pictet total return banyan oct2011

Pictet Asset Management

Nidhi Mahurkar, Anthony Cheung, Olivier Doleires

November 2011

Pictet Total Return-Banyan

A long/short Asia ex-Japan fund

FOR PROFESSIONAL INVESTORS ONLY

Pictet Asset Management

1

3Pictet Total Return-Banyan Pictet Asset Management

PAM total return timeline

Alphanatics

(Mkt neutral,

Multi-Mgr)

Corto

(Europe, SMID)

PTR-Mandarin

(China)

9/2004 7/2006 10/2010

Global L/S

(Macro)

Q3/2012

PTR-Banyan

(Asia ex-Japan)

11/2011

Global L/S

(Trading)

Q1/2012

Europe Equity

Event Driven

Q2/2012

PTR-Corto

(Europe, SMID)

4/2010

Total AuM: USD 1.8 bn

Source: Pictet Asset Management, as at 30/09/2011

PTR-Kosmos

(Credit)

6/2011


2


Pictet Total Return-Banyan strategy at a glance

• Luxembourg UCITS, with weekly liquidity

• Long / Short equity strategy focused on Asia ex Japan

– proven ability to produce excellent returns while offering

downside protection

– the strategy has delivered 16.6% per annum (in USD, net of

fees) versus 14.0% MSCI EM Asia with lower volatility*

• Long bias with active management of the gross and net exposure to

provide downside protection

• Well defined process evolved over 15 years

– bottom-up stock selection allied to a proprietary screen to

identify opportunities

• Extensive experience investing in Asia

– lead managers born and educated in Asia with well developed

intelligence network on the ground

*Source: Pictet Asset Management, data from 31/07/2002-31/10/2011, in USD net of fees. Past performance is no guarantee of future performance. The track record is a client strategy that Nidhi

Mahurkar has managed since July 1996 and brought to Pictet in May 2001 and has managed throughout her tenure with Pictet Asset Management. A long only mandate at inception the fund adopted a

total return strategy in July 2002 using long and short investments in Asian ex Japan countries. Pictet Asset Management claims compliance with the Global Investment Performance Standards (GIPS).

The data provided here is supplemental information.


Investment team

Nidhi MahurkarHead of Total Return Banyan

Olivier DoleiresInvestment Manager

Anthony Cheung Senior Investment Manager

20 years experience

EducationFirst class honours degree in Economics from M.S. University, Vadodara.

MBA from the Indian institute of Management, Bangalore.

HistoryPictet Asset Management 2001 to dateLazard 1996-2001American Express Bank 1991-1996

ResponsibilitiesStock selection and portfolio construction

6 years experience

EducationFirst class BSc in Economics from the London School of Economics

HistoryPictet Asset Management 2011 to dateGartmore 2008-2011 ABN Amro in Hong Kong 2007-2008Central Asset Investments Hong Kong 2005-2007

ResponsibilitiesStock selection and portfolio construction

11 years experience

EducationCertificat Fédéral de Capacité in Banking from the Commercial School in Fribourg and holds an Investment Administration Qualification (IAQ) from the Securities Institute London.

Chartered Alternative Investment Analyst (CAIA).

History

Pictet Asset Management 2000 to date

ResponsibilitiesPortfolio construction and risk management


Experienced investment team and well-resourced environment

Emerging Market Research (6 emerging market analysts)

Macro Economic Analysis(5 investment professionals)

PAM Strategy Unit*

(18 investment professionals)

Risk Management (7 investment professionals)

Other Investment TeamsEmerging Equities (9)

Emerging Debt (7)

Long/short China (3)

Long/short Credit (3)

Asian Equity Traders(2 professionals in London)

(2 professionals in Singapore)



Olivier Doleires

Investment Manager


INVESTMENT TEAM

* PAM Strategy Unit is an economic forum comprising senior investment professionals from equities, fixed income and balanced investment teams across PAM


Evolution of Asia ex Japan long/short strategy

-100

-50

0

50

100

150

200

250

300

350

400

450

Aug-

96

Aug-

97

Aug-

98

Aug-

99

Aug-

00

Aug-

01

Aug-

02

Aug-

03

Aug-

04

Aug-

05

Aug-

06

Aug-

07

Aug-

08

Aug-

09

Aug-

10

Aug-

11

%

Net Cumulative MSCI EM Asia Cumulative

Managed by

Nidhi Mahurkar

at Lazard as a

long only fund

Transfer

to

Pictet

Total Return objective set

(Cash and index futures

to manage downside risk)

Single name

shorts introduced

Source: Pictet Asset Management, data from August 1996 to August 2011, in USD net of fees. Past performance is no guarantee of future performance. The track record is a client strategy that Nidhi


total return strategy in July 2002 using long and short investments in Asian ex Japan countries. Pictet Asset Management claims compliance with the Global Investment Performance Standards (GIPS). The

data provided here is supplemental information.


