General information Management Company: Dynamic Asset Management Company (Luxembourg) S.A 15 rue du Fort Bourbon, L-1249 Luxembourg

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1 Simplified Prospectus October 2010 DMC FUND A Luxembourg Undertaking for Collective Investment in Transferable Securities under the Luxembourg law of December 20 th, 2002 relating to undertakings for collective investment (hereafter the Fund ). This Simplified Prospectus provides general information on the Fund. If you require further information before investing in the Fund, please consult the full sales prospectus dated November 2009 ( the Full Prospectus ), which lays down the rights and the obligations of the investors. Detailed information regarding the Fund s holdings is presented in its most recent annual and semi-annual reports. These documents are available, free of charge, at the registered office of Dynamic Asset Management Company (Luxembourg) S.A. 15 rue du Fort Bourbon, L-1249 Luxembourg or at Dynagest S.A., Quai de la Poste 12, CH-1204 Geneva acting as Swiss representative of the Fund and Paying and Information agent of the Fund in Switzerland or at any local Paying Agent mentioned hereafter. General information Management Company: Dynamic Asset Management Company (Luxembourg) S.A 15 rue du Fort Bourbon, L-1249 Luxembourg Promoter: Co-promoter: Investment Manager: Investment Advisor for Dynapartners (Lux) Global Strategy Fund: Custodian Bank and Administrative Agent Including Registrar and Transfer Agent Swiss Representative of the Fund: Paying and Information agent in Switzerland: Delegated Agent and Registrar Dynagest S.A. Quai de la Poste 12 CH-1204 Geneva Banque et Caisse d Epargne de l Etat, Luxembourg (BCEE) 1, place de Metz L-2954 Luxembourg Dynagest S.A. Quai de la Poste 12 CH-1204 Geneva Dynapartners AG Dufourstrasse 5 CH-8702 ZOLLIKON (appointed by Dynagest S.A.) Banque et Caisse d Epargne de l Etat, Luxembourg (BCEE) 1, place de Metz L-2954 Luxembourg Dynagest S.A. Quai de la Poste 12 CH-1204 Geneva Banque Cantonale Vaudoise Place Saint François 14, CH-1003 Lausanne European Fund Administration 2, rue d Alsace L-1017 Luxembourg Independent Auditor of the Fund and of the Management Company Supervisory Authority: BDO Compagnie Fiduciaire 2, avenue Charles de Gaulle Boîte postale 351 L-2013 Luxembourg Commission de Surveillance du Secteur Financier 110, route d Arlon, L-1150 Luxembourg ( Launch of the Fund: April 3 rd 1998 Legal Structure: Umbrella Fund in the form of a Luxembourg mutual investment fund page 1

2 fonds commun de placement Financial Year of the Fund: Number of Sub-Funds: The accounts of the Fund are closed on March 31 st of each year. 6 Sub-Funds are currently opened: DMC FUND - DYNAMIC FLOORING EXPO BONDS EUROPE "DF" DMC FUND - DYNAMIC FLOORING EXPO BONDS USD "DF" DMC FUND - DYNAMIC FLOORING EXPO BONDS EURO "MAS" DMC FUND - DYNAMIC FLOORING EXPO BONDS USD "MAS" DMC FUND RELATIVE STRENGTH 130/30 GLOBAL EQUITIES DMC FUND DYNAPARTNERS (Lux) GLOBAL STRATEGY FUND Not opened Sub-Fund: DMC FUND DYNAMIC FLOORING EXPO EQUITIES EMU MAS Specific information for the Investor in Switzerland: Representative and distribution in Switzerland In accordance with a representation and distribution contract dated November 8 th, 2004, Dynagest S.A., Quai de la Poste 12, CH Geneva has been designated as Representative in Switzerland. For the units distributed in Switzerland, the place of execution, as well as the applicable law, are those prevailing at the seat of the Representative. The Fund's Management Regulations, the relevant Prospectuses, the Annual Report as well as the Fund's Semi-annual Report can be obtained free-of-charge at the seat of the Representative. In accordance with a Service of Payment convention dated November 2009, Banque Cantonale Vaudoise, Place Saint François 14, CH-1003 Lausanne has been designated as Paying Agent in Switzerland. Banque Cantonale Vaudoise, will ensure in particular payment of possible dividends, liquidation proceeds, repurchase value of units submitted for reimbursement, as well as, should the case arise, distribution of cost-free units. All publications of the Fund in Switzerland will appear in the Swiss Official Commerce Gazette (Feuille Officielle Suisse du Commerce) and on the electronic platform Swiss Fund Data. Investment Objectives Risk profiles of DYNAMIC FLOORING Sub-Funds DF Sub-Funds The issue price together with the repurchase price of units will be published each working day in «l'agefi» and in the Neue Zürcher Zeitung. They will be published with the reference exclusive commissions. The main objective of the Fund is the realisation of long term capital growth coupled: - for the DYNAMIC FLOORING Sub-Funds, with the aim of preserving the underlying assets; - for RELATIVE STRENGTH Sub-Funds, the aim of maximizing an equity type return under a defined risk budget; - for DYNAPARTNERS (Lux) GLOBAL STRATEGY FUND Sub-Funds, with the aims to generate positive absolute returns. In order to preserve the invested capital, the DYNAMIC FLOORING category proposes two strategies of risk limitation and thus offers two types of Sub-Funds: - Sub-Funds with a dynamic investment floor ("DF" Sub-Funds) - Sub-Funds with a dynamic reference floor that can be lowered, assorted with a minimum exposure ( MAS Sub-Funds). In the "DF" Sub-Funds, the assets are managed in a way to preserve a lower limit of their value (the floor). The initial level of this floor for each ''DF'' Sub-Fund is set while it is launched and corresponds to a given percentage of the initial issue price. Moreover, if the NAV per unit rises, the floor benchmark is also increased, this in order to limit the down-side risk of the units to a given percentage, not only of the initial issue price, but also of the highest NAV which has been achieved. Thus, for each ''DF'' Sub-Fund, the floor benchmark per unit will be raised on each Valuation Day by taking into account the performance of the net assets; in as far as the highest NAV per unit already achieved has been exceeded. The new floor benchmark will, as a minimum correspond to the percentage defined for the initial subscription. This strategy to limit risks must however been interpreted as an objective to be reached, the investment floor per unit is not the object of a guarantee, that is to say, that this is not guaranteeing at all that the NAV per unit will not fall below the last set investment floor. The net assets of each "DF" Sub-Fund consist mainly of the following two components: page 2

