G:\ACG\Service Lines\IMS\Rapport\clients\Pictet\_FSPREPA\Blakeney\final\2357 A 30,06,05 E 08,06,05,doc BLAKENEY INVESTORS

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1 G:\ACG\Service Lines\IMS\Rapport\clients\Pictet\_FSPREPA\Blakeney\final\2357 A 30,06,05 E 08,06,05,doc BLAKENEY INVESTORS Investment Company with Variable Capital Luxembourg (the SICAV ) AUDITED ANNUAL REPORT R.C.S. Luxembourg B No subscriptions can be received solely on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual and the most recent semi-annual report, if published thereafter.

2 T A B L E O F C O N T E N T S ORGANISATION OF THE SICAV 1 GENERAL INFORMATION 2 SHAREHOLDERS INFORMATION 2 CHAIRMAN S STATEMENT 3 REPORT OF THE REVISEUR D ENTREPRISES AGREE 4 FINANCIAL STATEMENTS - Statement of Net Assets 6 - Statement of Operations 8 - Statement of Changes in Net Assets 9 - Changes in the Number of Shares Outstanding and Statistics 10 - Statement of Investments and Other Net Assets 13 - Geographical Classification of Investments 20 - Industrial Classification of Investments 21 NOTES TO THE FINANCIAL STATEMENTS 22

3 ORGANISATION OF THE SICAV REGISTERED OFFICE 1, boulevard Royal, L-2449 Luxembourg BOARD OF DIRECTORS Chairman Mr Nigel D. PILKINGTON, Head of SEB Venture Capital, United Kingdom Members Mr Francis FINLAY, Chairman Boyer Allan Holdings, Chairman EastWest Institute, New York Mr Christian SOGUEL, Senior Vice President, Pictet Funds S.A., Geneva (until May 31, 2011) Mr Caspar ROMER, Partner, Blakeney LLP, London Mr Daniel FAES, Senior Vice President, Pictet & Cie, Geneva Mr Frédéric FASEL, Senior Vice President, Pictet & Cie (Europe) S.A, Luxembourg Mr Jerry HILGER, Vice President, Pictet & Cie (Europe) S.A., Luxembourg (until November 2, 2010) Mr Henri Christophe OPPENHEIM, Director, Pictet & Cie (Europe) S.A., Luxembourg (from January 18, 2011) CUSTODIAN, PAYING, DOMICILIARY, REGISTRAR, TRANSFER, CORPORATE AND ADMINISTRATIVE AGENT Pictet & Cie (Europe) S.A., 1, boulevard Royal, L-2449 Luxembourg INVESTMENT ADVISER Blakeney LLP, 29 Chelsea Wharf, Lots Road, London SW10 OQJ AUDITOR / CABINET DE REVISION AGREE Deloitte S.A., 560, rue de Neudorf, L-2220 Luxembourg PROMOTER Blakeney LLP, 29 Chelsea Wharf, Lots Road, London SW10 OQJ CO-PROMOTER Pictet & Cie (Europe) S.A., 1, boulevard Royal, L-2449 Luxembourg LEGAL ADVISER Elvinger, Hoss & Prussen, 2, place Winston Churchill, L-2014 Luxembourg - 1 -

4 GENERAL INFORMATION Audited annual reports and unaudited semi-annual reports are made available to the shareholders free of charge at the registered office of the SICAV and the address of the Custodian and any Paying Agent. The net asset value per share, the issue price and the redemption price are available, in Luxembourg, at the registered office of the SICAV and the address of the Custodian and any Paying Agent. The net asset value is calculated on the last working day of each month. The latest net asset value per share is also published daily in the Financial Times in the Luxembourg section of their offshore funds listing. Any amendment to the articles of incorporation is published in the Mémorial, Recueil Spécial des Sociétés et Associations, of the Grand-Duchy of Luxembourg. A detailed schedule of changes in the investments for the reporting period is available free of charge upon request at the registered office of the SICAV. The figures presented in this annual report are related to the net asset value of the SICAV, which is calculated using the closing prices and exchange rates prevailing at June 30, SHAREHOLDERS INFORMATION Blakeney LLP, the Investment Adviser, in its Memo to Shareholders series, provides regular information concerning the progress of Blakeney Investors. Any shareholder or prospective shareholder who wishes to receive this publication should contact Blakeney LLP at the address shown on page

