PICTET ALTERNATIVE FUNDS - Morningstar, Inc.

PICTET ALTERNATIVE FUNDS

Investment Company with Variable Capital,Luxembourg

Unaudited semi-annual report as at June 30, 2009

R.C.S. Luxembourg B 104 485

Pictet Alternative FundsInvestment Company with Variable Capital, Luxembourg


2

Pictet Alternative Funds


No subscriptions 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 and the most recent semi-annual report if published thereafter.

3


TABLE OF CONTENTS

ORGANISATION OF THE SICAV 4

GENERAL INFORMATION 6

FINANCIAL STATEMENTS

STATEMENT OF NET ASSETS 8

STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS 10

NUMBER OF SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE 12

Sub-Fund: PICTET ALTERNATIVE FUNDS - WORLD EQUITY HEDGE (note 1)Statement of investments and other net assets 14Geographical and industrial classification of investments 18

Sub-Fund: PICTET ALTERNATIVE FUNDS - PLEIADStatement of investments and other net assets 19Geographical and industrial classification of investments 25

Sub-Fund: PICTET ALTERNATIVE FUNDS - MOSAIC DIVERSIFIEDStatement of investments and other net assets 26Geographical and industrial classification of investments 28

Sub-Fund: PICTET ALTERNATIVE FUNDS - GLOBAL (note 1)Statement of investments and other net assets 29Geographical and industrial classification of investments 31

NOTES TO THE FINANCIAL STATEMENTS 32

4


ORGANISATION OF THE SICAV (continued)

Registered Office 1, boulevard Royal, L-2449 Luxembourg

Board of Directors

Chairman Mr Marc PICTET, CEO, Pictet & Cie (Europe) S.A., Luxembourg and member of theExecutive Committee of Pictet Funds (Europe) S.A.

Directors Mrs Michèle BERGER, Executive Vice-President, Pictet Funds (Europe) S.A.,Luxembourg

Mr Nicolas CAMPICHE, Executive Vice-President, Pictet & Cie, Geneva

Mr Claude DEMOLE, Partner, Pictet & Cie, Geneva (until March 31, 2009)

Mr Pierre ETIENNE, Senior Vice-President, Pictet & Cie (Europe) S.A., Luxembourg

Mr Yves MARTIGNIER, Senior Vice-President, Pictet & Cie, Geneva

Mr Bertrand DEMOLE, Senior Vice-President, Pictet & Cie, Geneva (from May 21, 2009)

Mr Francesco ILARDI, Senior Vice-President, Pictet & Cie, Geneva (from May 21, 2009)

Management Company

Pictet Funds (Europe) S.A., 3, boulevard Royal, L-2449 Luxembourg

Management Company’s Board of Directors

Chairman Mr Pierre ETIENNE, Senior Vice-President, Pictet & Cie (Europe) S.A., Luxembourg

Members Mr Rolf BANZ, Executive Vice-President, Pictet Asset Management S.A., Geneva

Mr Frédéric FASEL, Senior Vice-President, Pictet & Cie (Europe) S.A., Luxembourg

Mr Yves MARTIGNIER, Senior Vice-President, Pictet & Cie, Geneva

Mr Marc PICTET, CEO, Pictet & Cie (Europe) S.A., Luxembourg and member of theExecutive Committee of Pictet Funds (Europe) S.A.

Mr Laurent RAMSEY, CEO, Pictet Funds S.A., Geneva

Mr Christoph SCHWEIZER, Senior Vice-President, Pictet Funds S.A., Geneva

Conducting Officers of the Management Company

Mrs Michèle BERGER, Executive Vice-President, Pictet Funds (Europe) S.A.,Luxembourg

Mr Laurent RAMSEY, CEO, Pictet Funds S.A., Geneva

5


ORGANISATION OF THE SICAV (continued)

Investment Manager Pictet & Cie, Genève, 60, route des Acacias, CH-1211 Geneva 73

Custodian, Registrar, Administrative, Transfer and Domiciliary Agent

Pictet & Cie (Europe) S.A., 1, boulevard Royal, L-2449 Luxembourg

Investment Advisers Pictet Advisory Services (Overseas) Ltd., Bayside Executive Park, Building N�1, West BayStreet and Black Road, P.O. Box 4837, Nassau, Bahamas

Pictet Bank & Trust Limited, Bayside Executive Park, Building N�1, West Bay Street andBlack Road, P.O. Box 4837, Nassau, Bahamas

Auditor Deloitte S.A., 560, rue de Neudorf, L-2220 Luxembourg

Legal Advisor Elvinger, Hoss & Prussen, 2, Place Winston Churchill, L-1340 Luxembourg

6


GENERAL INFORMATION

The SICAV will publish an audited annual report within four months after the end of thebusiness year and an unaudited semi-annual report within two months after the end ofthe period to which it refers.

All these reports are made available to the shareholders free of charge at the registeredoffice of the SICAV.

Any other financial information to be published concerning the SICAV, including themonthly issue, redemption and conversion price of the shares, is available to the publicat the registered office of the SICAV.

The net asset value per share, the issue price and the redemption price are available, inLuxembourg, at the registered office of the SICAV, the Custodian and any Paying Agent.

Any amendments to the articles of incorporation will be published in the Mémorial of theGrand-Duchy of Luxembourg.

A detailed schedule of changes in the investments for the reporting period is availablefree of charge upon request at the registered office of the SICAV.

7


GENERAL INFORMATION

8


STATEMENT OF NET ASSETS AS AT JUNE 30, 2009

The accompanying notes form an integral part of these financial statements.

COMBINED PAF - WORLD EQUITY

HEDGE (note 1)

PAF - PLEIAD

USD USD USD

ASSETS

Investments in securities at acquisition cost 2,296,517,403.86 406,138,036.21 1,330,796,196.80

Net unrealised gain/loss on investments 49,078,518.07 27,578,911.57 42,624,496.60

Investments in securities at market value (note 2c) 2,345,595,921.93 433,716,947.78 1,373,420,693.40

Cash at banks 23,112,018.73 0.00 21,551,329.93

Net unrealised gain on forward foreign exchange contracts (note 8) 16,704,162.99 2,277,576.15 10,750,416.06

2,385,412,103.65 435,994,523.93 1,405,722,439.39

LIABILITIES

Management and service fee payable (note 4) 8,015,407.21 1,427,470.71 4,848,567.09

Bank overdraft 24,835,747.36 9,925,397.94 0.00

"Taxe d’abonnement" payable (note 3) 246,697.87 47,965.45 145,240.18

Other fees payable (note 5) 33,031,781.48 2,307,262.14 14,411,377.60

Net unrealised gain on forward exchange contracts (note 8) 86,519.51 0.00 0.00

66,216,153.43 13,708,096.24 19,405,184.87

TOTAL NET ASSETS AS AT JUNE 30, 2009 2,319,195,950.22 422,286,427.69 1,386,317,254.52

TOTAL NET ASSETS AS AT DECEMBER 31, 2008 2,434,812,255.68 129,911,406.33 1,686,913,531.67

TOTAL NET ASSETS AS AT DECEMBER 31, 2007 3,004,222,882.67 303,688,682.22 1,793,167,419.40

9


STATEMENT OF NET ASSETS AS AT JUNE 30, 2009


PAF - MOSAIC DIVERSIFIED PAF - GLOBAL (note 1)

USD EUR

523,311,987.50 25,859,077.51

-22,058,040.37 665,277.58

501,253,947.13 26,524,355.09

0.00 1,112,673.17

3,676,170.78 0.00

504,930,117.91 27,637,028.26

1,613,504.80 89,733.57

14,910,349.42 0.00

50,417.28 2,192.25

16,122,668.40 135,795.54

0.00 61,682.98

32,696,939.90 289,404.34

472,233,178.01 27,347,623.92

617,987,317.68 -

662,132,490.72 -

10


STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS FOR THE PERIOD ENDED JUNE 30, 2009


COMBINED PAF - WORLD EQUITY

HEDGE (note 1)

PAF - PLEIAD

USD USD USD

NET ASSETS AT THE BEGINNING OF THE PERIOD 2,434,812,255.68 129,911,406.33 1,686,913,531.67

INCOME

Interest on bonds, net 12,831.31 0.00 0.00

Bank interest 401,612.65 14,454.57 291,428.92

Other income 66,011.98 0.00 4,658.50

480,455.94 14,454.57 296,087.42

EXPENSES

Interest on loans 397,222.47 60,340.01 336,882.46

Management and service fee (note 4) 16,941,149.18 1,874,933.37 11,053,058.77

Custodian fee, bank charges and interest 803,160.32 106,162.84 480,732.11

Audit and other expenses 312,661.32 62,002.15 210,762.48

"Taxe d’abonnement" (note 3) 454,861.31 53,507.35 287,579.96

18,909,054.60 2,156,945.72 12,369,015.78

NET INVESTMENT INCOME -18,428,598.66 -2,142,491.15 -12,072,928.36

Net realised gain/(loss) on sales of investments -44,303,712.27 5,508,315.28 -10,939,353.82