3 (a) fixed short term transferable securities. This component can be considered as the Sub-Fund's part with a Iow risk profile; (b) well diversified investments on the equity and on the bond markets, in medium or long term transferable securities with an anticipated performance and/or in other authorised investments, e.g. financial instruments derivatives, such as financial futures and options on financial instruments available on regulated futures and options markets, operating regularly, being recognised and open to the public. This component of the Sub-Fund has a risk profile above that of the component (a). Depending on the evolution of the NAV of a "DF" Sub-Fund, the risk part (b) is increased or reduced. Particularly in the case of decline of the value of the assets of the risk part (b), the risk part (b) will be reduced. Depending on the breadth of the decline, the risk part (b) could even be reduced to zero in order to preserve the latest floor set per unit. MAS Sub-Funds In the MAS Sub-Funds, the assets are managed with reference to a lower limit of their value (the floor). As for the "DF" Sub-Funds, this lower limit is set, for each MAS Sub-Fund, while it is launched and corresponds to a given percentage of the initial issue price (see the "Sub-Funds" paragraph here below). The lower limit could be increased in the same way as for the "DF" Sub-Funds (see under " 'DF' Sub-Funds" here above). In the MAS Sub-Funds, the priority objective does not reside in preserving the floor, but in maintaining a minimum level of the net assets of each MAS Sub-Fund allocated to the risk part (b) of the assets, as defined here below, and in the possibility to lower the floor by an annual pre-defined percentage in order to increase periodically, if necessary, the net assets allocated to the risk part (b). The minimum level allocated to part (b) (the minimum exposure) is separately defined for each MAS Sub- Fund. Regarding the annual percentage by which the floor per unit may potentially be lowered, it is separately defined for each MAS Sub-Fund. It corresponds, for the first financial year, to a percentage of the initial issue price and, for the subsequent financial years, to a percentage of the last NAV per unit of the previous financial year. The net assets of each MAS Sub-Fund consist mainly of the following components: (a)fixed short term transferable securities. This component can be considered as the Sub-Fund's part with a low risk profile; (b)well diversified investments on the equity and on the bond markets, in medium or long term transferable securities with an anticipated performance and/or in other authorized investments, e.g. financial instruments derivatives, such as financial futures and options on financial instruments available on regulated futures and options markets, operating regularly, being recognized and open to the public. This component of the Sub-Fund has a risk profile above that of the component (a). Depending on the evolution of the NAV of a MAS Sub-Fund, the risk part (b) is increased or reduced. Particularly in the case of decline of the value of the assets of the risk part (b), the risk part (b) will be reduced, unless the floor is lowered in order to increase that part. The risk part (b) will however not be reduced below the minimum level defined for each MAS Sub-Fund. Depending on the breadth of the decline, the NAV per unit thus could become lower than the latest reference floor set per unit. With the exception of maintaining a minimum level in the risk part (b) (minimum exposure) or increasing that part in case of a floor lowering within the allowed annual percentage, the MAS Sub- Funds apply the same basic management principles than the "DF" Sub-Funds. DMC FUND RELATIVE STRENGTH 130/30 GLOBAL EQUITIES Investors should bear in mind that in consequence of maintaining a minimum level in the risk part (b) (minimum exposure) and of potentially lowering the floor, the NAV of a ''MAS'' Sub-Fund may as well go up as down more significantly than the NAV of a ''DF'' Sub-Fund. Moreover the amplitude of the movements up and down is potentially higher in the Equities MAS than in the Bonds MAS Sub- Funds. The RELATIVE STRENGTH strategy seeks long-term capital growth through a well-diversified portfolio of investments in equities and/or equity related securities such as common stocks, preferred stocks, cooperative shares and participation certificates (equities and equity rights), units of UCITS and/or other UCIs, including Exchange Traded Funds and equity or equity indexes derivatives. Investments in other currencies than the reference currency of the Sub-Fund are authorized. Currency risks can be managed by forward exchange contracts. Each Sub-Fund may also hold liquid assets in major currencies. The objective of each Sub-Fund is to achieve a long-term performance in excess of its reference benchmark, by maximizing the expected return of the portfolio within its investment universe under a defined risk budget. page 3

