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Pictet Sicav II

Prospectus

MAY 2011

PICTET SICAV II

SICAV incorporated under Luxembourg law

PREAMBLE

If you have any doubts whatsoever as to the contents of this document or if you intend to subscribe to shares in Pictet Sicav II (the “Fund”), you should consult a professional adviser. No one is authorised to provide informa-tion or make representations regarding the issue of shares of the Fund (“shares”) that are not contained in or referred to in this document or the appended reports. Neither the distribution of this document, nor the offer, issue or sale of shares shall constitute a representation that the information contained in this document is cor-rect on any particular date after the date of the document. No person receiving a copy of this document in any country whatsoever may consider that it constitutes a call for funds unless, in that particular country, such a call could be legally made to the person without his or her having to comply with registration requirements or other legal terms. Anyone wishing to buy shares shall be responsible for ensuring compliance with the laws of the country in question with regard to the acquisition of shares, including obtaining any government approval or other authorisations that may be required, and complying with any other formalities that must be adhered to in that country.

The shares have not been and will not be registered in accordance with the 1933 United States Securities Act as amended (the “1933 Act”), or registered or qualified in accordance with the laws on transferable securities in a given State or any other political subdivision of the United States. Shares may not be offered, sold, transferred or delivered either directly or indirectly in the United States or to, or on behalf of, or for the benefit of United States persons (as defined in Regulation S of the 1933 Act), except in certain transactions exempt from the regis-tration provisions of the 1933 Act and any other laws of a State or regarding transferable securities. Shares are offered outside the United States on the basis of an exemption from the registration regulations of the 1933 Act as stated in Regulation S of that Act. Moreover, shares are offered in the United States to accredited investors within the meaning of Rule 501(a) of the 1933 Act on the basis of exemption from the registration regulations of the 1933 Act as stated in Rule 506 of that act. The Fund has not been and will not be registered pursuant to the 1940 United States Investment Company Act (the “1940 Act”) and is, therefore, limited with respect to the num-ber of economic shareholders who may be United States persons. The Articles of Association contain clauses intended to prevent United States persons from holding shares in circumstances that would result in the Fund violating US laws, and to enable the Directors to conduct a forced redemption of such shares that the Directors deem necessary or appropriate in order to ensure compliance with US laws. Moreover, any certificate or other document showing shares issued to United States persons shall bear a note to the effect that such shares have not been registered or qualified in accordance with the 1933 Act and that the Fund has not been registered in accordance with the 1940 Act, and shall refer to certain transfer and sale restrictions.

Potential investors are warned that investment in the Fund entails certain risks. Investments in the Fund are subject to the usual risks concerning investments and, in some instances, may be adversely affected by political developments and/or changes in local laws, taxes, foreign-exchange controls and exchange rates. Investing in the Fund may entail certain investment risks, including the possible loss of the capital invested. Investors should be aware that the price of shares may fall as well as rise.

Contents

Prospectus 9

GENERAL CLAUSES 9

LEGAL STATUS 9

OBJECTIVES AND STRUCTURE 10

SUB-CLASSES OF SHARES 10

MANAGEMENT AND ADMINISTRATION STRUCTURE 11

DISTRIBUTOR 12

SHAREHOLDER RIGHTS 13

ISSUING OF SHARES 13

ISSUE PRICE 13

REDEMPTIONS 14

REDEMPTION PRICE 14

CONVERSION 14

DILUTION LEVY 14

CALCULATION OF THE NET ASSET VALUE 15

SUSPENSION OF CALCULATION OF THE NET ASSET VALUE, SUBSCRIPTIONS, REDEMPTIONS AND CONVERSIONS 16

DISTRIBUTION OF INCOME 16

FUND EXPENSES 16

TAX STATUS 18

BUSINESS YEAR 18

PERIODIC REPORTS AND PUBLICATIONS 18

DURATION - MERGER - DISSOLUTION OF THE FUND AND COMPARTMENTS 18

DOCUMENTS AVAILABLE FOR INSPECTION 19

INVESTMENT RESTRICTIONS 19

Annex 1: Compartments in operation 24

1. PICTET SICAV II – EUR BONDS 24

2. PICTET SICAV II – USD GOVERNMENT BONDS 26

3. PICTET SICAV II – CHF LIQUIDITY 28

4. PICTET SICAV II – USD LIQUIDITY 30

5. PICTET SICAV II – EUR LIQUIDITY 32

6. PICTET SICAV II – EUR CORPORATE BONDS 34

7. PICTET SICAV II – GLOBAL EMERGING DEBT 36

8. PICTET SICAV II – EUR HIGH YIELD 38

9. PICTET SICAV II – EUR SHORT MID-TERM BONDS 40

10. PICTET SICAV II – CHF BONDS 42

11. PICTET SICAV II – EUR GOVERNMENT BONDS 44

12. PICTET SICAV II – EUR INFLATION LINKED BONDS 46

13. PICTET SICAV II – EMERGING LOCAL CURRENCY DEBT 48

14. PICTET SICAV II – ASIAN LOCAL CURRENCY DEBT 50

15. PICTET SICAV II – WORLD GOVERNMENT BONDS 52

16. PICTET SICAV II – ABSOLUTE RETURN GLOBAL DIVERSIFIED 54

17. PICTET SICAV II – ABSOLUTE RETURN GLOBAL CONSERVATIVE 56

18. PICTET SICAV II – LATIN AMERICAN LOCAL CURRENCY DEBT 58

19. PICTET SICAV II – USD SOVEREIGN LIQUIDITY 60

20. PICTET SICAV II – EUR SOVEREIGN LIQUIDITY 62

21. PICTET SICAV II – GLOBAL EMERGING CURRENCIES 64

22. PICTET SICAV II – USD SHORT MID-TERM BONDS 66

23. PICTET SICAV II – EUR CORPORATE BONDS EX-FINANCIAL 68

24. PICTET SICAV II – US HIGH YIELD 70

25. PICTET SICAV II – TOTAL RETURN FIXED INCOME FUND 72

SPECIAL RULES APPLICABLE TO THE TOTAL RETURN FIXED INCOME COMPARTMENT 73

1* INVESTMENT RESTRICTIONS 73

2* RISK FACTORS 74

3* CONTROL PROCESS (DUE DILIGENCE) 78

4* VALUATION OF SHARES 79

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Prospectus

MANAGEMENT AND ADMINISTRATION

Registered office1 Boulevard Royal, L-2449 Luxembourg

Board of Directors

ChairmanLaurent RamseyManaging Director, Pictet Funds S.A.

DirectorsChristoph SchweizerSenior Vice President, Pictet Funds S.A.

Christian SoguelSenior Vice President, Pictet Funds S.A.

Michèle BergerExecutive Vice President, Pictet Funds (Europe) S.A.

Pascal ChauvauxVice President,Pictet & Cie (Europe) S.A.

Management Company

Pictet & Cie (Europe) S.A.3 Boulevard Royal, L-2449 LuxembourgManagement Company Board of Directors

ChairmanRémy BestPartner, Pictet & Cie, Geneva

MembersPierre Etienne, Managing DirectorPictet & Cie (Europe) S.A.Laurent Ramsey, Managing Director,Pictet Funds S.A., Geneva

Day-to-day managers of the Management Company

Michèle Berger, Executive Vice PresidentPictet Funds (Europe) S.A. Christoph Schweizer, Senior Vice President,Pictet Funds S.A., GenevaRolf Banz, Executive Vice President, Pictet & Cie, Geneva Christian Soguel, Senior Vice President,Pictet Funds S.A., GenevaLaurent Ramsey, Managing Director,Pictet Funds S.A., Geneva, SwitzerlandCédric Vermesse, Senior Vice President,Pictet Funds SA, Geneva

Custodian Bank

Pictet & Cie (Europe) S.A.1 Boulevard Royal, L-2449 Luxembourg

Domiciliation Agent, Transfer Agent, Administrative Agent and Paying Agent

Pictet & Cie (Europe) S.A.1 Boulevard Royal, L-2449 Luxembourg

Investment Managers:

Pictet Asset Management S.A. 60 Route des Acacias, CH-1211 Geneva 73

Bank Pictet & Cie (Asia) Ltd, Singapore8 Marina Boulevard #05-02 Marina BayFinancial Centre Tower 1Singapore 018981

Pictet Asset Management Limited Moor House, Level 11, 120 London Wall,London EC2Y 5ET, UK

Pictet & Cie. 60 Route des Acacias, CH-1211 Geneva 73

Fund Auditor

Deloitte S.A.560 Rue de Neudorf, L-2220 Luxembourg

Legal Adviser

Elvinger, Hoss & Prussen2 Place Winston Churchill, L-1340 Luxembourg

GENERAL CLAUSES

Unless otherwise indicated, a banking day is defined as a day on which the banks conduct their day-to-day business in Luxembourg (a “Banking Day”).

Distribution of this document is authorised only if accompanied by a copy of the Fund’s latest annual report and the last semi-annual report, if published after the annual report (where applicable). These re-ports form an integral part of this document.

The Fund does not promote its shares to the public in any part of the European Union.

Annex 1 for a specific compartment may have other investment restrictions or deviate from the condi-tions contained in the body of the Prospectus.

LEGAL STATUS

Pictet Sicav II (“the Fund”) is an open-ended invest-ment company (SICAV) incorporated under Luxem-bourg law in accordance with the provisions of Part II of the Law of 20 December 2002 governing undertak-ings for collective investment.

The company was formed for an indefinite period on 17 June 2005 and its Articles of Association were published in the Mémorial, Recueil des Sociétés et Associations of the Grand Duchy of Luxembourg on 15 July 2005. They were amended by notarial deed on 27 October 2008 and published in the Mémorial on 17 November 2008 and by notarial deed of 23 Janu-ary 2009 published in the Mémorial on 20 February 2009. A legal notice pertaining to the issue and sale of shares by the Fund has been filed with the Registry of the District Court of Luxembourg.

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The Fund is registered in the Luxembourg Trade and Companies Register under No. B 108.950.

At all times, the Fund’s capital will be equal to the net asset value and will not fall below the minimum capi-tal of EUR 1,250,000.

OBJECTIVES AND STRUCTURE

The Fund is designed to offer investors access to a selection of markets worldwide and a variety of in-vestment techniques through a range of specialised products (“compartments”) within one structure.

The Board of Directors determines the investment policy for the various compartments. Risks will be spread broadly by diversifying investments over a range of transferable securities, the choice of which shall not be limited – except under the terms of the re-strictions specified in the section “Investment Restric-tions”, below – either in terms of regions, economic sectors, or the types of transferable securities used. However, the Board of Directors may also decide that a given compartment will invest its assets through one or more open-ended Luxembourg undertakings for collective investment.

The net assets forming each compartment are rep-resented by shares, which may comprise different classes or sub-classes of shares. All the shares rep-resenting the assets of a compartment form a class of shares. All the compartments together constitute the Fund. If sub-classes of shares are issued, the relevant information will be appended to this Prospectus.

The Board of Directors is authorised to create new compartments. A list of the compartments available to date is appended to this Prospectus, outlining their investment policies and key features.

This list is an integral part of the Prospectus and will be updated whenever new compartments are cre-ated.

For each class of shares, the Board of Directors may also decide to create two or more sub-classes whose assets will generally be invested in accordance with the specific investment policy of the class in ques-tion. However, the sub-classes may differ in terms of their specific subscription and/or redemption fee structures, exchange rate hedging policies, distribu-tion policies and/or management or advisory fees, or other specific features applicable to each sub-class. Where relevant, this information is annexed to the present prospectus.

The shares in the Fund are usually listed on the Lux-embourg Stock Exchange. The Board of Directors may decide which sub-classes of shares are to be listed.

SUB-CLASSES OF SHARES

A list of the current classes of shares is included in this Prospectus. The Board of Directors may decide to create additional classes of shares at any time.

The sub-classes of shares issued or planned at the date of this Prospectus, together with any supple-

mentary information, are detailed in Annex 1 of the Prospectus. Investors are advised to contact their agent for the list of sub-classes of shares issued.

Shares may be divided within compartments into “I”, “P”, “R” and “Z” shares.

“I” shares are suitable for institutional investors wish-ing to invest an initial minimum sum. This amount is specified in the annex for each compartment and is calculated for the relevant class (I or J) and for its cor-responding classes (hedged, issued in another cur-rency or distribution). Subscriptions in classes other than these classes shall not be taken into account in calculating the minimum initial subscription. Howev-er, the Board of Directors reserves the right to accept subscriptions for an amount less than the required initial amount, at its discretion.

For “I” shares, the front-end loads for intermediaries will be no more than 5%, and the back-end loads no more than 1%.

“P” and “R” shares are not subject to any minimum investment. Through their relatively broad range of features, they each respond to different commer-cial practices in effect at the date of this Prospectus in the countries in which the Fund is marketed, and their flexibility enables them to be adapted where necessary to developments in their target markets. It should be noted that in certain countries a portion of the management fees may be paid back to intermedi-aries involved in the sale of Shares of the Fund.

“P” shares: Front-end load in favour of interme-diaries of no more than 5%.

Back-end load in favour of interme-diaries of no more than 1%.

Lower management fee than for “R” shares.

“R” shares: Front-end load in favour of interme-diaries of no more than 5%.

Back-end load in favour of interme-diaries of no more than 3%.

Higher management fee than for “P” shares.

“Z” shares are reserved for institutional investors who have concluded a specific remuneration agree-ment with Pictet & Cie Geneva, or any other entity of the Pictet Group.

For “Z” shares, the front-end load in favour of inter-mediaries will be no more than 5%, and the back-end load no more than 1%.

Management fees will vary according to the sub-class of shares, as described in Annex 1 of the Prospectus.

“Shares may be divided into capitalisation shares and distribution shares. Distribution shares will be entitled to a dividend subject to the decision of the General Meeting of shareholders whereas the cor-responding amount for capitalisation shares will be invested in the class of share in question rather than distributed.

In each compartment, shares issued in currencies other than the reference currency of the compart-ment may be created. These shares may be hedged (as defined below) or non-hedged.

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Hedged shares:

H shares seek to hedge most of the exchange-rate risk of these shares against a given currency. These shares are subject to the same front- and back-end loads as their corresponding non-hedged shares.

The minimum initial investment for shares issued in a currency other than the compartment’s base cur-rency is the minimum initial investment amount ap-plicable to the shares concerned converted on the net asset value calculation date into the applicable cur-rency for that class.

It is the responsibility of individual investors to en-sure that they meet the conditions for accessing the sub-class of shares in which they wish to subscribe.

Investors choose the sub-class of shares to which they wish to subscribe, bearing in mind that, unless otherwise restricted in Annex 1, any investor meet-ing the access conditions of a particular sub-class of shares may request conversion of his shares to shares of the sub-class.

Similarly, if an investor no longer meets the access conditions of the sub-class of shares they hold, the Board of Directors reserves the right to ask that shareholder to convert their shares to shares of an-other sub-class.

Conditions for the conversion of shares are described more fully in the section “Conversion”.

MANAGEMENT AND ADMINISTRATION STRUCTURE

The Board of Directors

The Board of Directors is responsible for the adminis-tration and management of the Fund and monitoring its operations, as well as deciding on and implement-ing its investment policy.

Under the Law of 20 December 2002 governing un-dertakings for collective investment, the Board of Di-rectors may appoint a management company.

The Management Company

Pictet Funds (Europe) S.A., a management company subject to section 13 of the Law of 20 December 2002, is a public limited company having its registered of-fice at 3 Boulevard Royal, Luxembourg and has been appointed management company of the SICAV.

Pictet Funds (Europe) S.A. was formed for an indefi-nite period on 14 June 1995 as Pictet Balanced Fund Management (Luxembourg) S.A. as a société ano�ano�nyme (limited company) under Luxembourg law. At the date of this Prospectus, its capital is CHF 8,750,000 and its equity is CHF 17,500,000. The majority share-holder of Pictet Funds (Europe) S.A. is Pictet Funds S.A., Geneva.

The mission of the Management Company is to man-age UCITS and UCIs in compliance with section 13 of the Law of 20 December 2002. This management activity shall include the management, administration and sales of undertakings for collective investment such as SICAVs.

Investment advisers:

The Management Company may be assisted by one or more internal or external investment advisers of the Pictet group whose mission is to advise the Man-agement Company on the Fund’s investment oppor-tunities.

Management activity

The Management Company has delegated the man-agement of the compartments and of the SICAV to the companies listed below. This delegation was made under contracts concluded for an indefinite pe-riod that may be terminated by either party, subject to 3 or 6 months’ advance notice depending on the terms of the contract.

Pictet Asset Management Limited (“PAM Ltd”)PAM Ltd is responsible for equity and bond portfo-lio management for an international client base. PAM Ltd is approved for business in the United Kingdom by the Financial Services Authority (FSA) and is registered as an investment adviser with the Securi-ties and Exchange Commission (SEC) in the United States.

Pictet Asset Management SA, Genève (“PAM SA”)PAM SA is a manager specialised in portfolio and fund management for institutional clients. At 30 June 2010, PAM SA managed around 70 billion Swiss francs. PAM SA is active in quantitative and abso-lute return bond management. It is supported by and works in close collaboration with its institutional management entities based in London and Japan, which are particularly active in the areas of interna-tional, European, Japanese, small cap and emerging markets equities. At 30 June 2010, the assets man-aged by the institutional entities of the Pictet Group, which includes PAM SA, exceeded 121 billion Swiss francs. PAM SA is wholly owned by Pictet & Cie and is regulated by the Autorité Fédérale de Surveillance des Marchés Financiers in Switzerland.

Bank Pictet & Cie (Asia) Ltd, Singapore (“BPCAL”)BPCAL is a wholly-owned subsidiary of Pictet & Cie for all its activities in Asia. Since 1994, BPCAL has operated under a Merchant Bank licence issued by the Singapore monetary authorities.

BPCAL is primarily active in the management of pri-vate and institutional assets and the management of portfolios in emerging debt in general and Asia in particular. The distribution of Pictet Group invest-ment funds is also part of its services.

Pictet & Cie, Geneva (“PCO”)PCO is a bank specialising in Global Custody and private equity management not only for demand-ing private customers, but also for large institutions throughout the world. With over 165 billion Swiss francs in funds under management and/or on de-posit and nearly two thousand staff, PCO is one of the largest private banks in Switzerland and one of the leading investment fund management institutions in Europe. It is regulated by the Autorité Fédérale de Surveillance des Marchés Financiers in Switzerland.

Annex 1 lists the managers responsible for each com-partment.

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Supervision of the delegated management activities is solely the responsibility of Pictet Funds (Europe) S.A.

Central Administration

The Administration agent function of the SICAV is delegated to Pictet & Cie (Europe) S.A.

Pictet & Cie (Europe) S.A. has been appointed as Transfer Agent, Administrative Agent and Paying Agent, under the terms of an agreement concluded for an indefinite period. This agreement may be ter-minated by either party, subject to 3 months’ advance notice.

Pictet & Cie (Europe) S.A. was incorporated as a société anonyme (limited company) under Luxem-bourg law for an indefinite period on 3 Novem-ber 1989. Its capital is CHF 70,000,000 at the date of this Prospectus.

As registry holder and transfer agent, Pictet & Cie (Europe) S.A. must primarily provide for the issue, conversion and redemption of units and maintain the registry of shareholders of the SICAV.

As administrative agent and paying agent, Pictet & Cie (Europe) S.A. is responsible for calculating and publishing the net asset value (NAV) of the shares of each compartment in compliance with applicable laws and the Articles of Association of the SICAV and for performing administrative and accounting servic-es for the SICAV as necessary.

DISTRIBUTOR

The Fund’s shares will be placed by the Pictet Group (the “Distributor”), or more specifically any legal en-tity of the Group held directly or indirectly by Pictet & Cie, Geneva, and authorised to perform such func-tions.

The Distributor may sign investment agreements with any professional intermediary, in particular with banks, insurance companies, “internet supermar-kets”, independent managers, brokers, management companies or any other institution whose primary or secondary activity is the distribution of investment funds and customer service.

Custodian Bank

Pictet & Cie (Europe) S.A. has been appointed as Custodian Bank for the Fund under the terms of an agreement concluded for an indefinite period. This agreement may be terminated by either party, subject to 3 months’ advance notice.

On behalf of and in the interests of the Fund’s share-holders, the Custodian Bank shall provide for the safekeeping of cash and securities comprising the Fund’s assets. It may, subject to the approval by the Board of Directors and by the relevant regulatory body, entrust the safekeeping of some or all of these assets to other banks or financial institutions that meet the appropriate legal conditions.

The Custodian Bank will perform all the usual func-tions of a bank with regard to deposits of cash and

securities. It will assume the functions and respon-sibilities as set forth by the provisions of the Luxem-bourg Law of 20 December 2002 on undertakings for collective investment.

Under instructions from the Board of Directors, the Custodian Bank will perform all material disposals of the Fund’s assets. It will execute orders and comply with the instructions of the Board of Directors pro-vided that they are in compliance with applicable laws and the Articles of Association.

The Custodian Bank will, in particular:

– perform all operations concerning the day-to-day administration of the Fund’s securities and liquid assets and, in particular, pay for securities acquired against delivery, deliver securities sold against collection of their price, collect dividends and coupons and exercise subscription and allo-cation rights;

– ensure that proceeds are remitted within the usual time limits for transactions involving the Fund’s assets;

– ensure that shares are sold, issued, redeemed or cancelled by the Fund or on its behalf in compli-ance with applicable laws or the SICAV’s Articles of Association;

– ensure that the SICAV’s income is allocated in ac-cordance with the Articles of Association.

The Custodian Bank is only required to redeem secu-rities to the extent that legal provisions, particularly those pertaining to foreign exchange regulations, or events beyond its control, such as strikes, do not pre-vent it from paying or transferring the proceeds in the country in which the application for redemption has been made.

The Custodian Bank or the Fund may terminate the Custodian Bank’s duties at any time, by giving at least three months’ written notice to the other party, it being understood that any decision by the Fund to end the Custodian Bank’s appointment is subject to another custodian bank taking on the duties and re-sponsibilities of the Custodian Bank as defined in the Articles of Association, provided furthermore that, if the Fund terminates the Custodian Bank’s duties, the Custodian Bank will continue to perform its du-ties until such time as the Custodian Bank has been relieved of all the Fund’s assets that it held or had arranged to be held on behalf of the Fund. Should the Custodian Bank itself give notice to terminate the contract, the Fund will be required to appoint a new custodian bank to take over the duties and responsi-bilities of the Custodian Bank as set out in the Articles of Association, on the understanding that, as of the date when the notice of termination expires and until such time as a new custodian bank is appointed by the Fund, the Custodian Bank will only be required to take any necessary measures to safeguard the best interests of shareholders.