Net realised gain on forward foreign exchange contracts 27,352,641.56 822,669.00 22,490,343.64

Net realised gain/(loss) on foreign exchange 7,864,587.81 -10,488,365.04 5,409,600.46

NET REALISED GAIN/(LOSS) -27,515,081.56 -6,299,871.91 4,887,661.92

Change in net unrealised appreciation/(depreciation) :

- on investments 228,235,673.76 22,932,355.25 121,937,130.63

- on forward foreign exchange contracts (note 8) -86,919,803.15 -2,536,416.14 -61,758,482.34

INCREASE IN NET ASSETS AS A RESULT OF OPERATIONS 113,800,789.05 14,096,067.20 65,066,310.21

Proceeds from subscriptions of shares 454,645,974.77 348,235,726.33 65,701,603.81

Contribution in kind received from Argus Fund 35,142,169.70

Cost of shares redeemed -712,964,225.03 -69,837,751.49 -427,790,252.31

Revaluation difference* -6,241,013.95 -119,020.68 -3,573,938.86

NET ASSETS AT THE END OF THE PERIOD 2,319,195,950.22 422,286,427.69 1,386,317,254.52

* The difference results from the fluctuations in the conversion rates into USD of the net assets of the share classes expressed in other currencies than the USD between January 1, 2009 and June 30, 2009.

11


STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS FOR THE PERIOD ENDED JUNE 30, 2009


PAF - MOSAIC DIVERSIFIED PAF - GLOBAL (note 1)

USD EUR

617,987,317.68 -

0.00 9,147.92

95,729.16 0.00

61,353.48 0.00

157,082.64 9,147.92

0.00 0.00

3,782,190.92 164,664.35

196,955.49 13,766.73

26,021.26 9,892.31

108,185.56 3,984.21

4,113,353.23 192,307.60

-3,956,270.59 -183,159.68

-39,601,908.71 519,898.78

3,695,938.75 245,029.52

12,558,914.51 274,080.08

-27,303,326.04 855,848.70

82,433,037.61 665,277.58

-22,538,385.16 -61,682.98

32,591,326.41 1,459,443.30

38,324,143.04 1,699,999.99

25,054,161.63

-214,121,554.71 -865,981.00

-2,548,054.41 0.00

472,233,178.01 27,347,623.92

12


NUMBER OF SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE


Sub-Fund Share class Currency Number of

shares

outstanding

Net asset value

per share

Net asset value

per share

Net asset value

per share

30.06.2009 30.06.2009 31.12.2008 31.12.2007

PAF - WORLD EQUITY HEDGE (note 1) P USD 1,062,134.32 115.45 111.98 135.90

I USD 98,911.39 116.96 113.29 137.10

R USD 100.00 112.63 109.42 133.53

Z USD 132,600.15 93.56 90.09 107.65

HP-EUR EUR 1,443,645.35 80.75 79.17 96.37

HI-EUR EUR 189,622.31 81.81 80.10 97.23

HR-EUR EUR 2,086.30 78.74 77.40 94.68

HZ-EUR EUR 2,111.08 68.3 66.47 79.66

HP-CHF CHF 833,628.49 116.48 114.33 141.78

HI-CHF CHF 1,398.02 118.09 115.75 143.06

HR-CHF CHF 5,014.56 113.57 111.75 139.30

HZ-CHF CHF 222.69 110.3 107.45 131.17

HP-GBP GBP - - 88.89 -

HI-GBP GBP - - 89.03 -

HR-GBP GBP - - 88.66 -

HZ-GBP GBP - - 89.60 -

PAF - PLEIAD P USD 2,381,708.16 114.30 108.17 126.63

I USD 238,809.59 115.51 109.17 127.42

R USD 39,472.15 112.28 106.52 125.33

Z USD 94,825.71 96.23 90.38 104.16

HP-EUR EUR 3,301,898.15 91.78 87.83 103.34

HI-EUR EUR 1,295,389.41 92.75 88.63 103.98

HR-EUR EUR 192,012.02 90.16 86.48 102.28

HZ-EUR EUR 11,826.54 70.16 66.63 77.18

HP-CHF CHF 2,926,755.79 135.33 129.49 154.59

HI-CHF CHF 530,385.48 136.75 130.66 155.53

HR-CHF CHF 180,633.54 132.93 127.50 152.99

HZ-CHF CHF 3,929.59 113.88 108.14 127.10

HP-GBP GBP 3,150.17 89.18 84.94 -

HI-GBP GBP 100.00 89.44 85.07 -

HR-GBP GBP 100.00 88.73 84.72 -

HZ-GBP GBP 100.00 90.58 85.62 -

13


NUMBER OF SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE


PAF - MOSAIC DIVERSIFIED P USD 914,680.31 87.28 80.67 101.23

I USD 66,963.88 87.79 81.02 101.38

R USD 2,675.99 86.41 80.06 100.98

Z USD 100.00 90.02 82.58 102.02

HP-EUR EUR 1,752,266.69 63.62 59.42 75.00

HI-EUR EUR 677,199.23 63.99 59.68 75.11

HR-EUR EUR 36,246.32 62.97 58.97 74.80

HZ-EUR EUR 133.98 65.56 60.84 75.58

HP-CHF CHF 1,569,243.63 103.14 96.44 123.51

HI-CHF CHF 157,861.83 103.75 96.86 123.69

HR-CHF CHF 17,507.11 102.13 95.70 123.20

HZ-CHF CHF 80.61 106.39 98.73 124.47

HP-GBP GBP 2,456.06 86.36 80.37 -

HI-GBP GBP 100.00 86.66 80.51 -

HR-GBP GBP 100.00 85.92 80.16 -

HZ-GBP GBP 100.00 87.76 81.04 -

PAF - GLOBAL (note 1) P EUR 203,798.07 73.62 - -

I EUR 164,498.85 74.04 - -

R EUR 2,267.61 72.84 - -

Z EUR - - - -

Sub-Fund Share class Currency Number of

shares

outstanding

Net asset value

per share

Net asset value

per share

Net asset value

per share

30.06.2009 30.06.2009 31.12.2008 31.12.2007

14

Pictet Alternative Funds - World Equity Hedge

STATEMENT OF INVESTMENTS AND OTHER NET ASSETS AS AT JUNE 30, 2009 (EXPRESSED IN USD)


Description Quantity Market value (note 2) % of net assets

UNITS OF INVESTMENT FUNDS

BAHAMAS

AVESTA FUND F S.X 8,000.00 7,796,258.40 1.85

7,796,258.40 1.85

BERMUDA

ANTARES EUROPEAN FUND 13,990.00 5,883,185.29 1.39

CALYPSO OVERSEAS ´G´ S.0509 1,500.00 2,065,299.73 0.49

CALYPSO OVERSEAS ´G´ S.06/09 1,000.00 1,390,366.41 0.33

CALYPSO OVERSEAS G (Security to receive) 500,000.00 701,324.00 0.17

MEDITOR EUROPEAN HEDGE C (EUR) NR 26,051.31 9,705,242.72 2.30

NEW STAR UK GEMINI EQUAL 06/08 53,141.33 74,538.58 0.02

19,819,956.73 4.70

BRITISH VIRGIN ISLANDS

AJR INTERNATIONAL ’B’ S. 65 25,984.82 3,288,119.12 0.78

CANNIZARO ASIA FUND Á´ NEW ISSUE 1,765.85 3,248,310.80 0.77

CANNIZARO ASIA INVESTMENT Á´ 217.07 222,331.78 0.05

DISCUS FEEDER DEUR STAND.LEV.- 3,162.12 5,109,473.50 1.21

LIM ASIA ARBITRAGE FUND 132,500.00 3,890,200.00 0.92

LITCHFIELD ATLANTIC ’A1’ S. 02/08 (Security to deliver) 3,000.00 201,535.80 0.05

LITCHFIELD ATLANTIC FD A1 S. 03/08 (Security to deliver) 5,000.01 330,909.16 0.08

LITCHFIELD ATLANTIC FD A1 S. 04/08 (Security to deliver) 3,000.00 241,878.60 0.06