4 The following criteria are used in order to evaluate and to select each security that will be invested in by the Sub-Funds: (a) The investment process starts with an assessment of the global macroeconomic environment. Based on this analysis, categories of equities that could react positively or negatively to the current macroeconomic environment are listed. This can include, not exclusively, economic sectors, countries, investment styles and market capitalization segments. (b) An assessment of the potential rate of return expected from each contemplated investment. Price momentum, investment flows, market sentiment, valuation metrics and earning dynamics are the key factors. (c) An estimate of the degree of risk or volatility likely to be experienced with the investments over time. In that respect, a Generalised AutoRegressive Conditional Heteroscedasticity (GARCH) model has been developed and actively used. (d) An estimate of the degree to which the particular investment complements other investments of the Fund through the study of the correlation with the existing investments. In that respect also, a dynamic conditional correlation (DCC) model has been implemented. (e) An optimization of the portfolio will ensure that the expected excess return compared to the benchmark is maximized given a relative risk exposure measured by the tracking-error. (f) Investments will be monitored on a daily basis and the allocation adjusted by the Investment Manager to reflect any change in the global macroeconomic picture, risk structure, market sentiment or simply new opportunities. As for any investment, the Management Company cannot guarantee the future performance and there cannot be any certainty as to whether the Sub-Funds' investment objectives will be met. Investors should bear in mind that the value of the units and any income from them may as well go up as down. The Investment Manager has put in place stringent monitoring and control procedures in order to provide the sophistication of approach, analysis, continuous and disciplined management, essential to the successful management of well diversified investments. Each Sub-Fund needs to comply with the investment objective described above as well as the objectives and restrictions described below for each Sub-Fund and the general investment restrictions. DYNAPARTNERS (Lux) GLOBAL STRATEGY FUND In the "Dynapartners" Sub-Funds, the assets are managed globally across all asset classes in a way to generate a positive return over a period of a full business cycle while observing the principles of risk diversification. The selection and weighting in the portfolio of asset classes, individual securities, currencies and the use of financial instruments is opportunistic depending on capital market conditions and the on the way the Investment Manager assesses the situation. The Sub-Fund will invest in fixed-interest or floating-rate securities, securities representing money claims, of all kinds of levels of credit worthiness, durations and currencies, issued or guaranteed by issuers from recognised countries. Besides fixed-interest or floating-rate securities issued or guaranteed by states or their federal states or similar state structures or by communities or, as the case may be, cities, the investment universe also includes corporate bonds of all levels of credit worthiness, emerging market bonds, asset backed securities (ABS), mortgage backed securities (MBS), collateralized mortgage obligations (CMO), hybrid preferred debt securities, other widely or less widely spread interest-bearing investments, cash and term deposits. In line with the investment strategy, the Sub-Fund may be invested in convertible and warrant bonds, in shares or other equities and rights on the value of an investment. Also, a significant part of the assets of the Sub-Fund may be invested in other UCITS and other UCI, closed- ended collective investment schemes and Exchange Traded Funds (ETFs) investing for example in broadly diversified indices and sub-indices on different assets including eligible commodity indices. In order to reach the investment objective, derivative financial instruments, or as the case may be, special investment techniques and financial instruments may be employed also on a larger scale. The overall risk connected with derivatives will not exceed the total value of net assets. page 4

5 The range of possible instruments includes for example: - futures, call and put options on debt and equity securities or on financial instruments or on volatility indices, - forward exchanges on underlyings such as defined as allowed for drivative instruments under 6.4. of the investment restrictions in the prospectus; - currency and interest rate futures; - interest rate swaps; - credit spread swaps; -credit default swaps; - total return swaps; - inflation swaps; - options on swaps (swaptions); - futures on indices; - structured products; such as for example investment certificates and EMTN s, credit default products, etc.; - contracts for difference This Sub-Fund may also invest in futures, options and ETF on volatility. However, under no circumstances shall these investments cause this Sub-Fund to diverge from its investment objectives as specified in this prospectus. For the avoidance of doubt, the terms volatility futures refer to the volatility implied in option pricing and the main rational for investing in such futures is that the volatility can be viewed as an asset class on its own. This Sub-Fund will only invest in volatility futures traded on a Regulated