold securities or money market – transferable securities and money market instruments instruments from at least six different issues. In such case. invested in units/shares of a single UCITS or other UCI. compartments is to be considered as a separate issuer 12) Except in relation to borrowing conducted within the limitations set provided that the principle of segregation of the obligations of out in the Prospectus. or the market instruments involved are issued or guaranteed by net amount of the instruments in issue cannot be calculated at a Member State. such a responsible for the Company. of any Subfund in units/shares of other UCITS and/or in other 8) The Company may not grant loans or act as guarantor for third UCIs. and the customary Company is linked by common management or control. European Union complies with the limits stipulated in The aforementioned limit of 20% may be raised to a maximum section 4. f) The limit of 10% stipulated in section 4) paragraph a) is In the last three cases. In such permitted cases – Investments made in units/shares of UCI other than UCITS and unless stipulated otherwise in Chapter 23. (“Affiliated Funds”). Where a higher limit as 10% is specified in Chapter 23. assigned. single issuer. issue shall not exceed 30% of that Subfund’s total – transferable securities and money market instruments assets. b). c) and d) shall not exceed in UCITS and/or other UCI the same costs may generally arise both at total 35% of each Subfund’s total net assets. g) and h). b). the Company or assign them as collateral. unless otherwise specified in 9) To ensure efficient portfolio management. The investment up to this limit is only permitted for a a) the purchase of foreign currency using a back-to-back loan. thus investments in transferable securities or money Subfund. the total value of these investments direct or indirect holding of more than 10% of the capital or votes may not exceed 80% of that Subfund’s total net assets. – 10% of the money market instruments of a single issuer. and the issued or guaranteed by a non-Member State of the securities or money market instruments of any single European Union. This – the index represents an adequate benchmark for the derogation. and section 7 of 35% where that proves to be justified by exceptional market paragraphs a) and b). The collateral that must normally be made available to Where a Subfund invests in units/shares of other UCITS and/or recognized securities settlement systems or payment systems in other UCI that are managed. “Subfunds”. b) an amount equivalent to not more than 10% of the Subfund’s 5) The Company will not invest more than 10% of the total net assets total net assets and borrowed on a temporary basis. invest in the securities of issuing bodies of that State. one or more of its local authorities. each Subfund the investment policy applicable to a Subfund as described in may. (“Target Funds”) parties. the Company may not acquire more than calculating the investment limits specified in the present – 10% of the non-voting shares of the same issuer. “Subfunds”. shall apply only if in its investment market to which it relates. Each Subfund may cumulatively invest up to a limit – 10% of the debt securities of the same issuer. including other Subfunds of the Company. money market instruments or other financial instruments compartment of a UCITS or other UCI with multiple referred to in section 1) paragraph e). the Company or the other company may not e) The transferable securities and money market instruments charge subscription or redemption fees on account of the referred to in paragraphs c) and d) of this section 4) shall not Subfund’s investment in the units/shares of such Affiliated Funds. any other state which is a member of the Organisation c) The restrictions set out under paragraphs a) and b) shall not for Economic Cooperation and Development (“OECD”) apply to: or by Brazil or Singapore. section 4). in compliance with the provisions of the applicable Chapter 23. section 5. or by a 20 . each securities.

Generally. “Expenses and Taxes”). Risk Factors security. The Net Asset Value of a Subfund may vary as a result of fluctuations in In accordance with the BRRD and relevant implementing laws. in the case of an Alternate Currency compliance with any laws. the Subfunds could experience delays in liquidating the Chapter 9. Reference Currency. Accordingly. and where normal insolvency would cause financial instability. shall not be regarded increase. thereby causing rise. 2014 invested in the Company. there is no guarantee that the hedging will If the limits referred to above are exceeded for reasons beyond the control be successful. there is a risk investments may be affected by uncertainties such as international. Moreover. no assurance can be given that the investment decision will achieve the desired results. Market risk is a general risk which may affect all investments to the effect The exercise of Bank Resolution Tools against investors of a Subfund may that the value of a particular investment could change in a way that is also lead to the mandatory sale of part of the assets of these investors. In the event of bankruptcy of citizenship. the result of the associated the relevant EU Member State relating to the implementation of BRRD foreign exchange transactions may have a negative influence on the (the “Bank Resolution Tools”). or fluctuations may adversely affect the value of an investment in one or suspension powers existing from time to time under. Management Risk Currencies of certain countries may be volatile and therefore affect the The Company is actively managed and the Subfunds may therefore be value of securities denominated in such currencies. the risk factors set out investing in lower quality debt securities are more susceptible to these below do not purport to be an exhaustive list of risks related to problems and their value may be more volatile. because of such an unusually high volume of redemption requests. The value of the Directive 2014/59/EU establishing a framework for the recovery and investments and the resulting income may go up or down and it is resolution of credit institutions and investment firms (the “BRRD”) was possible that investors will not recoup the amount originally published in the Official Journal of the European Union on June 12. Past performance is emptively in order to safeguard financial stability and minimize taxpayers’ not a reliable indicator of future results. fluctuations. An issuer suffering an adverse change in its financial condition could lower the credit quality of a 7. In particular. The use of any such Bank Resolution Tools may affect or restrain the ability of counterparties subject to BRRD to honour their obligations Market Risk towards the Subfunds. and exercised in more of the Subfunds. 2014. transactions may not always be possible and currency risks cannot The Company is entitled to issue. the restrictions set out in section 4) and 5) above need not the cost of investments denominated in currencies other than the be complied with. the Although it is the policy of the Company to hedge the currency exposure Company shall as a matter of priority remedy that situation. and against any increase in Luxembourg. regulations. tax and investment advisers. Conversely. an unusually high volume of redemption The Subfunds’ investments may be made in other currencies than the requests or other reasons. In such case the Fund may not be able to pay redemption proceeds within the Interest Rate Risk time period stated in this Prospectus. the value of fixed income particular type of securities may. converting. A lowering of the Prospective investors should consider the following risk factors credit rating of a security may also offset the security’s liquidity. These Depending on the currency of the investor’s domicile. exchange-rate powers comprise write-down. decrease. restrictions. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law margin deposits for derivatives transactions. the investments of the Company are subject to market fluctuations and other risks associated with investments in transferable EU Bank Recovery and Resolution Directive securities and other financial instruments. the value of including their shares/units in that Subfund. Liquidity Risk There is a risk that the Company will suffer liquidity issues because of Foreign Exchange Risk unusual market conditions. Prospective investors should read the entire Prospectus. at any time. The restrictions set out above shall not apply to the exercise of The Subfunds may enter into hedging transactions on currencies to subscription rights. rules or requirements in effect in Class in which the currency risk is not hedged. leading to greater price volatility of the security. trigger a securities rises when interest rates fall. The stated aim of the BRRD is to amount invested. Long-term fixed income securities will normally be subject to greater price volatility than short-term fixed income securities. exercising certain Bank Resolution Tools in respect of a fluctuations in interest rates. Subfunds before investing in the Company. protect against a decline in the value of investments denominated in During the first six months following official authorization of a Subfund in currencies other than the Reference Currency. The 21 . the value of the investment will investment decisions for the Subfunds. if for example such restrictions are necessary to comply with the legislation and regulations in Credit Risk those countries in which the Company’s Shares are or will be offered for Subfunds investing in fixed income securities are subject to the risk that sale. a decline in the exchange rate of the currency would as being a pledge under the terms of this regulation. exposure to losses. performance of the corresponding Share Class. including the risk of loss of the entire and entered into force on July 2. detrimental to the Company’s interests. Subfunds investing in fixed income securities may fall in value due to Furthermore. holding. If the currency in subject to management risks. Investors are prudential supervisory authorities can assert certain powers over credit reminded that in certain circumstances their right to redeem Shares may institutions and certain investment firms which are failing or are likely to fail be suspended. thereby exposing the Subfunds to potential losses. with common tools and powers to address banking crises pre- increase in the value of the assets will occur. redeeming or expose the Subfunds to the risk that the counterparty may default on its otherwise disposing of Shares under the law of their country of obligation to perform under such contracts. that a Subfund may experience reduced or even insufficient liquidity political and economic developments or changes in government policies. modification. Investors should be aware that position and significant losses. hedging account of the interests of the Shareholders. investments in the Company. of the Company or as a result of the exercise of subscription rights. There is no assurance that the investment provide resolution authorities. further investment therefore be excluded. the value of fixed income securities can generally be expected to potential liquidity problems for the Subfunds. However. in particular regarding the tax The Company may enter into over-the-counter transactions which will consequences of subscribing. which may affect the Net Asset Value of the relevant Subfunds favorably or unfavorably. including the relevant Luxembourg resolution objective of a particular Subfund will be achieved or that any authority. in the interests of the Shareholders. Conversely. adversely affect the value of the investment. national the value of the underlying assets and the resulting income. provided that the principle of risk-spreading is observed. issuers may not make payments on such securities. however. under certain circumstances. conversion. In such case the Company may not be able to relevant Reference Currency and therefore be subject to currency pay redemption proceeds within the time period stated in this Prospectus. transfer. The Company will apply its investment which an investment is denominated appreciates against the Reference strategy (including investment techniques and risk analysis) when making Currency of the relevant Subfund. and where appropriate consult with their Counterparty Risk legal. when interest rates drying-up of liquidity in specific securities markets. residence or domicile (further details are set out in the counterparty. However. taking due of Subfunds against their respective Reference Currencies.

might not be in a position to enter into a desired transaction in currencies. it is uncertain how they will perform. currency exchange transactions. The risks associated with investments in equity (and equity-type) securities include in particular significant fluctuations in market prices. imposition of exchange control regulations or other laws or restrictions The investment of the Subfunds’ assets in units or shares of Target Funds applicable to such investments. greater than. even under expected to suffer the first loss. with the consequence that such investments may be less reduce the value of certain portfolio securities that are denominated in liquid than other types of investment. This risk may in turn be reinforced which the Company effects transactions might cease making markets or depending on the level of underlying instrument arbitrage. other. through entering into forward. A decline in the value of a particular entails a risk that the redemption of the units or shares may be subject to currency in comparison with the Reference Currency of the Subfund would restrictions. Improper securities may therefore be downgraded in rating if economic valuations can result in increased cash payment requirements to circumstances impact the relevant debt securities issue. Because of the volatility of exchange rates. the performance of investments denominated in a currency but also of the derivative itself. contingent convertible instruments its performance. the risks presented by more traditional investments. Among the regulations (including the levying of withholding tax) and any other risks involved are fluctuations in interest rates as well as fluctuations in economic or political factors or changes in the countries in which the currency exchange rates (as further described above under section Target Fund is invested. without there being any opportunity to other than the Reference Currency will depend on the strength of such observe the performance of the derivative under all possible market currency against the Reference Currency and on the interest rate conditions. Investments in Fixed Income Securities Investments in Target Funds Investments in securities of issuers from different countries and Investors should note that investments in Target Funds may incur the denominated in different currencies offer potential benefits not available same costs both at the Subfund level and at the level of the Target Funds. financial relative yields of investments in the securities markets of different derivative instruments also involve risks different from. the Company as a result of the failure of the counterparty to a derivative to comply with the terms of the contract (as further described under Risk relating to contingent convertible instruments “Counterparty Risk” above). In the absence of other If a derivative transaction is particularly large or if the relevant market is events that could otherwise affect the value of non-Reference Currency illiquid. normal order of capital structure hierarchy where equity holders are such as derivative instruments. spot and investors may suffer a loss of capital when equity holders do not. and. along with the risks associated with exposure to “Interest Rate Risk” and “Foreign Exchange Risk”) and the possible the emerging markets. The use of a As the Net Asset Value of a Subfund is calculated in its Reference derivative requires an understanding not only of the underlying instrument Currency. Derivatives are highly specialized financial instruments. adverse issuer Investments in Warrants or market information and the subordinate status of equity compared to The leveraged effect of investments in warrants and the volatility of debt securities issued by the same company. The values and While the use of financial derivative instruments can be beneficial. Unlike exchange-traded derivatives. rate or index may result in a loss Currency investments in terms of the Reference Currency. it may not be possible to initiate a transaction or liquidate a position investments (such as a change in the political climate or an issuer’s credit at an advantageous price. or they may not be available. In certain option contracts on currencies do not provide the Management Company scenarios. Investment The other risks associated with the use of derivatives include the risk of grade debt securities are assigned ratings within the top rating categories mispricing or improper valuation of derivatives and the inability of by rating agencies on the basis of the creditworthiness or risk of default. from time to time. furthering the Company’s securities. an increase in the value of the non-Reference Currency can Since many derivatives have a leverage component. it is the risk of a loss arising for the Company if one of the entities underlying uncertain if the market will view the issue as an idiosyncratic event or the credit derivative defaults. spot or contingent convertible instruments is activated. Moreover. and their associated risks. the Company an illiquid market. The Subfunds may invest in investment grade debt securities. rates and indices. derivatives to correlate perfectly with underlying assets. since The structure of the contingent convertible instruments is yet untested. In such cases. The default risk for exchange-traded Unknown Risk derivatives is generally less than for privately negotiated derivatives. Industry Concentration Risk As the issuers of contingent convertible instruments may be unevenly Investment Risk distributed across sectors of industry. the instruments will be put to the test. systemic. e. provides a guarantee of performance. contingent convertible instruments Investments in Equities may be prone to industry concentration risks. but Furthermore. possible imposition of exchange controls and other warrants. tax investing in the securities of issuers located in a single country. price formation may be increasingly stressed. Consequently. credit linked notes) carries the event a single issuer activates a trigger or suspends coupons. which is the issuer or counterparty to each exchange- a stressed environment. environment in the country issuing the currency. such a currency. when a high trigger principal write-down and opposite transaction. In the clearing house. Therefore. usually offer higher yields to compensate for their reduced Derivative instruments also carry the risk that a loss may be sustained by creditworthiness or increased risk of default. market conditions where their use could be beneficial for the relevant Subfund. the value of the units or shares in the Target Funds may be also involve certain significant risks that are not typically associated with affected by currency fluctuations. Compared to investment grade debt and sometimes could be counterproductive to. potential price contagion and volatility to the Moreover. substantially greater than the amount invested in the derivative itself. from investments solely in securities of issuers from a single country. In use of credit derivatives (credit default swaps. This cuts against the 22 . in certain countries. Furthermore in quoting prices in certain of the instruments. forward. the Subfunds may invest in debt instruments in the non-investment grade Company’s use of derivatives may not always be an effective means of. adverse changes in generally be expected to increase the value of a Subfund’s non-Reference the value or level of the underlying asset. The counterparties with entire asset class is possible. credit default swaps or total return swaps or to enter into an offsetting Capital Structure Inversion Risk transaction with respect to an open position which might adversely affect Contrary to classic capital hierarchy. such assigned ratings and debt Many derivatives are complex and often valued subjectively. Rating agencies review. may fluctuate independently of each cases. quality). the counterparties or a loss of value to the Company. the volatility of the share price of any Subfund investing in restrictions. high yield debt securities are generally lower-rated and will investment objectives. sector (high yield debt securities). warrants may potentially increase. An issuer of securities may be domiciled in a country other than the Use of Derivatives country in whose currency the instrument is denominated. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Company may in certain cases decide not to use investment techniques. holders of contingent convertible instruments will suffer losses with the possibility to offset the Company’s obligations through an equal ahead of equity holders. warrant prices make the risks attached to investments in warrants higher Investors should also consider the risk attached to fluctuations in than in the case of investment in equities. when the underlying features of these traded derivative. In the latter case.g. OTC derivatives may bear liquidity risks. In addition.

or any guarantee of. Neither the Subfund. changes in real estate prices in residential areas. These risks include: the cyclical nature of real estate securities. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law options contracts. however. as well as their (especially. During a single trading day undue performance of their obligations. the Subfund’s holdings of the relevant be valued based upon the average price taken from at least two major company’s shares. Because of this lack of independence. interest rate rises and other factors influencing the real estate correlation to traditional investments. They invest the bulk of their assets directly in real estate These financial indices shall be chosen in accordance with the eligibility and derive most of their income from rent. and in particular the supervision Investment in REITs by the authorities. the obligations associated with these securities may be subject to Investments in Hedge Fund Indices greater counterparty. 2010. rent ceilings imposed by greater price fluctuations). for which there is limited liquidity. credit risks on the underlying assets and number of specific risks that are set out below. individual Subfunds not traded on stock exchanges or regulated markets. Furthermore. in accordance with their investment policy. increases in Investments in products and/or techniques providing an exposure to land tax and operating costs. 2008 clarifying Article 44 of the Law of December 17. which require the use of local depository and/or custodial services. the registrars’ actions or performance. primarily in the real estate sector. investments in hedge fund indices entail a rights. ABS and MBS are debt securities the register to (a) immediately publish information on any loss of issued by a special purpose vehicle (SPV) with the aim to pass through of records in the register. in practice this regulation has not been days with little or no trading. effect may be achieved. there may be contractual restrictions on the resale of such securities. fact that their investment strategy may involve the short sale of securities ABS and MBS assets may be highly illiquid and therefore prone to and.g. liquidity and interest rate risks as well as other types In addition to the risks entailed in traditional investments (such as market. risks connected with the general and local Investments in Commodity and Real Estate Indices economic situation. market activity decreases. can in extreme of the markets for such stocks and the greater sensitivity of smaller cases lead to a total loss in value. securities are secured by an asset pool (mortgages in the case of MBS The use of derivative instruments may or may not achieve its intended and various types of assets in the case of ABS). certain instruments. losses from damage investments and entail additional risk potential (e. representation or warranty about. as well as administrative liability for non-performance or day by regulations referred to as “daily limits”. and in particular of short selling. Futures prices under Russian law to maintain independent registrars that meet have occasionally moved outside the daily limit for several consecutive certain statutory criteria. When included in a broadly diversified portfolio. either does not exist or does not correspond to the REITs (real estate investment trusts) are listed companies – not open- standards applied in western Europe or other comparable countries. however. changes in the attractiveness of real estate to exposure to commodity and real estate indices generally show only a low tenants. Most futures licensing and supervision by the Central Bank of Russia and may exchanges restrict the fluctuations in future contract prices during a single bear civil. the lower degree of liquidity of derivative instruments. to liabilities of third parties other than the parent company of the issuer. Such perform its obligations under these contracts. These prices may affect the price at which Shares are the Depositary. 8. and (b) to file a petition with the court for the 23 . negligence or When the price of a futures contract has increased or decreased to the mere oversight. These financial indices shall be chosen in accordance with the eligibility which could reduce – either directly or indirectly – the value of the criteria as set out in Article 9 of the Grand Ducal Regulation of 8 February respective Subfund’s investment. nevertheless. capital market. the Company may under certain circumstances trade futures entry” form in Russia. The leverage effect entails that the value of a fund’s assets increases Small to medium-sized Companies faster if capital gains arising from investments financed by borrowing A number of Subfunds may invest primarily in small and mid-cap exceed the related costs. influence over the make-up of that company’s shareholder base. they are subject to and expropriation. and must be able. are distinguished from traditional investments primarily by the the assets underlying the claims). if repayment of the debt is not concurrent with redemption of strategies. prepayment options). Although independent registrars are subject to or when a daily fluctuation limit has been reached. administrative provisions. for the Subfund to lose its registration through fraud. contracts or options thereon. registration process. The use less certain growth prospects of smaller firms. It may therefore be may. – Distortion or destruction of the register could substantially impair. Such instruments may also be subject to – The significance of the register is crucial to the custodial and illiquidity in certain situations when. 2010. the Board of Directors redeemed or purchased. This risk is expected to be mitigated by the amendments Securities to the Russian Civil Code which entered into force in October 2013. the Company may be required. environmental risks. of risks. For the purpose of calculating the Net Asset Value. the Company from promptly liquidating unfavorable positions and therefore management of a company can potentially exert significant result in losses. Most of the hedge funds underlying the respective index were established in countries in which the legal framework. evidence of legal title to shares is maintained in “book- addition. Similar occurrences may prevent the strictly enforced. the Investment Manager. on the other hand. term investments. In Currently. primary dealers. The ended undertakings for collective investment in transferable securities success of hedge funds depends in particular on the competence of the under Luxembourg law – which buy and/or develop real estate as long- fund managers and the suitability of the infrastructure available to them. lesser-known companies premiums payable on derivative instruments. The Subfunds may have exposure to asset-backed securities (“ABS”) and These amendments impose an obligation on the person maintaining mortgage-backed securities (“MBS”). positions can neither be purchased nor compensated. Such risk will be borne by the Investments in Asset-Backed Securities and Mortgage-Backed Subfund. demographic trends and changes in rental commodity. invest in securities the case that the Company cannot readily sell such securities. by using borrowings and derivatives. Investing in the securities of smaller. traditional fixed income securities such as corporate or government issued bonds. will in certain cases erase. such as reinvestment risk (arising from included termination credit and liquidity risks). hedge fund and real estate indices differ from traditional income. supply overhangs and fierce competition. a leverage substantial price volatility. Compared to other objective. Special risk considerations criteria as set out in Article 9 of the Grand Ducal Regulation of 8 February apply to investments in publicly traded securities of companies active 8. involves greater risk and the possibility of greater price volatility due to the causes a faster decrease in the value of the Company’s assets. for example. it is. or which are not listed on an exchange. Investments in Russia Investments in illiquid Assets Custodial and registration risk in Russia The Company may invest up to 10% of the total net assets of each – Although exposure to the Russian equity markets is substantially Subfund in transferable securities or money market instruments which are hedged through the use of GDRs and ADRs. As a rule. investments in products and/or techniques providing an risks of associated parties. changes to the provisions of building law. possible no trades may be executed at prices above or below these daily limits. interest rate rises result in higher financing costs. 2008 clarifying Article 44 of the Law of December 17. There is no guarantee that in the event of a sale of the Management Company nor any of their agents can make any of such instruments the price thus calculated can be achieved. Moreover. companies to changing market conditions. A fall in prices. advance repayments of principal resulting in a lower total return The hedge funds underlying the respective index. although companies are required limit. notably the interest on borrowed monies and companies. the Management Company.