The Custodian Bank is remunerated in accordance with customary practice in the Luxembourg financial market. Such remuneration is expressed as a percent-age of the Fund’s net assets and paid on a quarterly basis.

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Auditor

These duties have been assigned to Deloitte S.A., 560, Rue de Neudorf, L-2220 Luxembourg.

SHAREHOLDER RIGHTS

Shares

The shares from each class are issued in registered form only, without any par value and fully paid-up. Fractions of shares may be issued up to a maximum of five decimal places. They are entered in a share-holder register, which will be kept at the Fund’s reg-istered office. Shares redeemed by the Fund will be cancelled.

All shares are freely transferable and entitle holders to an equal proportion in any profits, liquidation pro-ceeds and dividends for the compartment in question.

Each share is entitled to one vote. Shareholders will also be entitled to the general shareholders’ rights provided for under the Law of 10 August 1915, as amended, with the exception of the preferential sub-scription right for new shares.

Shareholders will only receive one confirmation of their inclusion in the register.

General Meeting of Shareholders

The Annual General Meeting of Shareholders is held at the Fund’s registered office or at any other location in Luxembourg, as specified in the notice of meeting.

Starting in 2010, the Annual General Meeting will be held in Luxembourg at 11:00 am on the 21st day of January or, if this day is an official holiday, on the next banking day thereafter.

Notices of meeting will be sent out to all registered shareholders at least 8 days prior to the General Meeting. These notices will include details of the time and place of the General Meeting, the agenda, con-ditions for admission and quorum, and majority re-quirements as laid down by Luxembourg law.

In compliance with the Fund’s Articles of Associa-tion and Luxembourg law, all decisions made by the shareholders pertaining to the Fund will be made at the General Meeting of all shareholders. All decisions that concern only the shareholders of one or more compartments may be made – as authorised by law – by the shareholders of the relevant compartments. In this latter case, the quorum and majority require-ments stipulated in the Articles of Association will apply.

ISSUING OF SHARES

In the case of initial subscriptions for new compart-ments, an addendum to this Prospectus will be cre-ated.

A list of compartments already in operation is pro-vided in an Annex to this Prospectus.

For certain compartments, shareholders may sub-scribe to different sub-classes of shares.

Subscriptions to shares (or to each sub-class of shares, if applicable) in each compartment in opera-tion will be accepted at their issue price, as defined below in the “Issue Price” section, by the Custodian Bank and by all other institutions duly authorised by the Fund.

Provided that the securities are compliant with the investment policy, shares may be issued in return for a contribution in kind, which will be the subject of a valuation report by the Fund’s auditor. This report will be available for inspection at the Fund’s regis-tered office. Any costs incurred will be borne by the investor.

Unless otherwise indicated in Annex 1, for any sub-scription received by the Custodian Bank before the time specified for each compartment in Annex 1 on the last Banking Day before the net asset value is cal-culated, the net asset value calculated on that date will apply.

Unless otherwise indicated in Annex 1, for any sub-scription received by the Custodian Bank after the time specified in the preceding paragraph, the net as-set value to be applied will be that calculated on the next net asset value calculation date.

Unless otherwise specified in Annex 1, the issue price will be paid by credit transfer in the currency of the compartment in question within two Banking Days of the applicable valuation date to the account of Pictet & Cie (Europe) S.A., to the order of the Pictet Sicav II, with reference to the compartment(s) concerned.

Anti-money laundering laws – A number of Lux-embourg laws and regulations impose certain obli-gations on financial-sector professionals aimed at preventing the use of investment funds for money-laundering purposes. As a result, the identity of sub-scribers (and, where appropriate, that of beneficial owners) must be disclosed to the Fund by means of a certified copy of passports or identity cards for natu-ral persons and/or the Articles of Association for le-gal entities, accompanied by a recent original extract of the Trade and Companies Register and, where ap-plicable, a certified copy of the trading licence issued by the competent authority. Such information will be collected for verification purposes only and will be covered by the professional secrecy imposed on the Fund, the Central Administration of the Fund and the custodian bank.

However, usually, subscribers do not need to provide all the aforementioned documents and information if their subscription application is filed through a finan-cial agent located in a third-party country that impos-es equivalent obligations.

ISSUE PRICE

The issue price for shares in each compartment (or sub-class of shares) is equal to the net asset value of one share (or each sub-class of shares) in the com-partment in question, calculated on the first date on which the net asset value is determined following the subscription date.

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This price may be increased by financial intermedi-aries’ fees, which will not exceed 5% of the net as-set value per share for the compartment in question and will be paid to financial intermediaries and/or distributors involved in the distribution of the Fund’s shares. Front- and back-end loads for intermediaries will vary according to the sub-class of share, as de-scribed in the “Sub-classes of shares” section.

This issue price will be increased to cover any duties, taxes and stamp duties due.

Under certain exceptional circumstances, the Board of Directors is entitled to charge a “Dilution Levy” on the issue of shares, as described hereinafter in the “Dilution Levy” section.

REDEMPTIONS

Shareholders are entitled to apply for the redemption of some or all of their shares (or, where applicable, their sub-class of shares) at any time based on the redemption price, as stipulated in the following “Re-demption Price” section, by sending the Custodian Bank or other authorised institutions an irrevocable redemption request accompanied by their share cer-tificates, if relevant.

Unless otherwise indicated in Annex 1, for any re-demption application received by the Custodian Bank before the time specified for each compartment in Annex 1 on the last Banking Day before the net asset value is calculated, the net asset value calculated on that date will apply.

Unless otherwise indicated in Annex 1, for any re-demption application received by the Custodian Bank after the time specified in the previous paragraph, the net asset value to be applied will be that calculated on the next date on which the net asset value is cal-culated.

If, following redemption or conversion requests, it is necessary on a given valuation day to redeem more than 10% of the shares issued for a given compart-ment, the Board of Directors may decide that all re-demptions shall be deferred until the next date on which the net asset value is calculated again for the compartment in question. When the net asset value is calculated again, redemption or conversion appli-cations that have been deferred (and not withdrawn) will have priority over applications received for that particular net asset valuation day (and which have not been deferred).

Unless otherwise specified in Annex 1, proceeds from the shares submitted for redemption will be paid by credit transfer in the currency of the compartment in question within two Banking Days of the net asset value calculation date applicable for the redemption (cf. the “Redemption Price” section below).

REDEMPTION PRICE

The redemption price for shares (or sub-class of shares) in each compartment is equal to the net asset value of each share (or each sub-class of shares) in the compartment in question, calculated on the first

date on which the net asset value is determined fol-lowing the redemption application date.

A commission paid to financial intermediaries and/or distributors may be deducted from this amount, rep-resenting up to 3% of the net asset value per share. Front- and back-end loads for intermediaries will vary according to the sub-class of share, as described in the “Sub-classes of shares” section.

The redemption price will also be reduced to cover any duties, taxes and stamp duties to be paid.

Under certain exceptional circumstances, the Board of Directors is entitled to charge a “Dilution Levy” on the redemption of shares, as described hereinafter in the “Dilution Levy” section.

The redemption price may be higher or lower than the subscription price, depending on changes in the net asset value.

CONVERSION

Within the limits defined in the “Sub-classes of shares” section in the Prospectus, shareholders of one com-partment may ask for some or all of their shares to be converted into shares of another compartment or between compartments for different sub-classes, in which case the conversion price will be calculated ac-cording to the respective net asset values, which may be increased or decreased, in addition to administra-tive charges, by the commissions to intermediaries for the sub-classes and/or compartments in question. Under no circumstances may these intermediaries’ fees exceed 2%.

However, no shares may be converted into “J Distr” shares, unless the Board of Directors decides other-wise.

Notwithstanding the provisions set out in Annex 1 of the Prospectus, shareholders of one compartment may ask for some or all of their shares to be convert-ed into shares of the same sub-class in another com-partment, for an administrative fee only.

Unless otherwise indicated in Annex 1, for any con-version request received by the Custodian Bank one Banking Day before the deadline specified for each compartment in Annex 1, the net asset values appli-cable will be those calculated on the following net asset value calculation date for the compartments in question.

The Board of Directors may impose any restrictions it deems necessary, especially concerning the frequen-cy of conversions. Shares which have been converted into shares in another compartment will be cancelled.

Under certain exceptional circumstances, the Board of Directors is entitled to charge a “Dilution Levy” on the conversion of shares, as described hereinafter in the “Dilution Levy” section.

DILUTION LEVY

Under certain exceptional circumstances, such as the following:

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• days with high trading volumes,

• and/or market disruptions,

• and in all other cases in which the Board of Di-rectors considers, at its sole discretion, that the interests of existing shareholders (for issues/con-versions) or remaining shareholders (for redemp-tions/conversions) could be adversely affected,

the Board of Directors of the Fund is entitled to charge a "Dilution Levy" on the share issue, redemp-tion and/or conversion price, representing up to 2% of the net asset value.

In cases when it is applied, this Dilution Levy will be equitably applied on a given valuation day to all shareholders in the compartment in question. It will be credited to the compartment in question and will form an integral part of that compartment.

The Dilution Levy applied at that time will be calcu-lated based in particular on market effects and on the costs incurred for transactions on the underlying in-vestments for the compartment in question, including any commissions, spreads and transfer taxes.

The Dilution Levy may be cumulative with the correc-tion effects provided for under the section “Calcula-tion of the net asset value” below.

CALCULATION OF THE NET ASSET VALUE

The Custodian Bank calculates the net asset value, as well as the issue, redemption and conversion prices for shares for each compartment in the currency of the compartment in question, at intervals which may vary for each compartment and are indicated in An-nex 1.

The net asset value of a share in each compartment will be calculated by dividing the net assets of the compartment in question by the compartment’s total number of shares in circulation. A compartment’s net assets correspond to the difference between its total assets and total liabilities.

If various sub-classes of shares are issued in a given compartment, the net asset value of each sub-class of shares in this compartment will be calculated by dividing the total net asset value (calculated for the compartment in question and attributable to this sub-class of shares) by the total number of shares issued for this sub-class.

The percentage of the total net asset value of the rel-evant compartment that can be attributed to each sub-class of shares, which was initially identical to the percentage of the number of shares represented by the sub-class of shares in question, varies accord-ing to the level of distribution shares, as follows:

a) if a dividend or any other distribution is paid out for distribution shares, the total net assets attrib-utable to the sub-class of shares will be reduced by the amount of this distribution (thereby re-ducing the percentage of the total net assets of the compartment in question, attributable to the distribution shares) and the total net assets at-tributable to capitalisation shares will remain identical (thereby increasing the percentage of

the compartment’s total net assets attributable to the capitalisation shares);

b) if the capital of the compartment in question is increased through the issue of new shares in one of the sub-classes, the total net assets attributable to the sub-class of shares concerned will be in-creased by the amount received for this issue;

c) if the shares of a sub-class are redeemed by a giv-en compartment, the total net assets attributable to the corresponding sub-class of shares will be reduced by the price paid for the redemption of these shares;

d) if the shares of a sub-class are converted into the shares of another sub-class, the total net assets attributable to this sub-class will be reduced by the net asset value of the shares converted while the total net assets attributable to the sub-class in question will be increased by the same amount.

The total net assets of the Fund shall be expressed in euros and correspond to the difference between the total of the assets and the total of the liabilities of the Fund. For the purposes of this calculation, if the net assets of a compartment are not expressed in euros, they will be converted into euros and added together.

In the interests of shareholders and to the extent deemed appropriate by the Board of Directors, tak-ing into account market conditions and the level of subscriptions and redemptions in a given compart-ment in relation to the size of that compartment, the net asset value of the compartment may be calcu-lated on the basis of the offer or redemption prices of securities in its portfolio, adjusted for appropriate sales commission and trading costs incurred, or (ii) adjusted to take account of the impact resulting from the difference between the trading price and the val-uation of the investments or disinvestments, and/or sales commissions and/or trading fees incurred.

Moreover, the effect of such corrections in relation to the net asset value that would have been obtained without them may not be greater than 2% unless oth-erwise specified in Annex 1.

Assets shall be valued as follows:

a) Securities will be valued at the most representa-tive price on the markets and/or of trades made on these markets by managers or other market intermediaries. This may involve the last available price or the price at any other time on markets deemed by the Board of Directors to be most rep-resentative, taking into account liquidity criteria and trades that have been made on the markets in question.

If no price is available, securities will be valued, prudently and in good faith, on the basis of their estimated sale price.

b) Units or shares held in an open-ended undertak-ing for collective investment will be valued based on their last known net asset value.

c) Liquid assets will be valued at their face value, plus accrued interest.

d) For each compartment, securities whose value is expressed in a currency other than the cur-

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rency of that compartment will be converted to the compartment’s currency at the average price between the last available buy/sell price in Lux-embourg or, failing that, on the market that is most representative for those securities.

e) Payments made and received by the compart-ment under swap contracts will be updated on the valuation date at the zero-coupon swap rate corresponding to the maturity of these payments. The value of the swaps will then be equal to the difference between the two updates.

f) Sums paid by the compartment for Total Return Swaps are updated on the valuation date to the zero-coupon swap rates corresponding to the maturity of these sums. The sum received by the protection buyer, which corresponds to a combination of options, is also updated, and is a function of a number of parameters, notably including the price, volatility and probability of default of the underlying asset. The value of Total Return Swaps thus equals the difference between the two updated sums described above.

The Board of Directors is authorised to adopt any other appropriate principles for valuing the Fund’s assets if extraordinary circumstances make it impos-sible or inappropriate to calculate the values based on the aforementioned criteria.

In the event of high levels of subscription or redemp-tion applications, the Board of Directors may calcu-late the value of the shares based on prices in the trading session during which it was able to carry out the necessary purchases or sales of securities for the Fund. In such cases, a single method of calculation will be applied to all subscription or redemption ap-plications received at the same time.

SUSPENSION OF CALCULATION OF THE NET ASSET VALUE, SUBSCRIPTIONS, REDEMPTIONS AND CONVERSIONS

The calculation of the net asset value, the issue, the redemption and the conversion of the shares of one or more compartments may be suspended in the fol-lowing cases:

– When one or more stock exchanges or markets on which a significant percentage of the Fund’s assets are valued or one or more foreign ex-change markets in the currencies in which the net asset value of shares is expressed or in which a substantial portion of the Fund’s assets is held, are closed, other than for normal holidays or if dealings therein are suspended, restricted or sub-ject to major fluctuations in the short term.

– When, as a result of political, economic, military, monetary or social events, strikes or any event of force majeure outside the responsibility and con-trol of the Fund, the disposal of the Fund’s assets is not reasonably or normally practicable without being seriously detrimental to the shareholders’ interests.

– When there is a breakdown in the normal means of communication used to calculate the value of

an asset in the Fund or if, for whatever reason, the value of an asset in the Fund cannot be calcu-lated as promptly or as accurately as required.

– When, as a result of currency restrictions or restrictions on the movement of capital, transac-tions for the Fund are rendered impracticable, or purchases or sales of the Fund’s assets cannot be carried out at normal rates of exchange.

– Following the occurrence of an event entailing the liquidation of the Fund or one of its classes of shares.

In such cases, shareholders who have submitted subscription, redemption or conversion requests concerning shares in compartments affected by the suspensions will be notified.

The Fund and the Management Company may, at any time and at their discretion, temporarily discontinue, cease permanently or limit the issue of shares in one or more compartments to individuals or legal entities resident or domiciled in certain countries or territo-ries. It may also prohibit them from acquiring shares if such a measure is deemed necessary to protect all shareholders and the Fund.

Moreover, the Fund reserves the right to:

a) reject any application to subscribe for shares at its discretion;

b) redeem shares acquired in breach of an exclusion measure at any time.

The Fund does not allow practices associated with market timing and reserves the right to reject any subscription and conversion orders from any inves-tor suspected of such practices. The Fund and the Management Company will also take all necessary steps to protect investors.

DISTRIBUTION OF INCOME

The Board of Directors reserves the right to introduce a dividend policy that may vary between compart-ments and sub-classes of shares issued. In addition to the aforementioned distributions, the Fund may decide to distribute interim dividends.

The Fund may distribute the net investment revenue and realised capital gains, as well as unrealised gains and capital. Investors should be aware that distribu-tions may thus have the effect of reducing the value of the Fund. No income will be distributed if the Fund’s net assets after distribution fall below EUR 1,250,000.

The Fund may distribute free bonus shares within the same limits.

Dividends and allotments not claimed within five years of their due date will lapse and revert to the compartment or to the relevant sub-class of shares in the Fund compartment.

FUND EXPENSES

Service and management fees will be paid to the Management Company in payment for the services provided by it to the Fund. These fees will also en-

17

able the Management Company to remunerate the managers and the Investment Advisers, Pictet et Cie (Europe) S.A. for the functions of transfer agent, ad-ministrative agent and paying agent and the distribu-tors, if any.

In payment for its custodial services, the Custodian will charge a fee for the deposit of assets and the safe-keeping of securities.

These fees will be charged to the sub-classes of shares of a compartment in proportion to its net assets and are calculated based on the average net values of these sub-classes..

Transaction fees will also be charged at rates fixed by common agreement.

For details of the management, service and custodial fees, please refer to Annex 1.

The rate of the custodial fee indicated in Annex 1 does not include VAT.

Other expenses

Other costs charged to the Fund will include:

1) All taxes and duties that may be due on the Fund’s assets or income earned by the Fund, in particular the subscription tax (0.05% yearly) on the Fund’s net assets. This tax will be reduced to 0.01% for assets relating to shares reserved for institutional investors. No tax is due on the portion of assets invested in another Luxembourg undertaking for collective investment.

2) Any fees and charges on transactions involving securities in the portfolio.

3) The remuneration of the correspondents of the Custodian Bank.

4) The fees and expenses reasonably incurred by the Domiciliation Agent, Transfer Agent, Admin-istrative Agent and Paying Agent.

5) Remuneration of foreign agents appointed to represent the Fund abroad.

6) The cost of exceptional measures, particularly inspections or legal proceedings undertaken to protect the shareholders’ interests.

7) Costs related to preparing, printing and filing administrative documents, prospectuses and ex-planatory reports with authorities, fees payable for the registration and maintenance of the Fund with authorities and official stock exchanges, the cost of preparing, translating, printing and dis-tributing periodic reports and other documents required by law or regulations, the cost of ac-counting and calculating the net asset value, the cost of preparing, distributing and publishing reports for shareholders, fees for legal consult-ants, experts and independent auditors, and any similar operating costs.

8) All advertising costs and expenses other than those specified above, relating directly to the of-fer or placement of shares, will be charged to the Fund up to the equivalent in euros of CHF 200,000 per annum.

All recurring expenses will be charged first to the Fund’s income, then to realised capital gains, then to the Fund’s assets. All other expenses may be amor-tised over a period not to exceed five years.

It should be noted that the Fund’s investment policy is to invest primarily in UCIs and there will be a dou-ble application of certain expenses to be levied on both the underlying UCIs by their service providers and on the Fund by its own service providers. These expenses include, among other expenses, incorpora-tion, custodial, management and auditing fees, and associated costs.

However, there will in no case be double application of management fees if the Fund invests in UCIs man-aged by Pictet & Cie, Geneva and its affiliates.

When calculating the net asset values of the various compartments, expenses will be divided among the compartments in proportion to the net assets of these compartments, unless these expenses relate to a spe-cific compartment, in which case they will be allocat-ed to that compartment.

The Fund is also responsible for its incorporation expenses. These expenses, estimated at EUR 40,000, will be borne by the compartments created when the Fund is launched. At the Board of Directors’ discre-tion, these expenses may be amortised on a straight-line basis over a five-year period running from the Fund launch date. The Board of Directors also has absolute discretion to reduce the period over which such costs and expenses are amortised.

The costs incurred by the Fund for the launch of ad-ditional compartments will, unless decided otherwise by the Board of Directors, be borne by these com-partments and will be amortised on a straight-line basis over a maximum period of five years from the launch date.

Division into compartments

For each compartment, the Board of Directors will establish a separate pool of assets, as per Article 133 of the Law of 20 December 2002. The Board of Di-rectors may also create two or more sub-classes of shares in any one compartment.

a) Proceeds from the issue of shares of a particular compartment will be booked under the compart-ment in question in the Fund’s accounts and, if relevant, the corresponding amount will accrue to the net assets of the compartment in question, and the assets, liabilities, income and expenses relating to this compartment will be allocated to it in accordance with the provisions of this Article. If there are several sub-classes of shares in such a compartment, the corresponding amount will increase the proportion of the net assets of the compartment in question, and will be assigned to the sub-class of shares concerned.

b) If an asset is derived from another asset, this de-rivative asset will be allocated in the books of the Fund to the compartment or sub-class of shares to which the asset from which it is derived belongs and, each time an asset is revalued, the increase or decrease in value will be allocated to the cor-responding compartment or sub-class of shares.

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c) If the Fund is charged with a liability attributable to an asset from a particular compartment or a specific sub-class of shares or to an operation carried out in relation to the assets of a particular compartment or particular sub-class of shares, such a liability will be allocated to the compart-ment or sub-class of shares in question.

d) Where a Fund’s asset or liability cannot be al-located to a particular compartment, that asset or liability will be allocated in equal shares to all compartments or allocated in such a way as the Board of Directors will determine prudent and in good faith.

e) The costs incurred for setting up a new compart-ment will, where applicable, be allocated to the new compartment and may be amortised over a five-year period.

TAX STATUS

The Fund is subject to Luxembourg tax legislation.

The Fund

In accordance with the legislation in force in Luxem-bourg, the Fund is not liable to any income, capital gains or wealth tax. Similarly, dividends paid by the Fund will not be subject to any withholding tax.

However, income collected by the Fund on securi-ties in portfolios may be subject to a withholding tax which, in normal circumstances, cannot be reclaimed.

The Fund’s net assets are, however, subject to a sub-scription tax charged at an annual rate of 0.05%, pay-able at the end of each quarter and calculated on the basis of the Fund’s net assets at the end of each quar-ter. This tax will be reduced to 0.01% for assets relat-ing to shares reserved for institutional investors. No tax is due on the portion of assets invested in another Luxembourg undertaking for collective investment.