Market, and the stock indices underlying the volatility indices will comply with article 44(1) of the Law of Units The Fund is offering registered units, bearer certificates and the possibility to hold these units in Clearstream or Euroclear. For each Sub-Fund, the Management Company issues only capitalization units. For the DYNAMIC FLOORING EXPO BONDS USD DF Sub-Fund, two classes of units are issued: - Units R in USD: open to all investors with a minimum investment amount corresponding to the counterpart of EUR Units R in CHF (hedged): open to all investors with a minimum investment amount corresponding to the counterpart of EUR For the DYNAMIC FLOORING EXPO BONDS EURO MAS Sub-Fund, two classes of units are issued: - Units R in EUR: open to all investors with a minimum investment amount of EUR Units I in EUR: reserved to institutional investors, with a minimum investment amount of EUR For the DYNAMIC FLOORING EXPO BONDS USD MAS Sub-Fund, two classes of units are issued: - Units R in USD: open to all investors with a minimum investment amount corresponding to the counterpart of EUR Units I in USD: reserved to institutional investors, with a minimum investment amount corresponding to the counterpart of EUR For the RELATIVE STRENGTH 130/30 GLOBAL EQUITIES Sub-Fund, two classes of units are issued: - Units R in EUR: open to all investors with a minimum investment amount of EUR Units R in USD: open to all investors with a minimum investment amount corresponding to the counterpart of EUR For the DMC FUND DYNAPARTNERS (Lux) GLOBAL STRATEGY FUND sub-fund, four classes of units are issued: - Units R in EUR: open to all investors with a minimum investment amount of EUR Units I in EUR: reserved to institutional investors, with a minimum investment amount of EUR Units R in CHF (hedged): open to all investors with a minimum investment amount corresponding to the counterpart of EUR Units I in CHF (hedged): reserved to institutional investors, with a minimum investment amount page 5

6 corresponding to the counterpart of EUR Fees Charges to be borne by the Fund As compensation for its services, the management company shall receive an annual all-in fee, except for brokerage fees and bank charges normally payable on transactions relating to the portfolio of the relevant sub-fund, calculated on the average net assets of the relevant month, payable monthly: DMC FUND DYNAMIC FLOORING EXPO BONDS EUROPE DF class share R- in EUR class share R- in CHF (hedged) DMC FUND DYNAMIC FLOORING EXPO BONDS EURO MAS class share R- in EUR class share I- in EUR DMC FUND DYNAMIC FLOORING EXPO BONDS USD DF class share R- in USD class share R- in CHF (hedged) DMC FUND DYNAMIC FLOORING EXPO BONDS USD MAS class share R- in USD class share I- in USD DMC FUND RELATIVE STRENGTH 130/30 GLOBAL EQUITIES class share R- in EUR class share R- in USD Maximal annual fee 1.30% 1.30% 1.50% 1.10% 1.30% 1.30% 1.50% 1.10% 1.50% 1.50% As compensation for its services for the following sub-fund, the management company shall receive the following fees, except for brokerage fees and bank charges normally payable on transactions relating to the portfolio of the relevant sub-fund, calculated on the average net assets of the relevant month, payable monthly: Management Fees: DMC FUND DYNAPARTNERS (Lux) GLOBAL STRATEGY FUND class share -R- in EUR class share I- in EUR class share -R- in CHF (hedged) class share I- in CHF (hedged) 0.25 % 0.25% 0.25 % 0.25% No management fee may be charged to the sub funds for investments made in units of fund managed by the funds management company or any company associated with it. In such cases, the funds whose units are bought may not charge an upfront or a redemption fee. Administration and Marketing Fees: DMC FUND DYNAPARTNERS (Lux) GLOBAL STRATEGY FUND class share -R- in EUR class share I- in EUR class share -R- in CHF (hedged) class share I- in CHF (hedged) 1.40 % 0.75% 1.40 % 0.75% No fee or charge herein described may be charged to the sub funds for investments made in units of fund managed by the funds management company or any company associated with it. In such cases, the funds whose units are bought may not charge an upfront or a redemption fee. page 6

7 The management company will bear the following costs for all sub funds: - all taxes owed on the fund s asset and income, - sub-contractor fees, - operating expenses (fees of the Custodian Bank, transfer and registrar agent, administrative agent and listing agent). - auditors fee, - printing and distribution of the annual and semi annual report, - fees related to indexes or benchmark, - costs for the establishment of bearer certificates, - costs for the preparation, translation, printing for the publication, - costs for the information of unitholders, - legal fees and/or other legal expenses related to unitholder protection, - costs for the official representative in Switzerland, - the annual taxe d abonnement calculated on the NAV of each sub fund and payable quarterly on each unit class (0.05 % for the unit class R and 0.01 % for the unit class I ). - cost relating to subscription taxes, records, deposit and other requirements concerning the fund by all foreign authorities or stock exchanges. - advertising costs or other expenses directly connected with the offering of distribution of units, including the costs of printing and copying of the documents mentioned above or reports used by distributors of units in their commercial activity. Total Expenses Ratio on 31st March 2010: DMC FUND DYNAMIC FLOORING EXPO BONDS EUROPE DF class share R- in EUR 1.05% DMC FUND DYNAMIC FLOORING EXPO BONDS EURO MAS class share R- in EUR 1.32% class share I- in EUR 0.94% DMC FUND DYNAMIC FLOORING EXPO BONDS USD