LEO PORTFOLIOS SIF (formerly P Challenge)

LEO PORTFOLIOS SIF (formerly P Challenge) an investment company with variable share capital incorporated under the form of a "société anonyme" and subject to the Luxembourg law of February 13, 2007 as amended relating to Specialized Investment Funds (the "Law of 2007") Annual Report, including Audited Financial Statements, as at December 31, 2013 R.C.S. Luxembourg B 133053

LEO PORTFOLIOS SIF (formerly P Challenge) an investment company with variable share capital incorporated under the form of a "société anonyme" and subject to the Luxembourg law of February 13, 2007 as amended relating to Specialized Investment Funds (the "Law of 2007") Annual Report, including Audited Financial Statements, as at December 31, 2013 1

Annual Report, including Audited Financial Statements, as at December 31, 2013 No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual report. 2

Table of contents Organisation of the SIF 4 General information 5 Management's report 6 Report of the réviseur d entreprises agréé / Auditor's report 12 Financial statements Statement of net assets 14 Statement of operations and changes in net assets 15 Number of shares outstanding and net asset value per share 16 Sub-fund : LEO PORTFOLIOS SIF - WATAMAR COL (note 1) - Statement of investments and other net assets 17 - Geographical and industrial classification of investments 19 Notes to the financial statements 20 3

Organisation of the SIF REGISTERED OFFICE 15, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg BOARD OF DIRECTORS CHAIRMAN Dr. Maurizio GENONI (until April 17, 2013) MEMBERS Axel PFEIL (until April 17, 2013) Josef ULRICH (until April 17, 2013) Mark WENDA, Vice President, FundPartner Solutions (Europe) S.A., 15, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg (since April 17, 2013) Pascal CHAUVAUX, Senior Vice President, FundPartner Solutions (Europe) S.A., 15, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg (from April 17, 2013 to March 24, 2014) Gilles PAUPE, Senior Vice President, Banque Pictet & Cie SA*, 60, route des Acacias, CH-1211 Geneva 73, Switzerland (since April 17, 2013) Mike KARA, Assistant Vice President, Pictet & Cie (Europe) S.A., 15A, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg (since March 24, 2014) INVESTMENT MANAGER Lamda Privatbank AG, Städtle 27, LI-9490 Vaduz, Liechtenstein for the sub-fund P Challenge (until April 2, 2013) Watamar Asset Management AG, Bellevueplatz 5, 8001 Zürich, Switzerland for the sub-fund LEO PORTFOLIO SIF - WATAMAR COL (since September 24, 2013) INVESTMENT ADVISOR Limmat Wealth AG (previously: Lamda Private Wealth Management AG), Gartenstrasse 32, Postfach 1882, CH-8027 Zürich, Switzerland for the sub-fund P Challenge (until April 2, 2013) CENTRAL ADMINISTRATION FundPartner Solutions (Europe) S.A., 15, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg CUSTODIAN BANK CABINET DE REVISION AGRÉÉ (/AUDITOR) Pictet & Cie (Europe) S.A., 15A, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg Deloitte Audit, Société à responsabilité limitée, 560, rue de Neudorf, L-2220 Luxembourg, Grand Duchy of Luxembourg * On January 1, 2014, Pictet & Cie changed its name to Banque Pictet & Cie SA 4

General information The LEO PORTFOLIOS SIF s (the "SIF") fiscal year ends on December 31 of each year. The SIF produces an annual report, including Audited Financial Statements, within six months of the date to which such holdings are calculated. The annual report, including Audited Financial Statements, of the SIF includes separate information on each of the sub-funds expressed in their respective Reference Currency and consolidated accounts for the SIF are expressed in the Reference Currency of the SIF for the annual report. The NAV, the subscription price and the redemption price for the Shares are available at any time during business hours at the SIF s registered office. Notices to the Shareholders are sent by registered mail to the Shareholders. Any amendments to the Articles are published in the "Mémorial". 5