Shareholders

In accordance with current legislation and practices in Luxembourg, shareholders, with the exception of those domiciled, resident or permanently established in Luxembourg and certain former residents of Lux-embourg holding more than 10% of the Fund’s share capital, are not subject to any income, capital-gains, donation or inheritance tax in Luxembourg. Nev-ertheless, purchasers of shares in the Fund are responsible for ensuring that they are duly in-formed of the relevant legislation and tax regula-tions on the acquisition, holding and possible sale of shares, with regard to their residence qualifica-tions and nationality.

BUSINESS YEAR

The Fund’s business year runs from 1 October to 30 September of the following year.

PERIODIC REPORTS AND PUBLICATIONS

The Fund will publish audited annual reports within four months of the end of the financial year and unau-dited semi-annual reports within two months of the end of the reference period.

The annual report includes accounts of the Fund and of each compartment.

These reports will be made available to shareholders at the Fund’s registered office and at the Custodian Bank and foreign agents involved in selling the Fund abroad.

The net asset value per share of each compartment (or each sub-class of shares) and the issue and re-demption price are available from the Custodian Bank and the foreign agents involved in selling the Fund abroad.

Any amendment to the Articles of Association will be published in the Luxembourg Mémorial.

DURATION - MERGER - DISSOLUTION OF THE FUND AND COMPARTMENTS

The Fund

The Fund is formed for an indefinite period. How-ever, the Board of Directors may at any time move to dissolve the Fund at an Extraordinary General Meet-ing of Shareholders.

If the Fund’s share capital falls below two-thirds of the minimum capital required by law, the Board of Directors must refer the matter of the dissolution to the General Meeting, deliberating without any quo-rum and deciding by a simple majority of the shares represented at the meeting.

If the Fund’s share capital is less than a quarter of the minimum capital required, the directors must refer the matter of dissolution of the Fund to the General Meeting, deliberating without any quorum; the dis-solution may be decided by shareholders holding a quarter of the shares represented at the meeting.

Merger of compartments

The General Meeting of Shareholders of a compart-ment may decide to cancel the shares of the compart-ment in question and allocate the shares of another compartment to the shareholders of the former com-partment, with the shares being allocated based on the net asset values of the shares in the two compart-ments in question as on the date of the merger. In this case, the assets attributable to the compartment to be cancelled will either be allocated directly to the port-folio of the new compartment, if such an allocation does not violate the specific investment policy appli-cable to the new compartment, or these assets will be sold prior to or on the date of the merger, in which case, the income from this sale will be allocated to the portfolio of the new compartment. Any decision by

19

shareholders as described above is, in addition to the quorum and majority requirements for amendments to the Articles of Association, subject to a separate vote by the shareholders of the compartment to be cancelled, with any decision of that nature being tak-en by shareholders under the same quorum and ma-jority conditions as those described above.

If a compartment’s total net assets fall below EUR 5,000,000 or the equivalent in the base currency of the compartment in question, or if warranted by a change in economic or political circumstances affect-ing a compartment, the Board of Directors may de-cide to close down a compartment by merging it with another compartment. Furthermore, the Board of Di-rectors may decide to merge the compartment with another if it considers this to be in the best interests of the shareholders of the compartments in question. In this case, the information and publication regula-tions defined below will apply.

The decision to merge will be made public and re-ported to all the shareholders concerned prior to the effective date of the merger. Moreover, the public an-nouncement or notification will state the reasons be-hind and the procedure adopted for the merger, and will contain information on the new compartment. This public announcement or notice will be made at least one month prior to the effective date of the merger in order to give shareholders the opportu-nity to request the redemption of their shares, free of charge, before the merger takes effect.

Liquidation of compartments

The Board of Directors may also propose to dissolve a compartment at a General Meeting of Sharehold-ers of that compartment. This General Meeting will deliberate without any quorum requirement and the decision to dissolve the compartment will be taken by a majority of the shares from the compartment repre-sented at the Meeting.

If a compartment’s total net assets fall below the equivalent of EUR 5,000,000, the Board of Directors may decide at any time to liquidate the compartments concerned if it believes that the liquidation of the compartment in question would be in the best inter-ests of shareholders.

In the event of the dissolution of a compartment or the Fund, the liquidation will be carried out pursuant to the provisions of the Luxembourg law of 20 De-cember 2002 governing undertakings for collective investment, which sets out the procedures to enable shareholders to benefit from liquidation dividends and in this context provides for the depositing of any amount that could not be distributed to shareholders when the liquidation is complete with the Caisse de Consignation in Luxembourg. Any amounts depos-ited that are not claimed within six months of com-pletion of the liquidation of the compartment will be subject to time-barring in accordance with Luxem-bourg law. The net proceeds from the liquidation of each compartment will be distributed to holders of shares in the class in question in proportion to the number of shares they hold in that class.

DOCUMENTS AVAILABLE FOR INSPECTION

The following documents are deposited at the Custo-dian Bank and the SICAV’s registered office:

1) The SICAV’s Articles of Association;

2) The most recent annual report as well as the most recent semi-annual report, if published after the most recent annual report;

3) The Management Company agreement con-cluded between the Fund and the Management Company;

4) The Custodian Agreement concluded between Pictet & Cie (Europe) S.A. and the Fund.

INVESTMENT RESTRICTIONS

For compartments whose assets are invested in one or more open-ended Luxembourg undertak-ings for collective investment

Each compartment may invest 100% of its assets in one or more undertakings for collective investment.

In this case, the restrictions presented under “For the other compartments” below do not apply.

However, each compartment may hold liquid assets on an ancillary basis.

The underlying undertakings for collective invest-ment may not have investment policies that involve investing in other undertakings for collective invest-ment.

For the other compartments (unless indicated otherwise in Annex 1)

1) The Fund may invest a maximum of 20% of its net assets in transferable securities not listed on a stock exchange or traded on a regulated market which operates regularly and is recognised and open to the public.

2) The Fund may not invest more than 20% of its net assets in the securities of a single issuer.

3) The Fund as a whole may hold a maximum of 10% of any one class of securities of a single is-suer.

4) The Fund may not acquire shares with voting rights in a company if such acquisition would enable it to exert a significant influence over the management of the issuer.

The restrictions set out in sections 1), 2) and 3) above do not apply to securities issued or guaranteed by OECD Member States, their public authorities or by community, regional or worldwide supranational in-stitutions or bodies.

5) a) The Fund may invest a maximum of 35% of its net assets in units of other open-end or closed-end UCIs on the condition that such UCIs are organised in European Union Member States, the United States of America, Hong Kong, Japan, Canada or Switzerland, subject to the following conditions:

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(i) the Fund may invest a maximum of 10% of its net assets in units of UCIs not listed on stock exchanges or not traded on another regulat-ed market;

(ii) the Fund may not acquire more than 10% of the units of a single kind issued by a single UCI;

(iii) the Fund may not invest more than 10% of its net assets in units of a single UCI.

Nevertheless, the restriction mentioned in (i) above will not apply to investments made in UCIs of the open-end type; similarly, the restric-tions mentioned in (ii) and (iii) will not apply to investments made in UCIs of the open-end type that are subject to risk-spreading requirements similar to those provided for Luxembourg UCIs falling within the scope of Part II of the law of 20 December 2002. These exceptions should not result in any excessive concentration of the com-partment’s investments in only one UCI, it being understood that for the purposes of this limit, each compartment of a UCI with multiple com-partments is to be considered as a separate UCI, provided that the principle of segregating the lia-bilities of the different compartments with regard to third parties is upheld.

b) Among the investments in other UCIs made with-in the limit of the percentage mentioned above (35%), the Fund may invest up to 25% of its net assets in units of other UCIs of the open-end or closed-end type under foreign legislation, which are not subject in their state of origin to per-manent monitoring by a supervisory authority established by law to ensure investor protection. However, the Fund may only invest in units issued by such UCIs if they comply with the following conditions:

(i) they are promoted, advised and managed by institutions with an established reputation,

(ii) their assets are held in safe custody at a cus-todian bank with an established reputation,

(iii) their financial statements are audited by an auditor with an established reputation.

The restrictions mentioned under a (i), (ii) and (iii) above will, moreover, apply to investments in such UCIs, with the exception of the restriction under a (i), which applies only to investments in closed-end UCIs. Furthermore, the Fund may not invest more than 10% of its net assets in units of such UCIs organised under the same legislation.

As a rule, the Fund will invest its net assets in units of UCIs whose main purpose is to invest their assets in transferable securities. However, to the extent that the main purpose of such UCIs is to invest in high-risk ventures or in futures and options, they will be subject to rules comparable to those applying to UCIs of the same type organ-ised under Luxembourg law.

The Fund will moreover ensure adequate risk-spreading by investing its net assets in several different UCIs.

The Fund may not invest in UCIs whose purpose is to invest in turn in other UCIs.

As the Fund invests in other UCIs, the investor is exposed to a duplication of expenses, fees and commissions. However, unless indicated other-wise in Annex 1, if these UCIs are promoted by the Pictet Group, only the management commis-sion will not be duplicated.

Given that the UCIs mentioned under b) above, in which the Fund may invest up to 25% of its net assets, will not be subject in their State of origin to perma-nent monitoring by a supervisory authority provided for by law with the aim of protecting investors, the Fund’s shareholders will incur a corresponding risk.

Use of derivatives

The compartments may use the products and derivatives as described below in their direct in-vestments (other than in UCIs).

In the context of investments in other UCIs, the compartments may not make use of derivatives to hedge exchange-rate and interest-rate risk. Hedging transactions means that positions re-sulting from transactions entered into exceed neither the assessment value of all assets of the compartment concerned, nor the length of time such assets are held.

6) For purposes of efficient portfolio management, the Fund may buy and sell call and put options on transferable securities, provided that these options are traded on a regulated market that op-erates regularly and is recognised and open to the public, on the understanding, however, that these options may also be carried out over-the-counter (OTC options), provided that they are conducted with leading financial institutions specialising in this type of transaction and participating in the OTC options market. As such, the Fund will com-ply with the following rules:

a) The total value of premiums paid to purchase such options, combined with the total sum of premiums stemming from operations under sub-section 7 d), may not exceed 15% of the value of the Fund’s net assets at any time.

b) When selling call options, the Fund must own the underlying securities or options or other instruments providing sufficient hedging for the commitments arising from such con-tracts.

As an exception to the above conditions, howev-er, the Fund may short sell call options provided that the Fund is in a position at any time to hon-our any liabilities undertaken under the terms of these sales and that the strike price of the options sold does not exceed 25% of the Fund’s net as-sets.

c) When selling put options, the Fund must, throughout the lifetime of the option, have available the liquid assets required to pay for the securities that would be delivered if the counterparty exercised the option.

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d) The sum of liabilities resulting from the sale of non-hedged call options and the sale of put options, together with the sum of liabilities resulting from operations under sub-section 7 d) hereunder, may not exceed the Fund’s net asset value at any time.

7) Futures contracts, swaps and options on financial instruments

With the exception of swaps and OTC trans-actions intended to hedge against the risk of interest-rate fluctuations, futures contracts and transactions involving financial instruments may only cover contracts traded on a regulated market. Options traded over-the-counter (OTC options) are only admitted provided that, when such transactions are concluded, the counterpar-ties are leading financial institutions specialising in such transactions.

a) Hedging of risks linked to changes on the stock markets

In order to generally hedge against unfavour-able changes on the stock markets, the Fund may sell futures or call options or buy put op-tions on stock-market indices.

The object of hedging such transactions assumes a close correlation between the com-position of the index used and the portfolio. Moreover, the sum of liabilities arising from such hedging operations may not, in principle, and for a given index, exceed the estimated value of the securities held by the Fund in the markets corresponding to this index.

b) Hedging of risks in the event of interest rate fluctuations

In order to generally hedge against the risk of fluctuations in interest rates, the Fund may sell futures or call options or buy put options on interest rates and buy and/or sell bond forwards. For OTC transactions, the Fund may also conclude interest-rate swaps and cross-currency interest-rate swaps, and forward contracts on interest rates, swap-tions and warrants on interest-rate swaps, provided that they are listed or traded on a stock exchange or other regulated market or such transactions are concluded with lead-ing financial institutions specialising in such transactions.

As a rule, the total sum of commitments re-lating to futures contracts, options contracts and interest-rate swaps may not exceed the total value of the assets to be hedged, which are held by the Compartment in the relevant currency for the contracts in question.

c) Hedging transactions linked to credit risks

In order to hedge against particular credit risks for certain issuers of bonds in its portfo-lio, the Fund may buy credit default swaps.

A credit default swap is a bilateral financial agreement under which a counterparty (the “protection buyer”) pays a premium against an undertaking by the “protection seller” to

pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at an-other base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reor-ganisation/liquidation, rescheduling of debts or non-payment of debts payable. The Inter-national Swaps and Derivatives Association (ISDA) has published standardised documen-tation for these transactions, included in the ISDA framework agreement.

d) Transactions for purposes other than hedg-ing

Apart from options on transferable securities and currency-based contracts, the Fund may, for each compartment, buy and sell futures contracts and options on all types of financial instruments for purposes other than hedg-ing, provided that they are listed or traded on a stock market or another regulated market or such transactions are carried out by lead-ing financial institutions specialising in this type of transaction.

In this context, the Fund may conclude op-tions on interest-rate swaps (swaptions) and warrants on interest-rate swaps for each compartment on an ancillary basis. War-rants are highly volatile instruments with an above-average economic risk. In the case of a swaption, the commitment is equal to the value of the flows of interest-rate differen-tials that will be implemented if the option is exercised. The counterparty to such options contracts and underlying interest-rate swap contracts must be a leading financial institu-tion specialising in this type of transaction. At no time may these transactions be carried out with a view to amending the Fund’s invest-ment policy.

Moreover, the Fund may engage in swaps on all types of financial instrument on an ancil-lary basis provided that the counterparty is a leading financial institution specialising in this type of transaction. In particular, the Fund may, if it is in its sole interest, sell cred-it default swaps (defined individually as “a transaction involving the sale of credit de-fault swaps” and collectively as “transactions involving the sale of credit default swaps”) in order to acquire specific credit risks. The sum of commitments from such transactions involving the sale of credit default swaps and the sum of premiums paid and the current value of the sum of premiums still outstanding from transactions involving the acquisition of credit default swaps, may at no time exceed 20% of the compartment’s net asset value, provided that the commitment from transac-tions involving the sale of credit default swaps concluded with the same counterparty at no time exceeds 10% of the compartment’s net asset value. Moreover, transactions involving

22

the sale of credit default swaps may not result in the commitment relating to the underly-ing assets exceeding all the investment limits stipulated in section 2 above.

Moreover, the Fund may, insofar as it is in its sole interest, buy credit default swaps (de-fined individually as “a transaction involving the purchase of credit default swaps” and collectively as “transactions involving the purchase of credit default swaps”) without holding the underlying assets.

The Fund may only conclude credit default swap transactions with leading financial in-stitutions specialising in such transactions and in accordance with the standardised provisions set out in the ISDA framework agreement.

The use of all these swaps may alter the Fund’s exposure. However, swaps may not be concluded at any time with a view to altering the Fund’s investment policy.

The Fund can also buy bond forwards. The use of such transactions may alter the Fund’s exposure. However, they may not be con-cluded at any time with a view to altering the Fund’s investment policy.

In order to synthetically replicate an underly-ing asset’s return, the Fund may purchase a Total Return Swap from leading financial in-stitutions specialised in this type of operation. Total Return Swaps correspond to swapping the economic performance of an underlying asset without transferring ownership of the asset. When the Fund purchases a Total Re-turn Swap, it makes a regular payment at a variable rate, in return for which all the re-sults relating to a notional amount of that asset (coupons, interest payments, change in the asset’s value) accrue to it over a period of time agreed with the counterparty. The use of these instruments can help modify the Fund’s exposure. However, at no time can these op-erations be conducted in order to modify its investment policy.

The sum of commitments resulting from the transactions referred to in sub-section 7 d), i.e. the sum of commitments result-ing from the buying and selling of futures contracts and options on all types of finan-cial instruments, together with the sum of commitments resulting from options on in-terest-rate swaps (swaptions) and warrants on interest-rate swaps, together with the sum of commitments resulting from swaps on all types of financial instruments and, more specifically, transactions involving the sale of credit default swaps, together with the sum of commitments resulting from the purchase of bond forwards, together with the sum of commitments resulting from the sale of non-hedged call options, as well as put options, as mentioned in sub-section 6 d) above, may at no time exceed the compartment’s net asset value.

The sum of premiums paid to acquire op-tions on all types of financial instruments and to buy warrants on interest-rate swaps, together with the sum of premiums paid and the current value of the sum of premiums still outstanding from transactions involving the purchase of credit default swaps, together with the sum of premiums relating to the transactions mentioned in sub-section 6 a), may not exceed 15% of the Fund’s net asset value.

Payments made and received by the compart-ment under all the swap contracts mentioned above will be updated on the valuation day at the zero-coupon swap rate corresponding to the maturity of these payments. The value of these swaps will be the difference between the two updates.

8) In order to hedge its current and future assets against exchange-rate fluctuations, the Fund may conclude futures contracts on currencies, sell call options or buy put options on currencies and warrants on currencies. These transactions should, as a rule, be based on contracts traded on a regulated market that operates regularly and is recognised and open to the public, on the under-standing, however, that the Fund may enter into over-the-counter transactions (OTC options) with leading high-rated financial institutions specialis-ing in this type of transaction and participating in the OTC options market. The Fund may, for the same purpose, also sell forward or swap curren-cies as part of OTC transactions conducted with leading financial institutions specialising in this type of operation.

The transactions described above assume a corre-lation with the assets to be hedged, which implies that the liabilities resulting from such transac-tions, regardless of the currency or currencies hedged, do not exceed the estimated value of all the Fund’s assets or the length of time for which these assets are held.

Lastly, the Fund must ensure that the compart-ment has available at any time the assets required to pay redemption requests and fulfil its obliga-tions arising from the use of derivative products and instruments.

Restrictions

9) The Fund may not own real estate assets.

10) The Fund may not acquire precious metals, other raw materials or commodities. This restriction refers to direct acquisition as well as indirect acquisition by means of contracts, options or cer-tificates representing them.

11) The Fund may borrow the equivalent of up to a total of 10% of the Fund’s net assets, provided that such borrowing is on a temporary basis.

12) The Fund may not:

a) invest more than 10% of its net assets in part-ly paid-up securities;

23

b) buy securities on margin, unless it can bor-row the necessary amounts in the short term in order to buy and sell the securities;

c) sell securities short or maintain a short po-sition; however, it may initially make and maintain margin deposits in respect of for-ward contracts on securities and currencies, which, in this case, are not deemed to be short positions.

13) The Fund may not guarantee, pledge, mortgage or, in any other way, transfer any securities held by the Fund as surety to cover debts, except as may be necessary in connection with the borrow-ings specified under sub-section 11) above; in this case, the guarantee, pledge or mortgage may not cover more than 10% of the Fund’s net assets. However, the purchase of securities at the time of new issues or on a delayed delivery basis, and the constitution of sureties in relation to the granting of options or the purchase and sale of forward contracts on securities or currencies are not con-sidered pledging of the Fund’s assets.

14) Without prejudice to the acquisition of debt secu-rities and the creation of bank deposits, the Fund may not grant loans or stand as guarantor on be-half of third parties.

15) The Fund may not underwrite securities directly or indirectly with a view to investing them.

16) In order to reduce risks or costs or to procure capital gains or revenues for the Fund, the Fund may lend securities and engage in repurchase or reverse repurchase transactions as described be-low:

The Fund is required to manage the size of these transactions in such a manner that it is able to meet its redemption obligations at all times and that these transactions do not compromise the management of the Fund’s assets, in compliance with its investment policy.

These transactions will be conducted in compli-ance with the rules specified in CSSF circular 08/356.

Lending on securities

The Fund may lend the securities in its portfolio to a borrower either directly or through the intermediary of a standard securities-lending scheme, organised by an authorised securities clearing house or a lend-ing system organised by a financial institution subject to rules of prudential supervision considered by the CSSF as equivalent to those provided by Community laws and specialising in this type of transaction.

For each securities lending transaction concluded, the Fund must receive a guarantee whose value is equivalent, throughout the duration of the loan, to at least 90% of the overall valuation value (interests, dividends and any other rights included) of the secu-rities loaned.

This guarantee must be given in the form described in the CSSF circular 08/356:

(i) liquidities

(ii) bonds issued or guaranteed by OECD member countries or by their regional public authorities, or by community, regional or worldwide supra-national organisations and institutions

(iii) in shares or units issued by money-market-type UCIs that calculate a daily net asset value and are classified AAA or equivalent

(iv) in shares or units issued by UCITS that invest in bonds/shares mentioned in points (v) and (vi) be-low

(v) in bonds issued or guaranteed by leading issuers that offer adequate liquidity, or

(vi) in shares that are listed or traded on a regulated market of a Member State of the European Union or on a stock exchange of a Member State of the OECD provided that these shares are included in a major index.

Reverse repurchase and repurchase agreements

The Fund may engage in reverse repurchase agree-ments consisting of transactions at the conclusion of which the seller (counterparty) is required to repur-chase the asset sold and the Fund must relinquish the asset held.

The Fund may also engage in repurchase agreements consisting of transactions at the conclusion of which the Fund is required to repurchase the asset sold and the buyer (counterparty) must relinquish the asset held.

Acquisition and sale of securities under repurchase agree-ments

The Fund may act as buyer in repurchase agreements that consist of purchases of securities that contain clauses allowing the seller (the counterparty) to re-purchase from the Fund the securities sold, at a price and term stipulated between the Parties at the time of signing the contract.

The Fund may invest as seller in repurchase agree-ments involving the selling of securities whose claus-es reserve the right for the Fund to repurchase the securities sold to the buyer (the Counterparty) at a price and time stipulated between the parties upon conclusion of the contract.

24

Annex 1: Compartments in operation

This Annex will be updated to account for any change in an existing compartment or when a new compartment is created.

1. PICTET SICAV II – EUR BONDS

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in fixed-income instruments

denominated in EUR;

• Who seek a stable saving strategy and thus have some aversion to risk;

• Who have a medium-term investment horizon (at least 3 years).

Investment policy and objectives

This compartment invests all its total assets/total wealth in the EUR Bonds compartment of the Luxem-bourg SICAV Pictet. The latter pursues the following investment policy:

“This compartment invests at least two-thirds of its assets in a diversified portfolio of bonds, convertible bonds and money market instruments, within the limits allowed by the investment restrictions. These investments may be made in all markets while seek-ing capital growth in the base currency.