DF class share R- in USD 1.26% DMC FUND DYNAMIC FLOORING EXPO BONDS USD MAS class share R- in USD 1.38% class share I- in USD 1.02% DMC FUND RELATIVE STRENGTH 130/30 GLOBAL EQUITIES Class share R- in EUR n.a. Class share R in USD n.a. DMC FUND DYNAPARTNERS (Lux) GLOBAL STRATEGY FUND Class share R in EUR n.a. Class share I in EUR n.a. Class share R in CHF (hedged) n.a. Class share I in CHF (hedged) n.a. TER For DMC Fund-Relative Strength 130/30 Global Equities sub-fund, the Management Company may also be entitled to a Performance Fee, payable annually in arrears after the end of each financial year. The Performance fee is deemed to accrue at each Valuation Date. The Management Company earns a Performance Fee when the Net Asset Value per Unit class outperforms the benchmark. The Performance Fee is equal to 10% of the performance of the Net Asset Value per Unit exceeding the performance of the benchmark multiplied by the average number of outstanding units of a given class. The Performance Fee is calculated on the basis of the Net Asset Value per Unit after deduction of all expenses, liabilities and management fees (but not performance fee). The benchmark is defined as the Morgan Stanley Capital International Total Return Net World Index (NDDUWI Index in USD and NSWSWRLD Index in EUR) expressed in the currency of the relevant Unit class. The Performance Fee will be payable if the following condition is met: page 7

8 - the Unit class outperforms the benchmark since the last payment of performance fee or since the launch of the Unit class if no performance fee has ever been paid, even if the performance of the subfund is negative (ex.: performance of the fund: -10%, performance of the benchmark: -12% => +2% excess return, a performance fee will be paid) The Management Company is not entitled to earn a Performance Fee where: - the Unit class underperforms the relevant applicable benchmark since the last payment of performance fee or since the launch of the Unit class if no performance fee has never been paid. Tax rules The Fund is subject to Luxembourg legislation. With regard to their citizenship, residence or nationality, buyers of the Fund s units should consult a local adviser to inform themselves of the legislation and taxation, relating to the rules applicable to the purchase, holding and redemption of units as well as to fund mergers. In accordance with current legislation in Luxembourg neither the Fund nor the unit holders, except those whose domicile, residence or permanent establishment is Luxembourg, are subject to any tax on income, capital gains or wealth. The Fund s income may however be subject to withholding tax in the countries where the Fund s assets are invested. In such cases neither the Custodian Bank nor the Management Company is required to obtain tax certificates. The Council of the European Union has adopted on 3 June 2003 a Council Directive 2003/48/EC on taxation of savings income in the form of interest payments. From July, 2005 until June 2008 a withholding tax on interest payments from funds may be applied at a rate of 15% and from July 2008 until June 2011, the applicable withholding tax rate would be 20%, rising to 35% from July 1, Net Asset Value Subscription, Redemption and Conversion of units The NAV of units in a Sub-Fund, expressed in the currency of the relevant Unit class, is calculated by the Administrative Agent. For units of DYNAMIC FLOORING Family, the calculation is done each Wednesday, this day is called the Valuation Day. If Wednesday is not a Bank Business Day in Luxembourg, the NAV calculation will take place on the next following Bank Business Day. The NAV is dated of the Bank Business Day in Luxembourg preceding the Valuation Day. For units of DYNAPARTNERS (Lux) GLOBAL STRATEGY Family and units of RELATIVE STRENGTH Family, the calculation is done each Business Day in Luxembourg, this day is called the Valuation Day. The NAV is dated of the Bank Business Day in Luxembourg preceding the Valuation Day. Subscription Units of DYNAMIC FLOORING Family are issued on each Wednesday or "Valuation Day" (as described in the "NAV" paragraph below). If a subscription order is to be carried out on a Valuation Day, written instructions ("Subscription Form") together with the requested papers must have reached the Transfer Agent and Registrar, in a form immediately available, the business day before the corresponding Valuation Day before 2.00 pm (Luxembourg time); otherwise the order will be executed on the next following Valuation Day after everything has been duly received. Units of RELATIVE STRENGTH Family are issued on each Business Day in Luxembourg or "Valuation Day" (as described in the "NAV" paragraph below). If a subscription order is to be carried out on a Valuation Day, written instructions ("Subscription Form") together with the requested papers must have reached the Transfer Agent and Registrar, in a form immediately available, two business days before the corresponding Valuation Day before 2.00 pm (Luxembourg time); otherwise the order will be executed on the next following Valuation Day after everything has been duly received. Units of DYNAPARTNERS (Lux) GLOBAL STRATEGY Family are issued on each Business Day in Luxembourg or "Valuation Day" (as described in the "NAV" paragraph below). If a subscription order is to be carried out on a Valuation Day, written instructions ("Subscription Form") together with the requested papers must have reached the Transfer Agent and Registrar, in a form immediately available, the business day before the corresponding Valuation Day before 2.00 pm (Luxembourg time); otherwise the order will be executed on the next following Valuation Day after everything has been duly received. RedemptionFor units of DYNAMIC FLOORING Family and units of DYNAPARTNERS (Lux) GLOBAL STRATEGY Family, if a redemption order is to be executed at the Redemption Price ruling on a Valuation Day, the application for the redemption of units (Redemption and/or page 8