Management's report 1. PERFORMANCE AND ANALYSIS As per December 31, 2013, the LEO PORTFOLIOS SIF - WATAMAR COL sub-fund has achieved the following gross and net-of-fee results: LEO PORTFOLIOS SIF - WATAMAR COL Performance since inception (24 th September 2013) (net-of-fees) AuM (Dec. 2013) USD class 11.58% $4.2m The sub-fund had a very strong performance since its inception on September 24, 2013. It was launched with a NAV of 100.00 and ended the year at 111.58 after taking all fees into consideration. It was a very good year for the US market. Given that the LEO PORTFOLIOS SIF - WATAMAR COL sub-fund selects companies from the S&P500 universe, it is always interesting to know the performance of this index for comparison purposes. From the start of the LEO PORTFOLIOS SIF - WATAMAR COL sub-fund, the S&P500 index achieved a performance of 9.19%. In only three months, the LEO PORTFOLIOS SIF - WATAMAR COL sub-fund was able to out-perform the S&P500 by 2.39% and to achieve excellent returns in absolute terms. Below we can see the daily evolution of the sub-fund and the index. 1.1 Correlation As we can see from the previous chart, the returns of the LEO PORTFOLIOS SIF - WATAMAR COL sub-fund and the SP500 were highly correlated during the period. This can be seen clearly from the comparison of daily returns: Past performance is not an indicator of current or future returns. 6

Management's report (continued) 1.2 Drawdown analysis Fortunately, the drawdowns during the relevant interval were very mild. The worst drawdown for the LEO PORTFOLIOS SIF - WATAMAR COL sub-fund was -3.09% and the worst one for the SP500 was -2.54%. Although they did not happen at the same time, they are very similar in magnitude. Below we have a table with the details of the worst 5 drawdowns for both, the LEO PORTFOLIOS SIF - WATAMAR COL sub-fund and the SP500 index. WATAMAR COL From Trough To Depth Length To Trough Recovery 1 29.11.2013 17.12.2013 20.12.2013-3.09% 16 13 3 2 18.11.2013 20.11.2013 22.11.2013-1.64% 5 3 2 3 30.10.2013 07.11.2013 08.11.2013-1.54% 8 7 1 4 07.10.2013 08.10.2013 12.10.2013-1.44% 6 2 4 5 25.09.2013 30.09.2013 02.10.2013-0.66% 6 4 2 SP500 From Trough To Depth Length To Trough Recovery 1 27.09.2013 08.10.2013 11.10.2013-2.54% 11 8 3 2 10.12.2013 13.12.2013 18.12.2013-1.83% 7 4 3 3 30.10.2013 07.11.2013 13.11.2013-1.40% 11 7 4 4 29.11.2013 05.12.2013 09.12.2013-1.23% 7 5 2 5 18.11.2013 20.11.2013 22.11.2013-0.94% 5 3 2 Past performance is not an indicator of current or future returns. 7

Management's report (continued) 1.3 Best and worst days for the PORTFOLIOS SIF - WATAMAR COL sub fund It is also interesting to see how the PORTFOLIOS SIF - WATAMAR COL sub-fund performs on extremes days. For this, we can find the best and worst days during the relevant period. In addition to knowing the performance for the sub-fund, it is also useful to see how the SP500 did on the same days. Below we have two tables that show us exactly that. Since the correlation between the PORTFOLIOS SIF - WATAMAR COL sub-fund and the SP500 is high at the end of the year, it is not really surprising that all the days presented here moved in the same direction for both series. Worst Days Date COL SP500 Date COL SP500 07.11.2013-1.35% -1.32% 08.11.2013 2.59% 1.35% 18.11.2013-1.33% -0.38% 18.12.2013 2.41% 1.66% 11.12.2013-1.15% -1.13% 21.11.2013 1.62% 0.82% 08.10.2013-0.91% -1.23% 06.12.2013 1.54% 1.13% 12.12.2013-0.86% -0.38% 22.10.2013 1.43% 0.57% Best Days 2. PERFORMANCE ATTRIBUTION Date Equities Options COL Fund SP500 Ind. Perf. Perf. SEP 13-1.29% 0.83% -0.66% -0.66% OCT 13 10.78% -4.55% 5.16% 4.86% NOV 13 6.15% -1.25% 3.99% 2.41% DEC 13 5.22% -1.44% 2.71% 2.36% YTD/13 22.13% -6.32% 11.58% 9.19% On the table above we have all the factors that contributed to the overall performance of the PORTFOLIOS SIF - WATAMAR COL sub-fund. We know the main components are the stock selection for the equities and the put options used as protection. The rest of the difference in performance is due to the various fees charged to the sub-fund. Below we can see the evolution of the two main components and the final result for the PORTFOLIOS SIF - WATAMAR COL sub-fund (after fees). Past performance is not an indicator of current or future returns. 8