suspicious transactions (whether or not made in cash expose the Subfund to the risk of adverse social. or in case of any acts or omissions in relation to compliance subsequent declines in value of the portfolio security or. economic. In addition. those countries. Consequently. investments made directly in India will be subject to FPI Regulations Delays in settlement may result in a portion of the assets of a Subfund prevailing at the time of the investment. volatility of prices and liquidity of issuers may conditions at that time. Subfund. “Subfunds”. No to the purchaser. to governmental or risk than investing in developed markets. Also. are generally subject to different accounting. The inability to dispose of portfolio securities due to withdrawn by the SEBI in case of non-compliance with the SEBI’s settlement problems could result either in losses to a Subfund due to requirements. which are not Classes with exposure to shorter duration may be issued in certain made via the Moscow Exchange will fall within the 10%-rule of Article 41 Subfunds. In addition the Subfund objective will be achieved. less liquid and more volatile than the laws and regulations. as well as the income derived from the Subfund. or through one or more juridical persons. information and personal data regarding the investors of the Subfund investing in the Indian market Investments in Emerging Countries (including but not limited to any documentation submitted as part of the Investors should note that certain Subfunds may invest in less developed identification procedure prescribed in relation to their investment in the or emerging markets. in accordance with Share Classes with exposure to shorter duration Chapter 6. exercises control higher than usual risk of political. 2010. could result in possible liability relating to Anti-Money Laundering and Counter Terrorism Financing. there might be restrictions on the aims to reduce currency risk between the Reference Currency of the repatriation of the capital invested. hence information regarding investors of the Subfund may described. there may be a together. less developed. these may be exacerbated by the special factors pertaining to be required for disclosure to local supervisory authorities. In addition. The volume of trading. Investors should note that the remaining temporarily uninvested and no return is earned thereon. could have a negative impact on the auditing and financial reporting standards in the different countries of the value of the investors’ participation depending on the prevailing market world. social and religious instability through ownership or who ultimately has a controlling ownership interest and adverse changes in government regulations and laws in less above 25% of the Subfund’s assets is required to disclose its identity to developed or emerging markets. In particular investors The securities markets of less developed or emerging markets are shall note that. the performance of the Shares Classes with exposure to shorter made in India are subject to the relevant Subfund obtaining a certificate of duration may underperform the other Share Classes of the relevant registration as “Foreign Portfolio Investor” (“FPI”) (registration as Category Subfund. whether acting alone or securities markets of developed markets. investors should Investment Countries note that a suspension or a withdrawal of the FPI registration of the The issuers of fixed income securities and the companies. securities 2002 (“PMLA”) and the rules framed thereunder in relation to the dealers and listed and unlisted companies is different throughout the prevention and control of activities concerning money laundering and world. political or economic and including credits or debits into or from non-monetary accounts such events which may occur in that country or countries. Investors should note that there is no segregation of liabilities between the The abovementioned amendments to the Russian Civil Code provide for individual Share Classes within a Subfund. seek information from the FPI holder on the identity of beneficial owners Investments in such Subfunds are exposed to the risks which have been of the Subfund. there is a risk that unlimited protection of the “good faith purchaser” of equities acquired in under certain circumstances. such concentration will certain thresholds. settlement problems could cause a Subfund to miss attractive investment The FPI registration of the Subfund can in particular be suspended or opportunities. government supervision and regulation of securities exchanges. such as cash transactions exceeding in a particular country or group of countries. All Different markets also have different clearing and settlement procedures. which could affect the investments in the DDP. In such case assets of other consideration. direct investments rates fall. Investing in emerging markets may carry a higher Subfund) may be disclosed to the DDP. financial institutions and countries. or equity-type securities traded on Closed joint-stock company “MICEX Stock Exchange” (the “Moscow Exchange”). “Investment Restrictions” and unless stipulated otherwise in As detailed in Chapter 5. The hedging yet clear how this mechanism for restoration of register information strategy aims to reduce. “Investment in CS Investment Funds 1”. respective Subfund and the nominal currency of the hedged Share Class 24 . the FPI regulations have the ability to The risk increases if the country in question is an emerging market. However. resp. as well as all gains or losses resulting from such hedging will be Investments in India borne by the Shareholders of these respective Share Classes. will apply due to the absence of accompanying procedural rules. currency exposure. the shares of Subfund may lead to a deterioration of the performance of the relevant which are purchased. credit risk will remain unchanged. including applicable laws and regulations entered into a contract to sell the security. The assets of Subfunds investing in such markets. hedging transactions in relation to a hedged the course of exchange trades. any natural person who. Share Classes of such Subfund may be used to cover the liabilities Direct investments in the Russian market are made in principle via equities incurred by the hedged Share Class. All costs and expenses of the duration hedging. Shareholders in these Shares Classes should note that the (2) a) of the Law of December 17. Any other direct investments. The FPI Regulations set various limits for Clearing and Settlement Procedures investments by FPIs and impose various obligations on the FPIs. Shareholders in Shares Classes with exposure to shorter II FPI) from a Designated Depository Participant (“DDP”) on behalf of the duration should also note that there is no assurance that the hedging Securities and Exchange Board of India (“SEBI”). may also be effected unfavorably Hedged Share Class Risk by fluctuations in currency rates and exchange control and tax regulations The hedging strategy applied to hedged Share Classes may vary from one and consequently the Net Asset Value of Shares of these Subfunds may Subfund to another. The only exception (which seems to be Share Class could result in liabilities affecting the Net Asset Value of the non-applicable) to this rule is the acquisition of such securities without other Share Classes of the same Subfund. Accordingly. The registration of the relevant Subfund as a FPI is a condition precedent to inability of the Company to make intended security purchases due to any direct investments by this Subfund in the Indian market. if a Subfund has with any Indian regulations. shall obtain a Permanent Account Number (PAN) card from the Income Tax Department of India. as security accounts). in order to enable the Subfund to comply with the Indian generally smaller. it is not while taking various practical considerations into account. regulatory authorities in India upon their request. but may not totally eliminate. intermediaries dealing in securities (including FPIs) to conduct client identification procedures and to establish the beneficial owner of the Concentration on certain Countries/Regions assets (“Client ID”) and to maintain a record of Client ID and certain kinds Where a Subfund restricts itself to investing in securities of issuers located of transactions (“Transactions”). vary from one market or country to another. assurance can be given that the FPI registration will be maintained for the whole duration of the relevant Subfund. which as a consequence. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law restoration of the lost information in the register. Hence. Each Subfund will apply a hedging strategy which be subject to significant volatility. If interest In addition to the restrictions set out in this Prospectus. Shares Chapter 23. the level of Investors should also note that the Prevention of Money Laundering Act. The laws and regulations of some countries may restrict the confiscation of property derived or involved in money laundering in India Company’s ability to invest in securities of certain issuers located in those require inter-alia certain entities such as banks. this emerging market. As far as permitted under Luxembourg law.

Common Reporting Standard (the “CRS”) as set out in the Luxembourg Should the borrower of securities fail to return the securities lent by a law dated 18 December 2015 implementing Council Directive Subfund. however. duties or other fees or charges imposed by the authorities in that Persons. along with the required supporting documentary evidence. The term ’’Controlling Persons” must be interpreted in a manner FATCA consistent with the Financial Action Task Force Recommendations. there may be a risk that affected. which is the Depositary’s as well as the Management authority personal and financial information related.S. financial entity does not comply with FATCA systems. basis for the annual disclosure to the Luxembourg tax authority. and duties) and to ensure that the interests of the Company and the The Company’s ability to satisfy its reporting obligations under the CRS- Shareholders are not unfairly prejudiced.S. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Some of these markets may not be subject to accounting. inform the Company of. be required by applicable laws or regulations or requested by such authority. FATCA provisions generally impose a reporting to the U. which could have a major effect on the withheld. and any other natural person(s) exercising anticipated either at the date of this Prospectus or when investments are ultimate effective control over the trust. These industries or sectors may. whether due to inaccurate pricing of exchange of information in the field of taxation (the “CRS-Law”). inter alia. The proceeds from the sale of securities in some markets or the receipt of the Company will process the Information for the purposes as set out in any dividends and other income may be or may become subject to tax. In the case of a trust it means invest in the future. and in the case of a legal made. auditing and Under the terms of FATCA. there is a risk that the collateral received may be realized at a 2014/107/EU of 9 December 2014 as regards mandatory automatic lower value than the securities lent. the value of the Shares held by all Shareholders may be materially organized than in developed markets. and Industry/Sector Risk – delay payments of any dividend or redemption proceeds to a The Subfunds may invest in specific industries or sectors or a group of Shareholder until the Company holds sufficient information to comply with related industries. Credit Suisse AG themselves Reportable Persons. settlement systems in emerging markets may be less well. be affected applicable laws and regulations or determine the correct amount to be by market or economic factors. the protector(s) (if any). valued or disposed of. the Shareholders undertake to inform the Company within thirty tax applying to certain U. as exhaustively set out has undertaken to use its reasonable endeavours to resolve any such in Annex I of the CRS-Law (the “Information”). might change. This may lead promptly furnish such personal data as may be required by the Company to a concentration in geographical or sector terms. the Company could the settlor(s). In addition. Company. source interest or dividends. in its discretion in order to comply with applicable laws and regulations Subscriptions in the relevant Subfunds are thus only suitable for investors and/or to promptly determine the amount of withholding to be retained. than in countries with more developed securities markets.S.S. the collateral. In Taxation this context. into which the Subfunds invest or may persons who exercise control over an entity. and provide the Company with all supporting 25 .S. if applicable. It must also be borne in mind that companies are selected regardless of – require any Shareholder or beneficial owner of the Shares to their market capitalization. adverse market movements. In such circumstances. The Shareholders further undertake to immediately that can produce U. in the Company. CRS-Law. the beneficiary(ies) or become subject to additional taxation in such countries that is not class(es) of beneficiaries. including the risk Financial Account Information in Tax matters (the “Standard”) and its that the lent securities may not be returned or returned in a timely manner. the Subfund. of the processing of their Information by the market. As such. value of the Subfunds’ investments. market practice may require that payment shall be regulations even if the Company satisfies with its own FATCA obligations. settlement may be delayed and that cash or securities of the concerned The Company and/or its Shareholders may also be indirectly affected by Subfunds may be in jeopardy because of failures or of defects in the the fact that a non U. In particular. financial institutions that do not operations performed by them will be reported to them through the comply with FATCA and U. Reportable Persons are informed that certain Internal Revenue Service of non-U. It is possible that the tax law (and/or the current interpretation of the law) The term “Controlling Person” means in the present context any natural as well as the practice in countries. In such to: cases. the Company shall have the right delivery of a security must be made before payment is received. the risks related to this type of – divulge any such personal information to any tax authority. Thus. sector or geographical location. entities. This information. holdings by and payments made to (i) certain counterparty for securities lending transactions. The Shareholders undertake to inform their Controlling levies.S. made prior to receipt of the security which is being purchased or that Despite anything else herein contained. Common Reporting Standard Securities Lending The Company may be subject to the Standard for Automatic Exchange of Securities lending transactions involve counterparty risk.S. Failure to provide the requested information will lead to a 30% withholding Similarly. Should the Company become subject to a withholding tax as a result of Moreover. The Company may be subject to regulations imposed by foreign The Shareholders are further informed that the Information related to regulators. to the Company’s parent company. arrangement other than a trust. As a result. persons’ (within the meaning of FATCA) issuance of statements. the Company will be treated as a Foreign financial reporting standards and practices comparable to those of more Financial Institution (within the meaning of FATCA). there may be less government their tax residence and all other information deemed necessary to comply supervision. accounts and non-U. Law will depend on each Shareholder providing the Company with the Information. including taxation levied by withholding at source. persons in equivalent or similar positions. Company will be required to annually report to the Luxembourg tax Credit Suisse AG. the developed countries and the securities markets of such markets may be Company may require all investors to provide documentary evidence of subject to unexpected closure. In particular. the trustee(s). who are fully aware of. the Company is to be treated as a the issuer of the collateral or the illiquidity of the market in which the Luxembourg Reporting Financial Institution . the Shareholders are hereby informed that. the CRS-Law. legal regulation and less well-defined tax laws and procedures with the abovementioned regulations. default by a broker or bank through whom the relevant transaction – withhold any taxes or similar charges that it is legally required to is effected might result in a loss being suffered by the Subfunds investing withhold by applicable laws and regulations in respect of any shareholding in emerging market securities. FATCA. as of 30 June 2017 collateral is traded which could adversely impact the performance of the and without prejudice to other applicable data protection provisions. decrease in the credit rating of Under the terms of the CRS-Law.S. in particular the Foreign Account Tax Compliance provisions of Reportable Persons within the meaning of the CRS-Law will be disclosed the Hiring Incentives to Restore Employment Act (commonly known as to the Luxembourg tax authority annually for the purposes set out in the “FATCA”). acts as the exclusive principal borrower and identification of. It may engage in activities shareholders as per the CRS-Law (the “Reportable Persons”) and (ii) that might result in conflicts of interests with adverse effect on the Controlling Persons of certain non-financial entities (“NFEs”) which are performance of the Subfund. as may investment. will include personal data conflicts of interest fairly (having regard to its or his respective obligations related to the Reportable Persons. source income (including dividends and (30) days of receipt of these statements should any included personal interest) and gross proceeds from the sale or other disposal of property data be not accurate. As such. and able to bear. and that part of this information will serve as a direct and indirect ownership of non-U. as data controller.

basis of the adjusted Net Asset Value might not reflect the true portfolio performance as a consequence of the adjustment of the Net Asset Value. that the Net Asset Value of the Shares in this Subfund Reference Currency of each Subfund at the prevailing mid-market rate. the Company shall value Subfund may be adjusted upwards or downwards by a maximum these securities in accordance with other criteria to be established percentage (“swing factor”) indicated in Chapter 23. such values do not reflect the fair market value The Net Asset Value may be adjusted on every Valuation Day on a net of the relevant OTC swap transactions. Currency of the respective Subfund and shall be determined under the h) Units or shares of UCITS or other UCIs shall be valued on the basis responsibility of the Company’s Board of Directors in Luxembourg on each of their most recently calculated Net Asset Value. maturity or remaining term to maturity of less than 12 months and Any Shareholder that fails to comply with the Company’s Information or does not have any specific sensitivity to market parameters. be progressively adjusted to the repayment price while keeping the resulting investment return 8. in the opinion of the incoming and outgoing investors. the units or shares of such UCITS or other Net Asset Value of that Valuation Day will be calculated on the next UCIs may be valued at the mean of such buy and sell prices. market timing. the valuation currencies shall be rounded up or down to the next smallest unit of shall be made by reference to the exchange which is the main currency. conversion at the mid-market rate between the Reference Currency and For the valuation of private equity investments. Adjustment of the Net Asset Value (Single Swing Pricing) e) Securities that are not listed on a stock exchange and are not In order to protect existing Shareholders and subject to the conditions set traded on a regulated market shall be valued at their last available out in Chapter 23. further valuations may be carried out on the c) If a security is traded on a secondary market with regulated trading same day. The Net Asset Value of an Alternate Currency Class shall be calculated Investments which are difficult to value (in particular those which are not first in the Reference Currency of the relevant Subfund. “Subfunds”. The Net Asset Value of a Share shall be rounded up or down. Shareholders should note that the performance calculated on the appropriate. If no such price is available. maturity falls below 12 months. If the Board of Directors shall be entitled to use other generally recognized and Subfund in question has more than one Share Class. In exceptional circumstances. Net Asset Value constant. Should the Board of Directors determine such bid price may be taken as a basis for the valuation. transparent criteria. that portion of the auditable valuation principles in order to reach a proper valuation of the Net Asset Value of the Subfund attributable to the particular Class will be Subfund’s assets and as a measure to prevent the practices relating to divided by the number of issued Shares of that Class. by The amounts resulting from such valuations shall be converted into the way of exception. the Net Asset Value of the respective Shares in these b) If a security is traded on several stock exchanges. since they are directly integrated will take into consideration the anticipated subscription or into the calculation of the Net Asset Value and hence. Foreign exchange transactions conducted for the purpose of hedging For determining the Net Asset Value. offer or mid-prices. 26 . the Board of Directors longer have to indirectly bear these costs. Value and only buy and sell prices are available for units or shares In case the Valuation Day is not a full Banking Day in Luxembourg. as the case Unless otherwise specified in Chapter 23. the closing mid-price (the Directors decide to effect the issue and redemption of Shares in one or mean of the closing bid and ask prices) or alternatively the closing more other currencies. The Net Asset listed on a secondary market with a regulated price-setting mechanism) Value of the Alternate Currency Class shall be calculated through are valued on a regular basis using comprehensible. where necessary Banking Day on which banks are normally open all day for business in by taking due account of the redemption fee. the Company may use the the Alternate Currency of the relevant Share Class. If such a price is other currencies at the mid-market rate should the Company’s Board of not available for a particular trading day. The Company’s Board of Directors and the auditor shall monitor expenses incurred for the currency conversion in connection with the the comprehensibility and transparency of the valuation methods and their subscription. The Net Asset Value services of third parties which have appropriate experience and systems in of the Alternate Currency Class will in particular reflect the costs and this area. “Subfunds”. will not be determined on such days. in the by the Board of Directors and on the basis of the probable sales event of a net surplus of subscription or redemption applications on a price. In such case the same Net Asset Value applies good faith. In the event of a significant change in market conditions. the of UCITS or other UCI. the assets and liabilities of the currency risks shall be taken into consideration when carrying out this Company shall be allocated to the Subfunds (and to the individual Share conversion. Existing Shareholders would no whether to use the bid. Unless otherwise specified in Chapter 23. to all incoming and outgoing investors on that particular Valuation Day. “Subfunds”. exclusively transaction costs. the calculation is carried out by dividing the If a valuation in accordance with the above rules is rendered impossible or Net Asset Value of the Subfund by the total number of Shares incorrect due to particular or changed circumstances. Classes within each Subfund). the assets of each may be. the valuation may be based on this secondary The total Net Asset Value of the Company shall be calculated in Swiss market. the Company’s outstanding for the relevant Subfund or the relevant Share Class. Board of Directors. redemption and conversion of Shares in this Class and for application. The Board of Directors can set a threshold (net capital flows transactions will be determined in good faith by the Board of that needs to be exceeded) to apply the adjustment to the Net Asset Directors or by such other method as it deems in its discretion Value. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law documentary evidence of any changes related to the Information after g) The valuation price of a money market instrument which has a occurrence of such changes. are borne by redemption flows. OTC The adjustment of the Net Asset Value aims to cover in particular but not swap transactions will be valued on a consistent basis based on bid. the Net Asset the basis for the valuation of different investments shall be brought Value of the Shares of each Subfund shall be calculated in the Reference into line with the new market yields. d) Securities traded on a regulated market shall be valued in the same way as those listed on a stock exchange. the value of such OTC swap deal basis. to the next smallest unit of the Reference Currency which is Subfund shall be valued as follows: currently used. documentation requests may be held liable for penalties imposed on the including credit risk. “Subfunds”. the Net Asset Value per Share Class of a market price. market for this security. currencies. the Company may decide. valuing the majority of a Subfund’s assets. among other parameters. hedging the currency risk. market conditions). When deciding conversions in and out of the Subfund. francs. based on the net acquisition price or on Company and attributable to such shareholder’s failure to provide the the price at the time when the investment’s remaining term to Information. f) Derivatives shall be treated in accordance with the above. unless otherwise specified in Chapter 23. shall. the value of which shall be estimated with due care and in particular Valuation Day. If. Where no Net Asset Luxembourg (each such day being referred to as a “Valuation Day”). “Subfunds”. following Banking Day. such valuations will be valid for any applications for subscription among securities dealers (with the effect that the price reflects and/or redemption subsequently received. If a Valuation Day falls on a day which is a holiday i) Fiduciary and fixed-term deposits shall be valued at their respective in countries whose stock exchanges or other markets are decisive for nominal value plus accrued interest. redemptions and/or procedures established by the Board of Directors. a) Securities which are listed or regularly traded on a stock exchange The Net Asset Value of one or more Subfunds may also be converted into shall be valued at the last available traded price. tax charges and bid/offer spreads incurred offer or mid prices as determined in good faith pursuant to by the respective Subfund due to subscriptions.