Asia ex Japan long/short strategy monthly performance

9.4-0.4-3.20.610.92.73.7-2.5-9.35.68.61.2-7.02010

2.0-1.78.90.2-7.32.52002

69.010.23.514.43.28.96.77.67.81.7-6.4-4.42.52003

18.12.610.73.15.34.7-1.8 -1.8-8.20.11.52.4-0.62004

31.76.59.9-6.910.2-3.68.23.23.3-3.0-9.49.02.92005

JUN

-11.9

39.5

-29.3

26.3

28.5

Total return

-7.7

-4.9

-1.9

-4.9

2.4

AUG

-6.7

9.4

-5.1

8.2

5.5

SEP

-0.4

-1.0

-2.7

7.2

5.3

OCT

5.4

-0.2

-9.6

11.2

NOV

4.9

0.1

-0.8

2.3

DEC

-6.7

-3.8

-7.8

0.2

6.3

JAN

-1.2

-1.6

1.8

-1.5

-4.7

FEB

9.9

1.3

-3.1

0.3

1.4

MAR

4.3

6.5

-2.0

6.2

9.3

APR

-4.1

13.7

-4.0

7.7

-8.0

MAY

0.1

-4.9

-5.0

2.6

-2.8

1.2

10.9

-4.0

9.9

-1.1

JUL

2011

2009

2008

2007

2006

Asia markets strategy % performance (net of fees - USD) as of 31.10.2011

Source: Pictet Asset Management, data from 31/07/2002-31/10/2011, in USD net of fees. Past performance is no guarantee of future performance. The track record is a client strategy that Nidhi


total return strategy in July 2002 using long and short investments in Asian ex Japan countries. Pictet Asset Management claims compliance with the Global Investment Performance Standards (GIPS).

The data provided here is supplemental information.

• No double digit monthly loss since inception


Asia ex Japan long/short strategy performance

24.8%20.0%Annualised volatility

MSCI EM

Asia

Pictet Asia

ex Japan L/S

0.97%

0.46%

14.0%

237.3%

1.47%Sortino ratio

0.70%Sharpe ratio

16.6%Annualised return

313.0%Cumulative return



total return strategy in July 2002 using long and short investments in Asian ex Japan countries. Pictet Asset Management claims compliance with Global Investment Performance Standards (GIPS). The

data provided here is supplemental information.* Data as at end of October 2011.

MSCI EM Asia

Pictet Asia ex Japan L/S

-10.1%19.4%74.2%-52.8%41.6%33.2%27.5%15.3%51.0%-8.7%

-11.9%9.4%39.5%-29.3%26.3%28.5%31.7%18.1%69.0%2.0%

2011*201020092008200720062005200420032002

Portfolio in USD, net of fees versus MSCI EM Asia

Pictet Asia ex Japan L/S

0

100

200

300

400

500

600

Jul-

02

May

-03

Mar

-04

Jan-

05

Nov

-05

Sep-

06

Jul-

07

May

-08

Mar

-09

Jan-

10

Nov

-10

Sep-

11

MSCI EM Asia


Capturing the upside

12.7%

10.9%

6.7%

Jul-09

12.8%16.7%7.7%11.8%15.1%MSCI EM Asia

9.1%6.5%6.3%8.2%13.7%Pictet Asia ex

Japan L/S strategy

Average 5

best

months

April-09Jan-06Sept-07May-09

7.8%6.7%6.8%7.0%11.7%Eurekahedge Asia

Ex Japan L/S

On average over the 5 best-

performing months of the

Eurekahedge Asia Ex Japan

L/S, the strategy outperformed

the Eurekahedge peer group

Source: Bloomberg and Pictet Asset Management, data from 31/07/2002-31/10/2011, in USD net of fees. Past performance is no guarantee of future performance. The track record is a client strategy

that Nidhi Mahurkar has managed since July 1996 and brought to Pictet in May 2001 and has managed throughout her tenure with Pictet Asset Management. A long only mandate at inception the fund

adopted a total return strategy in July 2002 using long and short investments in Asian ex Japan countries. Pictet Asset Management claims compliance with Global Investment Performance Standards

(GIPS). The data provided here is supplemental information.