5 CHAIRMAN S STATEMENT Over the past twelve months Blakeney Investors recorded a 9% rise in the net asset value of its Original Share Series, which rose to USD on June 30, 2011 from USD one year earlier. Reminiscent of the prior year, gains were concentrated in the first half of the period, with the Fund gaining almost 14% by April However, generalised weakness in May and June, as fears grew over the outlook for global growth, caused a sell off in risk assets worldwide and a 5% fall in the Fund s NAV. The first half of 2011 saw much of the Middle East convulsed by the Arab Spring, a movement for political change and modernisation that spread rapidly from Tunisia to Egypt and thence to Libya, Yemen and Syria, toppling or threatening to topple family run regimes that had long outlived their dubious nomenclature of Republics. Change has also come to many of the region s monarchies. Although less disruptive, political reform is in the air and monarchies as disparate as Morocco, Jordan and Oman have surrendered some legislative powers to directly elected bodies. It remains unclear how these transitions will be effected and what will replace existing political structures, many of which have been in place for two or more decades. However, the idea that many of the region s 200m inhabitants could move toward a more transparent, modern and representative political system is to be welcomed. Accompanied by a rise in economic growth, as deeply imbedded practises, sometimes corrupt and often bureaucratic, are no longer borne by the population, the medium term outlook for the region is unquestionably better than before. Notwithstanding the region s political unrest, over the twelve months under review a number of Middle East markets recorded solid gains, in particular the markets of Saudi Arabia, Qatar and Abu Dhabi. By comparison, those markets at the centre of the political maelstrom came under pressure, with Tunisia and Egypt falling 12% and 22% respectively over the first six months of Due to concerns over the valuation of their equity markets, the Fund s collective exposure to both countries stood at just over 2% by the end of 2010, limiting the impact upon performance. In Africa, Mauritius recorded another year of strong gains, though Nigeria remained more or less flat over the twelve months owing to investor concerns over the May 2011 Presidential elections, which passed largely without incident. Away from politics the underlying economies of the Middle East and Sub-Saharan Africa have continued to grow, with average forecast GDP growth rates of around 4% and 6% respectively across 2011 and However, many countries will enjoy growth rates that far outstrip these regional averages; Nigeria and Qatar, where 30% of the Fund is invested, are expected to post average GDP growth in excess of 7% and 13% respectively over 2011 and Strengthening economic growth continues to help drive earnings across the portfolio. Having risen by almost 20% in 2010, the average growth in earnings per share for 2011 and 2012 is expected to be around 25%, toward the upper end of the long term run rate. With earnings accelerating across the portfolio, valuations have remained extremely attractive. Standing on just over 7x prospective earnings for 2012, a dividend yield of 6.5% and valued at just over one times book the portfolio continues to stand on historically low valuations. For a more in-depth review of the portfolio and investment strategy please refer to the investment manager s regular Memos or contact Blakeney directly. I know that its Partners welcome and value communication with their investors. Nigel D. PILKINGTON Chairman August,

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7 Deloitte. Opinion In our opinion, Lhe financial statements give a true and fair view of the financial position of BLAKENEY INVESTORS as at June 30, 20 I L and of lhe results of its operations and changes in its net assets for the year Lhen ended in accordance with the Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other mauer Supplementary information included in Lhe annual report has been revie..,ved in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. llowever. we have no observation to make concerning such information in the context of the financial statements taken as a whole. For Deloitte S.A., Cabinet de revision agree Luxembourg. October II 560. rue de Ncudorf L-2220 Luxembourg - 5-