income and The costs attributable to the individual Subfunds shall be allocated directly expenses chargeable to the Company. the Subfunds (see Chapter 5. The of statutory provisions the Company may distribute from time to time. 10. Investors should therefore ensure they are fully informed in this respect and should. unless otherwise specified in Chapter 23. municipal business Shareholders including the publication of prices for the tax and net wealth tax in Luxembourg. a coupon payment 23. Taxes including notifications for registration. Shareholders aforementioned documents or reports as are used in marketing the are not required to pay any income. the Company bears any laws and practices currently in force in a Shareholder’s country of performance-related fees (“Performance Fee”) if specified for the citizenship. which may not exceed 0.10% p. commission). the fees and costs of the Company’s auditors and Dividends. and the assets involved shall revert to the respective Subfund. within the scope Values of the relevant Share Classes during that month. The Net Asset Value of each Subfund at the end of each cost of book-keeping and calculating the daily Net Asset Value quarter is taken as the basis for calculation. “Subfunds”. gains made on the sale of assets belonging to the assets of the respective Subfund or the value of transferable Subfund may be and distributed to investors. h) Fees incurred for collateral management in relation to derivative General Information transactions. “Summary of Share Classes” and her personal circumstances. to them. In the case of Share languages.10% p. this tax rate is legislation or regulations of the above-mentioned authorities. may be written off over a “Subfunds”: period of up to five years. Chapter 23. “Subfunds”. sale of Shares. including those for legal advice. “Investment in CS Investment Funds 1”) d) A monthly management fee for the Management Company. Performance Fee The tax consequences will vary for each investor in accordance with the In addition to the aforementioned costs.. the 0. income and gains received by the Company on its legal advisers. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law j) The cost of preparing. distribution ratio. 27 . consult their own financial advisers. the Company shall assets. the Company’s with offering the Shares. Company and (new) Subfunds or Share Classes. including the cost of printing copies of the According to the legislation currently in force in Luxembourg. transfer agents and the authorized representatives in Appropriations of the annual result as well as other distributions are the countries of registration.a. Otherwise the costs shall be allocated among the individual b) All costs of buying and selling securities and other assets including Subfunds in proportion to the Net Asset Value of each Subfund. “Redemption of Shares”.01% p. and decides to what extent distributions are to be made from the net e) Fees payable to the Depositary. no distribution is envisaged for capital-growth Share Classes of “Investment in CS Investment Funds 1”. clearing account maintenance fees. “Summary of Share Classes” and Chapter 5. payable quarterly. Further details of the management fees are The Board of Directors is entitled to determine the payment of dividends included in Chapter 2. together with the cost of printing and distributing all Classes that may only be acquired by institutional investors (pursuant to other reports and documents which are required by the relevant Article 174 (2) c) of the Law of December 17. which may be incurred Chapter 5. At present. the made from the Subfund’s assets in order to achieve an appropriate fees payable to the Depositary may not exceed 0. full. a) All taxes which may be payable on the assets. interest. and all other similar administrative expenses. Payment of income distributions shall be made in the manner described in i) Expenses. iii. gift. and which are based on the net 1”). Luxembourg unless they are resident or domiciled in Luxembourg or maintain a permanent establishment there.a. Shareholders. and in accordance with his or respective Subfund in Chapter 2. depositing and publishing the Articles of 9. Class Hedging. Accounting Year c) Mark-up fees which may be charged by the counterparty for Share. the cost of printing and distributing annual assets are subject to a tax (“taxe d’abonnement”) in the Grand Duchy of and semi-annual reports for the Shareholders in all required Luxembourg of 0. inter alia standard brokerage. specified by the Board of Directors. if necessary. Share-Class Hedging is executed in the best interest of the Shareholders and applicable to the Share Classes 11. Appropriation of Net Income and Capital Gains that are issued in one or more alternate currencies. in management fee may be charged at different rates for individual whole or in part. 2010). However. unless otherwise specified in Chapter f) Fees payable to the paying agents (in particular. Key Investor Information The following summary is based on the laws and practices currently Documents. Other non-recurring fees. the cost of notifications to The Company is not subject to corporate income tax. The accounting year of the Company closes on 31 October of each year. Charges incurred by the Management Company in relation to the provision of investment management shall be paid out of the Distribution Shares management fee. prospectuses or memoranda for all government applicable in the Grand Duchy of Luxembourg and is subject to changes authorities and stock exchanges (including local securities dealers’ thereto. proposed by the Board of Directors to the annual general meeting and are g) All other charges incurred for sales activities and other services determined by the latter. payable and the income generated shall be used to increase the Net Asset Value at the end of each month. ordinary net income and/or realized capital gains as well Subfunds and Share Classes within a Subfund or may be waived in as all non-recurring income. Expenses and Taxes Incorporation and other documents in respect of the Company. although in certain cases the transaction fees and the fees of the Distributions may be declared on an annual basis or at any intervals to be Depositary’s correspondents may be charged additionally. Distributions may on no account cause the Company’s capital to fall below for certain Share Classes these fees may be borne in full or in part the minimum amount prescribed by law. associations) which are required in connection with the Company or Unless otherwise specified in Chapter 23. “Summary of Share Classes”. after deduction of realized capital losses. such as the costs for establishing the bear the costs specified below. based on the average daily Net Asset of the Shares after deduction of general costs.a. fees charged by clearing platforms and bank charges. rendered to the Company but not mentioned in the present section. Expenses from the gains from securities transactions and then from the Company’s Apart from the above-mentioned “taxe d’abonnement”. i. General Information All recurring fees shall first be deducted from investment income.05% p. as set out in Capital-growth Shares Chapter 2. inheritance or other taxes in Company’s Shares. by the Company or the Depositary as a result of measures taken on Claims for distributions which are not made within five years shall lapse behalf of the Shareholders. which are charged at rates agreed investment income attributable to each distributing Share Class of the from time to time with the Company on the basis of usual market Subfund in question (see Chapter 5.. “Investment in CS Investment Funds rates prevailing in Luxembourg.a. The cost of advertising may also be charged. “Subfunds”. then ii. by the Management Company. and investments may be subject to non-recoverable withholding tax or other other expenses directly incurred in connection with the offer and taxes in the countries of origin. Further distributions may be securities and other assets held or determined as a fixed sum. residence or temporary domicile. In addition.

unless otherwise specified in Chapter 23. the liquidator(s) Document. The Management Company has its registered office in for Shareholders”. on 9 December 1999 as a joint-stock company for an indefinite period Any resolution passed by the Company’s Board of Directors to dissolve a and is registered at the Luxembourg Trade and Companies Register under Subfund shall be published in accordance with Chapter 14.m. Company is held by Credit Suisse Holding Europe (Luxembourg) S. at the paying agents. In accordance with the definitions and conditions set out in the Law of December 17. based on: – a resolution passed by the Company’s Board of Directors. rue Jean Monnet. well as for the effective and proper monitoring of the Company’s cash Other information regarding the Company. an extraordinary general meeting of Shareholders may dissolve The Net Asset Value shall be published daily on the Internet at the Company.A. Any liquidation and redemption proceeds that cannot be distributed to the Luxembourg. information agents and Distributors. the Key Investor Information shall be effected in accordance with Luxembourg law. the relation with any of the Investment Manager/s. on a day-to-day basis and subject to the overall competent to approve the effective date of such a merger. 14. Insofar as a merger requires the approval of the the management of the assets of the Subfunds to one or more Investment Shareholders pursuant to the provisions of the Law of December 17. The share capital of the Management Shares. shall be announced The Company and the Subfunds have been established for an unlimited online at www. B 72 925. “Mémorial” and/or in various newspapers. Subfunds’ assets. In addition. or may terminate (Central European Time).credit-suisse.A. the Company in the form of custody of financial instruments.credit-suisse. The The Annual General Meeting (“AGM”) of Shareholders is held in Management Company may at any time appoint an Investment Manager Luxembourg on the second Thursday of April of each year at 11 a. “Information no.A.com and. issue.000. 2010. liquidation proceeds of the Subfunds shall be distributed pro rata to the The relevant contractual agreements as well as the Management Shareholders of these Subfunds. the Board of Directors of the Company will be competent to Company may delegate. General Meetings respective Subfunds are indicated in Chapter 23. Investment Managers and Sub-Investment as a receiving Subfund. Generally. The Board of Directors has appointed the Management Furthermore. A Subfund may be liquidated and Shares Company’s Articles of Incorporation are available for inspection at the in the Subfund concerned may be subject to compulsory redemption Company’s registered offices during normal business hours.. Credit Suisse (Luxembourg) S. the record Unaudited semi-annual reports shall be made available in the same way keeping and verification of ownership of other assets of the Company as within two months of the end of the accounting period to which they refer.A.A. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law All notices to Shareholders. “Subfunds”. duration. border basis. Shareholders at the closure of the liquidation shall be deposited with the The Management Company is subject to the provisions of Chapter 15 of “Caisse de Consignation” in Luxembourg until the statutory period of the Law of December 17. on a domestic or cross basis. Subfund will be informed and the Prospectus will be modified accordingly. other than the one/s named in Chapter 23.com. The investors of such the AGM will take place on the next Banking Day. be published in the period. including any information relating to a 12. 2010 and also manages other undertakings for limitation has elapsed. Subfund’s portfolio. decide on the merger. 2010. is CHF 250. Managers.credit-suisse. either as a merging UCITS or as a receiving The Company’s Board of Directors is responsible for investing the UCITS be subject to cross-border and domestic mergers. any Subfund may. has been appointed as depositary of the Company (the “Depositary”). the meeting of Shareholders deciding by simple majority of the Pursuant to the investment management agreement. Its capital. No quorum control and ultimate responsibility of the Management Company. Credit Suisse Fund Management S. It is licensed charge at the registered office of the Company. 17.com and may be published in various newspapers. within four months after the close of The Depositary has been appointed for the safe-keeping of the assets of each accounting year. to requirement will be applicable. Only the approval of the Shareholders of purchase and sell securities and otherwise to manage the relevant the Subfunds concerned by the merger will be required. on a domestic or cross-border basis. on the date of this Subfund will be paid out on the date of the mandatory redemption of the prospectus. as the 15. Mergers shall be announced at least thirty days in advance in order to The Investment Manager may appoint in accordance with the investment enable Shareholders to request the redemption or conversion of their management agreement entered into between the Investment Manager shares. “Subfunds”. Liquidation and Merger suspension of the calculation of the Net Asset Value. a Subfund may as a receiving Subfund be subject to Company to implement the Subfunds’ investment policy on a day-to-day mergers with another UCI or subfund thereof. However. To be valid. be subject to mergers with another Subfund of the Company or another UCITS. to interests of the Shareholders. the Investment votes cast by Shareholders present or represented at the meeting is Manager has discretion. “Depositary Agreement”). In order to implement the policy of each Subfund. collective investment. such a resolution shall require the minimum www. repurchase. the Management In all cases. Lifetime. or act as its Management Company. quorum prescribed by law. redemption and cancellation of Shares are carried out in 28 . if required. the Company’s registered office. If this date is not a Banking Day in Luxembourg. rue Jean The audited annual reports shall be made available to Shareholders free of Monnet. “Subfunds”. The Manager Company itself may also. Management Company Subfund may no longer be appropriately managed within the The Company has designated Credit Suisse Fund Management S. under its permanent supervision and responsibility. the latest annual and semi-annual reports and copies of the named by the general meeting of Shareholders shall dispose of the Articles of Incorporation free of charge from the registered office of the Company’s assets in the best interests of the Shareholders and the net Company and at www. is a public limited company (société Information about the launch of new Subfunds may be obtained from the anonyme) under the laws of Luxembourg incorporated for an unlimited Company and the Distributors. The Depositary will also provide paying agent services to the Company. the Depositary shall also ensure that (i) the sale. The Investment Manager and Sub-Investment Manager/s for the 13. and the Management Company one or more Sub-Investment Managers for each Subfund to assist it in the management of the individual portfolios. – a resolution passed by the general meeting of Shareholders of the was incorporated in Luxembourg as CSAM Invest Management Company Subfund in question. as well as the issue and flows in accordance with the provisions of the Law of 17 December 2010 redemption prices of the Shares may be obtained on any Banking Day at and the Depositary Agreement. at 5. If the Company is liquidated. notices of all general meetings will be sent to the holders of registered Shares by registered mail at least eight calendar days prior to the meeting at their addresses shown in the register of Shareholders. L-2180 Luxembourg. the liquidation Investors may obtain the Prospectus. Its registered and administrative offices are at 5. either as a merging Subfund or 16. to engage in all banking operations under Luxembourg law. Depositary Meetings of the Shareholders of a particular Subfund may only pass Pursuant to a depositary and paying agent services agreement (the resolutions relating to that Subfund. The Net Asset Value of the Shares of the relevant Luxembourg. Information for Shareholders Credit Suisse (Luxembourg) S. Grand Duchy of Luxembourg.

Central Administration further delegation by the sub-custodian has been agreed by the The Management Company has transferred the administration of the Depositary. Investors should be aware that to the extent the Company 29 . the Depositary does not use any sub. in addition to the management fees the Management As of the date of this Prospectus. any delegation of custody tasks may If the Company does not name such successor depositary in time the only occur when the sub-custodian. this 19. care and diligence in the Company. segregates the assets of the Company from the the necessary steps. the Company. the changes which mitigated potential risks in an appropriate manner and Affiliated Person is active in various business activities and may have other disclose the managed conflict of interest to the Company's investors. regulations. Furthermore. such products that they purchase on behalf of the Company. full-service private banking. The Company will take the tasks delegated to it. (iv) in a financial instrument held in custody by the Depositary and/or a sub- transactions involving the Company’s assets any consideration is remitted custodian. if any. business activities. held in custody and that are duly entrusted to the Depositary for custody The Depositary shall be liable to the Company and to the Shareholders for purposes to one or more sub-custodian(s). in particular the Law of 17 December 2010 and/or appointed by the Depositary from time to time. the Depositary will AG. provided that such transactions are carried out the Depositary. In accordance with the of Incorporation. Company or the Company are carried out. would – depending on the potential risk resulting on such conflict of The Affiliated Person is a worldwide.. e.g. including the issue and redemption of the Depositary analyses . as they are with applicable law. namely in respect of asset segregation. provisions of the Law of 17 December 2010.pdf and will be made available to Shareholders Entities of the Affiliated Person may act as counterparty and as calculation and investors upon request. the Depositary Suisse Group AG (the “Affiliated Person”). at all times during the performance of Depositary may notify the CSSF of the situation. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law accordance with Luxembourg law and the Articles of Incorporation. (ii) the The Depositary’s liability shall not be affected by any such delegation to a value of the Shares is calculated in accordance with Luxembourg law and sub-custodian unless otherwise stipulated in the Law of 17 December the Articles of Incorporation. suisse-lux-sub-custodians. unless they conflict with The Depositary is liable to the Company or its Shareholders for the loss of applicable Luxembourg law and/or the Articles of Incorporation. if such loss has arisen as a Law of 17 December 2010. interest – either decide not to appoint or not to use such sub-custodian for investment banking. to initiate the liquidation of the Company. via a specific committee. dealer and/or distributor of such the purpose of holding in custody financial instruments of the Company or products is part of the Affiliated Person provided that such transactions Subfunds can be found on the webpage https://www. In case of loss of such financial instrument.. the Investment Managers. such case. potential conflict of interest that could arise from the exercise of its duties they may also have an arrangement with the issuer.A. will assume all administrative duties that arise in connection with the purposes of holding financial instruments of the Company or Subfunds. the Depositary will not be In compliance with the provisions of the Depositary Agreement and the liable for the loss of a financial instrument.credit. In Investment Manager(s) from the delegation of the safekeeping functions. As part of the due diligence process applied prior to the appointment of a sub-custodian. Credit Suisse Fund Services (Luxembourg) Prior to the appointment and/ or the use of any sub-custodian for the S. agent in respect of financial derivative contracts entered into by the Company. the Management Company and the as if effected on normal commercial terms negotiated at arm’s length. to one or more third parties under the supervision and responsibility of the delegation with the requirements set forth by applicable laws and Management Company.A. the Depositary may. the Depositary must be replaced at the latest within two (2) periodic review and ongoing monitoring of any sub-custodian and/or other months after the expiry of the aforementioned termination notice by a delegate to which it has delegated parts of its tasks as well as of the successor depositary to whom the Company’s assets are to be delivered arrangements of the sub-custodian and/or other delegate in respect of the and who will take over the functions and responsibilities of the Depositary. To the extent. matters delegated to it. each new The Management Company is not prohibited to enter into any transactions business case for which potential conflicts of interest may arise between with the Affiliated Person. care and diligence as required by the Law of 17 The Company and the Depositary may terminate the Depositary December 2010 in the selection and the appointment of any sub. the Central Investment Manager. custodian which is part of the Credit Suisse Group and thereby avoids Moreover. As the Central Administration. and has authorized the latter in turn to delegate tasks wholly or partly require the sub-custodians to comply for the purpose of such sub. valuation of the assets. the conditions and in order to effectively conduct its duties. the Depositary has to the Company within the usual time limits. exercise all due skill. the expiry of the aforementioned termination notice of ninety (90) days. The Depositary shall the Depositary Agreement. In case custodian and/or other delegate to whom it intends to delegate parts of its of a voluntary withdrawal of the Depositary or of its removal by the tasks and has to continue to exercise all due skill. distributor of any products entitling them to a share in the revenue from As per the date of this Prospectus. the Management Company or the Investment Managers are not conflicts of interests which might potentially result thereof. calculation of the Net Asset Value.com/media/pb/docs/lu/privatebanking/services/list-of-credit. As such. as its conflict of interests policy . (iii) the instructions of the Management 2010 and/or the Depositary Agreement.potential conflicts of interests that may accounting and maintenance of the register of Shareholders. administration of the Company. are carried out in the best interest of the Company as if effected on suisse.based on applicable laws and regulations as well Shares. the Management Company and/or the The Management Company. arise from such delegation of safekeeping functions. normal commercial terms negotiated at arm’s length. which belongs to Credit Suisse Group Company or Subfunds that can be held in custody. asset management and financial services organization the purpose of holding financial instruments of the Company or require and a major participant in the global financial markets. dealer and/or and from the delegation of its safekeeping functions to sub-custodians. sub-custodians are accordingly entitled to use Company to Credit Suisse Fund Services (Luxembourg) S. subject to certain result of an external event beyond its reasonable control. if no Depositary’s own assets and from assets belonging to the sub-custodian successor depositary bank has been appointed within two (2) months after in accordance with the Law of 17 December 2010. Agreement at any time by giving ninety (90) days’ notice in writing. and (v) the Company’s to return a financial instrument of an identical type or the corresponding incomes are applied in accordance with Luxembourg law and the Articles amount to the Company without undue delay. the Depositary has not identified any Company or the Investment Manager earn for managing the Company. delegate part or all consequences of which would have been unavoidable despite all of its safe-keeping duties in relation to financial instruments that can be reasonable efforts to the contrary. and/or in relation to other all other losses suffered by them as a result of the Depositary’s assets of the Company all or part of its duties regarding the record negligence or intentional failure to properly fulfil its duties in accordance keeping and verification of ownership to other delegates. direct or indirect interests in the financial markets in which the Company Such analysis is subsequently performed on all relevant sub-custodians on invests. As a matter of principle the Depositary does not allow its sub-custodians to make use of delegates for the custody of financial instruments unless 18. Regulatory Disclosure analysis includes the identification of corporate links between the Conflicts of Interest Depositary. prohibited to purchase or to provide advice to purchase any products on An up-to-date list of these sub-custodians along with their delegate(s) for behalf of the Company where the issuer. a service further delegates for the purpose of holding financial instruments of the company registered in Luxembourg. the Depositary reviews. the Depositary and certain Distributors are part of Credit sub-custodians and any of the parties mentioned before. If a conflict of interest was identified between the Administration. the sub-custodian. The Company will not be entitled to compensation related to such a regular basis as part of its ongoing due diligence procedure. In particular.