WINTON FUTURES C S.05/09 30,000.00 4,077,076.94 0.97

20,609,835.70 4.89

CAYMAN ISLANDS

AB2 ’RED. PTG’ 88,500.00 2,467,530.45 0.58

ALGEBRIS GLOB. FINANCIAL ’A’S1 NI 66,125.00 9,076,978.75 2.15

AM INVESTMENT V A S.1 500.00 5,725,155.80 1.36

AMIYA GLOB. EMERGING OPP. (EUR) EQ.06/09 37,013.85 51,917.40 0.01

AMIYA GLOB. EMERGING OPP. ’B2’ (EUR) 6,772.67 1,350,730.61 0.32

AMIYA GLOB. EMERGING OPP. FD. ’B2’ (USD) 26,000.00 4,553,788.46 1.08

AMOEBA CAPITAL ASIA ’B’ EQUAL 07/07 69,395.12 0.00 0.00

AMOEBA CAPITAL ASIA FEEDER ’B’ 19,988.75 2,603,734.71 0.62

APEX GREATER CHINA ENHAN (Security to receive) 1,000,000.00 1,000,000.00 0.24

APEX GREATER CHINA ENHANCED ’A1’ 2,090.00 2,502,245.90 0.59

APEX MKT NEU.GR.CHI.ENH. Á´S.6/9 849.70 1,000,000.04 0.24

ARTRADIS BARRACUDA NON US FEED. (Security to receive) 1,000,000.00 1,000,000.00 0.24

ARTRADIS BARRACUDA NON-US FEEDER 86,200.00 1,948,602.72 0.46

ASUKA OPP. OFF. I ’A’ USD EQUAL 2/8 6,315.90 0.00 0.00

ASUKA OPP. OFF. I. A (USD) EQUAL 01/06 2,982.18 0.00 0.00

BASSWOOD OPP. FD. ’A’ EQUAL 04/08 54,892.75 54,892.75 0.01

BLACK DIAMOND REL. VAL. C (Security to receive) 5,000,000.00 5,000,000.00 1.18

BLACKROCK EUROASIAN FRONT. ’I’ EQU. 6/07 57,291.98 0.00 0.00

BLACKROCK EUROASIAN FRONT. ’I’ EQU. 7/07 24,827.25 0.00 0.00

BLACKROCK EUROASIAN FRONT. ’I’ EURO 19,640.00 3,117,178.18 0.74

BLACROCK EUROASIAN ’I’ EQUAL. 10/7 33,187.10 0.00 0.00

BLUETREND FUND ’B’ (EUR) 16,344.87 4,993,048.98 1.18

BREVAN HOWARD ´B´ (Security to receive) 1,000,000.00 1,402,648.00 0.33

BREVAN HOWARD B EQUAL. 04/09 101,699.72 142,648.91 0.03

BREVAN HOWARD FUND ’B’ EUR 20,386.79 5,164,346.12 1.22

BRIDGEWATER PUR.ALPH.EUR MAIN ´B´ 4,000.00 5,442,867.28 1.29

CANNIZARO ASIA ’A’ NI EQUAL 10/07 904.95 0.00 0.00

15




CANTILLON EUROPE ’C1’ NI 0903 (EUR) 22,420.00 4,746,351.28 1.12

CANTILLON WORLD Á14´ S.01/09 75,600.00 6,760,152.00 1.60

COATUE OFFSHORE ’C’ TR. 4 S. 08-05-01 100,000.00 8,793,610.00 2.08

COATUE OFFSHORE ’C’ TR. 4 S. 08-05-01 (Security to deliver) 6,000.00 501,565.33 0.12

DEFIANCE OFFSHORE ’A’ S. 2 763.03 759,334.95 0.18

DEFIANCE OFFSHORE ’A’ S. 3 1,000.00 787,392.87 0.19

DEFIANCE OFFSHORE FD. ’A’S. 5 6,000.00 4,830,032.28 1.14

DEFIANCE OFFSHORE FD. ’A’S. 7 2,000.00 1,561,651.68 0.37

DIAMONDBACK LU1/9A SUB1 S1 7/05 4,006.58 2,160,628.05 0.51

DIAMONDBACK OFFSHORE A1 S1 07/05 7,231.00 11,563,526.44 2.73

DIAMONDBACK OFFSHORE LR SERIES 654.02 352,693.44 0.08

DISCUS FEEDER D EUR ST L (Security to receive) 1,000,000.00 1,402,648.00 0.33

DOUBLE BLACK DIAM. ’C’ S. 0308 UNR. 78,600.00 7,761,303.55 1.84

DRAGONBACK ASIA PACIFIC EQ. M. S (Security to receive) 1,000,000.00 1,000,000.00 0.24

DRAGONBACK ASIA PACIFIC EQ. MLT-ST 23,918.17 3,551,319.47 0.84

EUREKA (EUR) FUND ’B’ EQUAL 06/07 13,069.25 0.00 0.00

EUREKA (EURO) FUND ’B’ 37,180.00 7,348,520.28 1.74

EUREKA ´B´ (EUR) (Security to receive) 1,500,000.00 2,103,972.00 0.50

EUREKA FUND (EUR) ’B’ EQUAL. 07/07 20,653.63 28,969.77 0.01

GIOVINE INV. PART. ’A’ S. 1 01/07 4,096.08 4,054,850.01 0.96




GLENVIEW CAPITAL PARTNERSĆC´S.20 14,572.83 11,498,674.91 2.72

GLG EUROPEAN FD LONG SHORT SP A 27,458.33 2,614,696.41 0.62

HALBERDIER FUND ´B´ 1,648.71 6,969,514.94 1.65

HDH MASTER FUND E SP * 13,837.61 2,210,558.20 0.52

HENDERSON ASIA PACIFIC Ć´ VTG (Security to receive) 1,000,000.00 1,000,000.00 0.24

HENDERSON ASIA PACIFIC ABS. RETURN 13,710.00 3,880,340.45 0.92

HENDERSON ASIA PACIFIC ’C’ 11,436.23 1,150,713.46 0.27

HIGHSIDE OFFSHORE ’A1’ S. 1 NI 3,920.45 6,153,580.74 1.46

HIGHSIDE OFFSHORE ’A1’ S. 2 964.35 1,520,194.20 0.36

HORSEMAN EUROPEAN SELECT ’A’ 25,703.00 6,369,353.05 1.51

HORSEMAN GLOBAL FD ´B´ EUR 9,616.77 2,672,159.65 0.63

HORSEMAN GLOBAL FD ’B’ EUR (Security to receive) 2,500,000.00 3,506,620.00 0.83

HSBC ALPHA-EUROPEAN ALPHA EUR FD 27,680.50 6,008,791.13 1.42

HUNTER GL. INV. OFFSH ’A’ S. 1 3,670.82 7,006,272.34 1.66

HUNTER GL. INV. OFFSH ’A’ S. 75 1,500.00 1,419,108.00 0.34

JANDAKOT FUND A (Security to receive) 1,000,000.00 1,402,648.00 0.33

JANDAKOT FUND ’A’ EUR -ACC. - 21,760.00 6,185,479.56 1.46

KINGDON OFFSHORE ’A’ S. 1 10,242.27 1,139,018.73 0.27

LANSDOWNE EUROPEAN EQ. ’B8’ JUL. EUR 19,996.83 3,729,877.36 0.88

LANSDOWNE EUROPEAN EQU. ’B’ S. 1 EUR 7,899.79 1,834,795.08 0.43

LANSDOWNE UK EQUITY 8,062.65 4,063,217.95 0.96

LANSDOWNE UK EQUITY EQUAL.05/09 88,065.54 123,524.95 0.03

LEVEL GL. OVERSEAS ’C’ SUB CL. 1 S. 3 2,000.00 3,086,907.40 0.73

LUCERNE MID-CAP ’A’ EQUAL 06/07 330,215.32 0.00 0.00

M. KINGDON OFFSHORE Á´ S.11 39,303.54 4,296,683.16 1.02

MAPLE LEAF OFFSHORE ’C’ S. 01/08 70,000.00 5,071,913.00 1.20


* Side Pockets


16




MAVERICK II PRI. INV. PART.A1 S1 681.06 671,615.53 0.16

MAVERICK LEVERED A -UNRESTR- S1 270.80 823,236.04 0.19

MAVERICK LEVERED -C1-UNRESTR-S1 5,430.63 5,413,054.15 1.28

MBAM JANDAKOT LEVERAGED CLASS SP 8,032.62 279,455.06 0.07

MPC SAMSARA ’A’ (MAIN VALOR) 61,309.06 8,621,870.00 2.04

NEVSKY FUND ´B´ 1,097.10 4,177,302.80 0.99

OCEANWOOD GBL OPP. ’A1’ S. 12 1/08 (Security to deliver) 6,047.78 694,202.67 0.16