5 best months of the Eurekahedge Asia Ex Japan L/S, in USD net since July 2002

0

36

9

1215

18

May-09 Sep-07 Jan-06 Apr-09 Jul-09 Average 5

best months

Eurekahedge Asia Ex Japan L/S Pictet Strategy MSCI EM Asia

%


Protecting the downside

-12.5%

-5.0%

-6.3%

Jun-08

-16.0%

-5.5%

-8.1%

Average 5

worst

months

-16.6%-14.3%-12.7%-24.1%MSCI EM Asia

-5.1%-7.8%-6.7%-2.7%Pictet Asia ex Japan

L/S strategy

Sep-08Jan-08Sep-11Oct-08

-7.4%-8.4%-8.5%-9.8%Eurekahedge Asia

Ex Japan L/S

When Eurekahedge Asian peer

group suffered their largest

negative performance, the

strategy successfully

controlled losses

Source: Bloomberg and Pictet Asset Management, data from 31/07/2002-31/10/2011, in USD net of fees. Past performance is no guarantee of future performance. The track record is a client strategy

that Nidhi Mahurkar has managed since July 1996 and brought to Pictet in May 2001 and has managed throughout her tenure with Pictet Asset Management. A long only mandate at inception the fund

adopted a total return strategy in July 2002 using long and short investments in Asian ex Japan countries. Pictet Asset Management claims compliance with Global Investment Performance Standards

(GIPS). The data provided here is supplemental information.

5 worst months of the Eurekahedge Asia Ex Japan L/S, in USD net since July 2002

-25

-20

-15

-10

-5

0

Oct-08 Sep-11 Jan-08 Sep-08 Jun-08 Average 5

worst months

Eurekahedge Asia Ex Japan L/S Pictet Strategy MSCI EM Asia

%

Investment approach

3


Our key beliefs

• Bottom-up investing is the key to success in equity

markets over time

• Only cash flows matter, not reported earnings

• Look for non-linear growth opportunities in Asia

• Valuation focused approach, we also look at prospects

• Filter out the noise and avoid overcrowded trades

• Take advantage of momentum based mispricing

• Greater market inefficiencies persist in Asia providing

a favourable environment for stock picking

15Pictet Total Return-Banyan

Investment process summary

IDEA

GENERATION

PROPRIETARY QUANTITATIVE

SCREENING

Focus on free cash-flow

QUALITATIVE IDEA SOURCING

Pictet equity analysts

External research network

PORTFOLIO

CONSTRUCTION

Scenario based risk reward

assessment

HOLT Cash Flow Return on

Investment

Market Expectations - What is

priced in

MEET & EVALUATE MANAGEMENT

Industry factors

Franchise factors

Management track-record

Corporate governance

TYPICAL EXPOSURE

Gross: 100-170%

Net: 40-90%

POSITIONS

Long: 20-60

Short: 0-30

SCALING AND SIZING POSITIONS

±2,000companies±1200 Large & Mid Caps

( > USD 500m)

±800 Small Caps

( USD 250-500m)

FUNDAMENTAL

ANALYSIS

±150companies

RISK

MANAGEMENT

INVESTMENT TEAM

Pro-actively managing risk

Dynamic stop loss

INDEPENDENT RISK TEAM

Value at Risk

Liquidity

Leverage

50 - 90Positions

CLOSING DISCIPLINESFIVE ALPHA OPPORTUNITIESQUINTILE RANKING DAILY RISK REPORT

GLOBAL MACRO ECONOMIC AND SECTOR VIEWS


Output ~150 Companies

Systematic, repeatable and reliable process

QUANTITATIVE

PROPRIETARY SCREENING MODEL

updated weekly

3 stock specific filters

• Valuation

• Earnings revisions momentum

• Earnings quality

Focus on free cash flow

Databases

QUALITATIVE

• Management meetings

(~ 400 per annum)