A minimum of two-thirds of its total assets/total wealth will be denominated in EUR.

Investments in convertible bonds may not exceed 20% of the net assets of the Compartment and con-vertible bonds quoted at over 140% will be sold.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-dertaking by the “protection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, reschedul-ing of debts or non-payment of debts payable. The

International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the EUR Bonds com-partment. Additionally, front- and back-end loads will not be doubled in favour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon (11:00 am from 30 September 2009) on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon (11:00 am from 30 September 2009) on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I shares as defined in the “Sub-classes of shares” sec-tion.

Initial subscription price: Net asset value of the P share on the day it is activated.

25

PICTET SICAV II – EUR BONDS

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I – LU0527396591 1 million EUR EUR – 0.60% 0.30% 0.05%

P ü LU0222459298 – EUR EUR – 0.70% 0.30% 0.05%

R ü LU0223911784 – EUR EUR – 1.00% 0.30% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

26

2. PICTET SICAV II – USD GOVERNMENT BONDS

Investor type profile

The compartment is an investment vehicle for inves-tors:• Who wish to invest in fixed-income instruments

denominated in US dollars;

• Who seek a stable saving strategy and thus have some aversion to risk;

• Who have a medium-term investment horizon (at least 3 years).

Investment policy and objectives

This compartment invests its total assets/wealth in the USD Government Bonds compartment of Pictet’s Luxembourg SICAV. This open-ended investment fund adheres to the following investment policy:

“This compartment invests mainly in a diversified portfolio of bonds and other debt securities denomi-nated in US dollars, issued or guaranteed by national or local governments, or by supranational organisa-tions, within the limits allowed by the investment re-strictions.

The investments not denominated in US dollars will generally be hedged in order to avoid exposure to a currency other than the US dollar.

In addition, the compartment may invest up to 10% of its net assets in UCIs.

For efficient management and within the limits of the investment restrictions set out in the prospectus, the compartment may use any type of financial derivative traded on a regulated and/or over-the-counter (OTC) market if obtained from a leading financial institution that specializes in these types of transactions. In par-ticular, the compartment may, among other invest-ments but not exclusively, invest in warrants, futures, options, swaps (such as total return swaps, contracts for difference and credit default swaps) and futures contracts with underlying assets compliant with the law of 20 December 2002 and the compartment’s investment policy, among other things, currency (including non-delivery forwards), interest rates, se-curities, a basket of securities, indices, and undertak-ings for collective investment.

Specifically, the compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the protection buyer) pays a premium against an un-dertaking by the protection seller to pay a certain amount if the base issuer is the subject of a credit risk stipulated in the contract. The protection buyer ac-

quires the right to sell a particular bond issued by the base issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk gen-erally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, rescheduling of debts in arrears or non-payment of debts payable. The Inter-national Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

If the manager deems it necessary and in the best in-terest of the shareholders, the compartment may hold liquidities up to 100% of its net assets, e.g. deposits, money market instruments, and monetary type UCIs (and/or UCITS) (within the aforementioned 10% lim-it).”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the USD Govern-ment Bonds compartment. Additionally, front- and back-end loads will not be doubled in favour of in-termediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

27

PICTET SICAV II – USD GOVERNMENT BONDS

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I ü LU0413615575 1 million USD USD – 0.30% 0.15% 0.20%

P ü LU0222459702 – USD USD – 0.60% 0.15% 0.20%

R ü LU0225543791 – USD USD – 0.90% 0.15% 0.20%

* per year of the average net assets attributable to this type of share, payable quarterly.

28

3. PICTET SICAV II – CHF LIQUIDITY

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in high quality, short-term

fixed-income securities denominated in CHF;

• Who are averse to risk;

• Who prefer a short-term saving strategy (at least 6 months).

Investment policy and objectives

This compartment invests all its total assets/total wealth in the CHF Liquidity compartment of the Lux-embourg SICAV Pictet. The latter pursues the follow-ing investment policy:

“This compartment aims to offer investors a high level of protection for their capital denominated in Swiss francs by investing in fixed-income transfer-able securities, such as bonds, Treasury bills and se-curities issued by governments or their departments, eurobonds and floating-rate bonds. The residual ma-turity of each investment will not exceed three years.

These investments, combined with ancillary liquid as-set holdings and money market instruments that are regularly traded and whose residual maturity does not exceed 12 months, will represent at least two-thirds of the Compartment’s assets.

The average residual maturity of the assets of this Compartment (the “duration”) cannot exceed one year. The Compartment’s investment horizon will pri-marily be the short term.

A minimum of two-thirds of its total assets/total wealth will be denominated in Swiss francs and the investments not denominated in Swiss francs will generally be hedged in order to avoid exposure to a currency other than the Swiss franc.

Investments will be primarily in securities of issuers rated at least P1 and/or A1 for short-term investments and A3/A- for long-term investments. When there is no official rating system, the Board of Directors will decide on acquiring transferable securities with iden-tical quality criteria. A minimum identical rating will apply to financial institutions where liquid assets held on an ancillary basis are deposited.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-

dertaking by the “protection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, reschedul-ing of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the CHF Liquid-ity compartment. Additionally, front- and back-end loads will not be doubled in favour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 11:00 am on the NAV calculation day.

Redemption:By 11:00 am on the NAV calculation day.

Conversion:The most restrictive time period of the two compart-ments concerned.

Payment value date for subscriptions and redemptions

In derogation of the chapters “Issue of shares” and “Redemptions”, payment of the share subscription or redemption price, respectively, will be made within one banking day following the NAV calculation date that applies to the subscription or redemption, re-spectively.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I shares as defined in the “Sub-classes of shares” sec-tion.

Initial subscription price: Net asset value of the P share on the day it is activated.

29

PICTET SICAV II – CHF LIQUIDITY

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I – LU0527396674 1 million CHF CHF – 0.15% 0.05% 0.05%

P ü LU0222460031 – CHF CHF – 0.20% 0.05% 0.05%

Z ü LU0223911198 – CHF CHF – 0% 0.05% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

30

4. PICTET SICAV II – USD LIQUIDITY

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in high quality, short-term

fixed income securities denominated in USD;

• Who are averse to risk;

• Who prefer a short-term saving strategy (at least 6 months).

Investment policy and objectives

This compartment invests all its total assets/total wealth in the USD Liquidity compartment of the Lux-embourg SICAV Pictet. The latter pursues the follow-ing investment policy:

“This compartment aims to offer investors a high level of protection for their capital denominated in U.S. dollars by investing in fixed-income transfer-able securities, such as bonds, Treasury bills and se-curities issued by governments or their departments, eurobonds and floating-rate bonds. The residual ma-turity of each investment will not exceed three years.

These investments, combined with ancillary liquid as-set holdings and money market instruments that are regularly traded and whose residual maturity does not exceed 12 months, will represent at least two-thirds of the Compartment’s assets.

The average residual maturity of the assets of this compartment (the “duration”) cannot exceed one year. The Compartment’s investment horizon will pri-marily be the short term.

A minimum of two-thirds of its total assets/total wealth will be denominated in US dollars and the investments not denominated in US dollars will gen-erally be hedged in order to avoid exposure to a cur-rency other than the US dollar.

Investments will be primarily in securities of issuers rated at least P1 and/or A1 for short-term investments and A3/A- for long-term investments. When there is no official rating system, the Board of Directors will decide on acquiring transferable securities with iden-tical quality criteria. A minimum identical rating will apply to financial institutions where liquid assets held on an ancillary basis are deposited.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-

dertaking by the “protection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, reschedul-ing of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the USD Liquid-ity compartment. Additionally, front- and back-end loads will not be doubled in favour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 11:00 am on the NAV calculation day.

Redemption:By 11:00 am on the NAV calculation day.

Conversion:The most restrictive time period of the two compart-ments concerned.

Payment value date for subscriptions and redemptions

In derogation of the chapters “Issue of shares” and “Redemptions”, payment of the share subscription or redemption price, respectively, will be made within one banking day following the NAV calculation date that applies to the subscription or redemption, re-spectively.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I shares as defined in the “Sub-classes of shares” sec-tion.

Initial subscription price: Net asset value of the P share on the day it is activated.

31

PICTET SICAV II – USD LIQUIDITY

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I – LU0527396757 1 million USD USD – 0.15% 0.10% 0.05%

P ü LU0222460460 – USD USD – 0.30% 0.10% 0.05%

R ü LU0386941891 – USD USD – 0.60% 0.10% 0.05%

Z ü LU0223910620 – USD USD – 0% 0.10% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

32

5. PICTET SICAV II – EUR LIQUIDITY

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in high quality, short-term

fixed-income securities denominated in EUR;

• Who are averse to risk;

• Who prefer a short-term saving strategy (at least 6 months).

Investment policy and objectives

This compartment invests all its total assets/total wealth in the EUR Liquidity compartment of the Lux-embourg SICAV Pictet. The latter pursues the follow-ing investment policy:

“This compartment aims to offer investors a high lev-el of protection for their capital denominated in EUR by investing in fixed-income transferable securities, such as bonds, Treasury bills and securities issued by governments or their departments, eurobonds and floating-rate bonds. The residual maturity of each in-vestment will not exceed three years.

These investments, combined with ancillary liquid as-set holdings and money market instruments that are regularly traded and whose residual maturity does not exceed 12 months, will represent at least two-thirds of the Compartment’s assets.

The average residual maturity of the assets of this compartment (the “duration”) cannot exceed one year. The Compartment’s investment horizon will pri-marily be the short term.

A minimum of two-thirds of its total assets/total wealth will be denominated in EUR and the invest-ments not denominated in EUR will generally be hedged in order to avoid exposure to a currency oth-er than the EUR.

Investments will be primarily in securities of issuers rated at least P1 and/or A1 for short-term investments and A3/A- for long-term investments. When there is no official rating system, the Board of Directors will decide on acquiring transferable securities with iden-tical quality criteria. A minimum identical rating will apply to financial institutions where liquid assets held on an ancillary basis are deposited.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-

dertaking by the “protection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, reschedul-ing of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the EUR Liquid-ity compartment. Additionally, front- and back-end loads will not be doubled in favour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 11:00 am on the NAV calculation day.

Redemption:By 11:00 am on the NAV calculation day.

Conversion:The most restrictive time period of the two compart-ments concerned.

Payment value date for subscriptions and redemptions

In derogation of the chapters “Issue of shares” and “Redemptions”, payment of the share subscription or redemption price, respectively, will be made within one banking day following the NAV calculation date that applies to the subscription or redemption, re-spectively.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

33

PICTET SICAV II – EUR LIQUIDITY

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I ü LU0426091616 1 million EUR EUR – 0.15% 0.10% 0.05%

P ü LU0222460627 – EUR EUR – 0.30% 0.10% 0.05%

R ü LU0227059465 – EUR EUR – 0.60% 0.10% 0.05%

Z ü LU0223910380 – EUR EUR – 0% 0.10% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

34

6. PICTET SICAV II – EUR CORPORATE BONDS

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in high quality, short-term,

fixed income securities denominated in EUR, is-sued by investment grade companies;

• Who have some aversion to risk;

• Who prefer a medium-term saving strategy (at least 3 years).

Investment policy and objectives

This compartment invests all its total assets/total wealth in the EUR Corporate Bonds compartment of the Luxembourg SICAV Pictet. The latter pursues the following investment policy:

“This compartment invests at least two-thirds of its as-sets without geographic limitation in a diversified port-folio of bonds and convertible bonds issued by private companies and money market instruments, within the limits allowed by the investment restrictions.

Investments in convertible bonds will not exceed 30% of the Compartment’s net assets.

Investments will offer significant liquidity and will be rated at least B3 by Moody’s and B- by Standard & Poor’s or, when there is no Moody’s or Standard & Poor’s rating, be of equivalent quality based on the manager’s analysis. Investments whose rating is less than Moody’s Baa3 or Standard & Poor’s BBB- or equivalent quality based on the manager’s analysis will not exceed 25% of the net assets of the Compartment, provided the exposure to an issuer of that quality does not exceed 1.5% of the Compartment’s net assets.

Using credit risk analysis of companies and their sectors, the Compartment aims to generate a return greater than that of government bonds. Investments in government bonds, generally those issued by OECD member countries, may nevertheless be en-tered into when necessitated by market conditions.

A minimum of two-thirds of its total assets/total wealth will be denominated in EUR.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-dertaking by the “protection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer

acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, reschedul-ing of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

Starting on 15 June 2011, the following limit applies:

The compartment will not invest more than 10% of its assets in shares or any other similar security, derivative instruments (including warrants) and/or structured products (in particular delta-adjusted con-vertible bonds) whose underlyers are or that offer ex-posure to equities or similar securities.

By analogy, investments in undertakings for collective investment whose main objective is to invest in the above-listed assets are also included in the 10% limit.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the EUR Corporate Bonds compartment. Additionally, front- and back-end loads will not be doubled in favour of interme-diaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:the most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I shares as defined in the “Sub-classes of shares” sec-tion.

Initial subscription price: Net asset value of the P share on the day it is activated.

35

PICTET SICAV II – EUR CORPORATE BONDS

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I – LU0527396831 1 million EUR EUR – 0.60% 0.30% 0.05%

P ü LU0222461195 – EUR EUR – 0.90% 0.30% 0.05%

R ü LU0455660307 – EUR EUR – 1.25% 0.30% 0.05%

HR CHF ü LU0511234410 – CHF CHF – 1.25% 0.30% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

36

7. PICTET SICAV II – GLOBAL EMERGING DEBT

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in fixed-income securities

from issuers located in emerging markets;

• Who are risk tolerant;

• Who prefer a medium-term saving strategy (at least 4 years).

Investment policy and objectives

This compartment invests all its total assets/total wealth in the Global Emerging Debt compartment of the Luxembourg SICAV Pictet. The latter pursues the following investment policy:

“This compartment’s objective is to seek revenue and capital growth by investing its portfolio in bonds and money market instruments in emerging countries, within the limits allowed by the investment restric-tions.

At least two-thirds of the total assets or wealth of the compartment will be invested in bonds and other debt instruments issued or guaranteed by national or local governments of emerging countries and/or other issuers domiciled in emerging countries.

Emerging countries are defined as those considered, at the time of investing, as industrially developing countries by the International Monetary Fund, the World Bank, the International Finance Corporation (IFC) or one of the leading investment banks. These countries include, but are not limited to, the follow-ing: Mexico, Hong Kong, Singapore, Turkey, Poland, the Czech Republic, Hungary, Israel, South Africa, Chile, Slovakia, Brazil, the Philippines, Argentina, Thailand, South Korea, Colombia, Taiwan, Indonesia, India, China, Romania, Ukraine, Malaysia, Croatia and Russia.

Investments in money market instruments will not ex-ceed one-third of the net assets of the Compartment.

Investments in unlisted securities and in Russia other than on the RTS and the MICEX stock exchanges will not exceed 10% of the Compartment’s net assets.

The Compartment may also invest in warrants on fixed-income transferable securities, but investments in such warrants may account for no more than 10% of the Compartment’s net assets.

Investments may be denominated in any currencies.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-dertaking by the “protection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, reschedul-ing of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

Starting on 15 June 2011, the following limit applies:

The compartment will not invest more than 10% of its assets in shares or any other similar security, derivative instruments (including warrants) and/or structured products (in particular delta-adjusted con-vertible bonds) whose underlyers are or that offer ex-posure to equities or similar securities.

By analogy, investments in undertakings for collec-tive investment whose main objective is to invest in the above-listed assets are also included in the 10% limit.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the Global Emerging Debt compartment. Additionally, front- and back-end loads will not be doubled in favour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

37

PICTET SICAV II – GLOBAL EMERGING DEBT

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

P USD ü LU0222461351 – USD USD – 1.25% 0.30% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

38

8. PICTET SICAV II – EUR HIGH YIELD

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in high-yield bonds denomi-

nated in EUR;

• Who have medium to strong risk aversion;

• Who prefer a medium-term saving strategy (at least 5 years).

Investment policy and objectives

This compartment invests all its total assets/total wealth in the EUR High Yield compartment of the Luxembourg SICAV Pictet. The latter pursues the fol-lowing investment policy:

“This compartment invests at least two-thirds of its total assets or wealth in a diversified portfolio of sec-ond quality, high-yield bonds and convertible bonds with a minimum rating equivalent to B- , within the limits allowed by the investment restrictions. Sec-ond quality investments, compared to investments in securities from first quality debtors, may present a higher than average yield but also carry greater risk with regard to the issuer’s solvency.

The Compartment may also invest up to 10% of its net assets in securities pledged by assets, securities of issuers enjoying state support, issues securitised by bonds, issues securitised by loans and mortgages (including the securitisation of such debts).

The Compartment may also invest in warrants on fixed-income transferable securities, but investments in such warrants may account for no more than 10% of the Compartment’s net assets.

Investments in convertible bonds shall not exceed 20% of the net assets of the Compartment and con-vertible bonds quoted at over 140% will be sold. Following the conversion of such bonds, the Com-partment may hold up to 5% of its net assets in shares issued.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

These investments may be made in all markets while seeking capital growth in the base currency.

In addition, the Compartment may invest up to 10% of its net assets in emerging countries.

A minimum of two-thirds of the Compartment’s net assets will be denominated in euros.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-

nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-dertaking by the “protection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, reschedul-ing of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

Starting on 15 June 2011, the following limit applies:

The compartment will not invest more than 10% of its assets in shares or any other similar security, derivative instruments (including warrants) and/or structured products (in particular delta-adjusted con-vertible bonds) whose underlyers are or that offer ex-posure to equities or similar securities.

By analogy, investments in undertakings for collec-tive investment whose main objective is to invest in the above-listed assets are also included in the 10% limit.”

An investment in Pictet does not involve any dou-bling of advisory and management fees, as the com-partment will invest in the Z class of the EUR High Yield compartment. Additionally, front- and back-end loads will not be doubled in favour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

39

Shares not yet issued that may be activated at a later date

I shares as defined in the “Sub-classes of shares” sec-tion.

Initial subscription price: Net asset value of the P share on the day it is activated.

PICTET SICAV II – EUR HIGH YIELD

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I – LU0527396914 1 million EUR EUR – 1.10% 0.30% 0.05%

P ü LU0222461518 – EUR EUR – 1.25% 0.30% 0.05%

R ü LU0455660489 – EUR EUR – 1.75% 0.30% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

40

9. PICTET SICAV II – EUR SHORT MID-TERM BONDS

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in short- and medium-term,

high quality, fixed-income securities denominat-ed in EUR;

• Who have some aversion to risk;

• Who prefer a medium-term saving strategy (at least 2 years).

Investment policy and objectives

This compartment invests all its total assets/total wealth in the EUR Short Mid-Term Bonds compart-ment of the Luxembourg SICAV Pictet. The latter pur-sues the following investment policy:

“The assets of the Compartment are invested accord-ing to the principle of risk spreading, with at least two-thirds of its assets held in short/medium-term bonds with a residual maturity for each investment of no more than 10 years (including convertible bonds, bonds with warrants and zero-coupon bonds) and in similar transferable securities denominated in euros. The average residual duration of the portfolio (the “duration”) cannot, however, exceed 3 years. These investments may be made in all markets while seek-ing capital growth in the base currency.

A minimum of two-thirds of its total assets/total wealth will be denominated in euros.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-dertaking by the “protection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, reschedul-ing of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

Starting on 15 June 2011, the following limit applies:

The compartment will not invest more than 10% of its assets in shares or any other similar security, derivative instruments (including warrants) and/or structured products (in particular delta-adjusted con-vertible bonds) whose underlyers are or that offer ex-posure to equities or similar securities.

By analogy, investments in undertakings for collec-tive investment whose main objective is to invest in the above-listed assets are also included in the 10% limit.”

An investment in Pictet does not involve any dou-bling of advisory and management fees, as the com-partment will invest in the Z class of the EUR Short Mid-Term Bonds compartment. Additionally, front- and back-end loads will not be doubled in favour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I shares as defined in the “Sub-classes of shares” sec-tion.

Initial subscription price: Net asset value of the P share on the day it is activated.

41

PICTET SICAV II – EUR SHORT MID-TERM BONDS

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I – LU0527397136 1 million EUR EUR – 0.35% 0.10% 0.05%

P ü LU0222461781 – EUR EUR – 0.50% 0.10% 0.05%

R ü LU0413613950 EUR EUR – 0.90% 0.10% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

42

10. PICTET SICAV II – CHF BONDS

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in fixed-income instruments

denominated in Swiss francs;

• Who seek a stable saving strategy and thus have some aversion to risk;

• Who have a medium-term investment horizon (at least 3 years).

Investment policy and objectives

This compartment invests all its total assets/total wealth in the CHF Bonds compartment of the Luxem-bourg SICAV Pictet. The latter pursues the following investment policy:

“This compartment invests at least two-thirds of its assets in a diversified portfolio of bonds and a maxi-mum of one-third of its assets in money market instru-ments and convertible bonds, with this last category not exceeding 20%, within the limits allowed by the investment restrictions. These investments may be made in all markets while seeking capital growth in the base currency.

A minimum of two-thirds of its total assets/total wealth will be denominated in Swiss francs and the investments not denominated in Swiss francs will generally be hedged in order to avoid exposure to a currency other than the Swiss franc.

Investments in convertible bonds may not exceed 20% of the net assets of the Compartment and con-vertible bonds quoted at over 140% of their nominal value will be sold.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-dertaking by the “protection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, reschedul-ing of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation

for these transactions, which is described in the ISDA Master Agreement.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the CHF Bonds com-partment. Additionally, front- and back-end loads will not be doubled in favour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

43

PICTET SICAV II – CHF BONDS

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I ü LU0143611236 1 million CHF CHF – 0.45% 0.30% 0.05%

P ü LU0226107596 – CHF CHF – 0.70% 0.30% 0.05%

R ü LU0226107240 – CHF CHF – 1.00% 0.30% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

44

11. PICTET SICAV II – EUR GOVERNMENT BONDS

Investor type profile

The compartment is an investment vehicle for inves-tors:• Who wish to invest in fixed-income instruments

denominated in euros;

• Who seek a stable saving strategy and thus have some aversion to risk;

• Who have a medium-term investment horizon (at least 3 years).

Investment policy and objectives

“This compartment invests its total assets/wealth in the EUR Government Bonds compartment of Pictet’s Luxembourg SICAV. This open-ended investment fund adheres to the following investment policy:

“This compartment invests mainly in a diversified portfolio of bonds and other debt securities denomi-nated in euros, issued or guaranteed by national or local governments, or by supranational organisa-tions, within the limits allowed by the investment re-strictions.