in particular the determination of the circumstances referred – Government bonds. Employees of the Affiliated Person are bound by the terms of own name but on behalf of the investor. Company’s Central Administration. when executing investment decisions. Company. objectives. the Subfunds it manages and their Shareholders.g. The Shareholders if the investor is registered itself and in its own name in the Affiliated Person could hold a relatively large proportion of Shares in the registered account kept for the Company and its Shareholders by the Company. reported to investors in an appropriate manner (e. and a Subfund's Shareholders. subject to a minimum long term The Management Company acts in the best interests of the Company rating requirement of A+/A1. All employees of the Credit Suisse group are subject to the Group – Procedures to ensure that any investment activities on behalf of the Compensation Policy. government agencies. If mandated by the Company. and to influence appropriate behaviours and ensure with reasonable confidence. the objectives of which include: Company are executed in accordance with the highest ethical (a) supporting a performance culture that is based on merit and standards and in the interests of the Company and its investors.com. manage and where necessary Remuneration Policy prohibit any action or transaction that may pose a conflict between the The Management Company has in place a remuneration policy which is interests of the Affiliated Persons’ various business activities and the consistent with. government special banks or governmental export-import banks. rating by S&P and/or Moody’s. they will be committed regulated market of a Member State of the EU or on a stock contractually to apply equivalent best execution principles. and promotion of. For this compliance with the Management Company’s duty to act in the best purpose. voting rights. as stated further below. For that purpose it takes all – Covered bonds issued by an issuer from an OECD member reasonable steps to obtain the best possible result for the Company. the identity of persons responsible for awarding the remuneration and benefits. are carried out with an appropriate level of by its board of directors and is reviewed at least annually. order size and nature. between entities of the Affiliated Person. Company and its investors. likelihood of execution and – Corporate bonds issued by an issuer from an OECD member settlement. but are not limited to the following: in line with the business strategy. subject to a minimum long term rating of AA-/Aa3. main index. The best execution policy is available for investors on the internet at The issuer of negotiable debt obligations must have a relevant credit www. notably the right to participate in general meetings of Person may have invested directly or indirectly in the Company. in the notes to the Details of the up-to-date remuneration policy of the Management financial statements of the Company or on the internet at www. costs. Euros and Swiss Francs. taking into account price. subject to a minimum long term rating requirement of A+/A1.pdf. the execution of the order (best execution). differentiates and rewards excellent performance. the Affiliated Person will make a profit from the price of the financial derivative contract Investor Rights which may not be the best price available in the market. The complaints handling procedure is available free of charge on the internet at www. In the conduct of its business the Management Company and the Affiliated Person’s policy is to identify. it will only exercise – The Company currently accepts the following assets as eligible voting rights in certain circumstances where it believes that the exercise of collateral: voting rights is particularly important to protect the interests of – Cash in US Dollars.credit-suisse. will be made available free of charge upon request.credit. and a paper copy country. charge on their request. In cases where an investor invests in Employees and Directors of the Affiliated Person may hold Shares in the the Company through an intermediary investing into the Company in its Company. subject to a minimum long term rating of AA-/Aa3. it may not always be possible for the respective policy on personal transactions and conflicts of interest the investor to exercise certain shareholder rights directly against the applicable to them. that risks of damage to the interests actions.credit-suisse. such as taking into – Procedure to ensure that any voting rights attached to the account the holding period recommended to the Shareholders when Company’s assets are exercised in the sole interests of the assessing the performance. business activities involving a conflict which may harm the interests of the The remuneration policy of the Management Company has been adopted Company or its investors.com/media/assets/corporate/docs/about- or the Management Company in an official language of their home us/governance/compensation/compensation_policy. The independence and that any conflicts are resolved fairly.com). both have implemented procedures that shall ensure that any interest of the Company and its Shareholders. including. values and interests of the – Procedure to prevent or control the exchange of information Management Company. Notwithstanding its due care and best effort. Where the Investment – Shares representing common stock admitted to or dealt in on a Managers are permitted to execute transactions. a description of how remuneration suisse. and include measures to avoid conflicts of interest. will only be able to fully exercise its investor rights directly against the Potential conflicts of interest or duties may arise because the Affiliated Company. 30 . both in the short – Procedure on management of conflicts of interest. or any other consideration relevant to country. sound and effective risk management and Company or its investors. is in the sole discretion of the Management Company. effective risk management non-neutralized conflicts of interest as well as the decisions taken will be practices and Credit Suisse’s compliance and control culture. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law trades with the Affiliated Person as dedicated counterparty. but not limited to. as well as the that neither encourages risk taking which is inconsistent with the risk Management Company strive to manage any conflicts in a manner profiles of the Subfunds and the Articles of Incorporation nor impairs consistent with the highest standards of integrity and fair dealing. including a description of the Complaints Handling global Credit Suisse group compensation committee are available on Investors are entitled to file complaints free of charge with the Distributor https://www. and promotes. country. Company. and long term. speed. irrespective of the The Company draws the investors’ attention to the fact that any investor Best Execution principles. if they are not exchange of a Member State of the OECD and included in a already subject to equivalent best execution laws and regulations. Details of the actions taken will be made available to Shareholders free of – Bonds issued by federal states. remuneration policy is based on the approach that remuneration should be Such procedures include. The Affiliated Person. In such case these (c) consistency with. Investors are advised to take advice on their rights.credit-suisse. issued by OECD member countries. collateral may be used to reduce The Management Company will in principle not exercise voting rights counterparty risk exposure in accordance with CSSF Circulars 08/356 attached to the instruments held in the Subfunds. municipalities or cantons of Best Execution OECD member countries. there is a risk that the (b) balancing the mix of fixed and variable compensation to organizational or administrative arrangements made by the Management appropriately reflect the value and responsibility of the role Company for the management of conflicts of interest are not sufficient to performed day to day. and recognizes Credit Suisse’s company values. and in that case. and of the Company or its Shareholders will be prevented. the decision to exercise reference currency.com. except if it is specifically and 14/592 and subject to the following principles: mandated by the Company to do so. Collateral Policy Where the Company enters into OTC financial derivative and/or efficient Exercise of Voting Rights portfolio management techniques. supranational institutions. and benefits are calculated. to above.

the Certain personal data of investors (including. When a Subfund is exposed to different counterparties. 0. risk a third country. but not limited to. one or more of its local authorities. process concerning the Company. Assets in on a regulated market of a Member State of the EU or that exhibit high price volatility will not be accepted as collateral on a stock exchange of a Member State of the OECD unless suitably conservative haircuts are in place. such as operational processing subscription. The Management Company may sub-contract to a service provider (the – Where there is a title transfer. a Subfund may be fully collateralised in different by the Management Company. the new rules are designed to require US persons’ direct subject to a minimum long term rating requirement of and indirect ownership of non-US accounts and non-US entities to be A+/A1 reported to the US Internal Revenue Service (the “IRS”). which may or may not include minimum transfer 21. the name. distribution fee administration. re-invested or Depositary and the Central Administration may be recorded. adapted.8% generally. Collateral received must also comply of AA-/Aa3 with the provisions of Article 48 of the Law of 17 December 2010. to further restrict the eligible collateral. In particular. subject to a minimum long term rating – Any collateral received other than cash must be highly liquid and of AA-/Aa3 traded on a regulated market or multilateral trading facility with Corporate bonds issued by an issuer from an OECD 1% . Recordings may be produced in court or other legal proceedings with the Haircut Policy same value in evidence as a written document. and included in a main index – Collateral received must be of high quality. The haircut policy takes account of the By subscribing to the Shares. bonds or equity) in a different currency to that display a high correlation with the performance of the counterparty. efficient portfolio management transactions a basket of collateral with a maximum exposure to a given issuer of 20% of its Net Asset 20. The Company has implemented a haircut policy in respect of each class of Each investor whose personal data has been processed has a right of assets received as collateral. Recordings pledged. the Company will receive more collateral to secure its Subfund receives from a counterparty of OTC derivative and/or counterparty exposure. any stress tests which may be performed in accordance with the collateral management policy. different baskets of collateral must be aggregated to calculate the address and invested amount of each investor) may be collected. Investors must also be counterparty. The Management Company. cantons of OECD member countries. The Foreign Account Tax Compliance provisions of the Hiring Incentives to Restore Employment Act (commonly known as “FATCA”) generally impose According to the Company’s haircut policy the following discounts will be a new reporting regime and potentially a 30% withholding tax with respect made: to (i) certain US source income (including dividends and interest) and gross proceeds from the sale or other disposal of property that can Type of Collateral Discount produce US source interest or dividends (“Withholdable Payments”) and (ii) a portion of certain non-US source payments from non-US entities that Cash.8% transparent pricing in order that it can be sold quickly at a price that member country. Subject to the framework of agreements in place with the relevant counterparty. the collateral received must be held Processor). adjusted in light of the haircut policy. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Where the relevant ratings of S&P and Moody’s differ with respect governmental export-import banks. subject to a The Management Company has the right to restrict or exclude minimum long term rating requirement of A+/A1 certain OECD countries from the list of eligible countries. the Central Administration and the collateral can be held by a third party custodian which is subject to financial intermediaries may also transfer such personal data to affiliates prudential supervision. By way of derogation from recorded. – Collateral must be sufficiently diversified in terms of country. Data Protection Policy Value. As a respect to issuer concentration is considered to be respected if a consequence. stored. 0. Certain Regulatory and Tax Matters amounts. A haircut is a discount applied to the value of access to his/her/its personal data and may ask for a rectification thereof a collateral asset to account for the fact that its valuation. will be identified. CHF and a Subfund's 0% have entered into FFI Agreements (as defined below) to the extent reference currency attributable to Withholdable Payments (“Passthru Payments”). the – Non-cash collateral received must not be sold.5% . such data guaranteed by a Member State. municipalities or to the same issuer. 20% limit of exposure to a single issuer. the price volatility of the collateral and the results of application form used by the Central Administration. transferred or otherwise processed and used this sub-paragraph. Moreover. The criterion of sufficient diversification with reserves the right to increase the haircut it applies to collateral. For other types of collateral arrangement. and which is unrelated to the provider of the and third parties which intervene in the process of the business collateral. Shares representing common stock admitted to or dealt 5% . member country. relationship or where the transfer is necessary for the abovementioned – Collateral received must be capable of being fully enforced by the purposes. issued by OECD member countries. the lower of the ratings shall apply. This consent is formalised in writing in the issuer of the collateral. EUR. The 30% Bonds issued by federal states. the Depositary. including from at least six different issues. – The collateral received by the Company must be issued by an entity In addition to the above haircuts. redemption and conversion orders and payments and legal risks. may be processed for the purposes of performing operational. or a public international body to which one or more management or supervision functions. each investor consents to such processing characteristics of the relevant asset class. the Management Company markets and issuers. may deteriorate over time. managed and mitigated in of dividends to investors and to provide any other client-related services or accordance with the Management Company's risk management services to the Company. or more Covered bonds issued by an issuer from an OECD 1% . of its underlying transaction. the Central Administration transferable securities and money market instruments issued or and the financial intermediaries of the investors. but securities from any single but not limited to any anti-money laundering and counter terrorism issue should not account for more than 30% of the Subfund’s Net financing regulations. or liquidity in case where such data is inaccurate or incomplete. the data. will be conducted in compliance with applicable laws and regulations. subject to a minimum long term rating is close to pre-sale valuation. the type and credit quality of the of his/her/its personal data. Such a Subfund must receive securities reporting obligations or with any applicable laws and regulations. government special banks or 31 . – Risks linked to the management of collateral. in case of unusual market volatility.5% withholding tax regime applies if there is a failure to provide required supranational institutions. aware that telephone conversations with the Management Company. it is the intention of the Company that any collateral received Foreign Account Tax Compliance shall have a value. there will be an additional haircut of 1% - that is independent from the counterparty and is expected not to 8% on any collateral (cash. government agencies. maintaining the register of shareholders.5% . being understood that those affiliates and third parties may be Company at any time without reference to or approval from the located within or outside of the European Union. profile. such as the Central Administration. complying with any threshold Member States belong.5% general matter. As a Government bonds. but also for the purpose of account identification and Asset Value. restricted to USD. the processing of personal by the Depositary.15% – Collateral received will be valued on at least a daily basis.

instruments or certificates on behalf of the Shareholder. including. in its sole discretion. Luxembourg signed the OECD’s multilateral competent advisors regarding the requirements under FATCA with respect to its own authority agreement (“Multilateral Agreement”) to automatically situation. In the provide the Company such information. the new rules will subject all Withholdable Payments and prohibit any such disclosure and warrants that each person whose Passthru Payments received by the Company to 30% withholding tax information it provides (or has provided) to the Management Company or (including the share that is allocable to Non-US Investors) unless the the Designated Third Party has been given such information. to enable the Company to comply with any applicable law or regulation or agreement with a governmental authority. the provisions of the new rules. opinions. the Company will not be subject to Automatic Exchange of Information withholding or generally required to withhold amounts on payments it On 9 December 2014. 32 . Additionally. Such information may be disclosed taxes imposed by any taxing authority or other governmental agency by the Luxembourg tax authority to foreign tax authorities. bank secrecy. TIN(s). or intergovernmental agreement) to the extent it determines such an The governments of Luxembourg and the United States have entered into agreement is in the best interest of the Company or any Shareholder. Each Shareholder hereby grants to the Management Company or the Designated Third Party a power of attorney. or any similar or successor legislation Law will depend on each Shareholder providing the Company with the or intergovernmental agreement. Each prospective Investor and each Shareholder should consult its own tax In addition. representations. will report such information to between EU Member States (“DAC Directive”). CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law information regarding US ownership. or any third party designated by the Management Company (a CRS-Law implements this Multilateral Agreement. aforementioned directive implements the OECD’s CRS and generalizes Any tax caused by an Investor's failure to comply with FATCA will be the automatic exchange of information within the European Union as of 1 borne by such Investor. The new withholding rules will be Each Shareholder hereby waives all rights it may have under applicable phased in beginning 1 July 2014. (including withholding taxes imposed pursuant to the Hiring Incentives to The Company’s ability to satisfy its reporting obligations under the CRS Restore Employment Act of 2010. Under this Multilateral Each Shareholder and each transferee of a Shareholder's interest in any Agreement. the Company may be required to electronic certification) any information. opinions. the Council of the European Union adopted the makes under FATCA. forms relating to the Shareholder (or the Shareholder's direct or indirect state(s) of residence. information regarding its direct The Management Company or the Designated Third Party may enter into and indirect US accountholders. Provided the Company adheres to any applicable terms of the IGA. no assurance Management Company or the Designated Third Party. The adoption of the the IRS. If Company or the Designated Third Party shall have full authority to take the Company becomes subject to a tax or penalty as result of the CRS- any and all of the following actions: (i) withhold any taxes required to be Law. and (iii) form and operate an investment vehicle organized in the Company attributable to such Shareholder’s failure to provide the United States that is treated as a “domestic partnership” for purposes of information and the Company may. ii) and. the Company will not have to enter into Directive 2014/107/EU amending the Directive 2011/16/EU of 15 an FFI agreement with the IRS and instead will be required to obtain February 2011 on administrative cooperation in the field of taxation which information regarding its Shareholders and to report such information to now provides for an automatic exchange of financial account information the Luxembourg government. January 2016. exchange information between financial authorities. along with the required supporting documentary Company. address. including information regarding direct or indirect owners of to any such legislation or intergovernmental agreement) upon the each Shareholder. which. The Management Company or the Designated Third Party may disclose information regarding any Shareholder (including any information provided by the Shareholder pursuant to this Chapter) to any person to whom information is required or requested to be disclosed by any taxing authority or other governmental agency including transfers to jurisdictions which do not have strict data protection or similar laws. as may be necessary to permit the collection. or amounts allocable or evidence. data protection and similar legislation that would otherwise Generally. coupled with an interest. reduction or refund of any withholding or other Person(s) that is a Reportable Person. investment. If professional advice regarding the impact of the CRS-Law on their requested by the Management Company or the Designated Third Party. in turn. Upon request of the Company. in such form and at such time as is Directive introducing the CRS in Luxembourg law. as well as the date and place of birth of i) owners or account holders) as shall reasonably be requested by the each Reportable Person that is an account holder. regulations. agreements on behalf of the Company with any applicable taxing authority including an exemption under an intergovernmental agreement (or “IGA”) (including any agreement entered into pursuant to the Hiring Incentives to between the United States and a country in which the non-US entity is Restore Employment Act of 2010. redeem the section 7701 of the Internal Revenue Code of 1986. an IGA regarding FATCA. representations. each Shareholder shall agree to distributable by the Company to such Shareholder or transferee. withheld pursuant to any applicable legislation. rules or Any Shareholder that fails to comply with the Company’s documentation agreements. transfer such Shareholder's or transferee's interest in any Subfund or Shareholders should consult their own tax advisor or otherwise seek interest in such Subfund assets and liabilities to such investment vehicle. waivers and annually report to the Luxembourg tax authority the name. jointly with the DAC “Designated Third Party”). the Shareholder or transferee shall execute any and all documents. Luxembourg will automatically exchange financial account Subfund shall furnish (including by way of updates) to the Management information with other participating jurisdictions as of 1 January 2016. instruments and certificates as the Management Company or the Designated Third Party shall have reasonably requested or that are otherwise required to effectuate the foregoing. and has Company enters into an agreement (a “FFI Agreement”) with the IRS to given such consent. of each Controlling obtaining any exemption. to execute any such documents. transfer and reporting of their information as set any waivers relating to data protection) as may be required to comply with out in this Chapter and this paragraph. or any agreement entered into pursuant Information. The Company. (ii) redeem the Shareholder's or transferee's interest in any requests may be charged with any taxes and penalties imposed on the Subfund. representations and waivers of non-US law (including processing. or any similar or successor legislation resident or otherwise has a relevant presence. the Management can be given that the Company will be able to satisfy these obligations. as amended and Shares of such Shareholder. if the Shareholder fails to do so. provide information. amounts paid to the Company. waivers or forms to the to avoid any taxes or penalties imposed by the CRS-Law. disclosure. the value of the Shares may suffer material losses. or otherwise qualifies for an exemption. reasonably requested by the Management Company (including by way of Under the terms of the CRS-Law. in the case of a Management Company or the Designated Third Party to assist it in Passive NFE within the meaning of the CRS-Law. event that any Shareholder or transferee of a Shareholder's interest fails Although the Company will attempt to satisfy any obligation imposed on it to furnish such information.

Luxembourg Depositary Credit Suisse (Luxembourg) S. Zurich – Rudolf Kömen Director. 5. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law 22. Luxembourg Independent Auditor of the Company PricewaterhouseCoopers.A. rue Jean Monnet.A.. Zurich – Josef H..A. Zurich – Rudolf Kömen Director. Luxembourg – Fernand Schaus Director. Société coopérative 2. L-2180 Luxembourg Legal Advisor Clifford Chance. Luxembourg – Guy Reiter Director. Credit Suisse AG. L-2180 Luxembourg Board of Directors of the Company – Dominique Délèze Director. rue Jean Monnet. L-2180 Luxembourg 33 .... Luxembourg – Guy Reiter Director.A. Main Parties Company CS Investment Funds 1 5. Luxembourg – Thomas Nummer Independent Director. 5. Credit Suisse Fund Management S. Credit Suisse AG. Credit Suisse Fund Management S. 5. Credit Suisse Fund Services (Luxembourg) S.A.M. rue Jean Monnet. Credit Suisse Fund Management S.A.. rue Jean Monnet. L-1330 Luxembourg Central Administration Credit Suisse Fund Services (Luxembourg) S.A. 10.. rue Gerhard Mercator.A. Hehenkamp Director. Luxembourg – Daniel Siepmann Director.A. L-2182 Luxembourg Management Company Credit Suisse Fund Management S. Credit Suisse AG. boulevard Grande Duchesse Charlotte.. Credit Suisse Fund Management S.. Credit Suisse Fund Management S. L-2180 Luxembourg Board of Directors of the Management Company – Luca Diener Managing Director.