9 Conversion Form) must reach the Transfer Agent and Registrar the Business day before the corresponding Valuation Day before 2.00 pm (Luxembourg time) (as described in the "NAV" paragraph below). For units of RELATIVE STRENGTH Family, the application for the redemption of units (Redemption and/or Conversion Form) must reach the Transfer Agent and Registrar two business days before the corresponding Valuation Day before 2.00 pm (Luxembourg time) (as described in the "NAV" paragraph below). ConversionIf conversions are made from the Sub-Funds of one family to the Sub-Funds of the other family, they are executed at the NAV per unit, less a fee of 0.10% on the redeemed Sub-Fund, plus a fee of 0.10% on the subscribed Sub-Fund. These fees are paid to the respective Sub-Funds to offset estimated transaction costs. Furthermore requests for conversion will only be accepted if they represent a minimum value of units of EUR 1,000.- or equivalent for units R units and EUR 500,000.- or equivalent for units I. To apply for conversion, the unitholder must send an irrevocable request in writing ("Redemption and/or Conversion Form"), accompanied by the Bearer Certificate(s), if any, to the Transfer Agent and Registrar. If received the day before a Valuation Day before 2.00 pm (Luxembourg time) except for demand concerning units of RELATIVE STRENGTH Family which has to be sent two Business days before the Valuation Day, requests for conversion are executed on the basis of the NAV per unit of the relevant Sub-Funds and the relevant class, ruling on that Valuation Day. Requests for conversion received after that deadline will be executed on the next following Valuation Day at the prices ruling on that day. Conversions may not be executed if the calculation of the NAV, or subscriptions or redemptions are suspended in one of the concerned Sub-Funds. The number of units allotted in the new Sub-Fund is determined by means of the following formula: A X [B X (100% - p)] X C = N D X (100% + p) where: A is the number of units presented for conversion B is the NAV of one unit in that Sub-Fund of which the units are presented for conversion, on the day the conversion is executed C is the translation rate between the base currencies of the Sub-Funds on the day of execution. If the Sub-Funds have the same base currency, this rate is one D is the NAV per unit of the new Sub-Fund on the day of execution N is the number of units allotted in the new Sub-Fund (to the nearest 10,000th of a unit) p is a parameter depending on the type of conversion: Inside the same family of Sub-Funds or from one family to the other. If inside the same family, p = 0; from one family to the other p = 0.10%. DMC FUND - DYNAMIC FLOORING EXPO BONDS EUROPE "DF" Investment Policy Risk Profile The investment objective of the DMC FUND - DYNAMIC FLOORING EXPO BONDS EUROPE ''DF'' (expressed in EUR) Sub-Fund is to achieve a long term capital increase with a low well balanced risk profile. It gives access to the main bond markets of the European Union and the market of Swiss bonds. Only bonds issued or guaranteed by first class issuers will be considered. The initial level of the Floor per unit of this Sub-Fund has been set at 95% of the initial issue price. The Sub-Fund's objective is to achieve an annual long term return above the Citigroup European WGBI (World Government Bond Index) expressed in the base currency. This last objective as well as the Floor of the Sub-Fund are not the object of a guarantee. Taking into consideration the risk profile of the DF Sub-Funds described here above, this Sub-Fund may be appropriate for conservative investors including those who are not interested in or informed about capital market topics, but who seek a potentially higher return than that which is available from a money market fund, but who do not want to accept the volatility inherent in equity markets. It is also suitable for more experienced investors wishing to attain defined investment objectives in long-term bonds, but with page 9

10 Issue of Classes pre-set risk criteria. The Investors should, however be prepared to accept fluctuations in value, caused by interest rates movements. There will be very limited credit risk as the Sub- fund invests only in first quality issuers within a very well diversified universe. Only R units, which are capitalizing, are offered. The unitholder s subscription must be for a minimum amount of EUR 5,000.- or equivalent. Past performance 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% DMC FUND -DYNAMIC FLOORING EXPO BONDS EUROPE "DF" Units "R" (in EUR) Citigroup Europe WGBI Currency Hedged (EUR) (in EUR) The historical performance of the Sub-Fund is not a guarantee of future returns. This Simplified Prospectus contains a summary of the key information on the Fund. For further information, please contact DYNAMIC ASSET MANAGEMENT COMPANY (LUXEMBOURG) S.A., 15 rue du Fort Bourbon, L-1249 Luxembourg, Phone: , Fax: , or Dynagest S.A.,Quai de la Poste 12, 1204 Geneva, Phone: , Fax: DMC FUND DYNAMIC FLOORING EXPO BONDS USD "DF" Investment Policy Risk Profile 'The investment objective of the DMC FUND - DYNAMIC FLOORING EXPO BONDS USD "DF" Sub- Fund is to achieve a long term capital increase with a low well balanced risk profile. It gives access to the main markets of bonds expressed in US Dollar. Only bonds issued or guaranteed by first class issuers will be considered. The