In addition, the compartment may invest up to 10% of its net assets in UCIs.

For efficient management and within the limits of the investment restrictions set out in the prospectus, the compartment may use any type of financial derivative traded on a regulated and/or over-the-counter (OTC) market if obtained from a leading financial institution that specializes in these types of transactions. In par-ticular, the compartment may, among other invest-ments but not exclusively, invest in warrants, futures, options, swaps (such as total return swaps, contracts for difference and credit default swaps) and futures contracts with underlying assets compliant with the law of 20 December 2002 and the compartment’s investment policy, among other things, currency (including non-delivery forwards), interest rates, se-curities, a basket of securities, indices, and undertak-ings for collective investment.

Specifically, the compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the protection buyer) pays a premium against an un-dertaking by the protection seller to pay a certain amount if the base issuer is the subject of a credit risk stipulated in the contract. The protection buyer ac-quires the right to sell a particular bond issued by the base issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk gen-erally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, rescheduling of debts in arrears or non-payment of debts payable. The Inter-national Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

If the manager deems it necessary and in the best in-terest of the shareholders, the compartment may hold up to 100% of its net assets in liquidities, i.e. deposits,

money market instruments, and monetary-type UCIs and UCITS (within the above-mentioned 10% limit).”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the EUR Govern-ment Bonds compartment. Additionally, front- and back-end loads will not be doubled in favour of in-termediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

45

PICTET SICAV II – EUR GOVERNMENT BONDS

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I ü LU0413612713 1 million EUR EUR – 0.30% 0.15% 0.20%

P ü LU0241423960 – EUR EUR – 0.60% 0.15% 0.20%

R ü LU0241424000 – EUR EUR – 0.80% 0.15% 0.20%

* per year of the average net assets attributable to this type of share, payable quarterly.

46

12. PICTET SICAV II – EUR INFLATION LINKED BONDS

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in inflation-linked fixed-in-

come instruments denominated in EUR;

• Who wish to be protected against inflation risk;

• Who seek a stable saving strategy and thus have some aversion to risk;

• Who have a medium-term investment horizon (at least 3 years).

Investment policy and objectives

This compartment invests all its assets in the EUR Inflation Linked Bonds compartment of the Luxem-bourg SICAV Pictet. The latter pursues the following investment policy:

“This compartment invests at least two-thirds of its assets in a diversified portfolio of inflation-linked bonds or by synthetically creating a bond protected against inflation using a nominal bond and an infla-tion swap, within the limits allowed by the invest-ment restrictions. These investments may be made in all markets while seeking capital growth in the base currency.

A minimum of two-thirds of its total assets/total wealth will be denominated in EUR.

Investments in convertible bonds may not exceed 20% of the net assets of the Compartment and con-vertible bonds quoted at over 140% will be sold.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

Protection against inflation implies that inflation-linked securities perform relatively better than nominal borrowings when inflation is greater than expected. Otherwise, when the rate of inflation is less than anticipated, borrowings that are not linked to in-flation perform better than indexed borrowings.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct inflation swaps. An inflation swap is an exchange of interest rate flows without transferring ownership of the as-set. The inflation swap buyer makes a regular pay-ment at a variable rate in return for which it receives, generally, when the swap matures, a fixed coupon for the entire period. The calculation procedures are de-fined in advance. This kind of swap creates protection against inflation, with the residual risk existing only on the real portion of the interest rates.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-dertaking by the “protection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, reschedul-ing of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the EUR Inflation Linked Bonds compartment. Additionally, front- and back-end loads will not be doubled in favour of inter-mediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I shares as defined in the “Sub-classes of shares” sec-tion.

Initial subscription price: Net asset value of the P share on the day it is activated.

47

PICTET SICAV II – EUR INFLATION LINKED BONDS

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I – LU0527397219 1 million EUR EUR – 0.45% 0.15% 0.20%

P ü LU0241424349 – EUR EUR – 0.90% 0.15% 0.20%

R ü LU0255815986 – EUR EUR – 1.20% 0.15% 0.20%

* per year of the average net assets attributable to this type of share, payable quarterly.

48

13. PICTET SICAV II – EMERGING LOCAL CURRENCY DEBT

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in fixed-income securities

from issuers located in emerging markets and/or by holding money market instruments in emerg-ing countries;

• Who are risk tolerant;

• Who prefer a medium-term saving strategy (at least 4 years).

Investment policy and objectives

This compartment invests all its total assets/total wealth in the Emerging Local Currency Debt com-partment of the Luxembourg SICAV Pictet. The latter pursues the following investment policy:

“The Compartment’s objective is to seek revenue and capital growth by investing a minimum of two-thirds of its total assets or wealth in a diversified portfolio of bonds and other debt securities linked to local emerg-ing debt.

Emerging countries are defined as those considered, at the time of investing, as industrially developing coun-tries by the International Monetary Fund, the World Bank, the International Finance Corporation (IFC) or one of the leading investment banks. These countries include, but are not limited to, the following: Mexico, Hong Kong, Singapore, Turkey, Poland, the Czech Re-public, Hungary, Israel, South Africa, Chile, Slovakia, Brazil, the Philippines, Argentina, Thailand, South Ko-rea, Colombia, Taiwan, Indonesia, India, China, Roma-nia, Ukraine, Malaysia, Croatia, and Russia.

The Compartment may also invest in warrants on transferable securities and indexes and subscription warrants and may use currency transactions for a purpose other than hedging.

The Compartment may also invest up to 25% of its net assets, not including the investments in non-delivery forwards described below, in structured products, in-cluding in particular credit linked notes and bonds or other transferable securities whose returns are linked to the performance of an index, transferable securi-ties or a basket of transferable securities, or an un-dertaking for collective investment.

The investments are primarily denominated in the lo-cal currencies of emerging countries. In all cases, the Compartment’s exposure to these currencies will be at least 2/3, either by direct or indirect investment or by authorised derivative instruments.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The total amount of commitments resulting from cur-rency transactions made for purposes of speculation and hedging may not exceed 100% of the Compart-ment’s net assets. These transactions will be conduct-ed as non-delivery forwards, forward contracts or

other instruments such as options or currency war-rants. To achieve this, the Compartment may enter into over-the-counter agreements with leading finan-cial institutions.

The Compartment may conduct non-delivery for-ward transactions. A non-deliverable forward is a bi-lateral financial futures contract on an exchange rate between a strong currency and an emerging curren-cy. At maturity, there will be no delivery of the emerg-ing currency; instead there is a cash settlement in the strong currency of the contract’s financial result.

The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement. The Compartment may only con-duct non-deliverable forward transactions with lead-ing financial institutions that specialise in this type of transaction, and with strict adherence to the stand-ardised provisions of the ISDA master agreement protocol.

Pursuant to its investment policy, the Compartment may hold a significant portion of liquid assets and money market instruments that are traded regular-ly and whose residual maturity does not exceed 12 months. In addition, if the manager deems that it is in the best interest of the shareholders, the Compart-ment may also hold up to 33% of its net assets in liq-uid assets and money market instruments that are regularly traded and whose residual maturity does not exceed 12 months.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Derivative financial instruments may include options, futures contracts on financial instruments, options on such contracts as well as over-the-counter swaps on various types of financial instruments and total return swaps.

The Compartment may conduct credit default swap transactions for up to 100% of its net assets.

A credit default swap is a bilateral financial agreement under which a counterparty (the “protection buyer”) pays a premium against an undertaking by the “pro-tection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reor-ganisation/liquidation, rescheduling of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

Investments in unlisted securities and in Russia other than on the RTS and the MICEX stock exchanges will not exceed 10% of the Compartment’s net assets.

49

Starting on 15 June 2011, the following limit applies:

The compartment will not invest more than 10% of its assets in shares or any other similar security, derivative instruments (including warrants) and/or structured products (in particular delta-adjusted con-vertible bonds) whose underlyers are or that offer ex-posure to equities or similar securities.

By analogy, investments in undertakings for collec-tive investment whose main objective is to invest in the above-listed assets are also included in the 10% limit.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the Emerging Local Currency Debt compartment. Additionally, front- and back-end loads will not be doubled in favour of inter-mediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Consolidation currency: USD

Manager: PAM SA, PAM Ltd, BPCAL

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month is a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I USD shares as defined in the “Sub-classes of shares” section.

Initial subscription price: Net asset value of the P USD share on the day it is activated.

PICTET SICAV II – EMERGING LOCAL CURRENCY DEBT

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I USD – LU0527397300 1 million USD USD – 1.05% 0.40% 0.20%

P USD ü LU0255815473 – USD USD – 2.10% 0.40% 0.20%

R USD ü LU0255815713 – USD USD – 3% 0.40% 0.20%

P EUR ü LU0284693578 – EUR EUR – 2.10% 0.40% 0.20%

R EUR ü LU0330432443 – EUR EUR – 3% 0.40% 0.20%

* per year of the average net assets attributable to this type of share, payable quarterly.

50

14. PICTET SICAV II – ASIAN LOCAL CURRENCY DEBT

Investor type profile

The Compartment is an investment vehicle for inves-tors:• Who wish to invest in fixed-income securities

from issuers located in Asian emerging markets and/or by holding money market instruments in the Asian emerging countries;

• Who are risk tolerant;

• Who prefer a medium-term saving strategy (at least 4 years).

Investment policy and objectives

This compartment invests all its total assets/total wealth in the Asian Local Currency Debt compart-ment of the Luxembourg SICAV Pictet. The latter pur-sues the following investment policy:

“The Compartment’s objective is to seek revenue and capital growth by investing a minimum of two-thirds of its total assets or wealth in a diversified portfolio of bonds and other debt securities linked to Asian local emerging debt.

The Asian emerging countries are defined as those considered, at the time of investing, as industrially developing countries by the International Monetary Fund, the World Bank, the International Finance Corporation (IFC) or one of the leading investment banks. These countries include, but are not limited to, the following: Hong Kong, Singapore, the Philip-pines, Thailand, South Korea, Taiwan, Indonesia, In-dia, China, and Malaysia.

The Compartment may also invest in warrants on transferable securities and indexes and subscription warrants and may use currency transactions for a purpose other than hedging.

The Compartment may also invest up to 25% of its net assets, not including the investments in non-delivery forwards described below, in structured products, in-cluding in particular credit linked notes and bonds or other transferable securities whose returns are linked to the performance of an index, transferable securi-ties or a basket of transferable securities, or an un-dertaking for collective investment.

The investments are primarily denominated in the lo-cal currencies of the Asian emerging countries. In all cases, the Compartment’s exposure to these curren-cies will be at least 2/3, either by direct or indirect investment or by authorised derivative instruments.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The total amount of commitments resulting from cur-rency transactions made for purposes of speculation and hedging may not exceed 100% of the Compart-ment’s net assets. These transactions will be conduct-ed as non-delivery forwards, forward contracts or other instruments such as options or currency war-rants. To achieve this, the Compartment may enter into over-the-counter agreements with leading finan-cial institutions.

The Compartment may conduct non-delivery for-ward transactions. A non-deliverable forward is a bi-lateral financial futures contract on an exchange rate between a strong currency and an emerging curren-cy. At maturity, there will be no delivery of the emerg-ing currency; instead there is a cash settlement of the contract’s financial result in the strong currency.

The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement. The Compartment may only con-duct non-deliverable forward transactions with lead-ing financial institutions that specialise in this type of transaction, and with strict adherence to the stand-ardised provisions of the ISDA master agreement protocol.

Pursuant to its investment policy, the Compartment may hold a significant portion of liquid assets and money market instruments that are traded regular-ly and whose residual maturity does not exceed 12 months. In addition, if the manager deems that it is in the best interest of the shareholders, the Compart-ment may also hold up to 33% of its net assets in liq-uid assets and money market instruments that are regularly traded and whose residual maturity does not exceed 12 months.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Derivative financial instruments may include options, futures contracts on financial instruments, options on such contracts as well as over-the-counter swaps on various types of financial instruments and total return swaps.

The Compartment may conduct credit default swap transactions for up to 100% of its net assets.

A credit default swap is a bilateral financial agreement under which a counterparty (the “protection buyer”) pays a premium against an undertaking by the “pro-tection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reor-ganisation/liquidation, rescheduling of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

Investments in unlisted securities and in Russia other than on the RTS and the MICEX stock exchanges, will not exceed 10% of the Compartment’s net assets.

Starting on 15 June 2011, the following limit applies:

51

The compartment will not invest more than 10% of its assets in shares or any other similar security, derivative instruments (including warrants) and/or structured products (in particular delta-adjusted con-vertible bonds) whose underlyers are or that offer ex-posure to equities or similar securities.

By analogy, investments in undertakings for collec-tive investment whose main objective is to invest in the above-listed assets are also included in the 10% limit.”

An investment in Pictet does not involve any dou-bling of advisory and management fees, as the com-partment will invest in the Z class of the Asian Local Currency Debt compartment. Additionally, front- and back-end loads will not be doubled in favour of inter-mediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Consolidation currency: USD

Manager: PAM SA, PAM Ltd, BPCAL

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the last calendar day of the month, unless the last calendar day of the month is a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I USD shares as defined in the “Sub-classes of shares” section.

Initial subscription price: Net asset value of the P USD share on the day it is activated.

PICTET SICAV II – ASIAN LOCAL CURRENCY DEBT

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I USD – LU0527397565 1 million USD USD – 1.05% 0.40% 0.20%

P USD ü LU0255814823 – USD USD – 2.10% 0.40% 0.20%

P EUR ü LU0284693065 – EUR EUR – 2.10% 0.40% 0.20%

R USD ü LU0255815127 – USD USD – 3% 0.40% 0.20%

R EUR ü LU0330432369 – EUR EUR – 3% 0.40% 0.20%

* per year of the average net assets attributable to this type of share, payable quarterly.

52

15. PICTET SICAV II – WORLD GOVERNMENT BONDS

Investor type profile

The compartment is an investment vehicle for inves-tors:

• Who wish to invest in fixed-income securities de-nominated in strong currencies;

• Who seek a stable saving strategy and thus have some aversion to risk;

• Who prefer a medium-term saving strategy (at least 3 years).

Investment policy and objectives

This compartment invests its total assets/wealth in the World Government Bonds compartment of Pic-tet’s Luxembourg SICAV. This open-ended invest-ment fund adheres to the following investment policy:

“This compartment invests mainly in a diversified portfolio of bonds and other debt securities issued or guaranteed by national or local governments, or by supranational organisations, within the limits al-lowed by the investment restrictions. These invest-ments may be made in all markets while seeking capital growth in the base currency.

In addition, the compartment may invest up to 10% of its net assets in UCIs.

For efficient management and within the limits of the investment restrictions set out in the prospectus, the compartment may use any type of financial derivative traded on a regulated and/or over-the-counter (OTC) market if obtained from a leading financial institution that specializes in these types of transactions. In par-ticular, the compartment may, among other invest-ments but not exclusively, invest in warrants, futures, options, swaps (such as total return swaps, contracts for difference and credit default swaps) and futures contracts with underlying assets compliant with the law of 20 December 2002 and the compartment’s investment policy, among other things, currency (including non-delivery forwards), interest rates, se-curities, a basket of securities, indices, and undertak-ings for collective investment.

Specifically, the compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the protection buyer) pays a premium against an un-dertaking by the protection seller to pay a certain amount if the base issuer is the subject of a credit risk stipulated in the contract. The protection buyer ac-quires the right to sell a particular bond issued by the base issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk gen-erally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, rescheduling of debts in arrears or non-payment of debts payable. The Inter-national Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

If the manager deems it necessary and in the best in-terest of the shareholders, the compartment may hold liquidities up to 100% of its net assets, e.g. deposits, money market instruments, and monetary type UCIs (and/or UCITS) (within the aforementioned 10% lim-it).

Starting on 15 June 2011, the following limit applies:

The compartment will not invest more than 10% of its assets in shares or any other similar security, derivative instruments (including warrants) and/or structured products (in particular delta-adjusted con-vertible bonds) whose underlyers are or that offer ex-posure to equities or similar securities.

By analogy, investments in undertakings for collec-tive investment whose main objective is to invest in the above-listed assets are also included in the 10% limit.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the World Govern-ment Bonds compartment. Additionally, front- and back-end loads will not be doubled in favour of in-termediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day as well as the first calendar day of the month, unless the first of the month is a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I EUR shares as defined in the “Sub-classes of shares” section.

Initial subscription price: Net asset value of the P EUR share on the day it is activated.

53

PICTET SICAV II – WORLD GOVERNMENT BONDS

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I EUR – LU0527397649 1 million EUR EUR – 0.30% 0.15% 0.05%

P EUR ü LU0317904414 – EUR EUR – 0.60% 0.15% 0.05%

R EUR ü LU0317904505 – EUR EUR – 0.90% 0.15% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

54

16. PICTET SICAV II – ABSOLUTE RETURN GLOBAL DIVERSIFIED

Investor type profile

The Compartment is an investment vehicle for inves-tors:

• Who wish to invest in a well-diversified portfolio of shares and bonds worldwide;

• Who are willing to bear price variations and thus have a medium aversion to risk.

Investment policy and objectives

This compartment invests all its total assets/total wealth in the Absolute Return Global Diversified compartment of the Luxembourg SICAV Pictet. The latter pursues the following investment policy:

“This compartment aims to provide investors with an absolute positive return primarily by investing in a broad and extremely diversified selection of as-sets. All the various strategies aim to provide inves-tors with a return greater than its benchmark index, EONIA (the “Euro Over Night Index Average” which reflects the average weighted rate of interbank in-vestments from one day to the next in the eurozone).

This compartment invests primarily both in interna-tional equities and international bonds (convertible and non-convertible), in treasury certificates, pro-vided they are transferable securities issued on inter-national markets, and in any other transferable stock officially listed for trading on a securities exchange, in money market instruments and options.

In addition, the Compartment may also invest up to 10% of its net assets in UCIs.

In order to reduce its exposure to market risk, the Compartment may temporarily hold up to 100% of its net assets in liquid instruments and/or money market instruments.

The Compartment may also use derivative techniques and instruments for efficient management, within the limits specified in the investment restrictions.

The Compartment will achieve its investment policy by positioning itself for growth and/or volatility of the markets. To achieve this management objective, the Compartment may use derivative instruments whose underlyings are market volatility, including instruments such as “volatility swaps” or “variance swaps” that may generate a profit due to the differ-ence between implicit volatility and actual volatility over a defined period of time.

The Compartment may also take credit risks on vari-ous issuers by means of credit derivatives on indexes or on a basket of issuers.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

For diversification of risk, the Compartment may use derivative financial instruments whose underly-ings are commodities indexes, limited to 10% of the Compartment’s net assets per index. It is understood that the total value of the commitments of derivative financial instruments, whose underlyings are com-modities indexes held by the Compartment in each of which it invests more than 5% of its assets, cannot exceed 40% of the value of its assets.

The Compartment may also invest in credit-linked notes.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the Absolute Return Global Diversified compartment. Additionally, front- and back-end loads will not be doubled in favour of intermediaries.”

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Consolidation currency: Euro

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 11:00 am on the banking day preceding the NAV calculation date.

Redemption:By 11:00 am on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day as well as the first calendar day of the month, unless the first of the month is a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

HI USD, HR USD and HZ USD shares.

Initial subscription price: Net asset value of the I EUR, R EUR and Z EUR shares converted to USD, on the activation day.

55

PICTET SICAV II – ABSOLUTE RETURN GLOBAL DIVERSIFIED

Type of share

Activated ISIN CODES Initial min. Base currency

Subscription and

redemption currency **

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I EUR ü LU0326714549 1 million EUR EUR – 0.70% 0.30% 0.20%

P EUR ü LU0326714622 – EUR EUR – 1.50% 0.30% 0.20%

R EUR ü LU0326714978 – EUR EUR – 2.20% 0.30% 0.20%

Z EUR ü LU0326715199 – EUR EUR – 0% 0.30% 0.20%

HI CHF ü LU0326715272 (1) CHF CHF – 0.70% 0.35% 0.20%

HP CHF ü LU0326715355 – CHF CHF – 1.50% 0.35% 0.20%

HR CHF ü LU0326715439 – CHF CHF – 2.20% 0.35% 0.20%

HZ CHF ü LU0326715512 – CHF CHF – 0% 0.35% 0.20%

HI GBP ü LU0386933104 (1) GBP GBP – 0.70% 0.35% 0.20%

HP GBP ü LU0386937279 – GBP GBP – 1.50% 0.35% 0.20%

HI USD – LU0344190433 (1) USD USD – 0.70% 0.35% 0.20%

HP USD ü LU0332347672 – USD USD – 1.50% 0.35% 0.20%

HR USD – LU0527397722 – USD USD – 2.20% 0.35% 0.20%

HZ USD – LU0527397995 – USD USD – 0% 0.35% 0.20%

* per year of the average net assets attributable to this type of share.** the conversion costs will be charged to the Compartment.(1) EUR 1,000,000 converted to CHF, USD or GBP on the day of the NAV calculation.

56

17. PICTET SICAV II – ABSOLUTE RETURN GLOBAL CONSERVATIVE

Investor type profile

The Compartment is an investment vehicle for inves-tors:

• Who wish to invest in a well-diversified portfolio of shares and bonds worldwide;

• Who are willing to bear variations in market value and thus have a low to medium aversion to risk.

Investment policy and objectives

This compartment invests all its total assets/total wealth in the Absolute Return Global Conservative compartment of the Luxembourg SICAV Pictet. The latter pursues the following investment policy:

“This compartment aims to provide investors with an absolute positive return primarily by investing in a broad and extremely diversified selection of as-sets. All the various strategies aim to provide inves-tors with a return greater than its benchmark index, EONIA (the “Euro Over Night Index Average” which reflects the average weighted rate of interbank in-vestments from one day to the next in the eurozone).

This compartment will have a more conservative management approach than the Absolute Return Global Diversified compartment by aiming to limit the volatility of the portfolio.

This compartment invests primarily both in inter-national equities and international bonds (convert-ible and non-convertible), in treasury certificates, provided they are transferable securities issued on international markets, and in any other transferable securities officially listed for trading on a stock ex-change, in money market instruments and options.

In addition, the Compartment may also invest up to 10% of its net assets in UCIs.

In order to reduce its exposure to market risk, the Compartment may temporarily hold up to 100% of its net assets in liquid instruments and/or money market instruments.