Subfunds the composition of the underlying asset baskets and underlying indices must be sufficiently diversified. Asset Value. “Investment Restrictions”. In addition to the provisions on risk diversification. a higher leverage factor is reached. currencies. securities. that consists of investment-grade short to medium maturity investments. Unless however. the Investment Manager may. and a tactical alpha universe. rated at least “BBB–” by Standard & approximately 15 times the total net assets of the Subfund. notes) that are sufficiently liquid the KIID. 2010 and must be valued derivative strategy cannot be eliminated completely. In accordance Poor’s or “Baa3” by Moody’s. These investments are structured to have limited risk while at the same time usually involve large Convertible bonds. zero-coupon. money market can even cancel each other out. and similar fixed interest or February 8. through the use of derivative instruments such as futures. Henceforth the The Subfund may engage in active currency allocation. these may include. bond indices. the investor should refer to the information in its total assets in structured products (e. notes. defined as countries which are not classified by the World Bank as high income countries. interest rates. but instruments. options on bonds. on a large scale. The methodology used in order to calculate the global exposure resulting market allocation. The level of leverage may vary over time and it may be higher and issued by first-class banks (or issuers offering investor protection than the expected level. will endeavor to minimize these risks by engaging in various these structured products contain embedded derivatives pursuant to hedging activities. exceed this level. it may expected level of leverage is an indicator of the intensity of the use of buy investment currencies on the basis of currency derivative contracts up financial derivative instruments within the Subfund and is not an indicator to the value of the associated net assets and may sell them against of the investment risks in relation to those derivatives because it does not another investment currency for up to the same amount. section 1). CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law 23.e. In particular exchange-traded option instruments. If the underlying of derivatives are financial indices. consequently. covered bonds. calculated by way of the sum of the notionals of the derivatives. although both the duration and the volatility of the instruments may be relatively small and different leverages Bonds. notes. and deposits or other callable bank deposits: up to 100% of structures that combine multiple strategy legs are an important instrument the Subfund's total assets. credit-linked notes (CLNs). invest extensively in derivative Chapter 6. With a higher sum of the notional values of these of the Subfund's total assets. (emerging markets) are generally higher than the returns on similar The derivatives embedded in such structured products may only be based securities of equivalent issuers from countries not classed as emerging on investment instruments specified in Chapter 6. Risk Information asset-backed securities (ABS) and mortgage-backed securities (MBS). collateralized loan obligations (CLOs). take into account any netting or hedging effects. 2008. the leverage calculated in such a way is not an adequate indication of the actual level of investment risk within the Subfund. as described above. The tactical universe could employ a range of fixed income return-enhancing strategies which involve taking Global Exposure long and short positions relating to credit strategy. 10% of the Subfund's total assets. among aforementioned investment principles. 25% notional amounts. subject to the achieve the investment objective. 2010 such products must not The probable returns on securities of issuers from emerging countries entail any leverage effect. that is used to diversify the subfund’s risk. Contingent capital instruments: max. In fact derivatives used to offset the risks linked to other transactions are contributing to an increase Investment Instruments of the leverage determined via the sum of the notionals. floating-rate securities (including floating rate notes and securities issued on a discount basis) of private. securities. Article 42 (3) of the Law of December 17. credit derivatives such as credit default swaps (on single issuer and Investment Principles indexes). of the Prospectus and the risk information described below: These structured products must qualify as transferable securities pursuant Potential investors should note that the counterparty risk related to the to Article 41 of the Law of December 17. 10% of the Subfund’s total assets. currency swaps and inflation swaps. similar fixed. however under extreme market conditions the Subfund could forwards.or variable-income securities. semi-private and public issuers worldwide. the Subfund may. and currency selection. security selection. Investors should read. the Subfund may invest up to 20% of overall risk of the Subfund. forwards (including Non-Deliverable Forwards (NDFs) and return in all market conditions in USD (Reference Currency) while applying futures. subordinated and chosen in accordance with Article 9 of the Grand-Ducal Regulation of perpetual bonds). The direct investments are made mainly in securities which have a credit Under normal market circumstances the expected level of leverage will be quality of at least investment grade. Credit Suisse (Lux) Absolute Return Bond Fund Derivatives: The Subfund may invest in derivatives and comply with the Investment Objective above-mentioned investment principles.g. duration and yield curve. regularly and transparently on the basis of independent sources. The Subfund. In addition. derivative instruments. use a wide variety of derivative This Fund is suitable for investors who are seeking returns in excess of financial instruments to achieve the above investment objective. equivalent to that of first-class banks). Emerging countries and developing markets are Restrictions”. cash over a medium-term timeframe and are prepared to accept risk to The Subfund will allocate its total assets between a strategic beta their capital and at least moderate volatility in the value of their universe. or debt instruments which exhibit similar with the regulatory requirements the expected level of leverage is credit quality in the view of the Management Company. use any of the instruments listed in other things. be aware of and consider Chapter 7. convertible notes and warrant financial instruments in many cases result in less volatile returns than lower bonds): max. such indices shall be bonds (including fixed rate bonds. equity indices and all other permitted financial instruments. the principle of risk diversification. In doing so. To achieve this. section 1). the Subfund will make investments in debt instruments. convertible notes and bonds with warrants: max. In other words. although the Subfund may have relatively small price sensitivities measured on a Equities and equity-type securities (without consideration of exposure to duration-adjusted basis. high income countries which are included in an emerging market financial index of a leading service provider may also 34 . Short positions will be held circumstances the VaR level will not exceed 8% of the Subfunds’ Net synthetically. In order to To achieve its investment objective. high notional values of these the equity market via convertible bonds. the financial derivative instruments used by the Subfund. Under normal financial derivative instruments listed below. These instruments often have large notional amounts relative not be limited to. the instruments specified below: to the subfund’s total net assets. Investor Profile The Subfund may. “Investment (i. collateralized debt obligations (CDOs). These derivatives include interest The investment objective of the Subfund is to achieve a positive absolute rate swaps. swaps. The sum Direct investment to Emerging Markets (as defined below in the section of the notionals takes into account the absolute values of notionals of all “Risk Information”) will be limited to 25% of the Subfunds total assets.For an indicator of the Structured products: In aggregate. notional values on more volatile financial instruments and. Long from the use of financial derivative instruments is the absolute VaR positions may be held through a combination of direct investments and/or approach in accordance with the CSSF Circular 11/512. “Risk Factors” which are issued by private. developed countries). semi-private and public-law issuers worldwide. options and credit derivatives.

counterparty risk in respect of individual transactions. Contingent capital HR = Hurdle Rate instruments may. a Performance Fee of 15% shall be deducted on the difference between 35 . for the respective Reference Currency of the Share Class. mechanical triggers. then the following applies: Dependence on potential use of clearing broker. which is used for the calculation of a Performance Fee. at the end of the following risks (among others): less effective public supervision. and insufficient liquidity affecting the Subfund’s (NAV per Share) t – (HR Index Value) t > 0 investments. investments in this Subfund entail a beginning of the following quarter. meaning they may be redeemed by the issuer on a specific date at a predefined price. (a so-called “mechanical NAV t = current unswung Net Asset Value prior to provision for trigger”). At the time of launch. the capital invested. including those issued by the same issuer. The Performance Fee may only be charged and set aside. Subordinated corporate debt securities carry a higher risk of loss than senior corporate debt securities. indexed basis (100 + ( [r Libor] / 4 ( 1 / ( [#days / #day in quarter] ) ). be subject t = current Calculation Date to “point of non-viability triggers” which bear the same consequences. April. 0. must be greater than the previous unswung Net Asset Values (“High Watermark”). if the following two criteria are fulfilled cumulatively: a) The performance of the unswung Net Asset Value of a Share Class. markets have experienced higher volatility than the developed markets. the unswung Net Asset Value per Share of the accounting and auditing methods and standards which do not match the respective Class is lower than the value at the beginning of the calender requirements of Western legislation. The conversion into equity or a write-down may lead to a Performance Fee substantial loss in value. If. the issuer may extend the maturity indefinitely and defer or reduce the coupon payment. A Performance Fee is payable when the following conditions apply: market volatility. This may lead to a NAV t > max {NAV 0…. The credit worthiness of unrated debt securities is not measured by reference to an independent credit rating agency. in addition to or next to. possible restrictions on repatriation of quarter. In the event of a conversion. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law be considered as emerging countries and developing markets if deemed the unswung Net Asset Value of the Share Class and the greater value appropriate by the Management Company in the context of a Subfund’s between Hurdle-Rate-Index-Value and High Watermark.NAV t-1}. as calculated on a daily basis. b) The unswung Net Asset Value of a Share Class. Each preceding decline in the unswung Net Asset Value per Share of the respective Share Class must be offset by a further increase above the last maximum value at which a Performance Fee was incurred. will be reset quarterly to the new Libor rate at the beginning of each calender quarter (on the first valuation day of January. on the Calculation Date. The calculation of the Hurdle-Rate-Index-Value begins with the launch of the Subfund and will not be reset. i. which could in turn reduce the return on the This Performance Fee cannot be refunded if the unswung Net Asset Subfund’s assets. as solvency prospects. Investments in these Subfunds should only be made on Value falls again after deduction of the Performance Fee. Investors are advised to consider the risks corresponding to investments in contingent capital instruments set out in Chapter 7. concentration in terms of market segments or sectors. “Risk Factors”. within the Hurdle-Rate-Index-Value.NAV t-1}. Moreover. resulting in an increased risk of capital loss. Zurich. The Libor interest rate. in the past. the unswung Net Asset Value of a Share Class is above the Hurdle-Rate-Index-Value and is greater than the preceding unswung Net Asset Values (prior to deduction of the Performance Fee). due to the political and economic and set aside according to the above described method takes place at the situation in emerging countries. set by the member institutions of the British Bankers’ Association.15 ([NAV t – max (HWM. calander quarter. The Hurdle-Rate-Index-Value described in a) above is composed of the three-month Libor interest rate. If both of these conditions are met. It must also be borne in mind that companies are selected and regardless of their market capitalization or sector. the Hurdle-Rate-Index-Value is equal to the issue price of the respective Share Class. the equities received NAV 0 = first unswung Net Asset Value may be at a discount to the share price of that equity when the bond was HWM = High Watermark = max {NAV 0…. purchased. conversion into equity or write-down. Performance Fee The Management Company is entitled to a performance fee which is calculated with every net asset value calculation on the basis of the Net Asset Value of the Share Class concerned. greater degree of risk. calculated on a daily. which is also calculated on a daily basis. July and October). must be greater than the performance of the reference value further defined below (“Hurdle- Rate-Index-Value”). Calculation of the Performance Fee and the necessary provisioning takes place on a daily basis. The calculation investment universe.e. Certain subordinated corporate debt securities may be Investment Manager. The payment of the Performance Fee amounts calculated for each quarter Potential investors should be aware that. these respective Class that are currently in circulation. This means that a long-term basis. The markets in emerging countries are much less of the Performance Fee takes place on the basis of the Shares of the liquid than the developed equity markets. In the event such debt securities are not redeemed on the specified call date. callable. These point of non-viability triggers Investment Manager are activated based on the relevant regulator’s assessment of the issuers The Management Company has appointed Credit Suisse AG. The investments of this Subfund are exposed to the a Performance Fee may also be charged and paid if. HR Index Value) t] × number of Shares t) Contingent capital instruments can convert from bonds to equities or could where: be written-down should specific events occur.

Zurich. meaning in contingent capital instruments. Through their conversion into equity or write-down. reduce the coupon payment. section 1g) and 3. Subscription and Redemption of Shares Additionally the Subfund may invest up to 10% of its total net assets in By derogation to Chapter 5. be subject to “point of The investment objective of the Subfund is to achieve income and capital non-viability triggers” which bear the same consequences. The conversion into equity or a write-down may lead to a substantial loss in value. Contingent capital instruments are hybrid sector may lead to concentrated industry exposure and bears systematic securities. “Risk relevant trigger events are described in the contractual terms or by Factors”. through the use of futures and forwards. including those issued by the same debt securities. in addition to or next to. but typically entail cases where the capital of the Since this Subfund may invest in debt instruments in the non-investment issuer falls below a certain level or where the issuer passes a “point of grade sector. subscriptions and redemptions of fractions shall equities or other equity type securities and in warrants on such equities. mechanical triggers. Under normal circumstances. and call date. the Subfund may actively manage its currency. however. Subordinated corporate debt securities carry a higher risk of loss instruments exhibit characteristics similar to fixed income or floating rate than senior corporate debt securities.e. In the event such debt securities are not redeemed on the specified which include fixed rate bonds. conversion appreciation from bonds and other debt securities denominated in Euro into equity or write-down.downs. which may lead to material losses in the event of risks as further described in the section “Risk Information". or provide exposure to the redemption monies. notes. Investment Manager. bond indices. semi-private and public issuers. expressed in number of Shares and not in terms of subscription / credit as well as equity exposure. Contingent capital instruments could suffer liquidity risk. Up to one-third of the Subfund total net assets may be invested in debt securities issued by private. adverse circumstances affecting this sector. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. At least two-thirds of the total net assets of the Subfund shall be invested Certain subordinated corporate debt securities may be callable. at time the investment is made. Investors are advised to consider the risks corresponding to instruments may either be converted into equity or written down. The investments in contingent capital instruments set out in Chapter 7. or which exhibit The Management Company has appointed Credit Suisse AG. “Net Asset as credit default swaps. decide to increase the maximum swing factor indicated above. perpetual bonds. i. other hybrid and subordinated debt securities. the equity component of which exposes the holder to certain risk between issuers. In such case the Company would inform the investors in Investor Profile accordance with Chapter 14. Shareholders. as it can have adverse effects in a situation when the Subfund needs to sell Investment Principles assets for which there is not enough demand or only at much lower prices. Investors should have a medium-to long-term investment horizon. up to a maximum of 100% or total loss of value). that the Subfund shall invest in instruments rated at least “CCC–” by Standard & Poor’s or Investment Manager “Caa3” by Moody’s. The higher return should be There are no restrictions on the investment universe of the Subfund in viewed as compensation for the greater degree of risk. upon the occurrence of a trigger event. Valuation Day. Value” will be increased by up to a maximum of 2% per Share in the event “Investment Restrictions”. “Information for Shareholders”. other hybrid and subordinated debt they may be redeemed by the issuer on a specific date at a predefined securities of financial institutions such as banks and insurance companies.g. In the event of a conversion. the issuer may extend the maturity indefinitely and defer or similar fixed interest or floating‐ rate securities. subject to the provisions of Chapter 6. these agency. price. (a so-called “mechanical trigger”). The credit worthiness of unrated debt Contingent capital instruments are hybrid debt securities designed to securities is not measured by reference to an independent credit rating absorb their issuers' capital losses. Investors should not consider investment into this Subfund as a core holding in their portfolio. and/or a reduction of its leverage ratios under critical circumstances at the loss absorption and conversion risk.g. Risk Information Investors should read. the Subfund of a net surplus of subscription applications or reduced by up to a may attempt to mitigate adverse outcomes of capital conversion or loss maximum of 2% per Share in the event of a net surplus of redemption absorption events by entering into long put equity options. up to a maximum of 100% or total loss of value) should specific events occur. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Credit Suisse (Lux) Contingent Capital Euro Fund discount to the share price of that equity when the bond was purchased. Contingent capital instruments Investment Objective may. not be permitted and subscription and redemption applications may only be Furthermore. prospects. However. Focusing on issuers from the financial expense of their holders. “Investment in CS Investment Funds 1“. terms of the issuers’ credit ratings provided. the underlying debt instruments may present a non-viability”. regulatory directives. as similar credit quality in the view of the Management Company. resulting in an increased risk of capital loss. the equities received may be at a 36 . these issuer. In particular. zero‐ coupon. in the interest of in or hedged into EUR. “Risk Factors” of the Prospectus and the risk information described below: Contingent capital instruments can convert from bonds to equities or could be written-down (e. The Subfund is suitable for investors who want to diversify their portfolio and are able to evaluate the risks and value of contingent capital instruments. equity indices and Adjustment of the Net Asset Value (Single Swing Pricing) all other permitted financial instruments as well as credit derivatives such The Net Asset Value calculated in accordance with Chapter 8. The investor must be willing and able to accept significant losses when capital is converted or written–down (e. interest rate. options on bonds and equities. applications in respect of the applications received on the respective The Subfund may invest in securities denominated in any currency. be aware of and consider Chapter 7. ii) other convertible bonds and other equity linked securities as well as in Subscription of Shares. greater risk in terms of downgrading or may exhibit a greater default risk contingent capital instruments thus allow the recapitalisation of the issuer than debt instruments of first‐ class issuers as well as risk of write. however a significant part of the Subfunds’ net assets will be denominated Under exceptional circumstances the Company may. abovementioned investment instruments. These point of non-viability triggers are activated (Reference Currency) issued by companies from the financial sector while based on the relevant regulator’s assessment of the issuers solvency preserving the value of the assets.

Investors are advised to consider the risks corresponding to investments in contingent capital instruments set out in Chapter 7. forward exchange transactions. deficits or wide credit spreads. meaning they may be redeemed by the issuer on a specific date at a predefined price. In the event of a conversion. Investment Principles Investment Manager At least two-thirds of the total assets of the Subfund shall be invested in The Management Company has appointed Credit Suisse AG. options as well as swap transactions (e. fluctuations in the issued by European government and semi-government issuers while values of speculative investments. (a so-called “mechanical trigger”). perpetual bonds. resulting in an increased risk of capital loss. potentially leading to a sovereign debt default or. some European markets currently entail downside risks. These risks also entail potential adverse effects on assets. debts and other financial instruments in the affected country or countries. to a lesser extent. in addition to or next to. The Subfund may enter into derivative transactions such as futures. the equities received may be at a discount to the share price of that equity when the bond was purchased. The situation. interest-rate swaps and credit default swaps) for the purpose of hedging or efficient portfolio management provided the limits set out in Chapter 6. “Net Asset governments. conversion into equity or write-down. These point of non-viability triggers are activated based on the relevant regulator’s assessment of the issuers solvency prospects. maximum of 2% per Share in the event of a net surplus of redemption In addition. subordinated bonds. the eventual break-up of Europe's Monetary Union. in the interest of that have their domicile or who exercise a predominant part of their activity Shareholders. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Credit Suisse (Lux) European Sovereign Plus Bond Fund Investor Profile Investment Objective The Subfund is suitable for risk tolerant investors who. i. In such case the Company would inform the investors in with high debt to gross domestic product (GDP) ratios or high fiscal accordance with Chapter 14. particularly in the countries of Peripheral Europe where sovereign default is perceived to be most likely. Subordinated corporate debt securities carry a higher risk of loss than senior corporate debt securities. government and Adjustment of the Net Asset Value (Single Swing Pricing) semi-government bonds) issued or guaranteed by Peripheral European The Net Asset Value calculated in accordance with Chapter 8. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. the Subfund may make greater use of interest-rate futures and credit derivatives.g. mechanical triggers. The Subfund is well suited for portfolio preserving the value of the assets. contracts. Certain subordinated corporate debt securities may be callable. may continue to deteriorate. “Risk Factors” of the Prospectus and the risk information described below: The functioning of markets in Europe has sustained considerable pressure as the result of the recent global financial crisis. there is an ongoing risk of a disorderly degree of recession.e. including those issued by the same issuer. Contingent capital instruments can convert from bonds to equities or could be written-down should specific events occur. In the event such debt securities are not redeemed on the specified call date. municipalities or supranationals Valuation Day. “Information for Shareholders”. in debt securities applications in respect of the applications received on the respective issued by other European governments. floating rate notes. the Subfund may invest. municipalities and supranationals which have with at least an Value” will be increased by up to a maximum of 2% per Share in the event investment grade rating rated either by Standard & Poor's of a net surplus of subscription applications or reduced by up to a (at least “BBB–”) or by Moody's (at least “Baa3”). “Risk Factors”. Thus. the issuer may extend the maturity indefinitely and defer or reduce the coupon payment. can appreciation from bonds and other debt securities denominated in Euro tolerate the unavoidable. and in debt securities issued by financial institutions and corporate issuers Under exceptional circumstances the Company may. decide to increase the maximum swing factor indicated in Peripheral Europe. diversification. (including fixed rate bonds. Zurich. Risk Information Investors should read. Contingent capital instruments may. For the purpose of duration and credit management. be subject to “point of non-viability triggers” which bear the same consequences. inflation linked bonds. 37 . Peripheral Europe is defined by European countries above. In these markets of Peripheral Europe. A maximum of 10% of the Subfund’s total assets may be invested in contingent capital instruments. The credit worthiness of unrated debt securities is not measured by reference to an independent credit rating agency. “Investment Restrictions". section 3) are observed. as fixed (including zero-coupon bonds) and floating rate debt securities Investment Manager. be aware of and consider Chapter 7. The conversion into equity or a write-down may lead to a substantial loss in value. in seeking The investment objective of the Subfund is to achieve income and capital investments that offer targeted opportunities to maximize return. covered bonds. in the worst case. and occasionally substantial. with pressure coming in several forms.