• Industry contacts

• Pictet research analysts

• Sell side research

• Intelligence networks

• Buy side contacts

Output ~150

Companies

List of potential longs and

shorts grouped in quintiles

Output ~150 Companies

Idea generation


Fundamental analysis: five alpha opportunities

Unexpected negative earnings surprises

ShortsLongs

5

4

3

2

1

No shorting of small cap stocksOverlooked, under-researched securities with high

potential alpha based on competitive advantage,

can include potential M&A targets

Small caps

Unexpected positive earnings surprisesEarnings surprise

Overly optimistic expectations resulting in

unsustainable valuations, catalyst needed to correct

mispricing

Unjustifiably pessimistic market expectations,

undervalued assets and cash flows, catalysts

needed to correct mispricing

Mispriced

securities

Negative management change, overly aggressive

M&A, overleveraging of balance sheets, negative

shift in industry dynamics

Cost cutting, asset disposals, deleveraging, positive

management change or positive shift in industry

dynamics

Restructuring /

turnaround plays

Competitively disadvantaged companies, flawed

business models, poor cash flow generation,

unattractive valuation

Companies with dominant market positions,

consistently strong operations, attractive cash flow

characteristics on relatively inexpensive valuations

Structural winners /

losers


Portfolio construction

100-170%Typical gross exposure*

1-3% at costTypical short positions

1.5-5% at costTypical long positions

20% at single stock level, 50 bps at portfolio level Dynamic stop loss (shorts only)

40-90%Typical net exposure*

The fund is denominated in USD. Currency risk

Contracts for Difference, Options, Indices, Stock Futures,

Total Return Swaps Short exposure

Single stocks, Contracts for Difference, Options, IndicesLong exposure

50-90 (longs: 20-60, shorts: 0-30)Number of positions

* Excluding extreme market conditions - These figures represent anticipated typical exposure and not limits. There may be occasions

when we are net short.

Closing disciplines

• continuous monitoring of

expectations

• better opportunities

• disciplined price targets

• thesis no longer valid

• technical analysis


-20%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

220%

240%

260%

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

MSCI EM Asia TRI USD Cuml. Return GROSS NET

Asia ex Japan long/short strategy net and gross exposure

Take directional risk exploiting

the long term outperformance

of Asia ex Japan

Long and short approach across

macro environment

Defensive positioning in poor

markets

Source: Pictet Asset Management, data from 31/07/2002-31/10/2011, in USD net of fees. Past performance is no guarantee of future

performance. The track record is a client strategy that Nidhi Mahurkar has managed since July 1996 and brought to Pictet in May 2001

and has managed throughout her tenure with Pictet Asset Management. A long only mandate at inception the fund adopted a total return

strategy in July 2002 using long and short investments in Asian ex Japan countries. Pictet Asset Management claims compliance with

Global Investment Performance Standards (GIPS). The data provided here is supplemental information.

Net and gross exposure since July 2002

% o

f A

UM

Cum

ula

tive

Retu

rns

August 07

May 09


Risk management and monitoring

Investment team responsible for

daily risk control

Independent risk team responsible

for ongoing monitoring of risk:

- Volatility

- Exposure limits

- VaR

- Individual stock limits

- Portfolio concentration

- Single factor exposure

- Market cap

- Liquidity

- Country & sector breakdown

- Stress testing

Risk tool – APT

Regular formal review with Head of

Performance and Risk and Head of

Total Return Equities

OVERALL

PORTFOLIO

• On-going monitoring of

overall risk

characteristics

• Analysis of major

common risk sources

• Liquidity constraints:

90% of the total portfolio

can be liquidated in 1

week

• Gross and Net exposure

EXCEPTIONS

• Any breaches or problems

are immediately brought

to the attention of the

investment manager

• Investment manager to

take appropriate action

INDIVIDUAL

SEGMENT LEVEL

• Liquidity

• Long - Mkt Cap>USD500m

• Short - Mkt Cap >USD1bn

• Long Small Cap - Max 10%

(Mkt Cap USD250m –

USD500m)

• Price movement greater

than 15% triggers a review

• Analysis of diversification

of bets and success rate of

different types of bets


Portfolio composition &

technical details

4


2.7Tata Motors

2.7Li & Fung

3.1Itc – Dematerialised

3.4Hdfc Bank

2.9Hero Motocorp

Top 5 long positions in %

Portfolio allocation Asia ex Japan long/short strategy

Long

-2.6

0.0

0.0

-8.4

0.0

-5.2

-2.1

0.0

0.0

Short

2.4Utilities

0.7Telecom. Services

0.0IT

15.6Financials

7.7Cons. Staples

16.2Cons. Discretionary

7.0Industrials

7.5Materials

Sector breakdown in %

7.9Energy

ShortLongCountry breakdown in %

0.0

-2.1

0.0

0.0

0.0

-5.2

-11.1

0.5Thailand

5.3Singapore

0.7Philippines

3.1Indonesia

26.5India

4.2Hong Kong

24.7China

Source: Pictet Asset Management, as at 31 October 2011. Nidhi Mahurkar has managed this strategy since July 1996. She brought it to Pictet in May 2001 and has managed it throughout her tenure with