The Compartment may also use derivative techniques and instruments for efficient management, within the limits specified in the investment restrictions.

The Compartment will carry out its investment policy by positioning itself for growth and/or volatility of the markets. To achieve this management objective, the Compartment may use derivative instruments whose underlyings are market volatility, including instruments such as “volatility swaps” or “variance swaps” that may generate a profit due to the differ-ence between implicit volatility and actual volatility over a defined period of time.

The Compartment may also take credit risks on vari-ous issuers by means of credit derivatives on indexes or on a basket of issuers.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-

ferable securities, or an undertaking for collective in-vestment, for example.

For diversification of risk, the Compartment may use derivative financial instruments whose underly-ings are commodities indexes, limited to 10% of the Compartment’s net assets per index. It is understood that the total value of the commitments of derivative financial instruments, whose underlyings are com-modities indexes held by the Compartment in each of which it invests more than 5% of its assets, cannot exceed 40% of the value of its assets.

The Compartment may also invest in credit-linked notes.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the Absolute Return Global Conservative compartment. Additionally, front- and back-end loads will not be doubled in fa-vour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Consolidation currency: EURO

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 11:00 am on the banking day preceding the NAV calculation date.

Redemption:By 11:00 am on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day as well as the first calendar day of the month, unless the first of the month is a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

HI USD, HR USD and HZ USD shares.

Initial subscription price: Net asset value of the I EUR, R EUR and Z EUR shares converted to USD, on the activation day.

57

PICTET SICAV II – ABSOLUTE RETURN GLOBAL CONSERVATIVE

Type of share

Activated ISIN CODES Initial min. Base currency

Subscription and

redemption currency **

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I EUR ü LU0326713574 1 million EUR EUR – 0.50% 0.30% 0.20%

P EUR ü LU0326713657 – EUR EUR – 1.00% 0.30% 0.20%

R EUR ü LU0326713814 – EUR EUR – 1.45% 0.30% 0.20%

Z EUR ü LU0326713905 – EUR EUR – 0% 0.30% 0.20%

HI CHF ü LU0326714036 (1) CHF CHF – 0.50% 0.35% 0.20%

HP CHF ü LU0326714119 – CHF CHF – 1.00% 0.35% 0.20%

HR CHF ü LU0326714382 – CHF CHF – 1.45% 0.35% 0.20%

HZ CHF ü LU0326714465 – CHF CHF – 0% 0.35% 0.20%

HI USD – LU0527398027 (1) USD USD – 0.50% 0.35% 0.20%

HP USD ü LU0338480055 – USD USD – 1.00% 0.35% 0.20%

HR USD – LU0527398290 – USD USD – 1.45% 0.35% 0.20%

HZ USD – LU0527398456 – USD USD – 0% 0.35% 0.20%

* per year of the average net assets attributable to this type of share.** the conversion costs will be charged to the Compartment.(1) EUR 1,000,000 converted to CHF or USD on the day of the NAV calculation.

58

18. PICTET SICAV II – LATIN AMERICAN LOCAL CURRENCY DEBT

Investor type profile

The Compartment is an investment vehicle for inves-tors:

• Who wish to invest in fixed-income securities from issuers located in emerging countries of Latin America and/or by holding money mar-ket instruments in emerging countries in Latin America;

• Who are risk tolerant.

Investment policy and objectives

This compartment invests all its total assets/total wealth in the Latin American Local Currency Debt compartment of the Luxembourg SICAV Pictet. The latter pursues the following investment policy:

“The Compartment’s objective is to seek revenue and capital growth by investing a minimum of two-thirds of its total assets or wealth in a diversified portfolio of bonds and other debt securities linked to local Latin American emerging countries.

Emerging countries in Latin America are defined as those considered, at the time of investing, as industri-ally developing countries by the International Mone-tary Fund, the World Bank, the International Finance Corporation (IFC) or one of the leading investment banks. These countries include, but are not limited to, the following: Mexico, Chile, Brazil, Argentina, Colombia, Peru, Belize, Bolivia, Costa Rica, Cuba, the Dominican Republic, Ecuador, El Salvador, Gua-temala, Guyana, Honduras, Nicaragua, Paraguay, Panama, Puerto Rico, Suriname, Uruguay, Venezuela.

By derogation to point 7 of § 2 of the investment re-strictions, the Compartment is authorised to invest up to 100% of its assets in securities issued by any Latin American country, even if it is not an OECD Member State.

The Compartment may also invest in warrants on transferable securities and indexes and subscription warrants and may use currency transactions for a purpose other than hedging.

The Compartment may also invest up to 25% of its net assets, not including the investments in non-delivery forwards described below, in structured products, in-cluding in particular credit linked notes and bonds or other transferable securities whose returns are linked to the performance of an index, transferable securi-ties or a basket of transferable securities, or an un-dertaking for collective investment.

The investments are primarily denominated in the local currencies of the emerging countries in Latin America. In all cases, the Compartment’s exposure to these currencies will be at least 2/3, either by direct or indirect investment or by authorised derivative in-struments.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The total amount of commitments resulting from cur-rency transactions made for purposes of speculation

and hedging may not exceed 100% of the Compart-ment’s net assets. These transactions will be conduct-ed as non-delivery forwards, forward contracts or other instruments such as options or currency war-rants. To achieve this, the Compartment may enter into over-the-counter agreements with leading finan-cial institutions.

The Compartment may conduct non-delivery for-ward transactions. A non-deliverable forward is a bi-lateral financial futures contract on an exchange rate between a strong currency and an emerging curren-cy. At maturity, there will be no delivery of the emerg-ing currency; instead there is a cash settlement in the strong currency of the contract’s financial result.

The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement. The Compartment may only con-duct non-deliverable forward transactions with lead-ing financial institutions that specialise in this type of transaction, and with strict adherence to the stand-ardised provisions of the ISDA master agreement protocol.

Pursuant to its investment policy, the Compartment may hold a significant portion of liquid assets and money market instruments that are traded regular-ly and whose residual maturity does not exceed 12 months. In addition, if the manager deems that it is in the best interest of the shareholders, the Compart-ment may also hold up to 33% of its net assets in liq-uid assets and money market instruments that are regularly traded and whose residual maturity does not exceed 12 months.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Derivative financial instruments may include options, futures contracts on financial instruments, options on such contracts as well as over-the-counter swaps on various types of financial instruments and total return swaps.

The Compartment may conduct credit default swap transactions for up to 100% of its net assets.

A credit default swap is a bilateral financial agreement under which a counterparty (the “protection buyer”) pays a premium against an undertaking by the “pro-tection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reor-ganisation/liquidation, rescheduling of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

59

Investments in unlisted securities and in Russia other than on the RTS and the MICEX stock exchanges will not exceed 10% of the Compartment’s net assets.

Starting on 15 June 2011, the following limit applies:

The compartment will not invest more than 10% of its assets in shares or any other similar security, derivative instruments (including warrants) and/or structured products (in particular delta-adjusted con-vertible bonds) whose underlyers are or that offer ex-posure to equities or similar securities.

By analogy, investments in undertakings for collec-tive investment whose main objective is to invest in the above-listed assets are also included in the 10% limit.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the Latin American Local Currency Debt compartment. Additionally, front- and back-end loads will not be doubled in fa-vour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Consolidation currency: USD

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day as well as the first calendar day of the month, unless the first of the month is a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

P EUR and R EUR shares.

Initial subscription price: The net asset value of the P USD and R USD share converted to EUR on the day it is activated.

I USD shares

Initial subscription price: The net asset value of the P USD share on the day it is activated.

PICTET SICAV II – LATIN AMERICAN LOCAL CURRENCY DEBT

Type of share

Activated ISIN CODES Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I USD – LU0527398530 1 million USD USD – 1.05% 0.40% 0.20%

P USD ü LU0330432526 – USD USD – 2.10% 0.40% 0.20%

R USD ü LU0330432799 – USD USD – 3% 0.40% 0.20%

P EUR – LU0527398613 – EUR EUR – 2.10% 0.40% 0.20%

R EUR – LU0527398704 – EUR EUR – 3% 0.40% 0.20%

* per year of the average net assets attributable to this type of share.

60

19. PICTET SICAV II – USD SOVEREIGN LIQUIDITY

Investor type profile

The Compartment is an investment vehicle for inves-tors:

• Who wish to invest in short-term fixed-income securities issued or guaranteed by a govern-ment or a public corporation in the OECD or by an international public organisation, including Switzerland or a Member State of the European Union;

• Who are averse to risk.

Investment policy and objectives

This compartment invests all its total assets/total wealth in the USD Sovereign Liquidity compartment of the Luxembourg SICAV Pictet. The latter pursues the following investment policy:

“The investment objective of the Compartment is to offer investors the opportunity to invest in a vehicle that preserves capital and stability of value while ob-taining an appropriate return with a high level of li-quidity and observes a policy of risk spreading.

The Compartment invests a minimum of 2/3 of its to-tal wealth/assets in money market instruments or in bonds and notes as well as in other debt instruments and fixed- or variable-income debt securities (exclud-ing convertible bonds, reverse convertible bonds, convertible notes and borrowings with options as well as ABS, MBS, and ABCP), provided that:

• they are issued or guaranteed by a government or public corporation in the OECD or by an inter-national public organisation, including Switzer-land or a Member State of the European Union;

• the residual maturity of the individual investments does not exceed 13 months or that their yield is subject to regular adjustments (at least every 13 months), in compliance with the conditions of the monetary market, or that their risk profile, in particular regarding the credit risk and interest rate risk, corresponds to that for instruments that have a maturity or residual maturity matches that conforms to those mentioned above.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

In order to reduce its exposure to market risk, the Compartment may temporarily hold up to 100% of its net assets in liquid instruments and/or money market instruments, or monetary funds up to 10%.

The base currency is not necessarily identical to the Compartment's investment currencies. The related exchange rate risk will be systematically hedged against the Compartment's base currency.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the USD Sovereign Liquidity compartment. Additionally, front- and back-end loads will not be doubled in favour of in-termediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Consolidation currency: USD

Remittance of orders

Subscription:By 11:00 am on the NAV calculation day.

Redemption:By 11:00 am on the NAV calculation day.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day as well as the first calendar day of the month, unless the first of the month is a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I shares as defined in the “Sub-classes of shares” sec-tion.

Initial subscription price: Net asset value of the P share on the day it is activated.

Payment value date for subscriptions and redemptions

The banking day following the applicable net asset value.

61

PICTET SICAV II – USD SOVEREIGN LIQUIDITY

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I – LU0527398969 1 million USD USD – 0.15% 0.10% 0.05%

P ü LU0368848197 – USD USD – 0.30% 0.10% 0.05%

R ü LU0368848601 – USD USD – 0.60% 0.10% 0.05%

* per year of the average net assets attributable to this type of share.

62

20. PICTET SICAV II – EUR SOVEREIGN LIQUIDITY

Investor type profile

The Compartment is an investment vehicle for inves-tors:

• Who wish to invest in short-term fixed-income securities issued or guaranteed by a govern-ment or a public corporation in the OECD or by an international public organisation, including Switzerland or a Member State of the European Union;

• Who are averse to risk.

Investment policy and objectives

This compartment invests all its total assets/total wealth in the EUR Sovereign Liquidity compartment of the Luxembourg SICAV Pictet. The latter pursues the following investment policy:

“The investment objective of the Compartment is to offer investors the opportunity to invest in a vehicle that preserves capital and stability of value while ob-taining an appropriate return with a high level of li-quidity and observes a policy of risk spreading.

The Compartment invests a minimum of 2/3 of its to-tal wealth/assets in money market instruments or in bonds and notes as well as in other debt instruments and fixed- or variable-income debt securities (exclud-ing convertible bonds, reverse convertible bonds, convertible notes and borrowings with options as well as ABS, MBS, and ABCP), provided that:

• they are issued or guaranteed by a government or public corporation in the OECD or by an inter-national public organisation, including Switzer-land or a Member State of the European Union;

• the residual maturity of the individual investments does not exceed 13 months or that their yield is subject to regular adjustments (at least every 13 months), in compliance with the conditions of the monetary market, or that their risk profile, in particular regarding the credit risk and interest rate risk, corresponds to that for instruments that have a maturity or residual maturity matches that conforms to those mentioned above.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

In order to reduce its exposure to market risk, the Compartment may temporarily hold up to 100% of its net assets in liquid instruments and/or money market instruments, or monetary funds up to 10%.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

The base currency is not necessarily identical to the Compartment’s investment currencies. The related exchange rate risk will be systematically hedged against the Compartment’s base currency.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the EUR Sovereign Liquidity compartment. Additionally, front- and back-end loads will not be doubled in favour of in-termediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Consolidation currency: EUR

Remittance of orders

Subscription:By 11:00 am on the NAV calculation day.

Redemption:By 11:00 am on the NAV calculation day.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day as well as the first calendar day of the month, unless the first of the month is a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I shares as defined in the “Sub-classes of shares” sec-tion.

Initial subscription price: Net asset value of the P share on the day it is activated.

Payment value date for subscriptions and redemptions

The banking day following the date of the applicable net asset value.

63

PICTET SICAV II – EUR SOVEREIGN LIQUIDITY

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I – LU0527399009 1 million EUR EUR – 0.15% 0.10% 0.05%

P ü LU0368850334 – EUR EUR – 0.30% 0.10% 0.05%

R ü LU0368852116 – EUR EUR – 0.60% 0.10% 0.05%

* per year of the average net assets attributable to this type of share.

64

21. PICTET SICAV II – GLOBAL EMERGING CURRENCIES

Investor type profile

The Compartment is an investment vehicle for inves-tors:

• Who seek exposure to a variety of currencies of emerging countries;

• Who are risk tolerant.

Investment policy and objectives

This compartment invests all its total assets/total wealth in the Global Emerging Currencies compart-ment of the Luxembourg SICAV Pictet. The latter pur-sues the following investment policy:

“The Compartment’s objective is to seek revenue and capital growth by investing a minimum of two-thirds of its total assets/wealth in a diversified portfolio of currencies and of any kind of derivative instruments (traded on a regulated market or over the counter) on currencies of emerging countries. These derivative techniques and instruments will be used for efficient management, within the limits specified in the invest-ment restrictions.

Emerging countries are defined as those considered, at the time of investing, as industrially developing countries by the International Monetary Fund, the World Bank, the International Finance Corporation (IFC) or one of the leading investment banks. These countries include, but are not limited to, the follow-ing: Mexico, Hong Kong, Singapore, Turkey, Poland, the Czech Republic, Hungary, Israel, South Africa, Chile, Slovakia, Brazil, the Philippines, Argentina, Thailand, South Korea, Colombia, Taiwan, Indonesia, India, China, Romania, Ukraine, Malaysia, Croatia, and Russia.

The Compartment may invest in warrants, and to a lesser extent, in options.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may also invest up to 25% of its net assets, not including the investments in non-deliver-able forwards described below, in structured prod-ucts, including in particular credit-linked notes and bonds or other transferable securities whose returns are linked to changes in currencies, an index, trans-ferable securities or a basket of transferable securi-ties, or currencies or an undertaking for collective investment.

The investments are primarily denominated in the lo-cal currencies of emerging countries. In all cases, the Compartment’s exposure to these currencies will be at least 2/3, either by direct or indirect investment or by authorised derivative instruments.

These transactions will be in particular conducted by means of non-deliverable forwards.

A non-deliverable forward is a bilateral financial fu-tures contract on an exchange rate between a strong currency and an emerging currency. At maturity, there will be no delivery of the emerging currency;

instead there is a cash settlement of the contract’s fi-nancial result in the strong currency.

The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement. The Compartment may only con-duct non-deliverable forward transactions with lead-ing financial institutions that specialise in this type of transaction, and with strict adherence to the stand-ardised provisions of the ISDA master agreement protocol.

In pursuit of its investment policy (direct or indi-rect investments), the Compartment may invest up to 100% in money market instruments, in monetary funds (up to 10%), in floating-rate bonds whose re-sidual maturity on individual investments does not exceed 12 months or whose return is subject to regu-lar adjustments, at least every 397 days, in conformity with the conditions of the monetary market, or whose risk profile, in particular regarding credit risk and in-terest rate risk, corresponds to that for instruments that have a maturity or residual maturity in conform-ity with those mentioned above, and any other kind of debt instrument provided that these are issued or guaranteed by a government or public corporation in the OECD or by international public organisations, including Switzerland or any Member State of the European Union.

The Compartment may also hold liquidities on an ancillary basis. The Compartment may however, in order to reduce exposure to market risk, temporarily hold up to 100% of its net assets in liquidities.

The Compartment may conduct credit default swap transactions for up to 100% of its net assets.

A credit default swap is a bilateral financial agreement under which a counterparty (the “protection buyer”) pays a premium against an undertaking by the “pro-tection seller” to pay a certain amount if the reference issuer is the subject of a credit risk stipulated in the contract. The protection buyer acquires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, court-ordered reor-ganisation/liquidation, rescheduling of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

Investments in unlisted securities and in Russia other than on the RTS and the MICEX stock exchanges, will not exceed 10% of the Compartment’s net assets.

To synthetically replicate the return of an underlying asset, the Fund may purchase total return swaps from leading financial institutions that specialise in this type of transaction.

Starting on 15 June 2011, the following limit applies:

The compartment will not invest more than 10% of its assets in shares or any other similar security, derivative instruments (including warrants) and/or

65

structured products (in particular delta-adjusted con-vertible bonds) whose underlyers are or that offer ex-posure to equities or similar securities.

By analogy, investments in undertakings for collec-tive investment whose main objective is to invest in the above-listed assets are also included in the 10% limit.”.

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the Global Emerg-ing Currencies compartment. Additionally, front- and back-end loads will not be doubled in favour of inter-mediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd, BPCAL

Consolidation currency of the Compartment: USD

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day as well as the first calendar day of the month, unless the first of the month is a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I USD shares as defined in the “Sub-classes of shares” section.

Initial subscription price: Net asset value of the P USD share on the day it is activated.

Payment value date for subscriptions and redemptions

Within 2 banking days of the applicable NAV.

PICTET SICAV II – GLOBAL EMERGING CURRENCIES

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I USD – LU0527399181 1 million USD USD – 1.05% 0.40% 0.20%

P USD ü LU0368848940 – USD USD – 2.10% 0.40% 0.20%

R USD ü LU0368849831 – USD USD – 3% 0.40% 0.20%

* per year of the average net assets attributable to this type of share.

66

22. PICTET SICAV II – USD SHORT MID-TERM BONDS

Investor type profile

The Compartment is an investment vehicle for inves-tors:

• Who wish to invest in short- and medium-term, high quality, fixed-income securities denominat-ed in USD;

• Who have some aversion to risk.

Investment policy and objectives

This compartment invests all its total assets/total wealth in the USD Short Mid-Term Bonds compart-ment of the Luxembourg SICAV Pictet. The latter pur-sues the following investment policy:

“The assets of the compartment are invested accord-ing to the principle of risk spreading, with at least two-thirds of its assets held in short and medium-term bonds with a residual maturity for each invest-ment of no more than 10 years (including convertible bonds, bonds with warrants and zero-coupon bonds) and in similar transferable securities denominated in USD. The average residual duration of the portfo-lio (the “duration”) cannot, however, exceed 3 years. These investments may be made in all markets while seeking capital growth in the base currency.

A minimum of two-thirds of its total assets/total wealth will be denominated in USD.

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns are linked to the performance of an index, transferable securities or a basket of trans-ferable securities, or an undertaking for collective in-vestment, for example.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-dertaking by the “protection seller” to pay a certain amount if the reference issuer is subject to a credit risk stipulated in the contract. The protection buyer ac-quires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, reor-ganisation under court supervision/winding up by a decision of the court, rescheduling of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.

Starting on 15 June 2011, the following limit applies:

The compartment will not invest more than 10% of its assets in shares or any other similar security, derivative instruments (including warrants) and/or structured products (in particular delta-adjusted con-vertible bonds) whose underlyers are or that offer ex-posure to equities or similar securities.

By analogy, investments in undertakings for collec-tive investment whose main objective is to invest in the above-listed assets are also included in the 10% limit.”

An investment in Pictet does not involve any dou-bling of advisory and management fees, as the com-partment will invest in the Z class of the USD Short Mid-Term Bonds compartment. Additionally, front- and back-end loads will not be doubled in favour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Shares not yet issued that may be activated at a later date

I shares as defined in the “Sub-classes of shares” sec-tion.

Initial subscription price: Net asset value of the P share on the day it is activated.

67

PICTET SICAV II – USD SHORT MID-TERM BONDS

Type of share

Activated ISIN code Initial min. Base Currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I – LU0527399264 1 million USD USD – 0.35% 0.10% 0.05%

P ü LU0413839506 – USD USD – 0.60% 0.10% 0.05%

R ü LU0413839415 USD USD – 0.90% 0.10% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

68

23. PICTET SICAV II – EUR CORPORATE BONDS EX-FINANCIAL

Investor type profile

The Compartment is an investment vehicle for inves-tors:

• Who wish to invest primarily in high quality, short-term, fixed income securities denominated in EUR, issued by investment grade companies not in the financial sector;

• Who have some aversion to risk.

Objectives and investment policy

This compartment invests all of its total assets/wealth in the EUR Corporate Bonds Ex Financial compart-ment of the Pictet Luxembourg SICAV. The Pictet Luxembourg SICAV pursues the following invest-ment policy:

“This compartment invests primarily in a diversified portfolio of bonds and other debt securities, includ-ing convertible bonds, denominated in euros and is-sued by private companies, excluding the financial sector.

The investments are not limited to a specific geo-graphical region.

Investments in convertible bonds will not exceed 20% of the Compartment’s net assets.

Investments will offer significant liquidity and will be rated at least B3 by Moody’s and/or B- by Standard & Poor’s or, when there is no Moody’s and/or Stand-ard & Poor’s rating, be of equivalent quality based on the manager’s analysis. Investments whose rating is less than Moody’s Baa3 or Standard & Poor’s BBB- or equivalent quality based on the manager’s analysis will not exceed 25% of the net assets of the Compart-ment, provided the exposure to an issuer of that qual-ity does not exceed 1.5% of the Compartment’s net assets.

Using credit risk analysis of companies and their sectors, the compartment aims to generate a return greater than that of government bonds. Investments in government bonds, generally those issued by OECD member countries, may nevertheless be en-tered into when necessitated by market conditions.