with the aim to indices. options on bonds. that the Subfund 6.or variable-income securities. The limited number of currencies other than the Subfund’s Reference Currency does not need to investors for those securities may make it difficult for the Subfund to be hedged against such Reference Currency. normally paying its interest) cash bonds Structured products: by investing in investment and non-investment grade debt In aggregate. notes) that are sufficiently liquid and end. convertible notes and warrant bonds): max. chosen in accordance with Article 9 of the Grand-Ducal Regulation of February 8. and securities issued on a discount basis) of private. currencies and all other permitted financial instruments. MBS. in conjunction with Article 42 (3) of the Law shall invest in instruments rated at least “CCC–” by Standard & Poor’s or of December 17. In this regard.  The Subfund has also the ability to take concentrated and non. In addition. mentioned asset classes and comply with the above-mentioned investment With regard to the total exposure associated with the use of derivatives. As the Subfund may objective will be met. (CDOs). credit profit from interest rate rises and falls as well as any widening or narrowing derivatives such as credit default swaps subject to the provisions of of credit spreads or exchange rate fluctuations. the Subfund has the ability to take concentrated Restrictions”. The return driver of such opportunistic December 17. the Subfund may.  The Subfund allocates its total net assets primarily to benchmark- sized liquid performing (e. the Subfund's return driver is an equivalent to that of first-class banks). Unless these structured products investment horizon of 2 – 6 months. collateralized loan obligations (CLOs). To this structured products (certificates. strategic positions with a medium to long-term horizon with the composition of the underlying asset baskets and underlying indices investment views on structurally or fundamentally improvements in a must be sufficiently diversified.g. 20%. bonds (including Bonds. Investment Objective The investment objective of the Subfund is to generate returns in US Investment Instruments Dollar (Reference Currency) by identifying high yielding investment To achieve its investment objective. perpetual bonds. however. 2010. semi-private and contingent capital instruments: max. a fundamental potential for improvement that qualify as transferable securities pursuant to Article 41 of the Law of has not yet been reflected by the market. These derivatives include swaps. equities and equity-type public issuers worldwide denominated in any currency. the Subfund shall make investments in investment and non-investment grade debt instruments. concentrated opportunistic positions in high conviction calls with which are issued by private. on investment instruments specified in Chapter 6. the instruments specified below: To achieve its investment objective. bond indices. securities and currencies which have. In doing so. “Investment Restrictions”. but Investment Principles not be limited to. use any of the instruments listed in Chapter 6. The Subfund’s assets are subject to normal market the value of the associated net assets and may sell them against another fluctuations. at time the investment is made. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Credit Suisse (Lux) Focused Bond Fund in the exchange rate for such currencies in relation to the Reference Currency of the Subfund. “Investment Restrictions”. To this end. of the Prospectus and the risk information described below: Potential investors should note that the Subfund pursues an investment The Subfund may engage in active currency allocation. notes. asset-backed securities (ABS) and mortgage-backed securities (MBS). normalisation context. securities (without consideration of exposure to the equity market via convertible bonds. section 1). and deposits or other callable bank deposits: up to 100% of capital instruments and other hybrid bonds). Emerging countries and developing markets are defined as Global Exposure countries which are not classified by the World Bank as high income The global exposure of the Subfund will be calculated on the basis of the countries. The Subfund will focus on December 17. The Subfund may acquire securities that are traded enter into active currency allocation. Furthermore. the Subfund will use fundamental bottom-up driven credit selection process. However. similar fixed. aforementioned investment principles. There are no restrictions on the investment universe of the Subfund in this diversified long-short strategy is subject to the provisions of Chapter terms of the issuers’ credit ratings provided. such indices shall be derivatives. convertible notes and similar fixed interest or floating-rate securities (including floating rate notes bonds with warrants: max. “Risk Factors” investment universe. “Investment Restrictions”. the Subfund investments in only among a relatively limited number of investors. emerging market financial index of a leading service provider may also be considered as emerging countries and developing markets if deemed Risk Information appropriate by the Management Company in the context of a Subfund’s Investors should read. The return Derivatives: driver of such concentrated strategic positions is capital gain higher The Subfund may use derivatives that offer an exposure to the above- than the interest rate. semi-private and public-law issuers worldwide. any fluctuation dispose of those securities quickly or in adverse market conditions. be aware of and consider Chapter 7. and the Subfund's total net assets. Accordingly. collateralized debt obligations interest rate higher than the capital gain. the investments in ABS. Thereby. 20% of the The Subfund allocates its assets by using the following strategies: Subfund's total net assets. positions is capital gain higher than the interest rate. credit-linked notes (CLNs). zero-coupon. equity The Subfund may actively manage its duration and credit. The Subfund may invest a significant part of its total net asset in Emerging Markets. a drop in price is possible at any time. “Investment  In addition. There can therefore be no guarantee that the investment investment currency for up to the same amount. forwards and futures. but with the intends to apply a strategy by entering long and/or short positions entailing following exceptions: the use of financial derivatives such as futures. 2008. contingent instruments. 25% of the Subfund's total net assets. these may include. the Subfund may invest up to 25% of its total net assets in instruments in developed countries and emerging markets. assets of the Subfund. or which exhibit financial derivative instruments must not exceed 100% of the total net similar credit quality in the view of the Management Company. The global exposure resulting from the use of “Caa3” by Moody’s. notes. swaps. covered bonds. subject to the opportunities in the global fixed income market. it may strategy that can be extremely volatile and that the risk of loss is buy investment currencies on the basis of forward currency contracts up to considerable. the Subfund will use the active rotation in new issues approach issued by first-class banks (or issuers offering investor protection and the market beta. money market fixed rate bonds. These structured products must Investment Manager. 38 . the Subfund Chapter 6. as viewed by the maximum of 20% of the total net assets. options and credit If the underlying of derivatives are financial indices. 2010 and must be valued regularly and transparently on performing bonds of sovereign and corporate bonds with a shorter the basis of independent sources. subordinated. CDO and CLO are limited to a countries. while using a The derivatives embedded in such structured products may only be based tactical alpha and bond-picking approach. In addition to the provisions on risk diversification. larger allocation on themes or single issuer focus in sectors. convertible bonds. securities. which will be sourced on an contain embedded derivatives pursuant to Article 42 (3) of the Law of ad-hoc and tactical basis. sections 1 g) and 3. will affect the Net Asset Value of the Subfund. 2010 such products must not entail any leverage effect. interest rates. The Subfund is more dynamic than other bond funds and has greater opportunities for growth. high income countries which are included in an commitment approach. section 1).

loss than senior corporate debt securities. The Management Company will seek to minimize such risks by a launch. rate movements. Subordinated corporate debt securities carry a higher risk of following risks (among others): less effective public supervision. Subfund and will not be reset. counterparty risk in respect of individual transactions. The Libor interest rate. they underperform Calculation of the Performance Fee and the necessary provisioning takes these instruments. the issuer may extend the maturity indefinitely greater degree of risk. and insufficient liquidity affecting the Subfund’s Direct investments in India also involve specific risks. which is the Reference Currency of the instruments of first-class issuers. Prices of Rate-Index-Value. but when share prices are falling. Investment Manager. callable. however. assessing the security of the capital and of the interest payments on the The Performance Fee may only be charged and set aside. within the Hurdle- investors should have a correspondingly larger risk appetite. July and October). The higher return should be viewed as subfund. options) are more likely to be exercised. asset-backed and mortgage-backed Performance Fee securities are generally subject to the same risk of depreciation as other The Management Company is entitled to a performance fee which is fixed-income instruments. calculation of the Hurdle-Rate-Index-Value begins with the launch of the However. It must also be borne in mind that companies are selected investors are referred in particular to the risks set out in Chapter 7. The Prices of convertible bonds are less volatile than those of equities. must be greater than the concerned. Therefore. Zurich.e. These point of non-viability triggers investment universe. Moreover. set by the member institutions of the considerable discrepancies may arise between the last valuation of the British Bankers’ Association. When equity prices are rising. Most asset-backed and mortgage-backed securities entail additional and Investor Profile different risks compared with conventional fixed-interest instruments as The Subfund is suitable for investors who seek exposure to higher yielding they additionally feature early-call rights (prepayment options). potential investments. as they are more volatile than those of traditional bonds. result that a valuation of such securities based on the available price The Hurdle-Rate-Index-Value described in a) above is composed of the sources proves imprecise. The investments of this Subfund are exposed to the rating agency. high income countries which are included in purchased. which is also calculated on a daily basis. When interest rates are rising. the individual issuers are subject to investments due to exchange rate fluctuations may not be hedged. downwards. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law The probable returns on securities of issuers from emerging countries Contingent capital instruments can convert from bonds to equities or could (emerging markets) are generally higher than the returns on similar be written-down should specific events occur. in the past. must be greater than the previous backed securities that are poorly liquid or that such investments may unswung Net Asset Values (“High Watermark”). the calculation of a Performance Fee. “Risk regardless of their market capitalization (small. Investments in these Subfunds should only be made on debt securities is not measured by reference to an independent credit a long-term basis. resulting in an increased risk of capital loss. for the respective Reference Currency of the securities concerned and the actual proceeds obtained by the Share Class. developed countries). risk. meaning they may be redeemed by the issuer on a specific date Potential investors should be aware that. calculated with every net asset value calculation on the basis of the Net The credit ratings awarded by rating agencies should provide a way of Asset Value of the Share Class concerned. the underlying debt instruments may present a greater risk in A substantial portion of the subfund’s investments will be denominated in terms of downgrading or may exhibit a greater default risk than debt currencies other than US Dollar. 39 . In the event of a conversion. the amounts repaid can only be invested at the lower interest rates prevailing at this point in time. however. calculated on a daily. they perform better than April. In addition. As a rule. Even so. credit or fixed income market but need to be comfortable with a longer loan-loss risks relating to the underlying assets. At the time of losses. If securities are sold owing to redemptions. three-month Libor interest rate. Investments in asset-backed or mortgage-backed securities performance of the reference value further defined below (“Hurdle-Rate- may prove extremely volatile. there may the unswung Net Asset Value per Share of the respective Share Class not be reliable price sources for such securities. appropriate by the Management Company in the context of a Subfund’s conversion into equity or write-down. Certain subordinated corporate debt securities may be markets have experienced higher volatility than the developed markets. be subject be considered as emerging countries and developing markets if deemed to “point of non-viability triggers” which bear the same consequences. In the event such debt securities are not redeemed situation in emerging countries. moreover. There is no certainty that the rating agencies promptly two criteria are fulfilled cumulatively: adjust their ratings in line with changes in the economic situation or in the a) The performance of the unswung Net Asset Value of a Share issuer's situation which could affect the market value of the security Class. Factors” in relation to the FPI registration of the Subfund and the potential This may lead to a concentration in terms of market segments or sectors. due to the political and economic at a predefined price. close monitoring. which is used for possible that the Subfund will invest in asset-backed and mortgage. these solvency prospects. it may be assumed that the early-call rights (prepayment which may temporarily even lead to substantial loss of value. and it is possible that must be offset by a further increase above the last maximum value at prices will only be fixed only once a week or even less frequently. Contingent capital an emerging market financial index of a leading service provider may also instruments may. Emerging countries and developing markets are substantial loss in value. Although the subfund will seek to maximize the Reference compensation for the greater degree of risk attached to the related debt Currency return. which could in turn reduce the return on the and defer or reduce the coupon payment. traditional bonds. “Risk the capital invested. To reduce such risks. high risk and fluctuations in the value of the investments. i. The markets in emerging countries are much less are activated based on the relevant regulator’s assessment of the issuers liquid than the developed equity markets. Investors are advised to consider the risks corresponding to requirements of Western legislation.e. the value of non-Reference Currency assets may decline instruments and the Subfund’s higher volatility. including those issued by the accounting and auditing methods and standards which do not match the same issuer. if the following securities rated. in addition to or next to. Moreover. possible restrictions on repatriation of investments in contingent capital instruments set out in Chapter 7. mechanical triggers. (a so-called “mechanical securities of equivalent issuers from countries not classed as emerging trigger”). Investment Manager These securities can therefore be expected to experience less growth in The Management Company has appointed Credit Suisse AG. will be reset quarterly to the new Libor rate at the convertible bonds fluctuate in line with equity price changes and interest beginning of each calendar quarter (on the first valuation day of January. Accordingly. the equities received defined as countries which are not classified by the World Bank as high may be at a discount to the share price of that equity when the bond was income countries. large caps) or sector. Potential investors must be due to fluctuations in the exchange rates between US Dollar and non-US aware that the loss of their entire investment cannot be completely ruled Dollar currencies. as value at times of falling interest rates than other fixed-income securities. Each preceding decline in become less liquid after they have been acquired. When interest rates trend commitment. the risk of a total loss cannot be ruled out. the Hurdle-Rate-Index-Value is equal to the issue price of the strict selection of investments acquired and by an appropriate spreading of respective Share Class. and increased by 100 basis points. The risk to the subfund of a decline in value of the out. investments in this Subfund entail a on the specified call date. Investors must expect potentially large capital Index-Value”). indexed basis (100 + ( [rLibor + 100 bps] / 4 ( 1 / ( [#days / #day in quarter] ) ). The conversion into equity or a write-down may lead to a (i. place on a daily basis. counterparty. it is b) The unswung Net Asset Value of a Share Class. The credit worthiness of unrated Subfund’s assets. as calculated on a daily basis. the investments are broadly diversified by issuer. grade sector. mid. they are probably less suitable for fixing a specific return. Also. disclosure of information and personal data regarding the investors in the Since this Subfund may invest in debt instruments in the non-investment Subfund to the Indian local supervisory authorities and to the DDP. Factors”. market volatility. with the which a Performance Fee was incurred.

NAV t-1}. the retention of any redemption proceeds to the investors or to any other measures taken by the local authorities and impacting the investment of the investor in the Subfund. “Investment in CS Investment Funds 1” of the Prospectus. subscriptions and redemptions of fractions shall not be permitted and subscription and redemption applications may only be expressed in number of Shares and not in terms of subscription / redemption monies. decide to increase the maximum swing factor indicated beginning of the following quarter. on the Calculation Date. distributed or sold to persons resident in India and no subscription application for Shares in the Subfund will be accepted if the acquisition of these Shares is financed by funds derived from sources within India. regulatory. a The Net Asset Value calculated in accordance with Chapter 8. the Net Asset Value of the Subfund’s Shares is calculated on each Valuation Day. HR Index Value) t] × number of Shares t) where: NAV t = current unswung Net Asset Value prior to provision for Performance Fee NAV 0 = first unswung Net Asset Value HWM = High Watermark = max {NAV 0…. (Central European Time) two Banking Days prior to the Trading Day (as defined above). “Net Asset Performance Fee of 15% shall be deducted on the difference between Value” will be increased by up to a maximum of 2% per Share in the event the unswung Net Asset Value of the Share Class and the greater value of a net surplus of subscription applications or reduced by up to a between Hurdle-Rate-Index-Value and High Watermark. then the following applies: 0. Value falls again after deduction of the Performance Fee. above. The payment of the Performance Fee amounts calculated for each quarter Under exceptional circumstances the Company may. In such case the Company would inform the investors in This Performance Fee cannot be refunded if the unswung Net Asset accordance with Chapter 14. Valuation Day. “Information for Shareholders”. tax. If both of these conditions are met.NAV t-1}. This means that a Performance Fee may also be charged and paid if. A Performance Fee is payable when the following conditions apply: (NAV per Share) t – (HR Index Value) t > 0 and NAV t > max {NAV 0…. ii) Subscription of Shares. No Shares of the Subfund will be. redemption and conversion applications received after this cut-off point shall be deemed to have been duly received on the next Banking Day and are thus settled on the Valuation Day following the next Trading Day. redemption and conversion applications received before 3 p. the Company is entitled to compulsorily redeem all Shares held by a Shareholder in any circumstances in which the Company determines that such compulsory redemption would avoid material legal. 40 . Redemption and Conversion of Shares – Net Asset Value Subscription. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law If. directly or indirectly. including but not limited to the cases where such Shares are held by Shareholders who are not entitled to acquire or possess these Shares or who fail to comply with any obligations associated with the holding of these Shares under the applicable regulations. “Net Asset Value”.m.15 ([NAV t – max (HWM. offered. “Investment in CS Investment Funds 1“. the unswung Net Asset Value of a Share Class is above the Hurdle-Rate-Index-Value and is greater than the preceding Adjustment of the Net Asset Value (Single Swing Pricing) unswung Net Asset Values (prior to deduction of the Performance Fee). HR = Hurdle Rate t = current Calculation Date Subscription. at the end of the calendar quarter. (Central European Time) two Banking Days prior to the Trading Day shall be settled on the Valuation Day following such Trading Day. Subscription. the compulsory redemption (in whole or in part) of the Shares held by the investors in the Subfund. As a consequence the Shareholders shall note that the legal.m. Subscription. the unswung Net Asset Value per Share of the respective Class is lower than the value at the beginning of the calendar quarter. redemption and conversion applications must be received by the Central Administration or a Distributor by 3 p. By derogation to Chapter 5. in the interest of and set aside according to the above described method takes place at the Shareholders. The calculation maximum of 2% per Share in the event of a net surplus of redemption of the Performance Fee takes place on the basis of the Shares of the applications in respect of the applications received on the respective respective Class that are currently in circulation. regulatory or tax requirements applicable to their shareholding in the Subfund may include specific local requirements applicable as per the Indian laws and regulations and that non-compliance with the Indian regulations might lead to the termination of their investment in the Subfund. economic. In accordance with Chapter 8. proprietary. redemption and conversion applications shall be accepted on each Banking Day (referred to as “Trading Day”). administrative or other disadvantages to the Company. As described under Chapter 5. pecuniary. Subscription. advertised.