initial level of the Floor per unit of this Sub-Fund has been set at 93% of the initial issue price. The Sub-Fund's objective is to achieve an annual long term return above the Citigroup U.S. (United States) Government Bond Index expressed in the base currency. This last objective as well as the Floor of the Sub-Fund are not the object of a guarantee. Taking into consideration the risk profile of the DF Sub-Funds described here above, this Sub-Fund may be appropriate for conservative investors including those who are not interested in or informed about capital market topics, but who seek a potentially higher return than that which is available from a money market fund, but who do not want to accept the volatility inherent in equity markets. It is also suitable for more experienced investors wishing to attain defined investment objectives in long-term bonds, but with pre-set risk criteria. The Investors should, however be prepared to accept fluctuations in value, caused by interest rates movements. There will be very limited credit risk as the Sub- fund invests only in first quality issuers within a very well diversified universe. page 10

11 Past performance 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% DMC FUND -DYNAMIC FLOORING EXPO BONDS USD "DF" Units "R" (in USD) Citigroup US GBI All Maturities in Local Currency (USD) (in USD) -2.00% The historical performance of the Sub-Fund is not a guarantee of future returns. This Simplified Prospectus contains a summary of the key information on the Fund. For further information, please contact DYNAMIC ASSET MANAGEMENT COMPANY (LUXEMBOURG) S.A.., 15 rue du Fort Bourbon, L-1249 Luxembourg, Phone: , Fax: , or Dynagest S.A.,Quai de la Poste 12, 1204 Geneva, Phone: , Fax: DMC FUND - DYNAMIC FLOORING EXPO BONDS EURO "MAS" Investment Policy Risk Profile The investment objective of the DMC FUND - DYNAMIC FLOORING EXPO BONDS EURO ''MAS'' Sub-Fund is to achieve a long term capital increase with a low well balanced risk profile. It gives access to the main bond markets of the European Monetary Union. Only bonds issued or guaranteed by first class issuers will be considered. The initial level of the Floor per unit of this Sub-Fund has been set at 95% of the initial issue price. Regarding the minimum level of the Sub-Fund's net assets allocated to the risk part (b) (minimum exposure), it has been set at 30%. However, during the first financial year of the Sub-Fund the Floor may be lowered by at most 4.5% of the initial issue price. In each subsequent financial year, the Floor may be lowered by at most 4.5% of the last NAV per unit of the pervious financial year. The Sub- Fund's objective is to achieve an annual long-term return above the Citigroup EGBI (Euro Government Bond Index) expressed in the base currency. This last objective is not the object of a guarantee and, on account of maintaining a minimum exposure the net asset value per unit can become lower than the latest Floor set per unit. Taking into consideration the risk profile of the MAS Sub-Funds described here above this Sub-Fund may be appropriate for less conservative investors who are interested in investing permanently in long term bonds with a higher risk profile than the DF Sub-Funds, but with a greater potential return. The Investors should, however be prepared to accept fluctuations in value, caused by interest rates movements. There will be very limited credit risk as the Sub- Fund invests only in first quality issuers within a very well diversified universe. page 11

12 Past performance 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% DMC FUND -DYNAMIC FLOORING EXPO BONDS EURO "MAS" Units "I" (in EUR) DMC FUND -DYNAMIC FLOORING EXPO BONDS EURO "MAS" Units "R" (in EUR) Citigroup EMU GBI All Maturities (EUR) (in EUR) The historical performance of the Sub-Fund is not a guarantee of future returns. This Simplified Prospectus contains a summary of the key information on the Fund. For further information, please contact DYNAMIC ASSET MANAGEMENT COMPANY (LUXEMBOURG) S.A.., 15 rue du Fort Bourbon, L-1249 Luxembourg, Phone: , Fax: , or Dynagest S.A.,Quai de la Poste 12, 1204 Geneva, Phone: , Fax: DMC FUND - DYNAMIC FLOORING EXPO BONDS USD "MAS" Investment Policy Risk Profile The investment objective of the DMC FUND - DYNAMIC FLOORING EXPO BONDS USD MAS Sub-Fund is to achieve a long term capital increase with a low well balanced risk profile. It gives access to the main markets of bonds expressed in US Dollar. Only bonds issued or guaranteed by first class issuers will be considered. The initial level of the Floor per unit of this Sub-Fund has been set at 93% of the initial issue price. Regarding the minimum level of the Sub-Fund's net assets allocated to the risk part (b) (minimum exposure), it has been set at 30%. Moreover, during the first financial year of the Sub-Fund the Floor may be lowered by at most 5.5% of the initial issue price. In each subsequent financial year, the Floor may be lowered by at most 5.5% of the last NAV per unit of the pervious financial year. The Sub-Fund's objective is to achieve an annual long term return above the Citigroup U.S. (United States) Government Bond expressed in the base currency. This last objective is not the object of a guarantee and, on account of maintaining a minimum exposure, the net asset value per unit can become lower than the latest Floor set per unit. Taking into consideration the risk profile of the MAS Sub-Funds described here above this Sub-Fund may be appropriate for less conservative investors who are interested in investing permanently in long term bonds expressed in USD with a higher risk profile than the DF Sub-Funds, but with a greater potential return. The Investors should, however be prepared to accept fluctuations in value, caused by interest rates movements. There will be very limited credit risk as the Sub- Fund invests only in first quality issuers within a very well diversified universe. page 12