If the manager deems necessary and in the interest of the shareholders, the Compartment may hold li-quidities representing up to 100% of its net assets, i.e. among others, deposits, money market instruments and monetary investment funds (within the 10% limit mentioned below).

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may also invest in structured prod-ucts, such as credit-linked notes, certificates or any other transferable security whose returns are linked to, among others, an index that adheres to the pro-cedures stipulated in Article 9 of the regulations of the Grand-Duchy of Luxembourg of 8 February 2008 (including indexes on commodities, precious metals, volatility, etc.), currencies, interest rates, transferable securities, a basket of transferable securities, or an

undertaking for collective investment, in compliance with the regulations of the Grand-Duchy of Luxem-bourg of 8 February 2008.

The Compartment may use derivative techniques and instruments for efficient management, within the lim-its specified in the investment restrictions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the “protection buyer”) pays a premium against an un-dertaking by the “protection seller” to pay a certain amount if the reference issuer is subject to a credit risk stipulated in the contract. The protection buyer ac-quires the right to sell a particular bond issued by the reference issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk generally includes bankruptcy, insolvency, reor-ganisation under court supervision/winding up by a decision of the court, rescheduling of debts or non-payment of debts payable. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.”

An investment in Pictet does not involve any doubling of advisory and management fees, as the compart-ment will invest in the Z class of the EUR Corpo-rate Bonds Ex-Financial compartment. Additionally, front- and back-end loads will not be doubled in fa-vour of intermediaries.

The Pictet prospectus is available on request.

Investors should be aware of the risk factors con-tained in the Pictet prospectus.

Manager: PAM SA, PAM Ltd

Remittance of orders

Subscription:By 12:00 noon on the banking day preceding the NAV calculation date.

Redemption:By 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

Frequency of NAV calculation

Each banking day in Luxembourg as well as the first calendar day of the month, unless the first of the month falls on a Saturday or a Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

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Shares not yet issued that may be activated at a later date

I shares as defined in the “Sub-classes of shares” sec-tion.

Initial subscription price: Net asset value of the P share on the day it is activated.

PICTET SICAV II – EUR CORPORATE BONDS EX-FINANCIAL

Type of share

Activated ISIN code Initial min. Base Currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I – LU0527399348 1 million EUR EUR – 0.60% 0.30% 0.05%

P ü LU0420254889 – EUR EUR – 0.90% 0.30% 0.05%

R ü LU0420254962 EUR EUR – 1.25% 0.30% 0.05%

* per year of the average net assets attributable to this type of share, payable quarterly.

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24. PICTET SICAV II – US HIGH YIELD

Investor type profile

The Compartment is an investment vehicle for inves-tors:

• Who wish to invest in high-yield bonds denomi-nated in USD;

• Who have medium to high risk aversion;

Investment policy and objectives

This compartment will invest its total assets /wealth in the US High Yield compartment of the Luxem-bourg SICAV Pictet. This Compartment pursues the following investment policy:

“This Compartment invests primarily in a diversified portfolio of high-yield bonds including fixed-rate, variable-rate or convertible bonds.

The Compartment may also invest in asset-backed securities (bonds whose real assets guarantee the investment), in debt securitisations (such as but not exclusively ABS and MBS) as well as other debt se-curities in compliance with Article 2 of the Grand-Duchy regulation of 8 February 2008.

Investment in ABS and MBS will represent a maxi-mum of 10% of the Compartment’s net assets.

Likewise, the Compartment may invest up to a maxi-mum of 10% of its net assets in banking loans that are considered (with respect to Articles 2, 3 and 4 of the Luxembourg regulation of 8 February 2008) as trans-ferable securities or money market instruments listed or traded on regulated markets, within the limits stip-ulated by the investment restrictions.

Investments in convertible bonds may not exceed 20% of the net assets of the Compartment, and con-vertible bonds quoted at over 140% will be sold.

While seeking capital appreciation in the base cur-rency, these investments may be made on all markets, but mainly in securities traded on the US domestic market or in securities of issuers domiciled in the US and/or whose main business and/or principal regis-tered office are located in the US.

The Compartment’s assets will be mainly denominat-ed in US dollars.

The Compartment may also invest in structured products, such as bonds or other transferable securi-ties whose returns may be linked, for example, to the performance of an index, transferable securities or a basket of transferable securities, or an undertaking for collective investment.

If the manager deems it necessary and in the best interest of the shareholders, the Compartment may hold up to 100% of its net assets in liquidities, includ-ing deposits, money market instruments, and money market investment funds (within the 10% limit men-tioned below).

In addition, the Compartment may invest up to 10% of its net assets in UCIs.

The Compartment may use derivative financial tech-niques and instruments for efficient management, within the limits specified in the investment restric-tions.

Specifically, the Compartment may conduct credit default swaps. A credit default swap is a bilateral fi-nancial agreement under which a counterparty (the protection buyer) pays a premium against an un-dertaking by the protection seller to pay a certain amount if the base issuer is the subject of a credit risk stipulated in the contract. The protection buyer ac-quires the right to sell a particular bond issued by the base issuer at its face value (or at another base value or strike price) if a credit risk arises. A credit risk gen-erally includes bankruptcy, insolvency, court-ordered reorganisation/liquidation, rescheduling of debts in arrears or non-payment of debts payable. The Inter-national Swaps and Derivatives Association (ISDA) has published standardised documentation for these transactions, which is described in the ISDA Master Agreement.”

The Compartment may also pursue the above-de-scribed policy directly.

Starting on 15 June 2011, the following limit applies:

The compartment will not invest more than 10% of its assets in shares or any other similar security, derivative instruments (including warrants) and/or structured products (in particular delta-adjusted con-vertible bonds) whose underlyers are or that offer ex-posure to equities or similar securities.

By analogy, investments in undertakings for collec-tive investment whose main objective is to invest in the above-listed assets are also included in the 10% limit.”

Investing in Pictet does not involve a duplication of advisory and management fees, given that the com-partment will invest in the Z class of the US High Yield compartment. Nor will front-end or back-end fees for intermediaries be duplicated.

The Pictet prospectus is available on request.

Investors’ attention is drawn to the risk factors described in the Pictet prospectus.

Manager: PAM Ltd, PAM SA

Consolidation currency of the Compartment: USD

Remittance of orders

SubscriptionBy 12:00 noon on the banking day preceding the NAV calculation date.

RedemptionBy 12:00 noon on the banking day preceding the NAV calculation date.

Conversion:The most restrictive time period of the two compart-ments concerned.

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Frequency of the NAV calculation

Each banking day in Luxembourg and the first calen-dar day of the month, unless this day is a Saturday or Sunday.

However, the net asset value will not be calculated on days when the net asset value of the fund in which the compartment has invested all its assets is not cal-culated.

Payment value date for subscriptions and redemp-tions

Within 2 banking days of the applicable NAV.

Calculation of the NAV

The effect of net asset value corrections, more fully described in the section “Calculation of the net asset value”, will not exceed 3%.

PICTET SICAV II – US HIGH YIELD

Type of share

Activated ISIN code Min. initial investment

Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian

I USD ü LU0454964148 1 million USD USD – 1.10% 0.30% 0.05%

P USD ü LU0454964494 – USD USD – 1.45% 0.30% 0.05%

R USD ü LU0454964650 – USD USD – 1.75% 0.30% 0.05%

HI EUR ü LU0454964817 (1) EUR EUR – 1.10% 0.35% 0.05%

HP EUR ü LU0454965038 – EUR EUR – 1.45% 0.35% 0.05%

HR EUR ü LU0454965202 – EUR EUR – 1.75% 0.35% 0.05%

HI CHF ü LU0454965467 (1) CHF CHF – 1.10% 0.35% 0.05%

HP CHF ü LU0454965624 – CHF CHF – 1.45% 0.35% 0.05%

HR CHF ü LU0454965970 – CHF CHF – 1.75% 0.35% 0.05%

* per year of the average net assets attributable to this type of share.(1) USD 1,000,000 converted to EUR or CHF on the day of the NAV calculation.

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25. PICTET SICAV II – TOTAL RETURN FIXED INCOME FUND

Investor type profile

The Compartment is an investment vehicle for inves-tors:

• Who wish to invest in fixed-income funds;

• Who are averse to risk.

Investment policy and objectives

The objective of this Compartment is long-term, risk-adjusted capital appreciation by investing its assets primarily in UCIs that invest in fixed income securities or debt securities. The underlying UCIs are primar-ily managed by independent investment managers worldwide who use a variety of strategies and fixed-income instruments. The UCIs in which the Compart-ment invests may include SICAVs, fonds communs de placement, U.S. mutual funds, investment companies, investment funds (investment trusts) and general partnerships.

Moreover, in derogation of the investment restric-tions described below, the Compartment may invest up to 50% of its net assets in UCIs managed by Pictet & Cie, Geneva or its affiliates.

The Investment Manager will build a multi-strategy portfolio of UCIs that in his opinion will optimise risk-adjusted yield on the capital invested. The as-sets of the Compartment will be invested in profes-sionally managed UCIs. The UCIs may make use of fixed-income or debt securities that include, among others, medium- and long-term bonds, floating-rate notes, all types of asset-backed securities, medium- and long-term convertible bonds and interest-rate and credit default swaps.

The Compartment will pursue its investment objec-tives through a policy of investment in a diversified portfolio of UCIs that should have low volatility and relatively low correlation with traditional asset classes.

The guidelines for constructing the portfolio have been defined by the Investment Manager and the In-vestment Advisers and are consistent with the general investment objectives of the Compartment. The guide-lines provide for diversification among investment strategies, and focus in particular on the selection of strategies that have a low cross-correlation of returns.

After the initial selection and allocation process, the Investment Manager will continue to advise and manage the portfolio of the Compartment, with ad-justments being made when deemed necessary and relevant. The UCIs will be monitored and reviewed in order to ensure adherence to the strategies and objectives set. The Investment Manager will also maintain an ongoing review of UCIs that may be new candidates for investment.

The Compartment may also invest, directly or through UCIs, in other types of securities in various currencies.

The Compartment may also hold liquid assets on an ancillary basis and invest in one or more UCIs that invest in transferable securities and/or money market instruments to which restrictions (1) and (2) of the In-vestment Restrictions outlined below will be applied.

The Compartment may also make use of financial de-rivatives for hedging purposes.

The Compartment will ensure that its portfolio of UCIs has at all times an appropriate level of liquidity to enable it to meet the redemption requests of Share-holders.

Manager: PCO

Consolidation currency of the Compartment: USD

Remittance of orders

Subscription:By 4:00 pm on the banking day preceding the NAV calculation date.

Redemption:By 4:00 pm on the banking day preceding the NAV calculation date.

Conversion:By 4:00 pm on the banking day preceding the NAV calculation date.

Conversions are only permitted if made between classes of the Compartment.

Frequency of NAV calculation

Each Friday, or the next banking day if Friday is not a banking day.

However, the net asset value will not be calculated on days when the prices of at least 50% of the Compart-ment’s assets are not available due to the closure of agents on the relevant investment markets.

Payment value date for subscriptions and redemptions

Within 3 banking days of the applicable NAV.

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PICTET SICAV II – TOTAL RETURN FIXED INCOME FUND

Type of share

Activated ISIN code Initial min. Base currency

Subscription and

redemption currencies

Dividend distribution

Fees (max %) *

Management Service Custodian Bank

I USD ü LU0392391917 1 million USD USD – 0.50% 0.15% 0.10%

P USD ü LU0392392303 – USD USD – 0.75% 0.15% 0.10%

R USD ü LU0392392725 – USD USD – 1% 0.15% 0.10%

Z USD ü LU0392393376 – USD USD – 0% 0.15% 0.10%

HI CHF ü LU0392393533 (1) CHF CHF – 0.50% 0.20% 0.10%

HP CHF ü LU0392393962 – CHF CHF – 0.75% 0.20% 0.10%

HR CHF ü LU0392394424 – CHF CHF – 1% 0.20% 0.10%

HZ CHF ü LU0392394697 – CHF CHF – 0% 0.20% 0.10%

HI EUR ü LU0392394937 (1) EUR EUR – 0.50% 0.20% 0.10%

HP EUR ü LU0392415104 – EUR EUR – 0.75% 0.20% 0.10%

HR EUR ü LU0392428933 – EUR EUR – 1% 0.20% 0.10%

HZ EUR ü LU0392471867 – EUR EUR – 0% 0.20% 0.10%

* per year of the average net assets attributable to this type of share.(1) USD 1,000,000 converted to CHF or EUR on the date of the NAV calculation.

SPECIAL RULES APPLICABLE TO THE TOTAL RETURN FIXED IN-COME COMPARTMENT

1* INVESTMENT RESTRICTIONS

The Compartment cannot

1) acquire more than 30% of the securities issued by a single issuer or UCI, but this restriction does not apply to newly created UCIs. If the Compart-ment acquires more than 30% of a newly created UCI, it will do everything possible (by selling part of its holdings, for example) to reduce its hold-ings in the six months following the acquisition so that the investment does not represent more than 30%;

2) invest more than 20% of its net assets in securities issued by a single issuer or UCI; this limit applies to each compartment of a UCI if the principle of separation of investments between the compart-ments of that UCI is ensured;

3) invest more than 30% of its Net Asset Value in se-curities issued by UCIs whose daily management is carried out by the same sub-manager or an af-filiate of the sub-manager;

4) invest more than 20% of its net assets in securi-ties (including UCIs with fixed capital) that are neither listed on a stock exchange nor traded on another regulated market open to the public. As a result, at least 80% of net assets (excluding cash and cash equivalents) of the Compartment must be invested in UCIs with variable capital or in se-curities and UCIs with fixed capital whose shares or units are listed on a stock exchange or traded on a regulated market open to the public;

5) invest its assets in more than five UCIs managed by the same sub-manager;

6) invest more than 20% of its net assets in UCIs that primarily invest, in accordance with their investment policies, in other UCIs, unless the in-vestment in such UCIs is justified for economic or legal reasons.

The preceding paragraph will not apply to the feeder funds. Feeder funds are UCIs that directly or indirectly invest almost all of their assets (not including liquidities) in another undertaking for collective investment called a master fund. For master-feeder fund structures, the limits in in-dents 1) and 2) above do not apply to the feeder fund, but they will apply to the master fund if the Compartment’s investments in that master fund can only be conducted through one or more feed-er funds. However, the Compartment may not acquire any shares granting voting rights which would enable it to exercise significant influence on the management of a feeder fund;

7) without prejudice to the provisions set forth above:

i) borrow more than 25% of the net assets of the Compartment for investment in bridge loans, including to meet redemption requests;

ii) grant loans to third parties (including other UCIs);

iii) act as guarantor for third parties (including other UCIs);

iv) enter into short sales of securities or other transactions related to securities it does not

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possess; however, the UCI in which the Com-partment invests may enter into these types of short sales;

v) invest in real estate or in a UCI whose in-vestment policy is to invest in real estate (including buildings) or in real estate hold-ings (including options or rights but not in shares of real estate companies);

vi) invest in natural raw materials or other phys-ical assets (such as art objects, antiques, etc.); however the individual UCI may, in excep-tional cases, be required to indirectly acquire limited-term positions in natural raw materi-als for a limited time (through derivatives, for example);

vii) invest in derivatives to hedge risks related to assets held by the underlying UCIs; these instruments provide protection against cur-rency risk and the risk of direct investment.

The Compartment will primarily invest in UCIs that calculate and publish a net asset value each month. The Compartment will not invest more than 20% of its net assets in UCIs that do not calculate or publish a net asset value at least quarterly.

Liquidity:

The Board of Directors will ensure that the portfolio of target UCIs have sufficient liquidity to enable the Com-partment to meet its Share redemption obligations.

Financial derivative instruments:

Within the limits specified below, the Compartment may use the following techniques and instruments ex-clusively to provide protection against currency risks:

i) it may sell call options and/or forward ex-change contracts, buy currency put options or participate in other financial instruments, provided that such call and put options, such forward contracts or other financial in-struments are traded on a recognised stock exchange or regulated market that operates regularly and is open to the public;

ii) in addition, the Compartment may enter into forward exchange contracts or currency swaps on the OTC market with highly-rated financial institutions specialised in this type of transaction.

The amounts of all outstanding transactions will not exceed the market exposure of the assets in question of the corresponding Compartment, denominated in the currency to be hedged.

The Compartment may, solely in order to offer pro-tection against interest-rate risks, enter into put op-tions on interest rates or buy put options on interest rate or interest-rate swaps for amounts less than or equal to the risk of fluctuation of the corresponding part of its portfolio. These contracts or options must be denominated in the currencies in which the Com-partment’s assets are denominated themselves or, if circumstances so require, in currencies that may fluc-tuate in the same way. They must also be listed on a stock exchange or traded on a regulated market; however, the interest rate swap transactions may be

entered into privately with highly-rated financial in-stitutions.

The Compartment may also, on an ancillary basis, in-vest in all kinds of structured products, provided that the underlying asset respects the investment policy and restrictions of the Compartment.

The Compartment may not invest its assets in man-aged accounts, either directly or indirectly through a subsidiary of the Fund.

The Board of Directors may, as necessary, impose other restrictions on investment, which will be com-patible with or in the interests of Shareholders, to re-spect the laws and regulations of countries in which the Shares of the Compartment are distributed.

The restrictions above will apply only at the time the concerned investment is made. If the restrictions are not respected owing to events other than invest-ments, the situation will be remedied while taking into account the interests of the Shareholders.

2* RISK FACTORS

A. Risks of Investing in Other UCIs

1. GENERAL RISKSProspective investors should be aware that an invest-ment in the Compartment involves a high degree of risk, including the risk of loss of the entire amount in-vested. The sub-managers may invest in and actively negotiate instruments with high risk characteristics, including risks arising from volatility on the securi-ties, futures, derivatives, currency and interest-rate markets, from the leverage associated with trading on these markets and in those instruments and from the potential exposure to counterparty default risk. There can be no assurance that the investment pro-gramme of the Compartment will succeed or that its investment objective will actually be achieved. The value and the price of Shares in the Compartment may fluctuate and the value of Shares may fall below the original amount invested.

Despite the strict control procedure (due diligence) used in the selection and monitoring of each fund in which the Compartment invests its assets, it can-not be guaranteed that data on past performance is an indication how these investments will perform in the future (whether in terms of profitability or by correlation). Investors may, upon the redemption of Shares or liquidation of the Compartment, receive an amount less than originally invested.

The Compartment plans to invest in UCIs with a speculative investment policy. These UCIs will gener-ally invest in the category called “alternative funds” or “alternative investments”. Some investments may also be made in UCIs that trade futures contracts and options on goods, currencies and foreign exchange contracts or financial instruments. These UCIs will make use of specific investment techniques and trades, such as investment options, the use of futures contracts or short sales of securities. The Compart-ment will seek risk diversification through the selec-tion of UCIs managed by different sub-managers with different investment styles or that invest in dif-ferent areas.

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2. ABSENCE OF REGULATORY OVERSIGHTThe Compartment is authorised to invest in UCIs es-tablished in jurisdictions in which the authorities ex-ercise little or no oversight of UCIs. In these cases, the Compartment will ensure that there are safeguards designed to protect the interests of the shareholders of these UCIs, but such protection may be less ef-fective than supervision by a supervisory authority. Moreover, the absence of specific guidelines regard-ing investments and risk diversification applicable to these UCIs, coupled with the flexibility of their invest-ment policies, may affect the effectiveness of supervi-sion or protection measures.

However, a monitoring procedure has been put in place that defines the criteria for selecting UCIs in order to minimise the risks (see below “Control Pro-cess”).

3. LACK OF PUBLIC INFORMATION AVAILABLE ON THE UCIThe securities in which the UCIs invest may be of-fered on the basis of a private placement and, unlike more regulated fonds communs de placement regis-tered for distribution to the public, they are subject to limited monitoring, communications and publication obligations. Therefore, the amount of publicly avail-able information on the UCIs, their holdings and their performance may be relatively small.

4. ILLIQUIDITY OF THE UCIThe Investment Manager will endeavour to select UCIs that offer the opportunity to redeem their units or shares within a reasonable period of time. How-ever, there is no guarantee that the investments of these UCIs will always be sufficiently liquid to satisfy redemption requests at the time they are submitted. The absence of liquidity could have an impact on the liquidity of the Compartment’s Shares and the value of its investments.

Thus, the processing of redemption requests may be delayed in exceptional cases, such as when a lack of liquidity makes it difficult to determine the Net Asset Value of the Shares of the Compartment, resulting in the suspension of issues and redemptions.

5. PERFORMANCE FEEBecause of the specialisation of the UCIs in which the Compartment invests, many, if not most, may pay performance fees. Under these agreements, sub-managers profit from appreciation, including latent appreciation, of the assets under management, but they are not correspondingly penalised in case of losses or depreciation of the assets. In addition, many sub-managers, if not all, may be paid through perfor-mance fees. Thus, it is possible that these fees may be paid during a given year while the Net Asset Value per Share of the Compartment falls.

6. FEE STRUCTUREThe Compartment bears the management fees and commissions paid to the Investment Manager, Cus-todian Bank and other service providers as well as a pro rata share of the fees paid by the UCIs in which the Compartment invests to their sub-managers and other service providers. The operating expenses of the Compartment may represent a higher percent-age of the Net Asset Value than other investment un-dertakings. Furthermore, some strategies employed

at the UCIs require frequent changes of positions and therefore of the portfolio churn rate. This means that brokerage fees may be substantially higher than those of investment undertakings of comparable size.

Potential investors should be aware that the fees due to Investment Advisers and to the Investment Man-ager are in addition to fees paid by the UCIs to the sub-managers and may therefore result in a doubling of fees. Subscription and/or redemption fees may also be applied twice.

However, in no case will there be double application of management fees if the Compartment invests in UCIs managed by Pictet & Cie, Geneva and its affili-ates. The Compartment will not bear any fees due to those UCIs. Investments in these UCIs can also be de-ducted from the net assets of the Compartment for calculation of the management fee.

7. LEVERAGESome UCIs in which the Compartment invests oper-ate with a substantial level of leverage and their abil-ity to borrow or enter into transactions on margin is not limited in terms of volume. The total value of the positions held by these UCIs may exceed the Net As-set Value of the Compartment. This leverage effect has the potential to increase the total rate of return, but it also increases the volatility of the Compartment and the risk of completely losing the amount invested.