8 STATEMENT OF NET ASSETS (expressed in USD) ASSETS Investments in securities at acquisition cost 285,237, Net unrealised gain on investments 42,243, Investments in securities at fair value (note 2) 327,480, Cash at banks 28,824, Interest receivable 63, ,368, LIABILITIES Investment advisory fee payable (note 3) 508, Performance fee payable (note 3) 25, "Taxe d abonnement" payable (note 6) 44, Other fees payable (note 5) 571, ,149, TOTAL NET ASSETS 355,219, Number of shares Initial Series outstanding 7,515,422 Net asset value per share Initial Series Number of shares Series 0808 outstanding 373,350 Net asset value per share Series Number of shares Series 1108 outstanding 7,638,986 Net asset value per share Series Number of shares Series 0809 outstanding 503,284 Net asset value per share Series Number of shares Series 0909 outstanding 282,178 Net asset value per share Series Number of shares Series 1009 outstanding 121,782 Net asset value per share Series Number of shares Series 1109 outstanding 841,584 Net asset value per share Series

9 STATEMENT OF NET ASSETS (expressed in USD) Number of shares Series 1209 outstanding 1,227,723 Net asset value per share Series Number of shares Series 0210 outstanding 3,131 Net asset value per share Series Number of shares Series 0410 outstanding 80,347 Net asset value per share Series Number of shares Series 0910 outstanding 304,455 Net asset value per share Series Number of shares Series 1110 outstanding 298,020 Net asset value per share Series Number of shares Series 0611 outstanding 128,710 Net asset value per share Series

10 STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 2011 (expressed in USD) INCOME Dividends, net (note 6) 11,841, Bank interest 62, Bond interest, net 48, Other income (note 4) 189, ,142, EXPENSES Investment advisory fee (note 3) 6,258, Custodian fee, bank charges and interest 1,082, Performance fee (note 3) 25, "Taxe d abonnement" (note 6) 181, Administration, audit and other expenses 778, ,326, NET INVESTMENT GAIN 3,815, Net realised loss on sales of investments (16,498,185.51) Net realised loss on foreign exchange (258,660.09) Net realised loss on forward contracts (23,844.77) NET REALISED LOSS (12,964,826.07) Change in net unrealised appreciation on investments 42,692, INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 29,727,

11 STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2011 (expressed in USD) Net assets at the beginning of the year 328,268, Net investment gain 3,815, Net realised loss on sales of investments (16,498,185.51) Net realised loss on foreign exchange (258,660.09) Net realised loss on forward contracts (23,844.77) NET REALISED LOSS (12,964,826.07) Change in net unrealised appreciation on investments 42,692, INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 29,727, Proceeds from subscription of shares 94,091, Cost of shares redeemed (96,867,253.94) NET ASSETS AT JUNE 30, ,219, NET ASSETS AT JUNE 30, ,268, NET ASSETS AT JUNE 30, ,452,

12 CHANGES IN THE NUMBER OF SHARES OUTSTANDING AND STATISTICS FOR THE YEAR ENDED JUNE 30, 2011 Number of shares outstanding : Initial Series Series Series Series Series Series At the beginning of the year 7,765, , ,515 1,928, , ,284 Issued - - 7,599, Redeemed (250,369) (121,700) (108,599) (1,928,554) (936,337) - At the end of the year 7,515, ,350 7,638, ,284 Net asset value per share : USD USD USD USD USD USD At June 30, At June 30, At June 30, Highest during the year ( ) ( ) ( ) ( ) Lowest during the year ( ) ( ) ( ) ( )

13 CHANGES IN THE NUMBER OF SHARES OUTSTANDING AND STATISTICS FOR THE YEAR ENDED JUNE 30, 2011 Number of shares outstanding : Series Series Series Series Series Series At the beginning of the year 282, , ,386 1,227,723 37,784 80,347 Issued Redeemed - - (19,802) - (34,653) - At the end of the year 282, , ,584 1,227,723 3,131 80,347 Net asset value per share : USD USD USD USD USD USD At June 30, At June 30, At June 30, Highest during the year ( ) (28.04./11) ( ) ( ) ( ) ( ) Lowest during the year ( ) ( ) ( ) ( ) ( ) ( )