Management's report (continued) 2.1. Equities The PORTFOLIOS SIF - WATAMAR COL sub-fund principle of stock selection was the main driver behind the sub-fund s performance. The theoretical performance of the equity contribution without leverage, hedging or costs was +10.56% while the real returns having a 1.9X leverage in the sub-fund was +22.13%. To give us an idea of the performance of individual trades in the PORTFOLIOS SIF - WATAMAR COL sub-fund, we can take a look at the best and worst investments measured by performance. Best Trades Worst Trades Quote Date SP500 Over Date SP500 Over Perf. Quote Perf. Start End Perf. Perf. Start End Perf. Perf. MPC 9.oct 23.oct 16.09% 5.4% 10.7% DGX 6.déc 20.déc -10.8% 0.7% -11.5% SNI 5.déc 19.déc 14.43% 1.4% 13.1% KMX 24.sept 8.oct -10.4% -2.5% -7.9% GILD 10.oct 24.oct 11.30% 3.5% 7.8% EA 24.sept 8.oct -9.3% -2.5% -6.9% FITB 8.oct 22.oct 10.51% 6.0% 4.5% FE 19.nov 4.déc -7.0% 0.3% -7.3% GCI 8.oct 22.oct 10.51% 6.0% 4.5% COG 24.oct 7.nov -6.3% -0.3% -6.1% The average performance for individual trades in this period was 1.39%, compared to a performance of 1.14% for the equivalent timeframe of the S&P500. It represents an over performance of 0.25% when each trade is analyzed against the index (before leverage). 2.2. Derivatives In addition to the selected stocks invested at 190% of the net assets, the PORTFOLIOS SIF - WATAMAR COL sub-fund buys at-the-money put options every quarter. These options cover some of the market risk and in particular circumstances can be a source of profits. Since the market went up in the analyzed period, the put options lost value and finally expired worthless. The cost of this protection was -6.32% relative to the total amount of net assets. Past performance is not an indicator of current or future returns. 9

Management's report (continued) 2.3. Leverage The sub-fund targets a 190% exposure on its equity component. The premium value of the put options has to be added to this equity exposure to find the total liquidation value of the sub-fund. The ratio of this net liquidation value to the total net assets of the sub-fund gives us the exposure on percentage terms. It can also be seen as the leverage since a 190% exposure implies we are using a 1.9X leverage. From the chart below we can see we were always in line with our target. 3. FEES & TAXES The theoretic Net Total Expense Ratio ("TER") of the sub-fund is 1.85%. When the central administration of the sub-fund (FundPartner Solutions) calculates the TER, it takes into account all the fees excluding interest, brokerage and foreign tax. It then and it annualizes the results since the fund is less than a year old. The net TER after this calculation is 1.85% which is exactly what was expected. Past performance is not an indicator of current or future returns. 10

rly ) Management's report (continued) The Gross TER is then calculated by taking into account the performance fees plus the securities lending. The Gross TER calculated by the central administration of the sub-fund for 2013 was 2.64%. As a side comment, it is important to remember that a high Gross TER is not necessarily bad. Since it depends on the performance fee and a high performance fee implies a high performance for the sub-fund February 2014 Established by the Investment Manager Approved by the board of Directors of the SIF Mike KARA Past performance IS nut un mdtcator of current or tutun~ returns

Report of the réviseur d entreprises agréé / Auditor's report To the shareholders of LEO PORTFOLIOS SIF (formerly P Challenge) (Specialized Investment Fund) 15, avenue J.F. Kennedy, L-1855 Luxembourg Following our appointment by the General Meeting of the Shareholders dated September 6, 2013, we have audited the accompanying financial statements of LEO PORTFOLIOS SIF (formerly P Challenge) (the "SIF"), which comprise the statement of net assets and the statement of investments and other net assets as at December 31, 2013, as well as the statement of operations and changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Responsibility of the Board of Directors of the SIF for the financial statements The Board of Directors of the SIF is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the SIF determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the réviseur d entreprises agréé Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the réviseur d entreprises agréé s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the réviseur d entreprises agréé considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the SIF, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 12

Deloitte. Report of the réviseur d'entreprises agréé / Auditor's report (continued) Opinion In our opinion, the financial statements give a true and fair view of the financial position of LEO PORTFOLIOS SIF (formerly P Challenge) as at December 31, 2013, and of the results of its operations and changes in its net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other matter Supplementary information included in the annual report has been reviewed 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. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole. For Deloitte Audit Société à responsabilité limitée Cabinet de révision agréé Nicolas Hennebert, Réviseur d'entreprises agréé Partner April 15,2014 560, rue de Neudorf L-2220 Luxembourg 13

