PICTET EUR SHORT HY R OF

This Compartment invests principally in a diversified portfolio of bonds & other: high yield, second quality debt securities; denominated in EUR or in other currencies as long as the securities are generally hedged in EUR; have a minimum rating, at the time of acquisition, equivalent to B-, as defined by Standard & Poors or an equivalent rating from other recognised rating agencies. The residual maturity for each investment will not exceed six years and the average residual duration of the portfolio (the duration) cannot, however, exceed three years.