13 Past performance 14.00% 12.00% 10.00% 8.00% DMC FUND -DYNAMIC FLOORING EXPO BONDS USD "MAS" Units "I" (in USD) 6.00% 4.00% 2.00% DMC FUND -DYNAMIC FLOORING EXPO BONDS USD "MAS" Units "R" (in USD) 0.00% -2.00% Citigroup US GBI All Maturities in Local Currency (USD) (in USD) The historical performance of the Sub-Fund is not a guarantee of future returns. This Simplified Prospectus contains a summary of the key information on the Fund. For further information, please contact DYNAMIC ASSET MANAGEMENT COMPANY (LUXEMBOURG) S.A..., 15 rue du Fort Bourbon, L-1249 Luxembourg, Phone: , Fax: , or Dynagest S.A.,Quai de la Poste 12, 1204 Geneva, Phone: , Fax: DMC FUND RELATIVE STRENGTH 130/30 GLOBAL EQUITIES Investment Policy The investment objective of the DMC FUND RELATIVE STRENGTH 130/30 GLOBAL EQUITIES is to achieve a long term performance in excess of the Morgan Stanley Capital International World Index by investing directly or indirectly at least 75 percents of its total net assets in equity, equity related securities throughout the world, both in developed markets and in emerging markets. The Sub-fund's strategy allows for the expression of both positive and negative views on economic sectors, countries, investment styles and market capitalization segments. Where a strong, negative view is held and the representative benchmark weight does not allow for sufficient underweighting, financial derivative instruments are used to create a 'short' position. The gross equity exposure will represent a maximum of 130% of the net assets in long positions and a maximum of 30% of the net assets in short positions. The short positions and the long positions in excess of 100% of the net assets are created using various financial derivative instruments like for example index futures, equity swaps, contracts for difference or options. No direct short selling of securities is conducted. The maximum net equity exposure is set at 100% of the net assets. The Sub-Fund may invest up to 100% of its net assets in UCITS/UCIs, as defined in section point (e) of the investment restrictions in this prospectus. Furthermore, for the purpose of efficient portfolio management, the Sub-Fund may use derivatives financial instruments as defined in section point (g). Investments in other currencies than the reference currency of the Sub-Fund are authorized. Currency risks can be actively managed by forward exchange deals. The Sub-Fund may also hold liquid assets in major currencies. The investments in equities may involve risks, such as exchange rates and volatility risks. The Sub- Fund's investments are subject to market fluctuations. No assurance can, therefore, be given that the Sub-Fund's investment objective will be achieved. It cannot be guaranteed either that the value of a Share in the Sub-fund will not fall below its value at the time of acquisition. page 13

14 Risk Profile Past performance The Sub-Fund will be managed with an opportunistic approach that can from time to time result in a speculative portfolio. It is appropriate for Investors familiar with more volatile products and who are willing to accept high temporary losses. This Sub-Fund is suitable for Investors who can afford to set aside the invested capital for at least 5 years. n.a. (sub-fund launched in 2010) The historical performance of the Sub-Fund is not a guarantee of future returns. This Simplified Prospectus contains a summary of the key information on the Fund. For further information, please contact DYNAMIC ASSET MANAGEMENT COMPANY (LUXEMBOURG) S.A..., 15 rue du Fort Bourbon, L-1249 Luxembourg, Phone: , Fax: , or Dynagest S.A.,Quai de la Poste 12, 1204 Geneva, Phone: , Fax: DMC FUND DYNAPARTNERS (Lux) GLOBAL STRATEGY FUND Investment Policy The investment objective of the DMC FUND DYNAPARTNERS (Lux) GLOBAL STRAGEGY Sub- Fund (expressed in EUR) is to achieve a positive return over a period of a full business cycle while emphasizing a broad diversification of risks. The sub-funds provides access to all asset classes on a global scale. The Sub-Fund may invest in assets in all currencies, at least 50% of the Sub-Fund s net assets will be held in or hedged in EUR. The Sub-Fund s NAV per unit is expressed in EUR. The Sub-Fund may invest up to 100% of its net assets in UCITS/UCIs, as defined in section point (e) of the investment restrictions in this prospectus. Furthermore, for the purpose of efficient portfolio management, the Sub-Fund may use derivatives financial instruments as defined in section point (g). Risk Profile Taking into consideration the risk profile of the DYNAPARTNERS (Lux) GLOBAL STRATEGY Sub- Fund described here above, this Sub-Fund may be appropriate for investors who are interested in investing in a global actively managed and broadly diversified multi asset class portfolio which seeks to achieve a positive return over a full business cycle. The investor should, however, be prepared to accept the fluctuations in value, caused by fixed income, equity and currency market movements. Past performance n.a. (sub-fund launched in 2010) The historical performance of the Sub-Fund is not a guarantee of future returns. This Simplified Prospectus contains a summary of the key information on the Fund. For further information, please contact DYNAMIC ASSET MANAGEMENT COMPANY (LUXEMBOURG) S.A..., 15 rue du Fort Bourbon, L-1249 Luxembourg, Phone: , Fax: , or Dynagest S.A.,Quai de la Poste 12, 1204 Geneva, Phone: , Fax: page 14