Pictet Asset Management. A long only mandate at inception the fund adopted a total return strategy in July 2002 using long and short investments in Asian ex Japan countries.

83.4Gross

46.7Net

Exposure in %


-6.122.7USD 5b-15b

-2.710.7USD 1b-5b

ShortLong%

-18.3

-9.5

0.0

27.0More than USD 15b

4.7Less than USD 1b

65.1Total

Market cap analysis

ShortLong%

100.0

0.0

0.5

99.5

100.0Total*

4.61 to 5 days

95.0Less than 1 day

0.4More than 5 days

Days to liquidate*

Portfolio allocation Asia ex Japan long/short strategy

* Days to liquidate positions in the portfolio using one fifth of the average three months trading volume

Source: Pictet Asset Management, as at 31 October 2011.Nidhi Mahurkar has managed this strategy since July 1996. She brought it to Pictet in May 2001 and has managed it throughout her tenure

with Pictet Asset Management. A long only mandate at inception the fund adopted a total return strategy in July 2002 using long and short investments in Asian ex Japan countries.



P USD P USD LU0637929778

I USD* I USD LU0637929265

Class ISIN Code

1.60%

1.10%

Management Fee

0.40%

Adm & Custody Fees

0.40%

(*) Minimum initial investment: USD 1,000,000

• Reference currency: USD

• Legal status: Luxembourg SICAV - Part I - UCITS

• EU Saving Directive: in scope, tax

• NAV calculation: weekly on Friday

• Notice period: 5 business days prior to NAV (5pm on Friday, Luxembourg time)

• Performance fee: 20% with high watermark

• Hurdle rate: USD LIBOR 3 months

• Launch date: 2 November 2011

• Hedged share classes: available on demand (EUR, GBP, CHF)

Conclusion

5


Pictet Total Return-Banyan – Concluding messages

Proven ability to produce

excellent returns by

capturing Asian market

growth while offering

downside protection

A portfolio management

team with extensive

emerging markets

experience, local language

skills and a local network

of contacts

The strategy has delivered

16.6% per annum (in USD,

net of fees) versus 14.0%

MSCI EM Asia with lower

volatility

UCITS compliant with

weekly liquidity

LONG/SHORT STRATEGY INVESTMENT TEAM

COMPELLING

RISK RETURN PROFILE LEGAL FRAMEWORK



total return strategy in July 2002 using long and short investments in Asian ex Japan countries. Pictet Asset Management claims compliance with Global Investment Performance Standards (GIPS). The

data provided here is supplemental information.

Appendices

6


Fundamental analysis

Source: Pictet Asset Management, data from Sept 2002 to September 2011. Gross allocation, rebased to 100. The track record is a client strategy that Nidhi Mahurkar has managed since July 1996

and brought to Pictet in May 2001 and has managed throughout her tenure with Pictet Asset Management. A long only mandate at inception the fund adopted a total return strategy in July 2002 using

long and short investments in Asian ex Japan countries.

0

50

100

150

200

250Se

p-02

Mar

-03

Sep-

03

Mar

-04

Sep-

04

Mar

-05

Sep-

05

Mar

-06

Sep-

06

Mar

-07

Sep-

07

Mar

-08

Sep-

08

Mar

-09

Sep-

09

Mar

-10

Sep-

10

Mar

-11

Sep-

11

Gro

ss e

xpos

ure

%

Structural winners / losers Restructuring /

Turnaround plays

Mispriced

securities

Earnings

surprise

Small

Cap

Portfolio allocation September 2002 – September 2011

Managing beta & exploiting alpha opportunities


Long – structural winner: Bank Rakyat (Indonesia)

• Leader in microfinance (32% of loans) in Indonesia with the best

operating metrics of almost any bank in the world driven by

ongoing demand for high yield consumer credit

• Good credit quality, rising pre-provision profitability

• Screens as cheap relative to growth and profitability at 10.2 x

2012 P/E, 2.6x 2012 P/B for a 31% ROE and strong positive

earnings revisions

Source: Pictet Asset Management, as at 27 September 2011.