OCEANWOOD GL. ’A’ EUR SP. RED. S. 0109 8,505.27 1,083,770.28 0.26

OCEANWOOD GL. A. SUB1 S. 9 06/07 NI 30,000.00 3,476,839.82 0.82

OCEANWOOD GL.Á´ EUR SP. RED. S. 0409 429.12 67,800.97 0.02

OCTAGON PAN ASIA EQUAL. 02/08 5,972.23 0.00 0.00

OCTAGON PAN ASIA EQUAL. 06/09 28,950.63 28,950.63 0.01

OCTAGON PAN ASIA FUND 35,413.97 6,784,962.51 1.61

OCTAGON PAN ASIA FUND EQUAL 05/09 10,657.30 10,657.30 0.00

OCTAGON PAN ASIA FUND EQUAL 11/07 10,359.10 0.00 0.00

OWL CREEK ASIA ’OA1’ S. 07/07 UNR. 1,943.02 2,181,032.06 0.52

OWL CREEK ASIA ’OA1’ S4 0408 830.00 828,193.01 0.20

OWL CREEK OVERSEAS Ć´ S1 07/07 394.46 453,800.78 0.11

OWL CREEK OVERSEAS ´S´ S.8 09/05 UNR. 1,984.05 3,087,307.21 0.73

OWL CREEK OVERSEAS ’C’ S. S3BS 03/09 347.03 359,729.45 0.09

OWL CREEK OVERSEAS ’C’ S. S3BT 03/09 206.06 213,599.18 0.05

OWL CREEK OVERSEAS ’S’ S. 2 8/7 NR 9,924.42 10,736,497.09 2.54

OZ ASIA OVERSEAS ’B’ PRIME S. 21 2,470.00 1,983,922.94 0.47

OZ EUROPE OVERSEAS II ’E’ PRIME S. 2 8,105.98 10,411,611.75 2.47

PARVUS EUROPE. ABS OPP ’A’ II S. NI 143,428.26 16,599,308.93 3.92

PHARO MACRO FUND ´B´ S.1 06/09 2,000.00 2,889,174.35 0.68

PHARO MACRO FUND B (Security to receive) 1,000,000.00 1,402,648.00 0.33

RAPTOR PRIVATE HOLDING (EX-A NI) 741.14 444,957.61 0.11

RAPTOR PRIVATE HOLDING (EX-C NI) 1,060.91 636,941.62 0.15

SARK FUND EUR 18,780.00 3,741,842.67 0.89

SEG PARTNERS OFFSHORE ’A’ S. 1 38,600.00 6,860,405.02 1.62



SPRING POINT OPPORT. ’A’ CL. V 08 46,680.00 4,633,643.52 1.10

SR GLOBAL ASIA ´B´ S.04/08 6,066.21 3,710,718.08 0.88

SR GLOBAL ASIA ´B´ S.06/09 1,629.13 996,545.93 0.24

SR GLOBAL ASIA ´B´ S.3 2009 334.97 199,940.13 0.05

SR GLOBAL ASIA ´B´ S.7 2009 1,634.78 999,999.97 0.24

SR GLOBAL EUROPE Á´ S.11 2007 3,354.02 1,121,309.93 0.27

TANTALLON NON US FEEDER 222,787.40 3,867,589.25 0.92

TANTALLON NON-US EQUAL. 02/08 15,934.33 0.00 0.00

TIEDEMANN JAPAN QP ’A1’ USD 316,755.40 4,229,486.05 1.00

TIEDEMANN JAPAN QP ’A1’ USD (Security to receive) 1,000,000.00 1,000,000.00 0.24

TRELLUS SMALL CAP OPPORTUN. OFF S1 1.92 241,212.78 0.06

TREMBLANT PARTNERS ’D’ S. 1 7,166.98 1,041,575.90 0.25

TREMBLANT PARTNERS ’D’ S. 1 UNREST. 10,957.55 1,639,667.75 0.39

TREMBLANT PARTNERS ’D’ S. 3 REST. 72,000.00 5,424,501.60 1.28

TRIDENT EUROPEAN FUND ’B’ 1,596.36 460,197.98 0.11

TRIVIUM OFFSHORE ’A’ S. 1 3,634.95 0.00 0.00

TRIVIUM OFFSHORE FUND ’A’ S. 01/08 7,300.00 0.00 0.00

WF ASIA FUND S. 1 13,010.00 3,682,892.53 0.87


17




WF ASIA FUND S.S28 10,000.00 1,106,038.10 0.26

WF ASIA FUND S.S30 10,000.00 1,000,000.00 0.24

365,811,048.54 86.62

MAURITIUS

HALBERDIER FUND B EQUAL. 06/09 4,106.82 4,106.82 0.00

4,106.82 0.00

SWITZERLAND

PICTET (CH) - MONEY MARKET (USD) ´Z´ 11,946.30 11,999,339.74 2.83

PICTET (CH) - MONEY MARKET (EUR) ´Z´ 5,379.94 7,676,401.85 1.82

19,675,741.59 4.65

TOTAL UNITS OF INVESTMENT FUNDS 433,716,947.78 102.71

TOTAL INVESTMENTS 433,716,947.78 102.71

BANK OVERDRAFT -9,925,397.94 -2.35

OTHER NET LIABILITIES -1,505,122.15 -0.36

TOTAL NET ASSETS 422,286,427.69 100.00


18


GEOGRAPHICAL AND INDUSTRIAL CLASSIFICATION OF INVESTMENTS AS AT JUNE 30, 2009


Geographical classification Industrial classification(in % of net assets)

Cayman Islands 86.62

British Virgin Islands 4.89

Bermuda 4.70

Switzerland 4.65

Bahamas 1.85

Mauritius 0.00

102.71

(in % of net assets)

Units of investment funds 102.71

102.71

19

Pictet Alternative Funds - Pleiad





BAHAMAS

MOORE EMERGING MARKETS ´B´ (Security to receive) 12,000,000.00 12,000,000.00 0.87