Statement of net assets as at December 31, 2013 COMBINED LEO PORTFOLIOS SIF - WATAMAR COL (note 1) EUR USD ASSETS Investments in securities at acquisition cost 5,805,547.98 7,999,751.94 Net unrealised gain/loss on investments 59,462.69 81,936.58 Investments in securities at market value (note 2) 5,865,010.67 8,081,688.52 5,865,010.67 8,081,688.52 LIABILITIES Management fee payable (note 4) 3,865.90 5,327.01 Bank overdraft 2,769,305.48 3,815,963.10 Performance fee payable (note 5) 16,120.39 22,213.09 "Taxe d abonnement" payable (note 3) 77.37 106.61 Other fees payable (note 6) 1,838.03 2,532.71 2,791,207.17 3,846,142.52 TOTAL NET ASSETS AS AT DECEMBER 31, 2013 3,073,803.50 4,235,546.00 TOTAL NET ASSETS AS AT DECEMBER 31, 2012 30,526,808.92* - TOTAL NET ASSETS AS AT DECEMBER 31, 2011 30,038,874.19* - *Including the total net assets of the liquidated sub-fund The accompanying notes form an integral part of these financial statements. 14

Statement of operations and changes in net assets for the year/period ended December 31, 2013 COMBINED LEO PORTFOLIOS SIF - WATAMAR COL (note 1) P Challenge (note 1) EUR USD EUR NET ASSETS AT THE BEGINNING OF THE YEAR/PERIOD 30,526,808.92-30,526,808.92 INCOME Dividends, net 129,035.70 21,169.54 113,672.63 Interest on bonds, net 75,315.67 0.00 75,315.67 Bank interest 1,227.97 0.00 1,227.97 205,579.34 21,169.54 190,216.27 EXPENSES AND FEES Management and advisory fees (note 4) 18,632.20 11,520.29 10,271.74 Custodian fees, interest and bank charges 16,250.11 14,779.34 5,524.51 Administration fees 6,481.27 1,382.10 5,478.26 Professional fees, audit fees and other expenses 34,251.24 614.28 33,805.45 Performance fee (note 5) 16,120.39 22,213.09 0.00 "Taxe d abonnement" (note 3) 758.43 151.50 648.48 Transaction fees (note 2) 36,082.19 33,215.77 11,976.97 128,575.83 83,876.37 67,705.41 NET INVESTMENT INCOME 77,003.51-62,706.83 122,510.86 Net realised gain/loss on sales of investments -2,032,421.91 281,345.76-2,236,599.03 Net realised gain on foreign exchange 108,102.27 0.00 108,102.27 NET REALISED GAIN/LOSS -1,847,316.13 218,638.93-2,005,985.90 Change in net unrealised gain: - on investments 3,100,548.84 81,936.58 3,041,086.15 GAIN RESULTING FROM OPERATIONS 1,253,232.71 300,575.51 1,035,100.25 Proceeds from subscriptions of shares 2,988,285.67 4,116,328.80 1,000.00 Cost of shares redeemed -31,694,523.80-181,358.31-31,562,909.17 NET ASSETS AT THE END OF THE YEAR/PERIOD 3,073,803.50 4,235,546.00 - The accompanying notes form an integral part of these financial statements. 15

Number of shares outstanding and net asset value per share Sub-fund Currency Number of shares outstanding Net asset value per share Net asset value per share Net asset value per share 31.12.2013 31.12.2013 31.12.2012 31.12.2011 WATAMAR COL (note 1) A-CAP USD 37,960.55 111.58 0.00 0.00 P Challenge (note 1) A EUR 0.00 0.00 76,317.02 75,097.19 B* EUR 0.00 0.00 0.00 0.00 * The share-class was launched on March 27, 2013 and closed on September 30, 2013. The accompanying notes form an integral part of these financial statements. 16