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

Mar

10

Apr

10

May

10

Jun

10

Jul 1

0

Aug

10

Sep

10

Oct

10

Nov

10

Dec

10

Jan

11

Feb

11

Mar

11

Apr

11

May

11

Jun

11

Jul 1

1

Aug

11

Last Price Source : Bloomberg

We believe no other

Indonesian bank can seriously

compete with BRI’s dominance

in the sub IDR 50m loan

category – where it has

already cornered the market

Bank Rakyat (YTD +9.5%)


Long – structural winner: ITC (India)

• India’s leading diversified consumer goods company -market leader

in cigarettes and a portfolio of strong consumer brands

• Strongly rising operating and free cash flow driven by higher profits

from cigarettes

• ROEs rising sharply as the company has increased dividend pay

out ratio from 50-80%

• Non cigarette capex stable and declining as percentage of cash

flow – efficiency ratios moving in the right direction

• Still on a high growth trajectory with strong earnings revisions

Source: Pictet Asset Management, as at 27 September 2011.

70

90

110

130

150

170

190

210

230

Mar 09

May

09

Jul 0

9

Sep

09

Nov

09

Jan

10

Mar 10

May

10

Jul 1

0

Sep

10

Nov

10

Jan

11

Mar 11

May

11

Jul 1

1


We believe the stock is still

cheap relative to consumer

peers in Asia

ITC (YTD +11%)


Short – mispriced security: Sinopharm (China)

• The largest pharmacy distributor in China screening as grossly

overvalued

• Red Alert on our screen with P/E 28x, price/cash flow 23x, P/B 2.6x

vs 12% ROE - poorly valued on HOLT cash flow returns

• Highly exposed to government policy changes

• Negative catalyst as NDRC announced first batch of pricing cuts on

provincial drug tenders

• The company's balance sheet showed considerable deterioration

• Closed short after 23% return

Our quantitative screen

highlights Sinopharm - an

expensive stock with very poor

cashflow generation

15

17

19

21

23

25

27

29

31

31 M

ay 1

1

07 J

un 1

1

14 J

un 1

1

21 J

un 1

1

28 J

un 1

1

05 J

ul 1

1

12 J

ul 1

1

19 J

ul 1

1

26 J

ul 1

1

02 A

ug 1

1

09 A

ug 1

1

16 A

ug 1

1

23 A

ug 1

1

30 A

ug 1

1

06 S

ep 1

1


Sinopharm

Source: Pictet Asset Management, as at 27 September August 2011.

Short

Cover Position closed

end SeptemberCover


Short – structural loser: Agricultural Bank of China (China)

• Low LDR with no way to leverage as monetary policy will not loosen

in 2H

• Early signs of NPL risks in Local Government Financing Vehicles

• Valuation at 1.7x P/B , 20% ROE extremely vulnerable as medium

term ROE likely to fade to 14% on our scenario analysis

• The bank went through the IPO price and derated from P/B1.7x to

P/B1.1x 1 year forward - P/B in a space of 6 months - position

closed Source: Pictet Asset Management, as at 27 September 2011.

Two key valuation drags:

capital raising pressure &

asset quality likely to affect

the bank's earnings and

growth strategy in a negative

way

Agricultural Bank of China: 32% return

2.00

2.40

2.80

3.20

3.60

4.00

4.40

4.80

5.20

25

-Feb

-11

11

-Ma

r-1

1

25

-Ma

r-1

1

08

-Ap

r-1

1

22

-Ap

r-1

1

06

-Ma

y-1

1

20

-Ma

y-1

1

03

-Ju

n-1

1

17

-Ju

n-1

1

01

-Ju

l-1

1

15

-Ju

l-1

1

29

-Ju

l-1

1

12

-Au

g-1

1

26

-Au

g-1

1

09

-Sep

-11

23

-Sep

-11

Last price Source: Bloomberg

ShortShort

Position closed

end September


Differentiation versus Asian and Global Hedge Funds

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

R Squared R Squared in Up Markets R Squared in Down Markets

Eurekahedge Asia ex Japan Long/Short Equity Dow Jones Credit Suisse Hedge Fund Index MSCI EM Asia