MOORE GLOBAL FIXED INCOME FUND 3,354.29 32,678,156.24 2.36

MOORE GLOBAL INV. ’E’ (EUR) 163.66 244,461.61 0.02

44,922,617.85 3.25

BERMUDA

ANTARES EUROPEAN (USD) 50,369.18 15,235,669.57 1.10

CLARIUM CAPITAL ’B’ S. 01/08 50,000.00 4,488,000.00 0.32

CLARIUM CAPITAL FUND ’B’ S. 1 54,741.04 11,522,987.91 0.83

CONCORDIA CAPITAL ’A’ 2,327.53 1,103,149.42 0.08

CONCORDIA CAPITAL ’G’ 16,832.80 19,632,570.50 1.42

JABCAP MUL. STRAT. ’E1’ EQU. 05/07 (Security to receive) 363.96 0.00 0.00

LYNX ’D’ 11,986.06 13,146,374.55 0.95

NEW STAR UK GEMINI EQUAL 06/08 79,033.84 0.00 0.00

PERELLA WEINB. -XERION ’A1’ S. P0708 10,000.00 8,538,269.00 0.62

73,667,020.95 5.32


ATTICUS GLOBAL ’A’ S. 10/08-P2 9,423.75 3,939,728.34 0.28

ATTICUS GLOBAL ’B’ 2,514.62 1,161,405.71 0.08

ATTICUS GLOBAL ’I’ (MAIN-VALOR) 106,930.15 11,705,356.94 0.84

ATTICUS GLOBAL I S.04/09 PI 12,882.64 1,410,247.99 0.10

BRIDGEWATER PURE ALPHA 1 LEAD ’B’ 3,259.15 6,353,778.11 0.46

CASTLERIGG INTL ´J´ S.12 01/09 4,447.67 465,812.55 0.03

CASTLERIGG INTL.SRS.12 01/09 2,463.26 221,563.31 0.02

CAXTON GLOBAL INV. PFD ´T´ 04/09 12,638.18 7,694,123.98 0.56

CAXTON GLOBAL INV. PREF N-VTG 15,351.00 10,094,357.07 0.73

INTERNATIONAL DURHAM SPV B1INIT. 1,770.22 1,644,662.01 0.12

INTERNATIONAL DURHAM SPV B5 (1107) 634.77 589,747.62 0.04

INTERNATIONAL DURHAM SPVB1-REDEEM- 4,107.78 3,848,032.84 0.28

INTERNATIONL DURHAM ’B’ S. INITIAL 344.18 438,519.09 0.03

INTL DURHAM ’B’ S. 5 11/07 41.18 52,462.44 0.00

INTL DURHAM SPV B2 (B INIT) 2,455.06 2,283,428.37 0.16

INTL DURHAM SPV B2 (B5 11/07) 880.34 818,797.54 0.06

JMG TRITON ’A’ NEW ISSUE S. 1 549.42 1,872,045.67 0.14

JMG TRITON ’D’ NEW ISSUE S. 1 288.15 901,876.48 0.07

JMG TRITON ’P’ NEW ISSUE S. 1 555.56 1,738,606.49 0.13

JMG TRITON ’P’ NEW ISSUE S. 6 200.99 611,736.36 0.04

KING STREET CAP S S2 186.22 12,417.60 0.00

KING STREET CAPITAL ´A´ S.3 HI 2,919.43 327,763.96 0.02

KING STREET CAPITAL ’A’ S. 1 (HOT) 54,056.33 22,684,740.56 1.64

KING STREET CAPITAL S S. 1 * 750.68 70,798.73 0.01

KING STREET CAPITAL ’S’ S. 11 * 67.79 6,523.10 0.00

KING STREET CAPITAL ’S’ S. 5 * 1,374.39 85,691.92 0.01


KING STREET CAPITAL ’S’ S4 * 304.71 8,388.70 0.00

LIM ASIA ARBITRAGE FUND 281,722.00 8,248,820.16 0.60

MOORE GLOBAL INV. ’A’ (USD) 34.34 1,288,316.73 0.09

MOORE GLOBAL INV. ’D’ (USD) 19,123.66 19,258,101.24 1.39

* Side Pockets

20




SHEPHERD INVESTMENTS INT. A S. SHEPA 1501 11,000.00 8,788,618.30 0.63

SHEPHERD INVESTMENTS INT. ’S’ SA17 22.86 10,634.48 0.00



SHEPHERD INVESTMENTS INT. S. S. SA01 9.03 10,159.81 0.00







SHEPHERD INVESTMENTS INT. S. S. SA12 65,550.50 3,798.65 0.00



SHEPHERD INVESTMENTS INT. SIH (HOLDBACK) 100.83 103,543.45 0.01

SHEPHERD INVESTMENTS ’S’ S. SA14 23.71 46,888.21 0.00

SHEPHERDS SELECT ASSET SPV 2,378.22 2,495,890.38 0.18

SR GLOBAL EMERG.MKT G S1 (Security to receive) 12,000,000.00 12,000,000.00 0.87

STRATUS FD ’B’ USD STRD LEVERAGE 2,244.21 3,820,722.64 0.28

STRATUS FEEDER ’B’ (NVTG) 9,640.58 11,816,171.28 0.85

WINTON FUTURES FUND B LEAD SERIES 33,634.22 22,938,873.70 1.65

173,007,749.38 12.46

CAYMAN ISLANDS

AB2 ’RED. PTG’ 224,309.01 6,254,116.64 0.45

ALGEBRIS GL. FIN. ’B’SUB. 1 NI 36M 97,433.87 13,564,743.24 0.98

AM INVESTMENT V A S.1 1,540.96 17,644,486.35 1.27

AMIYA GLOB. EMERG. OPP. ’B2’ EQ. 01/08 1,890.90 2,652.27 0.00

AMIYA GLOB. EMERG. OPP. FD. ’B2’ (USD) 91,561.97 16,036,686.44 1.16

APEX MK. N. GR. CHINA ENH.Á´ (Security to receive) 8,000,000.00 8,000,000.00 0.58

ARGONAUT GLOBAL MACRO Á´ S.04/09 50,000.00 5,005,875.00 0.36

ARTRADIS BARRACUDA NON-US FEEDER 992,682.00 22,440,172.22 1.62

ASPECT DIVERSIFIED FUND ’A’ 37,239.50 10,548,334.67 0.76

ASUKA OPPORT OFF. I A USD EQUAL 06/08 13,703.73 13,703.73 0.00

ASUKA OPPORT OFF. I A USD EQUAL 11/07 41,856.53 0.00 0.00

ASUKA OPPORT. OFF. TRUST I ’A’ 4,647.85 6,595,394.02 0.48

ATTICUS EUROPEAN ´D´ EUR 04/09 P1 1,170.55 519,941.19 0.04

ATTICUS EUROPEAN ’A’ 360.86 120,559.07 0.01

ATTICUS EUROPEAN M-D EUR 04/09 P1 498.82 120,708.49 0.01

ATTICUS EUROPEAN ’M-D’ S. 10. 08. P2 62.74 15,182.07 0.00

AVENUE INTERNATIONAL Á´ S.C0308 18.00 160,806.13 0.01

AVENUE INTERNATIONAL Á´ S.G0708 28.00 250,893.50 0.02

AVENUE INTERNATIONAL Á´ S.H0808 13.00 118,254.47 0.01

AVENUE INTERNATIONAL ’A’ S. A0108 290.00 2,512,337.28 0.18

AVENUE INTERNATIONAL ’A’ S. A0797 605.57 13,330,044.30 0.96

AVENUE INTERNATIONAL ’A’ S. H0807 190.00 1,604,268.36 0.12

AVENUE INTERNATIONAL ’A’ S. K1107 761.00 6,445,335.77 0.46

BASSO MULTI-STRATEGY ’A’ 22933 UNREST 10,535.13 3,495,028.93 0.25

BASSO MULTI-STRATEGY L 514.79 75,930.70 0.01

BELLMAN WATER GLOBAL FUND ’A’ S. 1 2,000.00 1,684,468.38 0.12

BLACKROCK EUROASIAN FRON. ’I’ EQU. 6/07 14,322.99 0.00 0.00

BLACKROCK EUROASIAN FRON. ’I’ EQU. 7/07 6,325.41 0.00 0.00

BLACKROCK EUROASIAN ’I’ EQU. 10/7 56,388.44 0.00 0.00


21




BLACKSTONE DIS. SEC. ’A’ S. 04/08 3,682.45 2,759,152.68 0.20

BLACKSTONE DIS. SEC. ’A’ S. 07/08 7,464.43 5,626,467.02 0.41

BLENHEIM GLOBAL MARKETS ’A’ S. 1 2,223.79 22,017,188.84 1.59

BLUECREST CAPITAL F (USD) 129,654.66 26,745,162.99 1.93

BLUETREND FUND ’B’ (USD) 97,992.99 22,398,616.09 1.62

BORONIA DIVERSIFIED 7,673.15 13,130,761.51 0.95

BREVAN HOWARD FUND ´B´ USD 179,737.74 33,186,776.26 2.38

BREVAN HOWARD FUND ’A’ USD 313.28 76,278.27 0.01

BREVAN HOWARD FUND ’B’ EUR 26,703.16 6,764,396.95 0.49

BRIDGEWATER PUR. ALPH. EUR MAIN ´B´ 6,000.00 8,164,300.92 0.59

CANYON VALUE REALIZATION ´A´ LIQ. 6,616.59 8,260,823.98 0.60

CANYON VALUE REALIZATION A DI (A) 5,423.23 5,237,611.22 0.38

CANYON VALUE REALIZATION A DI2 (A) 236.08 284,034.60 0.02

CANYON VALUE REALIZATION ’A’ S. 11/07 1,368.03 1,297,038.74 0.09

CANYON VALUE REALIZATION FUND ’A’ 396.31 1,654,915.43 0.12

CENTAURUS ALPHA FD SP A(EUR) 5,767.64 1,278,115.86 0.09

CENTAURUS ALPHA FUND ’A’ (EUR) 14,442.63 3,038,287.95 0.22

CENTAURUS INTL RISK ARB. 1 45,835.94 7,013,240.00 0.51

CHILDRENS INV. A1 S. 04/08 123,211.15 7,243,583.51 0.52

COATUE OFFSHORE ’D’ TR. 4 S. 12-7-1 333,533.29 30,630,733.53 2.21

COMMO FUND ´A´ 2,967.37 331,285.90 0.02

COMMO FUND ´B´ EUR 106,479.77 16,479,562.29 1.19

COMMO FUND B EUR (Security to receive) 6,000,000.00 8,415,888.00 0.61

D. E. SHAW OCULUS INTERNATIONAL 9,084,836.25 9,084,836.25 0.66

DBGM OFFSHORE USD SPV ASSETS 533.53 604,126.31 0.04



DOUBLE BLACK DIAMOND ’C’ 02/08 UNR. 200,000.00 19,761,152.00 1.43

DOUBLE BLACK DIAMOND ’C’ S. 0308 UNR. 182,964.23 18,066,677.98 1.30

DOUBLE BLACK DIAMOND ’C’ UNREST. 64,464.79 8,304,302.80 0.60

DRAKE GLOBAL OPPORTUNITIES ’C’ S. 1 3,562.22 2,485,956.12 0.18

DRAWBRIDGE GLOBAL MACRO ’A’ S. 1 NI 7,163.38 13,290,201.50 0.96

DRAWBRIDGE GLOBAL MACRO G S. 1 SP UN * 51.60 17,915.57 0.00

DRAWBRIDGE GLOBAL MACRO ’G’ S. 1 UNR. (Security to deliver) 207.64 171,314.82 0.01