LEO PORTFOLIOS SIF - WATAMAR COL (note 1) Statement of investments and other net assets as at December 31, 2013 (expressed in USD) Description Quantity Market value (note 2) % of net assets TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL EXCHANGE LISTING OR DEALT IN ON ANOTHER REGULATED MARKET SHARES SWITZERLAND ACE 2,573.00 266,382.69 6.29 TRANSOCEAN 5,422.00 267,955.24 6.33 534,337.93 12.62 UNITED KINGDOM ENSCO 'A' 4,643.00 265,486.74 6.27 ROWAN COMPANIES 'A' 7,904.00 279,485.44 6.60 544,972.18 12.87 UNITED STATES AIR PRODUCTS & CHEMICALS 2,427.00 271,290.06 6.41 BAXTER INTERNATIONAL 3,878.00 269,714.90 6.37 BERKSHIRE HATHAWAY 'B' 2,237.00 265,218.72 6.26 C. H. ROBINSON WORLDWIDE 4,609.00 268,889.06 6.35 C. R. BARD 1,971.00 263,995.74 6.23 CHUBB CORP 2,805.00 271,047.15 6.40 DOLLAR TREE 4,714.00 265,963.88 6.28 EXELON 9,511.00 260,506.29 6.15 FMC CORP 3,580.00 270,146.80 6.38 GAP 6,647.00 259,764.76 6.13 HEALTH CARE REIT 4,931.00 264,153.67 6.24 KOHL'S 4,754.00 269,789.50 6.37 LIFE TECHNOLOGIES 6,878.00 521,352.40 12.31 LINCOLN NATIONAL 5,076.00 262,023.12 6.19 MARATHON OIL 7,295.00 257,513.50 6.08 NOBLE ENERGY 3,760.00 256,093.60 6.05 NORDSTROM 4,249.00 262,588.20 6.20 PEOPLE'S UNITED FINANCIAL 35,570.00 537,818.40 12.69 PG & E 6,457.00 260,087.96 6.14 QUEST DIAGNOSTICS 9,795.00 524,424.30 12.37 WALMART STORES 6,654.00 523,603.26 12.36 WELLPOINT 2,926.00 270,333.14 6.38 6,876,318.41 162.34 TOTAL SHARES 7,955,628.52 187.83 OPTIONS UNITED STATES PUT S&P 500-STOCK (OS) SPX 22/03/2014 1800 44.00 126,060.00 2.98 126,060.00 2.98 TOTAL OPTIONS 126,060.00 2.98 The accompanying notes form an integral part of these financial statements. 17

LEO PORTFOLIOS SIF - WATAMAR COL (note 1) Statement of investments and other net assets as at December 31, 2013 (expressed in USD) Description Market value (note 2) % of net assets TOTAL INVESTMENTS 8,081,688.52 190.81 BANK OVERDRAFT -3,815,963.10-90.09 OTHER NET LIABILITIES -30,179.42-0.72 TOTAL NET ASSETS 4,235,546.00 100.00 The accompanying notes form an integral part of these financial statements. 18

LEO PORTFOLIOS SIF - WATAMAR COL (note 1) Geographical and industrial classification of investments as at December 31, 2013 Geographical classification (in % of net assets) United States 165.32 United Kingdom 12.87 Switzerland 12.62 190.81 Industrial classification (in % of net assets) Holding and finance companies 37.82 Retail and supermarkets 37.34 Oil 25.00 Pharmaceuticals and cosmetics 24.97 Chemicals 12.79 Biotechnology 12.31 Healthcare & social services 6.38 Transport and freight 6.35 Utilities 6.29 Real estate 6.24 Insurance 6.19 Public utilities 6.15 Options 2.98 190.81 The accompanying notes form an integral part of these financial statements. 19