14 CHANGES IN THE NUMBER OF SHARES OUTSTANDING AND STATISTICS FOR THE YEAR ENDED JUNE 30, 2011 Number of shares outstanding : Series Series Series Series Series At the beginning of the year 4,950, Issued 0 77, , , ,710 Redeemed (4,950,495) (77,874) At the end of the year , , ,710 Net asset value per share : USD USD USD USD USD At June 30, At June 30, At June 30, Highest during the year ( ) ( ) ( ) Lowest during the year ( ) ( ) ( )

15 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS (expressed in USD) Description Quantity Fair value (note 2) % of net assets I. TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE OR DEALT IN ON ANOTHER REGULATED MARKET A. SHARES AUSTRALIA COAL OF AFRICA (GBP) (1) 2,172,412 2,615, LONRHO MINING (1) 18,300, , ,301, BAHRAIN BAHRAIN TELECOMMUNICATION (BATELCO) 2,157,412 2,563, ,563, BERMUDA GULF KEYSTONE PETROLEUM (1) 1,992,800 4,431, MADAGASCAR OIL (1) 637, , MADAGASCAR OIL (GBP) (1) 1,260, , ,443, CANADA HANA MINING (1) 1,440,000 2,163, NEW HANA COPPER MINING (1) 275,000 95, ,258, EGYPT SIXTH OF OCTOBER DEV. & INVEST. 250,000 2,600, ,600, GUERNSEY SHANTA GOLD (1) 4,892,000 1,757, ,757, IRELAND KENMARE RESOURCES (1) 6,726,744 6,366, PETROCELTIC INTERNATIONAL (1) 15,100,000 2,387, ,754, (1) Over one-third of the Company s sales or net assets are derived from Africa and/or the Middle East

16 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS (expressed in USD) Description Quantity Fair value (note 2) % of net assets JERSEY BELLZONE MINING (1) 2,720,000 1,812, ,812, KENYA EAST AFRICAN BREWERIES 2,233,721 4,876, SAFARICOM 48,591,852 2,148, ,025, KUWAIT GLOBAL INVESTMENT HOUSE 2,339, , , LEBANON BANK AUDI-SARADAR 135, , BANK AUDI 'B' GDR (R.1 SHS 'B') 782,980 5,715, BLOM BANK 'B' GDR (R.1 SHS 'B') 897,000 7,624, ,274, MAURITIUS CIEL INVESTMENT 21,159,000 2,770, MAURITIUS COMMERCIAL BANK 2,164,432 14,401, NEW MAURITIUS HOTELS 1,423,000 5,187, STATE BANK OF MAURITIUS 5,178,429 17,594, ,953, NIGERIA ACCESS BANK NIGERIA 162,307,974 7,554, DANGOTE CEMENT 41,213,980 35,122, FIRST BANK OF NIGERIA 74,191,452 6,079, GUARANTY TRUST BANK 72,082,031 7,362, ZENITH BANK 132,797,600 12,762, ,882, (1) Over one-third of the Company s sales or net assets are derived from Africa and/or the Middle East

17 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS (expressed in USD) Description Quantity Fair value (note 2) % of net assets OMAN BANK MUSCAT 4,944,358 9,527, ,527, PALESTINE BANK OF PALESTINE 1,134,006 3,424, PADICO 3,385,865 3,927, PALESTINE TELECOMMUNICATION 1,070,100 7,896, ,248, QATAR COMMERCIAL BANK OF QATAR 522,600 10,347, QATAR INSURANCE 272,200 5,979, QATAR NATIONAL BANK 194,750 7,540, ,867, SENEGAL SONATEL 68,396 21,920, ,920, TANZANIA CRDB BANK 15,720,714 1,752, ,752, TUNISIA BANQUE DE L'HABITAT 190,569 2,528, ,528, UNITED ARAB EMIRATES DEPA 5,230,000 2,824, EMIRATES NBD 4,153,000 4,692, FIRST GULF BANK 1,619,999 7,850, NATIONAL BANK OF ABU DHABI 4,071,939 12,194, SOROUH REAL ESTATE 9,619,450 3,221, ,783,