DRAWBRIDGE GLOBAL MACRO G1 ’S’ SP4 0707 * 28.92 23,811.05 0.00



DRAWBRIDGE GLOBAL MACRO ’G1’ S. SP12 9/08 * 181.36 91,917.39 0.01

DRAWBRIDGE GLOBAL MACRO ’G1’ SP10 08/08 * 2.98 1,916.03 0.00

DRAWBRIDGE GLOBAL MACRO ’G1’ SP11 9/8 * 2.92 723.34 0.00



DRAWBRIDGE GLOBAL MACRO ’G1’ SSP9 0508 * 14.60 12,886.19 0.00

DRAWBRIDGE GLOBAL MACRO ’G21’ SP. 9 05/08 * 47.60 42,013.05 0.00

DRAWBRIDGE GLOBAL MACRO ’G21’ SSP. 7 0208 * 30.82 36,689.44 0.00

DRAWBRIDGE GLOBAL MACRO ’G21’ SSP10 0808 * 9.71 6,248.44 0.00

DRAWBRIDGE GLOBAL MACRO ’G21’ SSP11 9/8 * 9.53 2,357.93 0.00

DRAWBRIDGE GLOBAL MACRO ’G21’ UNREST 3,044.92 2,611,905.05 0.19

DRAWBRIDGE GLOBAL MACRO ’SP12’ 09/08 * 591.19 299,630.93 0.02

DRAWBRIDGE GLOBAL MACRO SPV 152 MASPV 020901 1,298.77 1,499,761.36 0.11

* Side Pockets


22




ENDEAVOUR FUND II S. ECM02 LBASE 86.82 74,163.80 0.01

EQ. WHITEBEAM EM. MKT B USD 02/06 10,074.71 0.00 0.00

EXPLORER GLOBAL Á´ S.DP 22,588.93 17,581,030.95 1.27

FORE CONVERTIBLE É´ S.13 (RF0409) 1.57 1,638.45 0.00

FORE CONVERTIBLE ´F´ S.8 (RF0109) 1.14 1,285.24 0.00

FORE CONVERTIBLE OFFSHORE É´S. 13 (RF04/09) 0.20 206.35 0.00

FORE CONVERTIBLE OFFSHORE ´F´ S. 9 (RF0409) 0.31 318.14 0.00

FORE CONVERTIBLE OFFSHORE ’E’ S. 1 15,734.38 18,292,105.63 1.32


FORE CONVERTIBLE OFFSHORE ’E1’S.1 14.51 22,598.43 0.00

FORE CONVERTIBLE OFFSHORE ES. 12 (RF01/09) 5.12 5,773.25 0.00

FORE CONVERTIBLE OFFSHORE ’F’ S. 1 1,634.98 1,950,887.34 0.14

FORE CONVERTIBLE SPV OFFSHORE S.1 117.05 182,306.98 0.01

FORE CV OFF.É´S.12 SPE (RF01/09) 0.50 560.92 0.00

FORE MULTI STRAT. OFF. Á´S. 10 1/09 16.18 19,304.71 0.00

FORE MULTI STRAT. OFF. Á´S11 (RF4/9) 3.66 3,820.78 0.00

FORE MULTI STRAT. OFF. ’A’ S. 5 5/08 3,253.41 3,207,411.20 0.23

FORTRESS COMMODIT. LP S. 1 01/08 NI 29,066,310.17 29,605,071.67 2.14



HALBERDIER FUND ´B´ 3,308.82 13,987,245.97 1.01

HARBINGER CAPITAL PARTNERS ’A’ S. 1 55,296.15 19,162,636.36 1.38

HARBINGER CLASS L HOLDINGS S.3 162.67 224,167.14 0.02

HARBINGER CLASS PE HOLDINGS S.2 2,392.12 2,484,752.12 0.18

HARBINGER L HOLDINGS S.2 90.55 145,774.41 0.01

HARBINGER PE HOLDINGS S.1 1,672.57 1,617,403.11 0.12

HB MULTI-STRATEGY B S.3 52.74 2,531,885.46 0.18

HIGHBRIDGE CAP. CORP. FEEDER Ć´ NR 11,645.52 14,160,214.11 1.02

HIGHSIDE OFFSHORE ’A1’ S. 2 2,800.00 4,413,892.00 0.32

HSBC ALPHA-EUROPEAN ALPHA EUR FD 61,689.00 13,391,245.04 0.97

JABCAP MULTI STRATEGY ’D’ S. 1 31,025.04 2,965,063.37 0.21

JABCAP MULTI STRATEGY ’E’ S. 1 23,399.59 3,047,794.29 0.22

JANDAKOT FUND ’A’ EUR -ACC. - 37,463.07 10,649,221.13 0.77

JANDAKOT FUND ’A’ USD 1,319.70 271,768.40 0.02

JB GLOBAL RATES HEDGE 0.00 0.00 0.00

JB GLOBAL RATES HEDGE L (USD) 20,717.13 485,886.54 0.04


KING STREET CAPITAL S S. 9 * 5,814.57 627,742.14 0.05

LANSDOWNE EUROPEAN EQ. ’B’ S. 7 01-MAY 7,880.99 1,483,923.79 0.11

LANSDOWNE EUROPEAN EQ. ’B’ S12 EUR 18,231.43 3,444,305.20 0.25

LANSDOWNE EUROPEAN EQ. ’B8’ FEV. 10,833.66 1,577,223.51 0.11

LANSDOWNE EUROPEAN EQUITY ’B3’ 3,250.09 681,946.26 0.05

LANSDOWNE UK EQUITY 18,812.84 9,480,841.90 0.68

LANSDOWNE UK EQUITY EQUAL. 05/09 205,486.34 288,225.00 0.02

LONDON DIVERSIFIED É´ 11,295.41 10,449,153.26 0.75

LONDON DIVERSIFIED ’E’ DESIGN SHS 1,276.85 1,416,779.99 0.10



LUCERNE MID-CAP ’A’ EUR EQUAL 07/07 59,029.75 0.00 0.00

MAGNETAR CAPITAL FUND ’A’ S. 103 4,241.41 3,998,845.71 0.29

* Side Pockets


23




MAGNETAR CAPITAL FUND ’SP1’ S. A103 * 327.83 200,933.56 0.01

MAGNETAR CAPITAL FUND ’SP3’ S. A103 * 395.90 388,765.88 0.03

MKP OPPORTUNITY OFFSHORE ´A´ S.1 51,122.47 11,947,781.81 0.86

MKP OPPORTUNITY OFFSHORE C 2009 55,000.00 5,595,150.00 0.40

MPC SAMSARA ’A’ (MAIN VALOR) 42,800.00 6,018,948.11 0.43

MPC SAMSARA ’B’ (MAIN VALOR) 107,689.00 10,685,731.79 0.77

OCTAGON PAN ASIA EQUAL.06/09 144,753.09 144,753.09 0.01

OCTAGON PAN ASIA FUND 51,440.33 9,855,452.82 0.71

OWL CREEK OVERSEAS ´C´ S1 07/07 1,289.04 1,482,976.99 0.11


OWL CREEK OVERSEAS ´S´S1 09/05 UNREST 2,025.84 3,152,329.65 0.23

OWL CREEK OVERSEAS CS. S3BQ 03/09 88.90 92,151.72 0.01

OWL CREEK OVERSEAS CS. S3BS 03/09 36.08 37,404.03 0.00

OWL CREEK OVERSEAS CS. S3BT 03/09 799.13 828,371.00 0.06


OZ EUROPE OVERSEAS II ’E’ PRIME S. 2 17,367.47 22,307,387.80 1.61

PANTERA GLOBAL MACRO ’A’ S. 05/04 3,095.29 3,259,327.86 0.24

PANTERA GLOBAL MACRO ’A’ S. 28 11/07 13,206.33 8,375,701.11 0.60

PHARO MACRO FUND 01. 05. 2005 9,022.23 16,357,252.14 1.18

PHARO MACRO FUND S. 02 3,351.12 6,069,103.61 0.44

PLEXUS FUND A S3 41,825.36 2,137,108.59 0.15

PYRENEES GLOBAL VALUE OFF. -A- NI 0.00 0.00 0.00

ROCK RIDGE FD OFFSH. ’A’ S. 20 2,540.68 2,540.68 0.00

RUBICON GLOBAL FUND M (Security to receive) 15,000,000.00 15,000,000.00 1.08

SARK FUND EUR 18,780.00 3,734,656.65 0.27

SARK FUND USD 47,899.47 6,942,707.39 0.50