Since prices of convertible bonds depend in the hurdle NAV and is greater than the high water mark. The Subfund may invest up to 20% of its total assets in shares. “IAHP”. however the of the Prospectus and the risk information described below: performance fee is only crystallized at the end of the calendar quarter and Convertible bonds combine the opportunities and risks of equities and if Shares are redeemed during the quarter.e. Investors should read. The credit worthiness of unrated convertible bonds. resulting in an increased risk of capital loss. the issuer may extend the maturity indefinitely At least two-thirds of the total assets of the Subfund shall be invested in and defer or reduce the coupon payment. “IBP”. i. then: be written-down should specific events occur. Pfaeffikon. section 3). AgaNola AG. the relevant Share Class that are currently in circulation. prices Chapter 2. “IBP” and Chapter 6. and to exploit the opportunities presented by an options as well as swap transactions (interest rate swaps) for the purpose indirect equity investment involving limited risk. Risk Information The performance fee calculation. provided due forgo a secure return. For the purpose of duration management. without them having to of hedging and the efficient management of the portfolio. loss than senior corporate debt securities. Zurich. Investment Objective conversion into equity or write-down. when both of the following conditions are fulfilled: purpose of managing the credit risk. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law may be at a discount to the share price of that equity when the bond was Credit Suisse (Lux) AgaNola Global Convertible Bond purchased. subject to the investment restrictions set out in Performance Fee for Share Classes “IAP”. NAV t–HR NAV t > 0. Accordingly. the Subfund may actively manage its currency exposure The Management Company has appointed Credit Suisse AG. the net asset value of a Share Class is above Chapter 7. Global Exposure The global exposure of the Subfund will be calculated on the basis of the The hurdle NAV is reset at the beginning of each quarter to equal the last commitment approach. and assets in contingent capital instruments. together with the necessary provisioning. the equities received In addition. “Investment amount of the performance fee included in the Net Asset Value per Share Restrictions”. HR NAV) t] × number of Shares t) trigger”). the Subfund may make greater use of interest rate futures. potential investors are referred in particular to the notes on interest rate fluctuations and equities set out in If. on the Calculation Date. of public. “Investment Restrictions”. The performance fee is calculated on the basis of the Shares of taken into account. calendar quarter. “Summary of Share Classes”) shall be deducted on the of convertible bonds are also influenced by the general interest rate difference between the net asset value of the relevant Share Class and environment. the underlying debt instruments may present a greater risk in A performance fee is payable when terms of downgrading or may exhibit a greater default risk than debt NAV t > HWM instruments of first-class issuers. “IAHP” and “IBHP” (see higher than that of bonds without conversion options. meaning they may be redeemed by the issuer on a specific date at a predefined price. warrant bonds. from the potential for attractive price gains. an appropriate return and In addition to direct investments. mechanical triggers. the corresponding exchange rate risk must also be the two). “Investment Restrictions”. the Subject to the investment restrictions set out in Chapter 6.e. Contingent capital instruments can convert from bonds to equities or could If both conditions are met. “Risk Factors”. if Shares are redeemed during the quarter. Furthermore. any fluctuation in the exchange rate for such currencies in participate in a professionally structured portfolio comprising conversion relation to the Reference Currency of the Subfund will affect the net asset and option rights of issuers domiciled worldwide. It enables them to benefit value of the Subfund. The Subfund may – for “IBHP” the purpose of managing interest rate risks – buy and sell interest rate The calculation of the performance fee and the necessary provisioning futures. net asset value calculated in the previous quarter. including those issued by the The subfunds’ assets will primarily have a rating of at least BBB. of the performance fee) at the end of a calendar quarter where a In addition the Subfund may invest up to 20% of the Subfund’s total performance fee has been paid (“high water mark”). the net asset value of a Share Class must exceed a pro rata performance of 5% per annum (“hurdle rate”) (the “hurdle NAV”). (a so-called “mechanical PF1 = 20% ([NAV t – max (HWM. the price risk is generally fee of 20% for Share Classes “IAP”. or debt instruments which exhibit investments in contingent capital instruments set out in Chapter 7. the Subfund may use securities (credit linked will be due and owed (i. the Subfund may conduct futures and broad risk diversification. be aware of and consider Chapter 7. section 3). and through the use of forward exchange transactions and swap transactions. “Risk similar credit quality in the view of the Management Company. and. a part of the performance fee will crystallise and a provision will be booked respectively when the following conditions apply: 41 . The commitments entered into may exceed the value of the take place with every Net Asset Value calculation. dividend right certificates and similar securities with equity performance fee must be greater than the highest NAV (prior to deduction features as well as in warrants. These point of non-viability triggers The main objective of the Subfund is primarily to achieve a regular income are activated based on the relevant regulator’s assessment of the issuers from investment grade rated convertible bonds denominated in any solvency prospects. In the event of a conversion. section 3. Since this Subfund may invest in debt instruments in the lower investment grade sector. convertible notes. fixed-income securities. as Co-Investment Managers. In the event such debt securities are not redeemed Investment Principles on the specified call date. If a convertible bond is issued in a currency other than that of the high water mark and/or the hurdle NAV (whichever is the greater of the underlying share. Investors are advised to consider the risks corresponding to Standard & Poor’s or Baa3 by Moody’s. be subject to “point of non-viability triggers” which bear the same consequences. The conversion into equity or a write-down may lead to a The published NAV on t will be NAVt – PF1 substantial loss in value. The Subfund is suitable for investors looking for an uncomplicated way to Accordingly. semi-public rating agency. Factors”. b). in addition to or next to. The higher return should be viewed as And compensation for the greater degree of risk. options on bonds debt securities is not measured by reference to an independent credit (warrants) and similar securities with option rights. Contingent capital Fund instruments may. but must not exceed the Subfund’s performance fee shall be payable quarterly in arrears at the end of each total net asset value. The portion invested in currencies other than the Reference Currency of the Subfund does not need to be hedged against the Reference Currency Investor Profile of the Subfund. The accrued securities assets held in this currency. crystallised) for these redeemed Shares at the notes) as well as techniques and instruments (credit default swaps) for the time of redemption. the net asset value of a Share Class used in the calculation of a equity interests. account is taken of the investment restrictions set out in Chapter 6. Subordinated corporate debt securities carry a higher risk of and private issuers worldwide and irrespective of currency. other a). callable. “Risk Factors” takes place with every net asset value calculation. Investment Manager Furthermore.by same issuer. Certain subordinated corporate debt securities may be currency while preserving the value of the assets. a performance large part on those of the underlying shares.

then: securities denominated in any currency issued by corporate issuers with a PF2 = 20% * [NAVt-1 . Valuation Day. The Subfund may only enter into futures contracts that are traded on a stock exchange or another regulated market open to the public and domiciled in an OECD country. the Subfund may contract futures and accordance with Chapter 14. Risk Information Investors should read. “Information for Shareholders”. In accordance with the regulatory requirements the expected level of leverage is calculated by way of the sum of the notionals of the derivatives. the investor should refer to the information in the KIID. above.For an indicator of the overall risk of the Subfund. The level of leverage may vary over time and it may be higher than the expected level. zero- has been paid. being Barclays Global High Yield Corporate (TR). The sum of the notionals takes into account the absolute values of notionals of all the financial derivative instruments used by the Subfund. In such case the Company would inform the investors in In addition to direct investments. options as well as swap transactions (interest-rate swaps) for the purpose of hedging and the efficient management of the portfolio. “Risk Factors” of the Prospectus and the risk information described below: Income from securities in the non-investment grade sector is higher than that earned from first-class issuers. decide to increase the maximum swing factor indicated equities issued by issuers from developed countries. PF = PF1 (if any) + ΣPF2 (if any) The Subfund may invest a significant part of its net asset in Emerging Markets (as defined below in the section “Risk Information”).max (HWM. interest or floating-rate securities (including floating rate notes and HR = hurdle rate securities issued on a discount basis) of corporate issuers in the non- t = current calculation date investment grade sector or indirectly via derivatives which are covered by The performance fee payable at the end of the Reference Period will be: cash. the risk of losses is also greater. However. subordinated and perpetual bonds). In order to enhance the portfolio management and subject to section 3 of Chapter 6. “Net Asset warrant bonds. coupon. Under normal market circumstances the expected level of leverage will be approximately 3 times the total net assets of the Subfund. The higher income should be regarded as compensation for the fact that investments in this segment involve a greater risk of losses. Accordingly. Global Exposure The methodology used in order to calculate the Global Exposure is the relative Value-at-Risk (VaR) approach in accordance with CSSF Circular 11/512. bonds (including fixed rate bonds. be aware of and consider Chapter 7. The Subfund may use securities (credit linked notes) as well as techniques and instruments (credit default swaps) for the purpose of managing the credit risk. the Subfunds’ VaR is limited by twice the VaR of a reference portfolio. Henceforth the expected level of leverage is an indicator of the intensity of the use of financial derivative instruments within the Subfund and is not an indicator of the investment risks in relation to those derivatives because it does not take into account any netting or hedging effects. Value” will be increased by up to a maximum of 2% per Share in the event The Subfund may also invest up to 20% of its net assets in asset-backed of a net surplus of subscription applications or reduced by up to a securities (ABS) and mortgage-backed securities (MBS). The Subfund may furthermore invest up to a maximum of 10% of its Under exceptional circumstances the Company may. Furthermore. convertible notes and The Net Asset Value calculated in accordance with Chapter 8. In fact derivatives used to offset the risks linked to other transactions are contributing to an increase of the leverage determined via the sum of the notionals. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law NAVt-1 > HWM Credit Suisse (Lux) Global High Yield Bond Fund And NAVt-1 . the Subfund may actively manage its currency exposure through the use of forward exchange transactions and swap transactions. and similar fixed nt = number of Shares redeemed on date t. in the interest of assets in equities or other equity type securities and in warrants on such Shareholders. money market instruments or short term investment grade bonds. the Subfund may hold net long and net short positions by entering into derivatives contracts on equity indices (equity options and futures) and on volatility indices or any other UCITS eligible financial indices. notes. where: NAV t = current net asset value prior to provision for performance fee Investment Principles HWM = high water mark = highest NAV (prior to deduction of the At least two-thirds of the total assets of the Subfund shall be invested performance fee) at the end of a calendar year where a performance fee directly in debt instruments. “Investment Restrictions”. The 42 .HR NAVt-1 > 0 Investment Objective And The investment objective of the Subfund is primarily to achieve income and Redemption of Shares based on NAV on t-1 capital appreciation based on the performance of bonds and other debt If these conditions are met. Additionally Adjustment of the Net Asset Value (Single Swing Pricing) the Subfund may invest in convertible bonds. HR NAV)t-1] * nt below investment grade rating while preserving the value of the assets. up to 30% of its assets. as well as in maximum of 2% per Share in the event of a net surplus of redemption addition up to a maximum of 20% of the Subfund’s net assets may be applications in respect of the applications received on the respective invested in contingent capital instruments.

The credit worthiness of unrated debt securities is not measured by reference to an independent credit rating agency. this amount is negative. together with the necessary provisioning. Class is above the benchmark and is greater than the preceding high market volatility. Emerging countries and developing markets are the following conditions are fulfilled: defined as countries which are not classified by the World Bank as high (i) the net asset value of the Share Class used in the calculation of a income countries. The markets in emerging countries are much less (ii) the percentage increase in the net asset value per Share Class liquid than the developed equity markets. The Performance Fee shall be payable for each reference period (“Reference Period”). The benchmark of the Subfund is be written-down should specific events occur. as the opportunities for growth. The concentration in terms of market segments or sectors. decide to increase the maximum swing factor indicated at a predefined price. exposure to the high yield segment requires a greater degree of risk capacity. In addition. after the end of the respective Reference Period. Moreover. trigger”). developed countries). and ends on the last day of that Accounting Year. solvency prospects. i. situation in emerging countries. Investments in these Subfunds should only be made on Performance Fee is only crystallized at the end of the Reference Period a long-term basis. and defer or reduce the coupon payment. which could in turn reduce the return on the takes place with every Net Asset Value calculation. in addition to or next to. be subject of a net surplus of subscription applications or reduced by up to a to “point of non-viability triggers” which bear the same consequences. The conversion into equity or a write-down may lead to a substantial loss in value. risk-tolerant outlook who would like to participate directly or indirectly via derivatives in a broadly diversified bond portfolio in order to benefit from the potential offered by the high-yield capital market. on the Calculation Date. the benchmark relevant to the Share Class over the same Potential investors should be aware that. requirements of Western legislation. however the Subfund’s assets. Zurich. and. “Information for Shareholders”. maximum of 2% per Share in the event of a net surplus of redemption conversion into equity or write-down. which is calculated on the basis of the unswung net asset value of the Share Class. if Shares are The probable returns on securities of issuers from emerging countries redeemed during the Reference Period.e. It must also be borne in mind that companies are selected difference between the unswung net asset value of the Share Class and regardless of their market capitalization or sector. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Subfund is more dynamic than other bond funds and has greater initial Reference Period will start with the launch of the Share Class. This may lead to a the greater value between the benchmark and the high water mark.e. “Net Asset purchased. (a so-called “mechanical Barclays Global High Yield Corporate (TR). due to the political and economic performance period. the negative amount shall be carried to the next accounting and auditing methods and standards which do not match the Reference Period. resulting in an increased risk of capital loss.e. However. In the event that following risks (among others): less effective public supervision. The Subfund. the equities received Adjustment of the Net Asset Value (Single Swing Pricing) may be at a discount to the share price of that equity when the bond was The Net Asset Value calculated in accordance with Chapter 8. Subordinated corporate debt securities carry a higher risk of loss than senior corporate debt securities. investments in this Subfund entail a The performance fee calculation. thereby achieving higher returns than would normally be generated by conventional bond investments. possible restrictions on repatriation of If. when (i. in the interest of callable. Performance Fee for Share Class DP The Management Company is entitled to a Performance Fee for the Share Class DP (“the Share Class”). take place with every Net Asset Value calculation. mechanical triggers. The investments of this Subfund are exposed to the and if Shares are redeemed during the Reference Period. the amount of Performance Fee (emerging markets) are generally higher than the returns on similar included in the Net Asset Value per Share will be due and owed (i. and investment universe. the unswung net asset value of the Share the capital invested. In the event of a conversion. In the event such debt securities are not redeemed above. Investment Manager The Management Company has appointed Credit Suisse AG. as Investment Manager. Unless otherwise agreed between the parties. The accrued however. securities of equivalent issuers from countries not classed as emerging crystallise) for these redeemed Shares at the time of redemption. high income countries which are included in Performance Fee must be greater than the highest NAV (prior to an emerging market financial index of a leading service provider may also deduction of the Performance Fee) at the end of a performance be considered as emerging countries and developing markets if deemed period where a Performance Fee has been paid (“high water appropriate by the Management Company in the context of a Subfund’s mark”). Contingent capital Value” will be increased by up to a maximum of 2% per Share in the event instruments may. Potential investors should note that the counterparty risk related to the The calculation of the Performance Fee and the necessary provisioning derivative strategy cannot be eliminated completely. Investors are advised to consider the risks corresponding to investments in contingent capital instruments set out in Chapter 7. greater degree of risk. counterparty risk in respect of individual transactions. these over the performance period exceeds the percentage increase on markets have experienced higher volatility than the developed markets. case may be. “Risk Factors”. Investor Profile The Subfund is suitable for investors with a long-term. a drop in price is possible at any time. including those issued by the same issuer. Certain subordinated corporate debt securities may be Under exceptional circumstances the Company may. meaning they may be redeemed by the issuer on a specific date Shareholders. Though the risks are lessened by a broad investment spread across many issuers and several sectors. will endeavour to minimize these risks by engaging in various Performance Fee shall be payable annually in arrears within one month hedging activities. These point of non-viability triggers applications in respect of the applications received on the respective are activated based on the relevant regulator’s assessment of the issuers Valuation Day. Performance Fee is calculated on the basis of the Shares of the Share Contingent capital instruments can convert from bonds to equities or could Class that are currently in circulation. the issuer may extend the maturity indefinitely accordance with Chapter 14. the 43 . and insufficient liquidity affecting the Subfund’s water mark. in the past. In such case the Company would inform the investors in on the specified call date. a Performance Fee of 15% shall be deducted on the investments.

government and semi-government bonds). to permit more flexible management of durations and hedge inflation risks in markets without index-linked debt securities. bonds (including fixed rate bonds. “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maximum of 2% per Share in the event of a net surplus of redemption 44 . In such cases. Investment Objective Under exceptional circumstances the Company may. Risk Information Investors should read. “Risk Factors” of the Prospectus and the risk information described below: Since the Subfund may invest in debt instruments in the lower investment grade sector. the inflation protection may be constructed synthetically. Zurich. or debt instruments which exhibit similar credit quality in the view of the Management Company). inflation-linked bonds. a synthetic inflation-indexed debt instrument is created. covered bonds. Such transactions are effected in the currency in which the assets being hedged are denominated. in the interest of The objective of this Subfund is to generate a regular. be aware of and consider Chapter 7. A synthetically constructed inflation hedge is created by hedging inflation risk through the use of inflation swaps with first-class financial institutions which specialize in this type of transaction. It allows investors to entrust the time-consuming task of selecting and monitoring securities to a team of qualified experts. above. specifically through the substitution of the expected rate of inflation with the actual rate. inflation-hedged Shareholders. the underlying debt instruments may present a greater risk in terms of downgrading or may exhibit a greater default risk than debt instruments of first-class issuers. Investor Profile This Subfund is suitable for investors seeking a cost-effective core investment in bonds and wishing to protect themselves against inflation risk. zero-coupon bonds. Inflation swaps protect the investor against inflation risk in the same way as inflation-indexed debt instruments. This Subfund is well suited to portfolio diversification. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. nominal bonds will perform better than inflation-indexed debt instruments in periods when the rate of inflation is lower than expected. The higher return should be viewed as compensation for the greater degree of risk. Investment Manager The Management Company has appointed Credit Suisse AG. unless there are insufficient hedging instruments in such currency or if they are unfavorable in terms of cost. “Information for Shareholders”. In such case the Company would inform the investors in accordance with Chapter 14. The inflation hedge mechanism results in inflation-indexed debt instruments performing better than nominal bonds when inflation is higher than expected. The Subfund may also invest up to 20% of its net assets in asset-backed securities (ABS) and mortgage-backed securities (MBS). CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Credit Suisse (Lux) Global Inflation Linked Bond Fund applications in respect of the applications received on the respective Valuation Day. notes (including floating rate notes). decide to increase the maximum swing factor indicated income in US dollar (Reference Currency). Conversely. In order to diversify the range of borrowers. if it is likely that these currencies and those of the assets being hedged are exposed to similar fluctuations. There are conservative Subfunds than can be expected to exhibit moderate but fairly steady growth. similar fixed-interest or floating-rate securities (including securities issued on a discount basis) of average or high quality (rated at least “BBB–” by Standard & Poor’s or “Baa3” by Moody’s. the Fund may also use hedging instruments in other currencies. A slight drop in price over a one year time horizon cannot be ruled out. as Investment Manager. Investment Principles At least two-thirds of the Subfunds’ total assets are invested worldwide in inflation-indexed debt instruments. By combining a nominal bond and inflation swap.

have no assets in equities or other equity type securities and in warrants on such good creditworthiness (non-investment grade) and may promise higher equities issued by issuers from developed countries as well as in addition returns than comparable government bonds. In addition to direct investments. in any. Investors must accept the fixed-interest asset-backed and mortgage-backed securities. As opposed to ABS created through securitization. the ability of The Management Company has appointed Credit Suisse AG. Issuers of asset-backed securities may have evaluate the risks and value of asset-backed and mortgage-backed limited ability to enforce the security interest in the underlying assets. These The investments are made mainly in securities which have a credit quality portfolios generally reflect the health of the housing market and of of at least investment grade (rated at least “BBB–” by Standard & Poor’s employment. in general. possibility of major capital losses. in principle. In the event of a conversion. securities the payments of Company. Certain subordinated corporate debt securities may be Mortgage-backed securities differ from conventional debt securities callable. depends on factors affecting banks' underlying mortgage portfolios. On the other hand. The Subfund may invest a small part of its assets in unquoted asset. covered bonds may be reduces. Credit rating denominated in any currency while preserving the value of the assets. The Company and the Management Asset-backed securities (ABS) are. Investments in asset backed or mortgage The Subfund shall primarily be invested in unleveraged floating-rate or backed securities may be highly volatile. will seek to minimize such risks by a strict selection of which (interest payments and principal re-payments) are secured by a pool the investments and an adequate spreading of the risks involved. resulting in an increased risk of capital loss. When assets are bonds and floating rate notes but also zero-coupon bonds. on the specified call date. Mortgage-backed securities (MBS) are. and they are widely diversified. Investors should have a medium-to long-term inadequate to protect investors in the event of default. or debt instruments which exhibit similar credit play. Contingent capital instruments can convert from bonds to equities or could Furthermore. however. agencies may or may not make timely changes in a rating to reflect changes in the economy or in the conditions of the issuer that affect the Investment Principles market value of the security. the equities received Global Exposure may be at a discount to the share price of that equity when the bond was The global exposure of the Subfund will be calculated on the basis of the purchased. the Subfund may conduct investments cannot be ruled out. including those issued by the can usually be reinvested only at the lower yields then prevailing in the same issuer. Investments in illiquid securities such as unquoted asset-backed securities backed securities with very low liquidity. trigger”). Risk Information conversion into equity or write-down. issued by issuers from developed countries. the issuer may extend the maturity indefinitely entail risks that differ from conventional fixed income instruments as they and defer or reduce the coupon payment. inter alia. be subject to “point of non-viability triggers” which bear the same consequences. The Subfund's Rating assigned to covered bonds address the expected loss posed to investment in ABS and MBS are made primarily in securities which have a bondholders. investment horizon. the Subfund invests in residential or commercial mortgage defaults. which is replenished if a loan within the asset pool In particular. the market value of the Company). Early prepayment of principal can be expected to rating agency. the credit quality of Moody's or a similar credit quality in the view of the Management the covered bonds is lowered or withdrawn. meaning they may be redeemed by the issuer on a specific date because principal is paid back over the life of the security rather than at at a predefined price. Contingent capital commitment approach. (a so-called “mechanical through the use of forward exchange transactions and swap transactions. quality in the view of the Management Company).and other leasing-contracts). The investment objective of the Subfund is primarily to achieve income and Credit ratings issued by credit rating agencies are designed to evaluate the capital appreciation from asset-backed and mortgage-backed securities safety of principal and interest payments of rated securities. “Risk Factors” are activated based on the relevant regulator’s assessment of the issuers of the Prospectus and the risk information described below: solvency prospects.e. large share of the covered bond market consists of bonds backed by collateralized loan obligations (CLOs) backed by corporate loans and mortgage loans. as tenants to make payments and the ability of the property to attract and Investment Manager. The investor must be willing and able to accept significant credit enhancements provided to support the securities. Investors are advised to consider the risks corresponding to market. The credit worthiness of unrated are also subject to early prepayment. perpetual bonds. in the sole judgment of that rating agency. the asset pool backed securities. credit or default risks affecting the debt securities is not measured by reference to an independent credit underlying securities. value and less effective at locking in a particular yield. mechanical triggers. Nevertheless. “Risk securities are less likely than other fixed-income securities to appreciate in Factors”. Thus the valuation of the Subfund's assets may not be any type of fixed-interest or floating-rate securities (including fixed rate accurate when relying on the available pricing sources. which means the risk profile of the securities usually covered bonds/Pfandbriefe. of receivables. mortgage-backed and asset-backed securities are subject to substantially Investor Profile the same risk of depreciation during periods of rising interest rates as The subfund is suitable for sophisticated investors who are able to other fixed-income securities. The conversion into equity or a write-down may lead to a substantial loss in value. securities the payments of which (interest and principal repayments) are Covered bonds are debt securities typically backed by a pool of mortgages secured by a pool of mortgages. instruments may. however. In order to reduce such risks. a higher-than average up to 10% of its assets maybe invested into contingent capital volatility must be expected and even the complete loss of some instruments. There can be no assurance that many commercial and residential mortgage-backed securities will not be subject to significant Investment Objective declines in values or outright defaults. government between the last valuation price of such securities and the effective sales and semi-government bonds). and securities. In the event such debt securities are not redeemed maturity. Most mortgage-backed and asset-backed securities. i. although the wider economy and regulation also come into or “Baa3” by Moody’s. car. The Subfund may furthermore invest up to a maximum of 10% of its For securities of issuers which. the possibility of an entire loss cannot be ruled out. inflation linked sold for example due to redemptions. 45 . in principle. Such prepayments loss than senior corporate debt securities. may be fluctuations in value. of a covered bond remains on the issuers consolidated balance sheet. local and other economic conditions. futures and options as well as swap transactions (interest rate swaps) for the issuers are carefully monitored. the Subfund may actively manage its currency exposure be written-down should specific events occur. Zurich. These point of non-viability triggers Investors should read. The real estate risks of investing in commercial and residential mortgage- backed securities include the risks of investing in the real estate securing Investment Manager and Sub-Investment Manager the underlying loans. according to market assessments. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Credit Suisse (Lux) Global Securitized Bond Fund retain tenants. Subordinated corporate debt securities carry a higher risk of accelerate during periods of declining interest rates. or public sector loans. Therefore. important discrepancies may appear bonds. during periods of declining interest rates. Any rating agency may lower its rating or withdraw its rating prime credit quality (rated “AAA” by Standard & Poor's or “Aaa” by if. may not have reliable price sources or may be priced only on a weekly or Additionally the Subfund may invest a significant portion of its assets in longer frequency. A small and medium enterprises (SME). these investments in contingent capital instruments set out in Chapter 7. covered bonds. in addition to or next to. be aware of and consider Chapter 7. subordinated bonds. proceeds received from the counterparties. consumer asset-backed securities (backed by student-. the purpose of hedging and the efficient management of the portfolio.