18 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS (expressed in USD) Description Quantity Fair value (note 2) % of net assets UNITED KINGDOM AFRICAN CONSOLIDATED RESOURCES (1) 4,020, , COVE ENERGY (1) 5,431,049 8,479, GMA RESOURCES (1) 1,197,805 14, KALAHARI MINERALS (1) 1,160,583 4,360, ,257, B. BONDS OMAN TOTAL A. 277,835, % BANKMUSCAT CV 09/14 52, , , TOTAL B. 150, C. STRUCTURED PRODUCTS NETHERLANDS HERFY FOOD (MS) P-NOTES ,819 5,262, TAWUNIYA NCCI (MS) P-NOTES (1) 412,811 6,908, ,171, (1) Over one-third of the Company s sales or net assets are derived from Africa and/or the Middle East

19 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS (expressed in USD) Description Quantity Fair value (note 2) % of net assets UNITED KINGDOM MOUWASAT (HSBC) P-NOTES ,915 4,941, SAMBA FINANC. (HSBC) ELN 08/11 399,203 5,323, SAUDI BRITISH BK (HSBC) ELN ,019 3,394, ,658, TOTAL C. 25,830, II. OTHER TRANSFERABLE SECURITIES A. SHARES CAYMAN ISLANDS TOTAL I. 303,815, GULF HOUSING SOLUTIONS LIMITED (1) 3,700, GUERNSEY WESTHOUSE TOBACCO HOLDINGS (1) 7,800, LEBANON SOLIDERE INTERNATIONAL SH. 46,300 3,657, ,657, LIBERIA AMLIB HOLDINGS 244, , , (1) Over one-third of the Company s sales or net assets are derived from Africa and/or the Middle East

20 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS (expressed in USD) Description Quantity Fair value (note 2) % of net assets MAURITIUS SEVEN ENERGY INT.CV LOAN PE. (Security to receive) 10,170 3,559, ,559, NIGERIA NOTORE CHEMICALS INDUSTRIES 1,140,000 3,078, ZENITH GENERAL INSURANCE CIE. LTD. 60,300,000 2,371, ,449, PORTUGAL AFRICA PORTUGAL TELECOM (1) 4,360,000 9,286, ,286, SOUTH AFRICA AFRICAN NICKEL 952, , , B. WARRANTS AUSTRALIA TOTAL A. 23,223, LONRHO MINING WTS (1) 1,500,000 8, , GUERNSEY WESTHOUSE TOBACCO H. WTS 'A' (1) 488, WESTHOUSE TOBACCO H. WTS 'B' (1) 488, (1) Over one-third of the Company s sales or net assets are derived from Africa and/or the Middle East

21 STATEMENT OF INVESTMENTS AND OTHER NET ASSETS (expressed in USD) Description Quantity Fair value (note 2) % of net assets LIBERIA AMLIB WTS. 53,040 23, , C. BONDS GUERNSEY TOTAL B. 31, STEP MCCROFT TOBAC. (L. STOCK) 07/08 (1) 488, UNITED KINGDOM 10 % GMA RESOURCES CV 12/12 (1) 255, , , TOTAL C. 409, TOTAL II. 23,664, TOTAL INVESTMENTS 327,480, CASH AT BANKS 28,824, OTHER NET LIABILITIES (1,085,548.51) (0.27) TOTAL NET ASSETS 355,219, (1) Over one-third of the Company s sales or net assets are derived from Africa and/or the Middle East