SOLA I ’F’ S. 7-2008 2,930.39 2,514,583.08 0.18

SOLA I L1 MASTER (F S.7-2008) 1,304.77 1,332,904.27 0.10

SPRING POINT OFF. ’A’ 0.00 0.00 0.00

SPRING POINT OPP. A S. III 2009 42,629.13 11,787,678.86 0.85

TACONIC OFFSHORE 1. 5 ’A’ S. 1 (SD) 248.38 288,316.54 0.02

TACONIC OFFSHORE 1. 5 -A-NR- S. 115 11,960.00 21,228,263.98 1.53

TACONIC OFFSHORE 1. 5 -A-NR- S. 12 94.36 102,642.66 0.01

TACONIC OFFSHORE 1. 5 ’SP-A-NR’ S. 2 * 91.71 102,227.38 0.01

TACONIC OPPORT. OFFSH. -A- S. 1 (SP3) N. RES 79.05 0.00 0.00

TACONIC OPPORT. OFFSH. -A- S. 32-NR 17.19 16,893.09 0.00

TACONIC OPPORT. OFFSH. ’A’ SP2 S. 1 NR * 84.95 101,135.66 0.01

TACONIC OPPORT. OFFSH. A. S1. SP. NR * 40.23 46,697.05 0.00

TACONIC OPPORT. OFFSH. ’SP1-A’ S. 2 * 15.54 17,322.34 0.00

TACONIC OPPORT. OFFSH. -SP2-A- S. 2 * 93.22 91,834.31 0.01

THE TUDOR BVI GLOBAL D S.2 14,800.00 15,520,612.00 1.12

THIRD POINT OFFSHORE (USD) 1,200,000.00 5,820,000.00 0.42

THIRD POINT OFFSHORE FUND ’A’ S. 1-2 2,939.03 662,735.13 0.05

TIEDEMANN JAPAN QP ’A1’ S. 1 265,513.18 3,545,272.70 0.26

TIEDEMANN JAPAN QP ’A1’ USD 581,705.24 7,767,230.84 0.56

TISBURY EUROPE USD NI EQUAL 06/07 138,468.04 0.00 0.00

TISBURY EUROPE USD NI EQUAL. 04/07 12,783.42 0.00 0.00

TISBURY FUND C USD NI * 22,437.15 1,179,072.23 0.09

TISBURY FUND USD NI SP * 30,814.30 2,075,343.31 0.15

TOURADJI DIV. OFF. ’1A’ 04/07 6,855.92 9,995,045.06 0.72

* Side Pockets


24




TOURADJI DIVERS. OFF. 1A 01/09 1,417.01 1,417,010.00 0.10

TREMBLANT PARTNERS ’D’ S. 1 0.00 0.00 0.00

TRIVIUM OFFSHORE FUND ’A’ S. 08/07 10,000.00 0.00 0.00

VICIS CAPITAL FUND ’A’ S. 111 23,403.68 28,048,561.62 2.02

WOODBINE CAP. FD A USD (Security to receive) 6,000,000.00 6,000,000.00 0.43

981,569,683.66 70.82

GUERNSEY

BOUSSARD & GAVAUDAN HOLDINGS 500,000.00 5,828,002.44 0.42

5,828,002.44 0.42

LUXEMBOURG

PICTET FUNDS (LUX) - USD LIQUIDITY ’Z’ CAP 0.00 0.00 0.00

TRANSTREND - OMNITREND USD INSTIT. 13,145.00 24,318,561.54 1.75

24,318,561.54 1.75

MAURITIUS

HALBERDIER FUND B EQUAL. 06/09 2,737.88 2,737.88 0.00

2,737.88 0.00

SWITZERLAND



70,104,319.70 5.05

TOTAL UNITS OF INVESTMENT FUNDS 1,373,420,693.40 99.07

TOTAL INVESTMENTS 1,373,420,693.40 99.07

CASH AT BANKS 21,551,329.93 1.55


TOTAL NET ASSETS 1,386,317,254.52 100.00


25







Bermuda 5.32

Switzerland 5.05

Bahamas 3.25

Luxembourg 1.75

Guernsey 0.42

Mauritius 0.00

99.07



99.07

26

Pictet Alternative Funds - Mosaic Diversified





BAHAMAS

MOORE GLOBAL FIXED INCOME FUND 899.23 8,760,439.54 1.86

MOORE GLOBAL INV. ’E’ (EUR) 15,217.17 22,729,582.82 4.82

31,490,022.36 6.68

BERMUDA

CLARIUM CAPITAL ’B’ S. 01/08 70,000.00 6,283,200.00 1.33

CLARIUM CAPITAL FUND ’B’ S. 1 16,322.59 3,435,904.96 0.73

LYNX ’D’ 3,535.92 3,878,211.66 0.82

MAPLERIDGE INVESTMENT ´B9´ 40,000.00 3,938,000.00 0.83

PERELLA WE-XE ’A1’ S. P 0608 10,000.00 9,080,878.70 1.92

PERELLA WE-XE ’A1’ S. -P0508- 20,000.00 19,861,172.80 4.21

46,477,368.12 9.84


CANNIZARO ASIA FUND Á´ NEW ISSUE 1,013.13 1,863,678.42 0.39

CANNIZARO ASIA INVESTMENT Á´ 555.70 569,170.17 0.12

CAXTON GLOBAL INV. PFD ´T´ 06/09 24,470.00 14,897,336.00 3.15

INTERNATIONAL DURHAM ’B’ S. INITIAL (Security to deliver) 460.54 567,003.43 0.12

INTERNATIONAL DURHAM SPV ´B2´ (0807) 578.19 518,857.44 0.11

INTERNATIONAL DURHAM SPV B2 (B2 08/07) 801.86 728,388.29 0.15

INTERNATIONAL DURHAM SPVB1-REDEEM- 4,909.24 4,491,464.59 0.95

MOORE GLOBAL INV. ’A’ (USD) 138.09 5,180,497.83 1.10

MOORE GLOBAL INV. ’B’ (EUR) 38.03 707,178.62 0.15

MOORE GLOBAL INV. ’D’ (USD) 4,800.17 4,833,910.56 1.02

STRATUS FD ’B’ USD STRD LEVERAGE 8,282.62 14,100,998.30 2.99

WINTON FUTURES FUND B LEAD SERIES 8,230.00 5,612,939.57 1.19

54,071,423.22 11.44

CAYMAN ISLANDS

ACANNIZARO ASIA ’A’ NI EQUAL 6,830.29 0.00 0.00

ALGEBRIS GLOB. FINANCIAL ’A’S1 NI 111,428.78 15,295,827.94 3.24

AM INVESTMENT V A S.1 298.19 3,414,327.42 0.72

AM INVESTMENT V FUND C-AS.1/09 633.17 5,907,414.63 1.25

AMIYA GLOB. EMERG. OPP. FD. ’B2’ (USD) 0.00 0.00 0.00

BLENHEIM GLOBAL MARKETS ’A’ S. 1 995.50 9,856,196.63 2.09

BLUECREST CAPITAL ’F’ (EUR) 55,133.59 16,226,015.24 3.44

BLUECREST CAPITAL F EQU. 05/09 514,787.88 7,220.66 0.00

BLUETREND FUND ’B’ (EUR) 19,311.96 5,899,439.61 1.25

BREVAN HOWARD FUND ’A’ EUR 21,315.92 7,144,900.12 1.51

BREVAN HOWARD FUND ’A’ EUR (Security to deliver) 28,217.78 9,458,338.36 2.00

BREVAN HOWARD FUND ’A’ USD (Security to deliver) 39,185.00 9,627,574.25 2.04

BREVAN HOWARD FUND ’B’ EUR (Security to deliver) 1,199.62 303,885.36 0.06

BREVAN HOWARD FUND ’B’ USD (Security to deliver) 1,660.00 309,144.79 0.07

CANTILLON WORLD C S.13 NI 06/09 80,000.00 10,788,046.30 2.28

COATUE OFFS. ’C’ TR. 4 S. 07-12-01 (Security to deliver) 2,201.40 189,282.80 0.04