0.280.610.66Pictet Asia ex Japan L/S strategy

Beta in down

markets

Beta in up

marketsBeta

0.150.280.61MSCI EM Asia

0.020.310.36Dow Jones Credit Suisse Hedge Fund

Index

R Squared in

down markets

R Squared in

up marketsR Squared

0.110.480.63Eurekahedge Asia ex Japan Long/Short

Equity

Differentiated from Asian and

global hedge funds,

particularly in down markets

Demonstrated high ability to

generate returns independently

from market movements

Source: Hedge Fund Intelligence, MSCI, Dow Jones Credit Suisse, 24 August 2011

Past performance is no guarantee of future performance. The track record is a client strategy that Nidhi Mahurkar has managed since July 1996 and brought to Pictet in May 2001 and has managed

throughout her tenure with Pictet Asset Management. A long only mandate at inception the fund adopted a total return strategy in July 2002 using long and short investments in Asian ex Japan countries.


Why Asia ex Japan equities long/short?

Risk-return profile versus other hedge fund strategies and markets

Source: Pictet Asset Management, data from July 2002 to October 2011, in USD net of fees. Past performance is no guarantee of future performance. The track record is a client strategy that Nidhi


total return strategy in July 2002 using long and short investments in Asian ex Japan countries.

31.07.2002-31.10.2011

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

0% 5% 10% 15% 20% 25% 30%

Annualized Volatility

Annu

aliz

ed R

etur

n

Pictet Asia ex Japan L/S Strategy MSCI EM Asia Eurekahedge Asia ex Japan L/S

MSCI World Citigroup WGBI CS EM Hedge Fund Index


Investment team


Nidhi joined Pictet Asset Management in 2001

from Lazard Asset Management where she focused

on country funds and global emerging markets

sector research, covering utilities, financials and

technology. Prior to Lazard, she worked at

American Express Bank.

At Pictet Nidhi has been managing a Asia total

return strategy since 2002. Prior to her current

position she has been leading Asia ex Japan and

Global Emerging Markets portfolio construction

teams.

Nidhi is born and educated in India She graduated

with a first class honours degree in Economics

from M.S. University, Vadodara and has a MBA

from the Indian institute of Management,

Bangalore.

Nidhi is fluent in English, Hindi and Marathi.


Anthony joined Pictet Asset Management in

May 2011. Anthony was previously at

Gartmore Investment Management as an

investment manager in the global emerging

markets team, specialising in China and

industrials. Before Gartmore, he worked at

ABN AMRO Asset Management and Central

Asset Investments in Hong Kong covering

long/short Asian strategies.

Anthony is born and brought up in Hong Kong.

He has a first class BSc in Economics from

the London School of Economics.

Anthony is fluent in English, Mandarin and

Cantonese.

Olivier DoleiresInvestment Manager

Olivier joined Pictet & Cie in 1999 and moved to

Pictet Asset Management in 2000. Before joining

the Pictet Total Return-Banyan team, Olivier spent

5 years as an Investment Manager in the Multi-

Asset and Total-Return team in Geneva where he

was managing Absolute Return funds.

At the beginning of his career at Pictet Asset

Management, Olivier spent six years in London and

Geneva setting up the Hedge Funds Servicing unit.

Olivier obtained a Certificat Fédéral de Capacité in

Banking from the Commercial School in Fribourg

and holds an Investment Administration

Qualification (IAQ) from the Securities Institute

London. He is also a Chartered Alternative

Investment Analyst (CAIA).

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 reports may be relied upon as 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 reflect a judgment at the original date of publication and are subject to change without notice. Pictet Funds (Europe) S.A. has not taken any

steps to ensure that 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 depends on 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 them in 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 factors 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

marketing 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 in the fund or funds mentioned in this document.

This document is for professional investors only.

www.pictet.com

Pictet Asset Management SARoute des Acacias 60, 1211 Geneva 73

Pictet Asset Management LimitedAuthorised and regulated by the Financial Services Authority

Moor House, Level 11

120 London Wall

London EC2Y 5ET

For more information, please contact:

Risk factors

The value of an investment can go down as well as up and investors may not get back the full amount invested. The value of overseas securities will be subject to exchange rate fluctuations. Any views or opinions expressed in the preparation of this document are based upon sources believed to be reliable, but no representation or warranty is given as to the accuracy or completeness of those sources.

pictet total return banyan oct2011

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