Notes to the financial statements as at December 31, 2013 NOTE 1 GENERAL LEO PORTFOLIOS SIF (the "SIF") was established as "OP Challenge" on October 22, 2007 for an unlimited period. By resolution of the Extraordinary Shareholders Meeting of January 10, 2012, the company was renamed "P Challenge" and later the Extraordinary Shareholders Meeting of September 6, 2013 renamed it "LEO PORTFOLIOS SIF". LEO PORTFOLIOS SIF is organized as a multiple sub-fund investment company with variable share capital under the form of a "société anonyme". The SIF is administrated by and under the final responsibility of its Board of Directors. The Board of Directors of the SIF may under its responsibility delegate the management of the SIF s assets to a third party Investment Manager. The SIF constitutes one single legal entity. However, with regard to third parties, in particular towards the SIF s creditors, each sub-fund will be exclusively responsible for all liabilities attributable to it. The capital of the SIF will always be equal to the total value of the net assets of all its sub-funds, in accordance with its Articles. The capital of the SIF is represented by registered shares with no nominal value. The subscribed capital of the SIF, increased by the share premium, if any, may not be less than the minimum fixed by the Law of 2007, i.e. the equivalent in the Reference Currency of the SIF of Euros one million two hundred and fifty thousand (EUR 1,250,000). This minimum has to be reached within a period of twelve months following the approval of the SIF by the Luxembourg Supervisory Authority. On March 1, 2013, the Board of Directors of the SIF approved the request for redemption of all outstanding shares within class A of P-Challenge at the net asset value (NAV) as at March 29, 2013 (based on April 2, 2013). As at the same date, the Board of Directors of the SIF decided the continuation of the SIF. The share class B was created with an initial subscription price of EUR 100 opened to initial subscriptions on March 27, 2013 until March 28, 2013. On September 24, 2013, the sub-fund LEO PORTFOLIOS SIF - WATAMAR COL was launched. The share class A-CAP (USD) was created with an initial subscription price of USD 100 opened to initial subscriptions on September 23, 2013 until September 24, 2013. All outstanding shares within the class B of P-Challenge were subsequently redeemed as at September 30, 2013. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) General The financial statements are presented in accordance with legal reporting requirements applicable in Luxembourg. b) Presentation of financial statements The Reference Currency of the SIF is the EUR. 20

Notes to the financial statements as at December 31, 2013 (continued) The accounting year of the SIF terminates on December 31 of each year. c) 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, 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 SIF to be representative of the fair market value, are valued, prudently and in good faith by the Board of Directors of the SIF; 3) The value of the liquid assets, bills or notes payable on demand and accounts receivable, prepaid expenditures, dividends and interest announced or come to maturity not yet affected, is constituted by the nominal value of these assets, except if it is unlikely that this value could be obtained. In the latter case, the value is determined by subtracting a certain amount that the Board of Directors of the SIF deems appropriate to reflect the real value of these assets; 4) Money market instruments are valued at their nominal value plus any eventually accrued interest or according to the amortized cost method; 5) The shares/units issued by open ended undertakings for collective investment are valued based on: - the last known NAV issued by the Central Administration or on - the basis of the estimated value that is closest to the Pricing Day; 6) Forward contracts (Futures) and option contracts that are not traded on a regulated market or a stock exchange are valued at their liquidation value determined in accordance with rules established in good faith by the Board of Directors of the SIF, according to uniform criteria for each type of contract. The value of forward contracts and option contracts traded on a regulated market or stock exchange is based on the closing or settlement price published by the regulated market or stock exchange which is normally the principal place of negotiation for such contracts. If a future or options contract could not be liquidated on the relevant Pricing Day, the criteria for determining the liquidation value of such futures contract or option contract be determined by the Board of Directors of the SIF may deem fair and reasonable. 7) The value of the companies that are not listed on a stock exchange or regulated market is be determined based on a valuation method proposed in good faith by the Board of Directors of the SIF based on: - the latest available audited annual accounts and/or on - the basis of recent events that may have an impact on the value of such security and/or - any other available assessment; The choice of method and support for assessment depends on the relevance of available data. The estimated value may be corrected by periodic unaudited accounts, if available. If the Board of Directors of the SIF believes that the resulting price is not representative of the likely realizable value of such a security, the value shall be determined prudently and in good faith based on the probable sale price. 21

Notes to the financial statements as at December 31, 2013 (continued) 8) Where the Board of Directors of the SIF considers it necessary, it may seek the assistance of an evaluation committee whose task will be the prudent estimation of certain assets values in good faith. The Board of Directors of the SIF is authorized to adopt other appropriate valuation principles for the SIF s assets where the determination of values according to the criteria specified above is not possible or appropriate. d) Net realised gain/loss on sales of investments The net realised gain/loss on sales of investments is calculated on the basis of the average cost of the investments sold. e) Cost of investment securities Cost of investment securities in currencies other than the currency of the sub-fund is translated into the currency of the sub-fund at the exchange rate applicable at purchase date. f) Valuation of forward contract The valuation of forward contracts is based on the latest price available. g) Income Dividends are recorded at ex-date. Interest is recorded on an accrual basis. h) Accounting of forward contract Unrealised gains and losses on forward contracts are settled daily through the reception/payment of a cash amount corresponding to the daily increase/decrease of the market value of each opened forward contract. Such cash amount is recorded under the caption "Cash at banks" in the statement of net assets and the corresponding amount is recorded under the caption "realised gain and loss on forward contracts" in the statement of operations and changes in net assets. i) Transaction fees The transaction fees represent the costs incurred by each sub-fund in connection with purchases and sales of investments. They include brokerage fees as well as bank commissions, tax, depositary fees and other transaction fees, and are included in the statement of operations and charges in net assets. 22