8. SHORT SALESThe UCIs in which the Compartment invests may en-ter into short sales of securities; the share of the as-sets of the UCIs engaged in these activities may be exposed to unlimited risk because there is no maxi-mum price limit a security can reach. However, if the Compartment participates in short sales transactions through a UCI, the Compartment’s losses will be lim-ited to the amount invested in the UCI.

9. ABSENCE OF CUSTODIAN BANKS AND AUDITORSSome UCIs in which the Compartment’s assets are invested have a broker-dealer as a custodian bank in-stead of a bank. In some cases, these broker-dealers may not have the same capacities, size and credit rat-ing as a bank. In addition, unlike regulated custodian banks, these broker-dealers exercise custodian func-tions only, without regulatory control obligations. Moreover, the jurisdiction of certain UCIs may not require the audit of the accounts of the UCIs.

10. CONFLICTS OF INTERESTConflicts of interest may arise between the Compart-ment and the persons or entities involved as advisers in managing the Compartment and/or the sub-man-agers of the UCIs in which the Compartment invests. Usually, the sub-managers manage the assets of oth-er customers who make investments similar to those made on behalf of undertakings in which the Com-partment invests. Such clients could thus compete for the same trades or investments and, while available investments or opportunities for each client are gen-erally allocated in a manner considered to be equita-ble to each, some of those allocation procedures may adversely affect the price paid or received for invest-ments or the size of positions acquired or sold.

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Conflicts may also arise as a result of other servic-es provided by Pictet & Cie, Geneva or its affiliates, which may provide advisory, custody or other servic-es to some UCIs in which the Compartment invests. In the same way, the Directors of the Compartment may also be directors of UCIs in which the Compart-ment may invest, and the interests of the Compart-ment and those UCIs may conflict.

In general, there may be conflicts of interest between the best interests of the Compartment and the inter-ests of the Investment Manager and its affiliates in terms of generating commissions and other prod-ucts. If such a conflict of interest arises, the Directors of the Fund will seek to resolve it in the best interest of the Compartment.

In addition, the Directors of the Fund will ensure that all contracts and transactions entered into by the Compartment are negotiated as arm’s length trans-actions.

In addition, some sub-managers have holdings in their own funds. Conflicts of interest may therefore not be excluded at UCIs.

11. TYPE OF INVESTMENTS OF THE COMPARTMENTAlthough the Investment Manager seeks to moni-tor the investment and trading activities of UCIs to which the Compartment has allocated assets, invest-ment decisions are normally made independently at the UCIs; it is therefore possible that sub-managers may take positions in the same securities or in issues of the same sector or country, or in the same currency or commodity at the same time. Therefore, it is also possible that a UCI may buy an instrument at about the same time as when another UCI decides to sell it. There can be no assurance that the selection of sub-managers will result in a diversification of investment styles and that the positions taken by the underlying UCIs will always be consistent.

The Compartment’s assets that can be allocated to UCIs whose main investment strategies include spec-ulative trading of commodities futures contracts and/or financial and currency futures contracts. The pric-es of commodity and currency futures contracts can be very volatile due to low margin requirements for forward trades. An extremely high level of leverage is typical of futures contract accounts. As a result, a relatively small price movement in a futures contract may result in substantial losses or gains to the inves-tor. In the same way, UCIs can invest most of their assets in options and other leveraged instruments in which a relatively moderate price movement of the underlying security or commodity may result in sub-stantial losses or gains.

There are very few limits to the strategies and invest-ment techniques that sub-managers can use. In ad-dition, each UCI in which the Compartment invests has its own investment policy presented in its own prospectus.

Because of the diversification of its investments, the Compartment may face other risks, including foreign exchange risks relating to assets held in other cur-rencies, tax risks related to assets invested in other jurisdictions, political risks related to political, social and economic factors that can impact the assets of

the UCIs in which the Compartment invests and that are held in countries likely to experience economic difficulties and political or social instability. The list of risk factors outlined above is not intended to be an exhaustive list or explanation of the risks involved. Potential investors should read this Prospectus in its entirety and evaluate all other information they deem necessary for making the decision to invest in the Compartment. Potential investors should ensure that they fully understand the contents of this Prospectus.

THEREFORE, INVESTMENT IN THE SHARES OF THE COMPART-MENT SHOULD ONLY BE MADE BY INVESTORS PREPARED TO ACCEPT THE RISKS AND RETURNS ASSOCIATED WITH THIS TYPE OF APPROACH.

B. General market-related risks

1. GENERAL ECONOMIC CONDITIONSGeneral economic conditions affect the success of an investment activity: they can influence the level and volatility of interest rates and liquidity of equity and securities markets that are sensitive to interest rates. Some market conditions, including unexpected vol-atility or liquidity on the market in which the Com-partment directly or indirectly holds positions may prevent the Compartment from achieving its objec-tives and/or result in losses.

2. MARKET RISKSThe success of a significant portion of the each Com-partment’s investment programme will depend, to a great extent, upon correctly assessing the future course of the price movements of stocks, bonds, fi-nancial instruments and foreign currencies. There can be no assurance that the Investment Manager will be able to accurately predict such price move-ments.

3. INVESTING IN FIXED INCOME SECURITIESAlthough interest-bearing securities promise a de-fined stream of income, their prices are usually in-versely correlated with changes in interest rates and are therefore subject to the risk of fluctuations in market prices. The values of fixed-income securities also may be affected by changes in the credit rating, liquidity or financial condition of the issuer. Some securities that the Compartment may purchase can bear these risks in connection with the issuer and be subject to greater market fluctuations than high-rat-ed fixed-income securities with lower returns.

The volume of transactions conducted on certain in-ternational bond markets may be substantially less than that of the world’s largest markets, such as the United States. A Compartment’s investments in those markets may thus be less liquid and their prices may be more volatile than comparable investments in se-curities traded on high-volume markets. Moreover, the settlement periods on some markets may be long-er than on others, which may affect portfolio liquidity.

4. INVESTMENTS IN FOREIGN AND EMERGING MARKETSInvestments in some foreign markets may face great-er risks than investments in securities of issuers of OECD Member States due to many factors, including exchange controls and exchange-rate fluctuations, changes of government, and changes to economic, monetary or foreign policy. Dividends paid by foreign

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issuers may be subject to withholding and other for-eign taxes that may decrease the net return on these investments. There may be less information available on foreign issuers from some countries, and account-ing, auditing and financial reporting standards to which they are subject may not be harmonised and comparable to those of the Compartment or most OECD issuers. In some countries, securities of local issuers are less liquid and more volatile than secu-rities of comparable issuers in more mature econo-mies; foreign brokerage commissions are generally higher there than in more developed markets. For-eign securities markets may also be less liquid, more volatile and have lower levels of government supervi-sion than those in the OECD. Other factors that are absent in more developed markets may affect foreign investments: expropriation, confiscatory taxation and potential difficulties in enforcing contractual obliga-tions. These markets may be volatile and illiquid and the investments of the Compartments in such mar-kets may be considered speculative and subject to significant asset custody and clearance risks, as well as delays in settlement. Investors should consult a professional advisor to determine whether an invest-ment in a Compartment that invests in foreign and emerging markets is suitable for them. Subscriptions to Shares of a Compartment investing in such mar-kets should be considered only by investors who are aware of, accept and are able to bear the risks related to such investments, and those investments should be made on a medium- to long-term basis.

5. PRIVATE EQUITY INVESTMENT PRODUCTSThe private equity market is neither organised nor defined. This market is not regulated and has, in prin-ciple, no public listing of transaction prices. There are no intermediaries: buyers and sellers meet and enter into transactions in general through private negotia-tions or auction. It cannot be guaranteed that the In-vestment Manager will be able to obtain investments, or that these markets will continue to exist or operate in their current form.

6. CURRENCY EXCHANGE TRANSACTIONSThe Compartment may buy and sell securities and re-ceive interest and dividends in currencies other than the currency in which the Shares of the Compartment in question are denominated; the Compartment may from time to time enter into currency exchange trans-actions on a spot basis, or enter into currency futures contracts or currency swap agreements. Neither spot transactions nor currency swap or currency futures contracts can eliminate fluctuations in the prices of the securities in the Compartment’s portfolio or in foreign exchange rates, or prevent losses if the prices of these securities decline. The Compartment may en-ter into currency exchange transactions in order to protect against changes in a country’s currency ex-change rates between the trade and settlement dates of specific securities transactions or of anticipated se-curities transactions. The Compartment may also en-ter into futures contracts to hedge against a change in currency exchange rates that would cause a decline in the value of existing investments denominated or principally traded in a currency other than the refer-ence currency of the Compartment. To that end, the

Compartment would enter into a futures contract to sell the currency in which the investment is denomi-nated or principally traded in exchange for the refer-ence currency of the Compartment. Although these transactions aim to minimise the risk of loss related to the depreciation of the hedged currency, at the same time they limit any potential gain that might be realised should the value of the hedged currency in-crease. It will usually be impossible to have an exact correspondence between the amounts of futures con-tracts and the value of the securities in the portfolio because the future value of those securities will vary depending on market movements between the date on which the futures contract is concluded and when it matures. There can be no assurance that these hedging techniques will be successful. The Compart-ments may also enter into foreign exchange transac-tions for investment purposes.

7. RISKS OF CURRENCY TRANSACTIONS AND OPTIONS AND CURRENCY FUTURES CONTRACTS

a) Leverage

The foreign exchange market offers investors a substantial leverage effect. This leverage effect can generate significant profits, but it also has high lev-el of risk, including the risk of loss greater than the amount invested. The Compartment may have posi-tions in currencies whose total value exceeds its Net Asset Value.

In times of significant volatility in the foreign ex-change markets, margin requirements (if any) for exchange-traded futures contracts or options (to the extent that investments in such contracts is author-ised) may be increased substantially. This increase would reduce leverage and, therefore, the potential profitability of the underlying positions of the Com-partment. The Compartment’s leverage may also be reduced if any counterparty requires the Compart-ment to guarantee its contingent liabilities arising from OTC derivative contracts.

b) Volatility

In general, foreign exchange rates can be extreme-ly volatile and difficult to predict. Foreign exchange rates may be influenced by a number of factors, in-cluding the following: changing supply and demand for a particular currency; trade, fiscal and monetary policies of governments (including exchange con-trol programmes, restrictions on local exchanges or markets and limitations on foreign investment in a country or on investment by residents of a country in other countries); political events; changes in balances of payments and trade; domestic and foreign rates of inflation; domestic and foreign rates of interest; inter-national trade restrictions; and currency devaluations and revaluations. In addition, governments some-times intervene in foreign exchange markets, directly or through regulations, to influence prices directly (see “Risks associated with government interven-tion”). The variance between the degree of volatility of the market and the Investment Manager’s expecta-tions may produce significant losses for the Compart-ment, particularly in the case of transactions entered into pursuant to non-directional strategies.

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8. SPECIFIC RISKS OF OTC FUTURES CONTRACTS, SPOT CON-TRACTS AND OPTIONS

a) Absence of regulation; counterparty default

In general, there is less governmental regulation of OTC markets (including currency, futures and spot contracts and options, credit default swaps, total return swaps and certain currency options are gen-erally traded) than of transactions entered into on organised exchanges. In addition, many of the pro-tections afforded to participants on some organised exchanges, such as the performance guarantee of an exchange clearing house, may not be available in connection with OTC transactions. Therefore, the Compartment entering into OTC transactions will be subject to the risk that its direct counterparty to the transactions does not fulfil its obligations with respect to those transactions, and therefore may suffer losses. The Compartment will only enter into transactions with counterparties which it believes are creditworthy and may reduce the exposure in-curred in connection with such transactions through the receipt of letters of credit or collateral from some counterparties. Regardless of the measures the Com-partment attempts to implement to reduce counter-party credit risk, however, there can be no assurance that a counterparty will not default or that the Com-partment will not sustain losses as a result.

b) Liquidity; requirement to perform

The counterparties with which the Compartment enters into transactions may sometimes cease to maintain their role as market maker or to establish quotations for certain instruments. In this case, the Compartment may be unable to complete a desired transaction in currencies, credit default swaps or total return swaps, or to enter into a transaction to offset an open position, which could have an adverse effect on its performance. Further, in contrast to exchange-traded instruments, futures and spot contracts and currency options do not provide the Investment Man-ager with the possibility to offset the Compartment’s obligations through an equal and opposite transac-tion. For this reason, when entering into futures and spot contracts or options, the Compartment may be required, and must be able, to perform its obligations under the contracts.

c) Necessity of establishing relationships with coun-terparties

As stated above, foreign exchange OTC market par-ticipants traditionally carry out transactions with counterparties they deem sufficiently credit worthy, unless the counterparty provides a deposit, a guar-antee, letters of credit or other items to strengthen their credit. The Compartment may, but does not currently plan to, enter into transactions on the ba-sis of credit facilities on behalf of a Pictet & Cie com-pany. While the Compartment and the Investment Manager believe that the Compartment will be able to establish multiple counterparty business relation-ships to permit it to effect transactions in the OTC currency market and other counterparty markets (in-cluding credit default swaps, total return swaps and other swaps market as applicable), there can be no assurance that it will be able to do so. An inability to establish or maintain such relationships would poten-

tially increase the Compartment’s counterparty credit risk, limit its operations and could require the Com-partment to cease investment operations or conduct a substantial portion of such operations in the futures markets. In addition, the counterparties with which the Compartment plans to establish these relation-ships are not required to maintain credit lines grant-ed to the Compartment and could decide to reduce or terminate them at their discretion.

9. LACK OF MARKET LIQUIDITYDespite the heavy volume of trading in securities and other financial instruments, the markets for some se-curities have limited liquidity and depth. This limited liquidity and lack of depth could be a disadvantage to the Compartment, both in the realisation of quoted prices and in the execution of orders at desired prices.

10. SUSPENSION OF TRADINGEach securities exchange or commodities contract market typically has the right to suspend or limit trading in all securities or commodities it lists. Such a suspension would render it impossible for the Com-partment to liquidate positions and, accordingly, expose the Compartment to losses and delays in its ability to redeem Shares.

11. RISK ASSOCIATED WITH THE NEGOTIATION OF FUTURES CONTRACTS

The prices of futures contracts can be highly vola-tile. Because of the low margins normally required in futures and options trading, a very high degree of leverage is typical of a futures trading account. As a result, a relatively small price movement in a futures contract may result in substantial losses or gains to the investor. Like other leveraged investments, a fu-tures transaction may result in losses in excess of the amount invested.

12. FUTURE RETURNSIt cannot be guaranteed that the strategies the Invest-ment Manager used in the past to obtain attractive returns will remain successful or that the investment performance of the Compartment will be similar to that achieved by the Investment Manager in the past.

The foregoing risk factors do not purport to be an exhaustive explanation of the risks involved in invest-ing in the Shares. Potential investors should read this Informational Prospectus in its entirety and consult their legal, tax and financial advisers before taking any decision to invest in the Compartment.

13. INITIAL PUBLIC OFFERINGS (IPOs)The Compartment may invest in IPOs. These secu-rities have no trading history and the information available on these companies is only for limited pe-riods of time. The prices of the securities involved in IPOs may be more volatile than those of more estab-lished securities.

3* CONTROL PROCESS (DUE DILIGENCE)

Two distinct categories can be distinguished in the control process: qualitative analysis and quantitative analysis.

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A. Qualitative analysis

This process enables the development of what may be regarded as the profile of sub-manager. It is the result of a comprehensive assessment of the educational and professional background of the sub-manager, the directors and other key members of the UCI. In-vestment success is scrutinized in order to determine the probability of successful results in the future. The main elements studied are overall strategy, the con-sistency of its application, and the flexibility or con-straints as regards the portfolio’s sector, liquidity and diversification.

Organisational issues, such as management style, process independence, operational integrity and methodological soundness are crucial factors in de-termining the structural or non-investment risk. The organisation of the UCI itself reflects efficiencies and structural strengths. The functions and relationships of each institution involved, i.e. the administrator, the auditor, the custodian bank, and legal advisers, are essential and must be evaluated individually.

By definition, qualitative analysis includes many per-sonal contacts and the establishment of relationships. Any potential conflict of interest is tempered by close familiarity with management styles, techniques and the people involved. The experience and relation-ships can also result in the establishment of a system based on control and balance among peers through a professional network.

B. Quantitative analysis

This process involves, if data are available, compara-tive measures of the results of sub-managers and their history, that of their peers and the overall re-sults of the market in which they operate. Many sta-tistical factors are taken into account in determining the risk/reward profiles of the investment strategies, the correlations between sub-managers and markets and style analysis across sectors. Technical factors, including the use of leverage or derivative products, also contribute to the overall assessment of a particu-lar investment style.

Quantitative analysis is a process that seeks to use historical data to project probable future results. While the process has inherent limitations, it also of-fers valuable insight into the composition of a portfo-lio of multiple products. The ability to identify trends or other features related to market movements is an important element in building a portfolio that reduces risk and increases returns over time.

The combination of quantitative and qualitative anal-ysis is essential for the successful establishment of a multi-manager product.

4* VALUATION OF SHARES

To determine the value of the assets of the Compart-ment, the shares or units the Compartment holds in underlying variable capital funds will be valued at the actual NAV of the shares or units on the Valuation Day. If the actual NAV is not available, they will be valued at the estimated NAV on that Valuation Day, or, if the estimated NAV is not available, they will be valued at the last NAV, actual or estimated, calculated

before that Valuation Day on the date closest to the Valuation Day. If events have occurred that may have caused a significant change in the NAV of such shares or units from the date on which the NAV, actual or estimated, was calculated, the value of these shares or units may be adjusted to reflect, in the reasonable opinion of the Directors, this change, but the Direc-tors will not be required to review or recalculate the NAV on the basis of which subscriptions, redemp-tions or conversions were previously accepted.

For the shares or units held by the Compartment whose issues and redemptions are restricted and which are traded on a secondary market between brokers, who, as major market makers, offer prices corresponding to market conditions, the Directors may decide to value these shares or units in accord-ance with already established realisation prices.

The Administrator, the Board of Directors and the Management Company may rely solely on valuations provided by the UCIs for the investments that these UCIs have made. The valuations provided by the UCIs may be adjusted by those UCIs after the NAV of the Compartment is determined. If these adjustments re-sult in an increase or decrease in the NAV of the Com-partment, they will not affect the purchase proceeds received by the Shareholders who have requested redemption. As a result, to the extent that these sub-sequently adjusted valuations by the UCIs have a negative effect on the NAV of the Compartment, the remaining outstanding Shares of the Compartment will be penalised by the redemptions. Inversely, any increase in the NAV of the Compartment resulting from these adjusted valuations will be entirely to the benefit of the remaining outstanding Shares in the Compartment.

The Administrator and the Board of Directors may consult the Investment Manager and Investment Ad-visers for the valuation of assets of the Compartment. Year-end NAV calculations are audited by independ-ent auditors and may be modified as a result of this audit. As mentioned, these changes may result from adjustments to the valuations provided by the UCIs.

In any case, the Board of Directors, the Management Company, the Custodian Bank, the Administrator, the Investment Manager or Investment Advisers will be responsible for any determination made or other action taken or omitted by them in the absence of negligence, wilful misconduct or bad faith.

The securities held by the Compartment (including shares or units of UCIs with fixed capital) that are listed or traded on a stock exchange will be valued at their last published closing price and, where appro-priate, during a buyers’ market of the stock exchange which is normally the primary market for these se-curities. Each security traded on another organised market will be valued in the manner closest to those described above concerning listed securities.

Securities denominated in a currency other than the reference currency of the Compartment are valued in the national currency and converted into the refer-ence currency at the exchange rate in force on the Valuation Day.

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Unlisted securities or securities not traded on a stock exchange or other organised market and securities which are listed or traded but for which no price quotation is available or for which the quoted price is not representative of their fair market value will be valued prudently and in good faith on the basis of reasonably estimated sales prices. All other assets will be valued at their respective fair market value as determined in good faith by the Directors, pursuant to generally accepted principles and procedures of valuation.

Money market instruments and cash will be valued at face value plus accrued interest.

Pictet Funds S.A.Route des Acacias 60, 1211 Geneva 73, Switzerland

Pictet Funds S.A. Pictet & Cie (Europe) S.A. Pictet & Cie (Europe) S.A. Pictet & Cie (Europe) S.A. Pictet Funds (Europe) S.A.Zurich Office Succursale italiana Sucursal en España Succursale de Paris 3, boulevard Royal,Freigutstrasse 12, Via Fratelli Gabba 1/A, Calle Hermosilla 11, 34, avenue de Messine, L-2449 LUXEMBOURG8002 Zurich, SWITZERLAND 20121 Milan, ITALY 28001 Madrid, SPAIN 75008 Paris, FRANCE

Pictet & Cie (Europe) S.A. Pictet Asset Pictet (Asia) Limited Pictet & Cie (Representative Office)Niederlassung Frankfurt Management Ltd Room 3901-10, Sheikh Zayed RoadNeue Mainzer Strasse 1 Moor House, Level 11, Edinburgh Tower, The Landmark, Park Place, 12th Floor60311 Frankfurt am Main 120 London Wall, 15 Queen’s Road Central, PO Box 125567GERMANY GB-London EC2Y 5ET HONG KONG Dubai, UNITED ARAB EMIRATES

Tel. 0041 58 323 30 00 - www.pictetfunds.com© Copyright 2011 Pictet Funds - All rights reserved - Issued in June 2011

In Italy "P" shares are offered by the Pictet Group in its role of General Distributor only to the Pictet Group's employees and to "Qualified Investors" as defined by art. 100 of Legislative Decree no. 58/1998.

This marketing document is issued by Pictet Funds (Europe) S.A. It is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of or located in any locality, state,country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Only the latest version of the fund’s prospectus, regulations, annual and semi-annual reportsmay be relied upon as fund the basis for investment decisions. These documents are available on www.pictetfunds.com or at Pictet Funds (Europe) S.A., 3 Boulevard Royal, L-2449 Luxembourg.The information and data presented in this document are not to be considered as an offer or solicitation to buy, sell or subscribe to any securities or financial instruments.Information, opinions and estimates contained in this document refl udgment at the original date of publication and are subject to change without notice. Pictet Funds (Europe) S.A. has not taken any steps to ensurethat the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment dependson the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for themin light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested. Risk fac-tors are listed in the fund’s prospectus and are not intended to be reproduced in full in this document.Past performance is neither guarantee nor a reliable indicator of future results. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares. This mar-keting material is not intended to be a substitute for the fund’s full documentation or for any information which investors should obtain from their financial intermediaries acting in relation to their investment inthe fund or funds mentioned in this document.