22 GEOGRAPHICAL CLASSIFICATION OF INVESTMENTS (in % of net assets) Nigeria Mauritius United Arab Emirates 8.67 United Kingdom (1) 7.70 Qatar 6.71 Senegal 6.17 Lebanon 5.05 Palestine 4.29 Netherlands (1) 3.42 Oman 2.72 Portugal (1) 2.61 Ireland (1) 2.46 Kenya 1.97 Bermuda (1) 1.54 Australia (1) 0.93 Egypt 0.73 Bahrain 0.72 Tunisia 0.71 Canada (1) 0.64 Jersey (1) 0.51 Guernsey (1) 0.49 Tanzania 0.49 South Africa 0.27 Liberia 0.10 Kuwait 0.09 Cayman Islands (1) (1) Over one-third of the Company s sales or net assets are derived from Africa and/or the Middle East

23 INDUSTRIAL CLASSIFICATION OF INVESTMENTS (in % of net assets) Bank and financial institutions Communications Natural resources Cement 9.89 Insurance 4.29 Consumer products 2.85 Other 2.78 Real estate 2.67 Tourism 1.46 Healthcare 1.39 Energy

24 NOTES TO THE FINANCIAL STATEMENTS NOTE 1 - GENERAL BLAKENEY INVESTORS (the "SICAV") is a "Société d'investissement à Capital Variable", which is an investment company with variable capital. The SICAV is governed by Luxembourg law and was established in accordance with the provisions of Part II of the amended Law, dated December 20, 2002, relating to undertakings for collective investment until December 17, As from this date, the SICAV is governed by Luxembourg law in accordance with the provisions of Part II of the Law dated December 17, The SICAV was incorporated for an indefinite period on July 11, 1995 and its articles of incorporation were published in the "Mémorial, Recueil Spécial des Sociétés et Associations du Grand-Duché de Luxembourg" on August 17, Blakeney Investors has an investment objective of achieving long term capital growth. The SICAV will primarily seek to achieve this by investing in a managed portfolio of securities of companies listed on the stock markets of non-oecd countries or of companies the majority of whose sales or assets are in non-oecd countries. The Board of Directors advised shareholders on July 27, 2011 that the 1108, 0809, 0909, 1109, 1209, 0210 and 0611 series of shares ended the financial year to 30th June 2011 above their respective benchmark NAVs. The 0809, 0909, 1109, 1209, 0210 and 0611 series were therefore converted, after payment of any accrued management and performance fees, into 1108 series shares, these being the earliest series of shares above their relevant benchmark NAV. The A, 0808, 1009, 0410, 0910 and 1110 series ended the year below their benchmark NAVs and were therefore not converted. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Presentation of financial statements The financial statements are presented in accordance with the legal reporting requirements applicable in Luxembourg. The net asset value per share is expressed in US Dollars (USD). b) Valuation of investment securities (1) Securities listed on an official stock exchange or traded on any other regulated market are valued at the last available price which is normally the closing price, unless such price is deemed not to be representative of the fair market value. (2) Securities not listed on a stock exchange or traded on any other regulated market and securities for which the last available price is not deemed by the Board of Directors of the SICAV to be representative of the fair market value, are valued prudently and in good faith by the Board of Directors of the SICAV. c) Net realised gain/(loss) on sales of investments The net realised gain/(loss) on sales of investments is calculated on the basis of average cost of investments sold