asset-backed and mortgage-backed securities. In particular. or in the same timeframe. collateralized loan obligations (CLOs). credit-linked notes (CLNs). Convertible bonds. which are issued by private. options and credit derivatives. redemption and conversion applications received after this while investing across the full spectrum of credit ratings (at least on cutoff point shall be deemed to have been duly received on the Banking average “BBB-” by Standard & Poor’s or Baa3 by Moody’s. However. the Subfund will be predominantly oriented. “Investment Restrictions”. and deposits or other callable bank deposits: max. these may include. “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event Investment Objective of a net surplus of subscription applications or reduced by up to a maxi. the Subfund intends to apply a diversified long-short strategy entailing the use of financial derivatives such as futures. convertible notes and bonds with warrants: max.m. covered bonds. In accordance with its investment objective and the investment instruments set out below. but not be limited to. Slowdown. government bonds. 100% of the Subfund's total net assets. subject to the aforementioned investment principles. it aims to profit from interest rate rises and falls as well as any widening or narrowing of credit spreads. or debt instruments which exhibit similar credit quality in the view of the Management Company) in order to utilize attractive investment opportunities in light of the business cycle and the corresponding development of interest rates and credit spreads. To this end. money market instruments. bonds of emerging market issuers. 2010 and must be valued 46 . subordinated bonds. convertible notes and warrant bonds): max. 25% of the Subfund's total net assets. similar fixed. the Subfund will allocate its investments across various accordance with Chapter 14. Contraction. zero-coupon bonds. (Central European notes. Under exceptional circumstances the Company may. decide to increase the maximum swing factor indicated Investment Principles above. In such case the Company would inform the investors in To achieve this. swaps. Contingent capital instruments: max. With regard to the total exposure associated with the use of derivatives. the Subfund may. 20% of the Subfund’s total net assets. in conjunction with Article 42 (3) of the Law of December 17. section 1). Equities and equity-type securities (without consideration of exposure to the equity market via convertible bonds. rotation in the fixed-income area. certain parameters of the economy are typical for each phase as is the performance of asset classes and sub-asset classes. zero-coupon bonds. to generate sustained value added. “Information for Shareholders”. individual rating of at least “CCC-” by Standard & Poor’s or Caa3 by Moody’s at the time the investment is made. use any of the instruments listed in Chapter 6. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Adjustment of the Net Asset Value (Single Swing Pricing) Credit Suisse (Lux) Global Value Bond Fund The Net Asset Value calculated in accordance with Chapter 8. and with an Day prior to the next Valuation Day. fixed-income asset classes (including fixed rate bonds. corporate bonds. The phases of this cycle – Overheating.or variable-income securities. Investment Instruments To achieve its investment objective. issued by any type of issuer globally by means of active sector Valuation Day. bonds and collateralized debt obligations) but also in floating rate notes. either directly or indirectly. in the interest of Shareholders. 10% of the Subfund's total net assets. notes. The Subfund will seek. this diversified long-short strategy is subject to the provisions of Chapter 6. Subscription. the instruments specified below: Bonds. 2010. Redemption and Conversion of Shares inflation-indexed debt securities. to fixed income investment classes. Recovery – do not always develop in the same way. perpetual Time) two Banking Days prior to the Valuation Day (as defined above). The total exposure resulting from the use of financial derivative instruments must not exceed 100% of the total assets of the Subfund. The investments in ABS and MBS are limited to a maximum of 20% of the total net assets. semi-government bonds. denominated in any applications in respect of the applications received on the respective currency. by using various return-enhancing strategies such as duration management and credit management. as the global economy moves in cycles. bonds Subscription. high-interest and convertible bonds and the Central Administration or a Distributor by 3 p. The strategy of sector rotation is being used for the sake of anticipating economic recovery and contractions in different sectors of the economy. notes) issued by first-class banks (or issuers offering investor protection equivalent to that of first-class banks) and in collateralized debt obligations (CDOs). The objective of the Subfund is primarily to achieve income and capital mum of 2% per Share in the event of a net surplus of redemption appreciation from bonds and other debt securities. “Investment Restrictions”. Structured products: The Subfund may invest up to 25% of its total net assets in structured products (certificates. semi-private and public-law issuers worldwide. while preserving the value of the assets. Subscription. These structured products must qualify as transferable securities pursuant to Article 41 of the Law of December 17. redemption and conversion applications must be received by of supranational organizations.

but when share prices are falling. When equity prices are rising. section 1). possible restrictions on repatriation of investments in contingent capital instruments set out in Chapter 7. However. Also. callable. the composition of the underlying asset they additionally feature early-call rights (prepayment options). Unless instruments and the Subfund’s higher volatility. counterparty risk in respect of individual transactions. “Risk Factors” convertible bonds fluctuate in line with equity price changes and interest of the Prospectus and the risk information described below: rate movements. commitment approach. Moreover. When Chapter 6. Potential investors must be these structured products contain embedded derivatives pursuant to aware that the loss of their entire investment cannot be completely ruled Article 42 (3) of the Law of December 17. however. the Subfund’s exposure to risk. “Investment Restrictions”. It must also be borne in mind that companies are selected regardless of their market capitalization or sector. with the Furthermore. while also wishing to participate in the added terms of downgrading or may exhibit a greater default risk than debt value arising from the use of various derivative investment strategies in the instruments of first-class issuers. Factors”. Therefore. they underperform the size of the issuers. In addition to the different risks compared with conventional fixed-interest instruments as provisions on risk diversification. 2010 such products must not out. market volatility. However. as they are more volatile than those of traditional bonds. which could in turn reduce the return on the and defer or reduce the coupon payment. the Subfund may engage in active currency allocation. be aware of and consider Chapter 7. it may buy investment currencies on the basis of may prove extremely volatile. in addition to or next to. These derivatives include only be invested at the lower interest rates prevailing at this point in time. and insufficient liquidity affecting the Subfund’s investments. Emerging countries and developing markets are substantial loss in value. 2008. high income countries which are included in purchased. Prices of Investors should read. i. the equities received defined as countries which are not classified by the World Bank as high may be at a discount to the share price of that equity when the bond was income countries. compensation for the greater degree of risk attached to the related debt 47 . options on bonds. sources proves imprecise. mortgage-backed securities that are poorly liquid or that such investments If the underlying of derivatives are financial indices. in the past. Derivatives: loan-loss risks relating to the underlying assets. Certain subordinated corporate debt securities may be markets have experienced higher volatility than the developed markets. bond indices. they perform better than The Subfund's investments are not subject to any restrictions in terms of traditional bonds. (a so-called “mechanical securities of equivalent issuers from countries not classed as emerging trigger”). This may lead to a Investor Profile concentration in terms of market segments or sectors. These point of non-viability triggers investment universe. concerned. adjust their ratings in line with changes in the economic situation or in the – Subject to the daily mark-to-market valuation and any resulting issuer's situation which could affect the market value of the security adjustments. on corporates not serving the purpose of hedging amounting to up The credit ratings awarded by rating agencies should provide a way of to 100% of total net assets. In addition. Risk Information investors should have a correspondingly larger risk appetite. sections 1 g) and 3. there chosen in accordance with Article 9 of the Grand-Ducal Regulation of may not be reliable price sources for such securities. meaning they may be redeemed by the issuer on a specific date Potential investors should be aware that. credit derivatives such as credit default swaps subject to the provisions of moreover. Prices of convertible bonds are less volatile than those of equities. There is no certainty that the rating agencies promptly total exceed 100% of total net assets. Investors must expect potentially large capital forward currency contracts up to the value of the associated net losses. These securities can therefore be expected to experience less growth in securities. their geographic region or their credit rating. “Investment Restrictions”. If securities are sold owing to redemptions. The credit worthiness of unrated Subfund’s assets. they are probably less suitable for fixing a specific return. prices will only be fixed only once a week or even less frequently. The investments of this Subfund are exposed to the rating agency. the amounts repaid can with the above-mentioned investment principles. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law regularly and transparently on the basis of independent sources. When interest rates trend The Subfund may invest up to 100% of its total net assets in derivatives downwards. Even so. “Risk the capital invested. however. equity indices and all other permitted financial instruments. appropriate by the Management Company in the context of a Sub-Fund’s conversion into equity or write-down. The probable returns on securities of issuers from emerging countries Contingent capital instruments can convert from bonds to equities or could (emerging markets) are generally higher than the returns on similar be written-down should specific events occur. Contingent capital an emerging market financial index of a leading service provider may also instruments may. The derivatives embedded in such structured close monitoring. investments in this Subfund entail a on the specified call date. Moreover. but with the interest rates are rising. the risk of a total loss cannot be ruled out. be subject be considered as emerging countries and developing markets if deemed to “point of non-viability triggers” which bear the same consequences. the Subfund may actively manage its currency exposure result that a valuation of such securities based on the available price through the use of forward exchange transactions and swap transactions. forwards and futures. products may only be based on investment instruments specified in Most asset-backed and mortgage-backed securities entail additional and Chapter 6. loss than senior corporate debt securities. including those issued by the accounting and auditing methods and standards which do not match the same issuer. these instruments. Investors are advised to consider the risks corresponding to requirements of Western legislation. resulting in an increased risk of capital loss. The Subfund is suitable for investors who would like an exposure to the Since this Subfund may invest in debt instruments in the non-investment fixed-income segment and want to link the development of this investment grade sector. the issuer may extend the maturity indefinitely greater degree of risk. The markets in emerging countries are much less are activated based on the relevant regulator’s assessment of the issuers liquid than the developed equity markets. Subordinated corporate debt securities carry a higher risk of following risks (among others): less effective public supervision. developed countries). it is currencies other than the Reference Currency should not exceed not inconceivable that the Subfund will invest in asset-backed and 30% of its total net assets. these solvency prospects. As a rule. the investments are broadly diversified by issuer. such indices shall be may become less liquid after they have been acquired. The higher return should be viewed as bond Markets. In the event such debt securities are not redeemed situation in emerging countries. To reduce such risks. the individual issuers are subject to entail any leverage effect. The conversion into equity or a write-down may lead to a (i. it may be assumed that the early-call rights (prepayment that offer an exposure to the above-mentioned asset classes and comply options) are more likely to be exercised.e. In the event of a conversion. credit or baskets and underlying indices must be sufficiently diversified. due to the political and economic at a predefined price. asset-backed and mortgage-backed following exceptions: securities are generally subject to the same risk of depreciation as other – The Subfund may enter into commitments from credit default swaps fixed-income instruments.e. value at times of falling interest rates than other fixed-income securities. considerable discrepancies may arise between the last valuation of the Global Exposure securities concerned and the actual proceeds obtained by the The global exposure of the Subfund will be calculated on the basis of the counterparty. Investments in asset-backed or mortgage-backed securities In doing so. The Management Company will seek to minimize such risks by a assets and may sell them against another investment currency for strict selection of investments acquired and by an appropriate spreading of up to the same amount. and it is possible that February 8. interest rate swaps. the underlying debt instruments may present a greater risk in class to the economic cycle. Investments in these Subfunds should only be made on debt securities is not measured by reference to an independent credit a long-term basis. mechanical triggers. though the commitments arising from assessing the security of the capital and of the interest payments on the the protection-buying and protection-providing positions may not in securities rated.

the issuer may extend the maturity indefinitely and defer or reduce the coupon payment. Contingent capital instruments may. and they are widely diversified. (a so-called “mechanical trigger”). or debt instruments which exhibit similar credit quality in the view of the Management Company). “Information for Shareholders”. Furthermore. The higher return should be viewed as compensation for the greater degree of risk attached to the debt instruments and the Subfunds’ higher volatility. the Subfund may actively manage its currency exposure through the use of forward exchange transactions and swap transactions. The conversion into equity or a write-down may lead to a substantial loss in value. the Subfund may conduct futures and options as well as swap transactions (interest-rate swaps. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Investment Manager Credit Suisse (Lux) Premium Credit Core Bond Fund The Management Company has appointed Credit Suisse AG. in addition to or next to. Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a Investment Principles maximum of 2% per Share in the event of a net surplus of redemption At least two-thirds of the total assets of the Subfund shall be invested in applications in respect of the applications received on the respective bonds (including zero-coupon bonds. in the interest of issued on a discount basis). meaning they may be redeemed by the issuer on a specific date at a predefined price. These point of non-viability triggers are activated based on the relevant regulator’s assessment of the issuers solvency prospects. In order to reduce such risks. In the event such debt securities are not redeemed on the specified call date. The credit worthiness of unrated debt securities is not measured by reference to an independent credit rating agency. In addition to direct investments. mechanical triggers. the equities received may be at a discount to the share price of that equity when the bond was purchased. be aware of and consider Chapter 7. government and semi-government bonds. “Net Asset Euro issued by corporate issuers while preserving the value of the assets. In the event of a conversion. 48 . floating rate notes) of corporate issuers above. be subject to “point of non-viability triggers” which bear the same consequences. other fixed-interest and floating-rate securities Shareholders. Investors are advised to consider the risks corresponding to investments in contingent capital instruments set out in Chapter 7. as Investment Manager. the debt instruments may present a greater risk in terms of further downgrading or may exhibit a greater default risk than debt instruments of first-class issuers. i. “Risk Factors”. Subordinated corporate debt securities carry a higher risk of loss than senior corporate debt securities. Investor Profile The Subfund is suitable for investors who are seeking the potential for a high level of current income and some capital appreciation over time and can accept the risks associated with investing in corporate bonds. Certain subordinated corporate debt securities may be callable. The Subfund may also invest up to 20% of its net assets in asset-backed securities (ABS) and mortgage-backed securities (MBS). resulting in an increased risk of capital loss. Global Exposure The global exposure of the Subfund will be calculated on the basis of the commitment approach. Zurich. and securities Under exceptional circumstances the Company may. Contingent capital instruments can convert from bonds to equities or could be written-down should specific events occur. credit default swaps) for the purpose of hedging and the efficient management of the portfolio. the issuers are carefully monitored. A maximum of 20% of the Subfund’s net assets may be invested in contigent capital instruments. In such case the Company would inform the investors in worldwide of average or high quality (rated at least “BBB–” by Standard & accordance with Chapter 14. decide to increase the maximum swing factor indicated (including fixed rate bonds. covered bonds Valuation Day. including those issued by the same issuer. The potential investor must be aware that even the complete loss of some investments cannot be fully ruled out. Investment Objective The investment objective of the Subfund is primarily to achieve income and Adjustment of the Net Asset Value (Single Swing Pricing) capital appreciation from bonds and other debt securities denominated in The Net Asset Value calculated in accordance with Chapter 8. “Risk Factors” of the Prospectus and the risk information described below: Since this Subfund may hold debt instruments in the non-investment grade sector. conversion into equity or write-down.e. perpetual bonds. Risk Information Investors should read. however. Poor’s or “Baa3” by Moody’s. subordinated bonds.

decide to increase the maximum swing factor indicated above. in the interest of Shareholders. In such case the Company would inform the investors in accordance with Chapter 14. as Investment Manager. 49 . “Net Asset Value” will be increased by up to a maximum of 2% per Share in the event of a net surplus of subscription applications or reduced by up to a maximum of 2% per Share in the event of a net surplus of redemption applications in respect of the applications received on the respective Valuation Day. Zurich. “Information for Shareholders”. Under exceptional circumstances the Company may. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law Investment Manager The Management Company has appointed Credit Suisse AG. Adjustment of the Net Asset Value (Single Swing Pricing) The Net Asset Value calculated in accordance with Chapter 8.

– they are granted on the basis of objective criteria. pay rebates directly to investors. unsolicited and free of charge. about the amount of remuneration they may receive for distribution. – Complying to due diligence requirements delegated by the Management Company and pertaining to the Distributor. the Management Company must disclose the amounts of such rebates free of charge. copies of the Articles of Incorporation and the latest annual and semi-annual reports free of charge from the Representative in Switzerland. Uetlibergstrasse 231. The Paying Agent in Switzerland is Credit Suisse AG. The objective criteria for the granting of rebates by the Management Company are as follows: – the volume subscribed by the investor or the total volume they hold in the collective investment scheme or. All notices to Shareholders shall be published at least on the electronic platform “www. where applicable. This remuneration may be deemed payment for the following services in particular: – Stocking and distribution of marketing and legal documents. Retrocessions are not deemed to be rebates even if they are ultimately passed on. The issue and the redemption prices or the Net Asset Value together with a footnote “excluding commissions” shall be published on each valuation day on the electronic platform“www. Possibility of Forwarding the Investment Management Fee The Investment Manager may. upon request. the recipients of retrocessions must disclose the amounts they actually receive for distributing the collective investment schemes of the investors concerned. Rebates are permitted provided that: – they are paid from fees received by the Management Company and therefore do not represent an additional charge on the fund assets.swissfunddata. Shareholders may obtain the Prospectus. the place of performance and jurisdiction is deemed to be the registered office of the Representative in Switzerland. expected investment period). Postfach.ch”. the Key Investor Information Document. On request. CH- 8001 Zurich. Information in Relation to the Distribution The Management Company and its agents may pay retrocessions as remuneration for distribution activity in respect of Shares in or from Switzerland. The purpose of rebates is to reduce the fees or costs incurred by the investor in question. ii. 50 . – Clarifying and answering specific investor queries regarding the investment product or the provider. With respect to Shares distributed in Switzerland and out of Switzerland.ch” as a minimum.swissfunddata. – the amount of the fees generated by the investor. – the investment behavior shown by the investor (e. Information for Investors in Switzerland i. CH-8070 Zurich. the Management Company and its agents may. Paradeplatz 8. CS Investment Funds 1 Investment Company with Variable Capital under Luxembourg Law 24. to the investors. In the case of distribution activity in or from Switzerland. at its sole discretion. – all investors who meet these objective criteria and demand rebates are also granted these within the same timeframe and to the same extent. The recipients of the retrocessions must ensure transparent disclosure and inform investors. iii. – Forwarding and/or providing the publications required by law as well as other publications.g. forward all or part of its Investment Management Fee to investors or other recipients. General Information The Representative of the Company in Switzerland is Credit Suisse Funds AG. – the investor’s willingness to provide support in the launch phase of a collective investment scheme. in full or in part. At the request of the investor. in the product range of the promoter.

rue Jean Monnet L-2180 Luxembourg www.com .credit-suisse.CS Investment Funds 1 5.