Notes to the financial statements as at December 31, 2013 (continued) NOTE 3 TAXATION Under current law and practice, the SIF is not liable to any Luxembourg income tax, capital gains tax or wealth tax, nor are dividends (if any) paid by the SIF liable to any Luxembourg withholding tax. The SIF is liable in Luxembourg to a subscription tax ("taxe d abonnement") of 0.01% per annum of its net assets attributable to the shares of each sub-fund. Such tax is payable quarterly and calculated on the NAV of the relevant sub-fund at the end of the relevant quarter. No stamp duty or other tax is payable in Luxembourg on the issue of shares in the SIF, except a once and for all fixed capital duty of EUR 1,250 which was paid upon the SIF s incorporation. Dividends and interest on securities issued in other countries (including those issued by target funds) may be subject to withholding taxes imposed by such countries. NOTE 4 MANAGEMENT FEE AND ADVISORY FEE For the fund P Challenge (until September 30, 2013) : The Investment Manager and Investment Advisor were entitled to a fee of up to 1.50% p.a., calculated on the basis of the average net assets of the sub-fund or share class and payable quarterly in the month following the end of a quarter. For the sub-fund LEO PORTFOLIO SIF - WATAMAR COL (since September 24, 2013) : The Investment Manager receives from the sub-fund a management fee of 1.50% p.a.. This commission is levied on the sub-fund in relation to its net assets. The investment management fee is generally calculated on the basis of the average net assets of the sub-fund or share class and payable quarterly in the month following the end of a quarter. NOTE 5 PERFORMANCE FEE The Investment Manager receives from the sub fund LEO PORTFOLIO SIF - WATAMAR COL a performance fee. From September 24, 2013 to December 1, 2013, the performance fee is accrued on each Valuation Day, paid yearly, based on the NAV, equivalent to 7% of the performance of the NAV per share, measured against the Reference NAV (as defined hereafter). The performance fee is calculated on the basis of the NAV after deduction of all expenses, liabilities, and management fees (but not performance fee), and is adjusted to take account of all subscriptions and redemptions. The performance fee is based on the positive performance of the NAV per share relative to the Reference NAV multiplied by the number of shares in circulation during the calculation period. No performance fee will be due if the NAV per share before performance fee turns out to be below the Reference NAV for the calculation period in question. The Reference NAV is defined as the last end of period NAV per share or the initial NAV per share for the first calculation period. The Reference NAV will be decreased by the dividends paid to shareholders. 23

Notes to the financial statements as at December 31, 2013 (continued) As from December 2, 2013, the performance fee is accrued on each Valuation Day, paid yearly, based on the NAV, equivalent to 7% of the performance of the NAV per share, exceeding the high water mark (as defined hereafter). The performance fee is calculated on the basis of the NAV after deduction of all expenses, liabilities, and management fees (but not performance fee), and is adjusted to take account of all subscriptions and redemptions. The performance fee is equal to the out performance of the NAV per share multiplied by the number of shares in circulation during the calculation period. No performance fee will be due if the NAV per share before performance fee turns out to be below the high water mark for the calculation period in question. The high water mark is defined as the greater of the following two figures: The last highest NAV per Share on which a performance fee has been paid and; The initial NAV per share. The high water mark is decreased by the dividends paid to shareholders. As at December 31, 2013, performance fee payable for the sub-fund LEO PORTFOLIOS SIF - WATAMAR COL amounted to USD 22,213.09. NOTE 6 OTHER FEES PAYABLE As at December 31, 2013, the other fees payable included administration and custody fees. NOTE 7 EXCHANGE RATES The following exchange rate was used to establish the combined financial statements of the sub-funds into EUR as at December 31, 2013: 1 EUR = 1.377950 USD NOTE 8 OPTIONS CONTRACTS The SIF had the following option contract outstanding as at December 31, 2013: Quantity Name Strike Maturity date Currency Commitment in USD 44 PUT S&P 500-STOCK (OS) SPX 1,800.00 22/03/2014 USD -2,705,045.29 24