25 NOTES TO THE FINANCIAL STATEMENTS - continued - d) Foreign exchange translation The financial statements of the SICAV are expressed in USD. Assets and liabilities expressed in foreign currencies are translated into USD at exchange rates prevailing at the year-end. Transactions in foreign currencies are translated into USD at exchange rates prevailing at the transaction dates. Resulting realised and unrealised foreign exchange gains and losses are recognised in the Statement of Operations. The following exchange rates were used as at June 30, 2011: 1 USD = AED (UAE Dirham) 1 USD = AUD (Australian Dollar) 1 USD = BHD (Bahraini Dinar) 1 USD = CAD (Canadian Dollar) 1 USD = EGP (Egyptian Pound) 1 USD = GBP (Pound Sterling) 1 USD = JOD (Jordanian Dinar) 1 USD = KES (Kenyan Shilling) 1 USD = MUR (Mauritian Rupee) 1 USD = NGN (Nigerian Naira) 1 USD = OMR (Omani Rial) 1 USD = QAR (Qatari Rial) 1 USD = TND (Tunisian Dinar) 1 USD = 1, TZS (Tanzanian Shilling) 1 USD = XOF (CFA Franc) e) Cost of investment securities Cost of investment securities in currencies other than USD is translated into USD at the exchange rate applicable at purchase date. f) Revenues Dividends are recorded at ex-date after deduction of withholding tax. Interest is recorded on an accruals basis. NOTE 3 - INVESTMENT ADVISORY FEE AND PERFORMANCE FEE The Advisory Fee paid to the Investment Adviser amounts to 1.75% per annum of the average net asset value. This fee is payable monthly in arrears and is calculated on the average net asset value of each series during the month in question. The Investment Adviser is entitled to receive a Performance Fee, accrued at each valuation day and payable after the end of each business year. The Performance Fee is calculated at the annual rate of 20% of any excess return of the net asset values of all series over their relevant Benchmark NAV as at the last valuation day in each business year. The Benchmark NAV is the highest of: (i) the previous highest net asset value ( NAV ) of a series after performance fee at any previous business year end progressively adjusted by a minimum growth rate of 8% on a pro-rata basis throughout the accounting year. This growth rate of 8% is reset at the beginning of each accounting year (i.e. it is not compounded year after year); or

26 NOTES TO THE FINANCIAL STATEMENTS - continued - (ii) the NAV of such series after performance fee at the end of the previous business year, progressively adjusted by a minimum growth rate of 8% on a pro-rata basis throughout the accounting year. On each valuation day, provisions are charged for all series against the net assets corresponding to the difference between the net asset value of all series over their relevant Benchmark NAV, and the previous provision is reversed. Where a net asset value is less than the Benchmark NAV, the relevant provision shall be nil but can never be negative. For the purpose of calculating the Performance Fee provisions, the net asset value is calculated after deducting all expenses including the Management Fee but without accounting for the Performance Fee provision then payable. For the year ended June 30, 2011, the following Performance Fee has been accrued : USD - Series , Series Series , Series , Series , , In the event that a shareholder redeems shares of a specific series prior to the end of the financial year, any accrued but unpaid performance fee in respect of such shares are kept and paid to the Investment Adviser at the end of the relevant financial year. The performance fee set aside in this way is equal to the performance fee accruals relating to the specific series at the redemption date multiplied by the proportion of the redeemed shares to the total number of shares of the specific series at that date. NOTE 4 - SUBSCRIPTION AND REDEMPTION COMMISSION The shares of the SICAV are issued at net asset value per share plus a commission of 1% of the NAV in favour of the SICAV to offset the related cost of securities purchases. The shares of the SICAV are redeemed at net asset value per share less a commission of 1% of the NAV in favour of the SICAV to offset the related cost of securities sales. NOTE 5 - OTHER FEES PAYABLE As at June 30, 2011, the other fees payable include mainly administration and custodian fees

27 NOTES TO THE FINANCIAL STATEMENTS - continued - NOTE 6 - TAXATION Under legislation and regulations currently prevailing in Luxembourg the SICAV is not subject to any taxes on income or capital gains. The only significant tax to which the SICAV is subject is the "taxe d'abonnement" calculated and payable at the end of each quarter at the rate of 0.05% per annum based on the net asset value at the end of the relevant quarter. The value of the assets represented by units held in other Luxembourg undertakings for collective investment is exempt from this capital tax, provided such units have already been subject to the tax. The SICAV receives dividends from the securities in its portfolio after the deduction of withholding tax