COATUE OFFS. ’C’ TR. 4 S. 07-12-01 (Security to deliver) 2,298.60 199,985.79 0.04

COATUE OFFS. ’C’ TR. 4 S. 08-05-01 50,000.00 4,396,805.00 0.93



DISCOVERY GLOBAL OPPORTUNITYÁ´ 27,703.66 11,663,806.28 2.47

DOUBLE BLACK DIAM. ’C’ S. 0308 UNR. 21,400.00 2,113,128.45 0.45

DOUBLE BLACK DIAM. ’C’ S. 04/08 UNR 100,000.00 9,953,280.00 2.11

27




DRAKE GLOBAL OPPORTUNITIES ’C’ S. 1 3,186.60 2,223,824.98 0.47

EXPLORER GLOBAL Á´ S.DP 6,060.46 4,711,356.46 1.00

FORE CONVERTIBLE É´ S.13(RF0409) 0.89 931.17 0.00



FORE CONVERTIBLE OFFSHORE ES.12 (RF01/09) 2.93 3,323.67 0.00

FORE CONVERTIBLE SPV OFFSHORE S.1 108.03 168,309.59 0.04

FORTRESS MACRO INTERETS A (Security to receive) 8,000,000.00 8,000,000.00 1.69


HORSEMAN GLOBAL FD ´B´ EUR 10,100.50 2,805,296.01 0.59

HORSEMAN GLOBAL FD ’B’ USD 10,233.77 2,080,934.79 0.44

LONDON DIVERSIFIED D S.10/08 1,842.83 7,043,913.13 1.49

LONDON DIVERSIFIED ’D’ S.10/08 DESI. SHS 207.17 920,272.95 0.19


OWL CREEK OVERSEAS Ć´ S1 07/07 960.95 1,105,527.96 0.23


OWL CREEK OVERSEAS ´S´ S.8 09/05 UNR. (Security to deliver) 574.62 885,276.32 0.19

OWL CREEK OVERSEAS CS. S3BS 03/09 225.19 233,425.89 0.05

OWL CREEK OVERSEAS CS. S3BT 03/09 408.40 423,344.95 0.09


OZ EUROPE OVERS. II ’E’ PRIME S. 2 3,274.75 4,206,199.82 0.89

OZ EUROPE OVERS. II ’E’ PRIME S. 2 (Security to deliver) 705.36 955,655.16 0.20

PHARO MACRO FUND ´B´ S.1 06/09 8,298.07 11,987,285.50 2.54

PHARO MACRO FUND S. 03 03 08 (Security to deliver) 265.61 419,060.87 0.09

PHARO MACRO S. 04 04/08 3,000.00 5,428,788.27 1.15

ROCK RIDGE FD OFFSH. ’A’ S. 22 2,570.82 2,570.82 0.00

SARK FUND USD EQUAL 06/07 68,160.03 0.00 0.00

SOLA I ’F’ S. 7-2008 17,769.35 15,247,965.83 3.23

SOLA I L1 MASTER (F S.7-2008) 7,911.87 8,082,487.28 1.71

TOURADJI GL. RESOURCES A SUB 1 C05 667.00 1,437,442.67 0.30

TOURADJI GL. RESOURCES A SUB 1 C05 (Security to deliver) 139.22 323,191.71 0.07

TOURADJI GL. RESOURCES HOLD.A S.01/09 570.70 570,700.00 0.12

VICIS CAPITAL FUND ’A’ S. 111 7,625.00 9,138,317.74 1.94

305,762,654.20 64.74

GUERNSEY

BOUSSARD & GAVAUDAN HOLDINGS 267,493.00 3,117,899.71 0.66

3,117,899.71 0.66

SWITZERLAND


60,334,579.52 12.79



BANK OVERDRAFT -14,910,349.42 -3.16


TOTAL NET ASSETS 472,233,178.01 100.00


28






Switzerland 12.79


Bermuda 9.84

Bahamas 6.68

Guernsey 0.66

106.15



106.15

29

Pictet Alternative Funds - Global

STATEMENT OF INVESTMENTS AND OTHER NET ASSETS AS AT JUNE 30, 2009 (EXPRESSED IN EUR)




BAHAMAS

MOORE GLOBAL FIXED INCOME FUND 134.78 936,098.61 3.42

936,098.61 3.42

BERMUDA

MEDITOR EUROPEAN HEDGE C (EUR) NR 3,796.39 1,008,321.72 3.69

1,008,321.72 3.69


ATTICUS GLOBAL D EUR S.05-09-U2 524.24 45,692.09 0.17

CASTLERIGG INTL. M S.01 01/09 1,320.90 139,779.49 0.51

CASTLERIGG INTL. M S.06 01/09 2,052.13 141,996.29 0.52

CASTLERIGG INTL. M S.19 01/09 372.92 39,462.69 0.14

CASTLERIGG INTL. SRS. 01 01/09 707.20 64,065.54 0.23



CAXTON ALPHA EQUITY ’A’ S.1 715.50 561,859.44 2.05

CAXTON ALPHA EQUITY A S.1 06/09 182.46 143,277.42 0.52

DISCUS FEEDER ’B’ USD STD. LEVER. 526.17 424,697.45 1.55

EGERTON EUROPEAN EQUITY ’C’ S.1 26,608.41 1,194,717.47 4.37

EGERTON EUROPEAN EQUITY ’C’ S.4 27,436.17 221,409.92 0.81

3,054,235.22 11.15

CAYMAN ISLANDS

BLUETREND FUND ’B’ (EUR) 2,480.72 540,274.34 1.98

BREVAN HOWARD ’A’ (Security to recieve) 500,000.00 500,000.00 1.83

BREVAN HOWARD FUND ’A’ USD 2,790.00 484,304.78 1.77

CANTILLON WORLD ´A14´ S.01/09 9,048.48 576,848.21 2.11

DIAMONDBACK OFFSHORE A1 S1 07/05 406.00 462,825.83 1.69

GIOVINE INV. PART. A S.7 07/08 1,835.67 1,165,981.34 4.26

GLG EUROPEAN FD LONG SHORT SP A 1,352.24 91,801.75 0.34

HARBINGER CLASS L HOLDINGS S.3 18.99 18,656.95 0.07

HARBINGER CLASS PE HOLDINGS S.2 273.31 202,378.07 0.74

HENDERSON ASIA PACIFIC ABS. RETURN 4,387.62 885,345.67 3.24

HORSEMAN EUROPEAN SELECT ’A’ 4,576.90 808,600.92 2.96

KINETICS FUND ’A’ S. A 0.00 0.11 0.00

LANSDOWNE UK EQUITY 1,343.77 482,803.23 1.77

LANSDOWNE UK EQUITY EQUAL. 05/09 14,677.59 14,677.59 0.05

MW JAPAN FUND ’B’ 37,349.64 478,770.46 1.75

OWL CREEK ASIA ’OA1’ S. 07/07 UNR. 203.45 160,118.25 0.59

OWL CREEK OVERSEAS ’S’ S. 2 8/7 NR 1,089.13 836,616.06 3.06

PYRENEES GLOBAL VALUE OFF. -A- NI 0.00 0.00 0.00

SEG PARTNERS OFFSHORE ’A’ S. 2 6,350.00 795,923.67 2.91

SR GLOBAL EMERGING MARKETS ’G’ S. 1 1,124.67 820,352.54 3.00

SR GLOBAL EMERGING MARKETS GS.3 83.71 59,172.33 0.22

TIEDEMANN JAPAN QP ’A1’ S. 1 113,000.00 1,075,705.18 3.93

TRIDENT EUROPEAN FUND ’B’ 79.56 16,352.21 0.06

WESSEX NATURAL RES. BEQUAL 06/08 3,589.26 2,558.92 0.01

WF ASIA FUND S.29 5,000.00 353,258.94 1.29

10,833,327.35 39.63

30


STATEMENT OF INVESTMENTS AND OTHER NET ASSETS AS AT JUNE 30, 2009 (EXPRESSED IN EUR)


FRANCE

METROPOLE GESTION CAP 2,610.00 768,723.30 2.81

768,723.30 2.81

IRELAND

AMADEUS CAP.-ASIAN REAL EST.E EUR 64,008.03 407,091.07 1.49

FINDLAY PARK US SMALLER CO. 24,860.08 561,131.64 2.05

FIRST STATE GUF-CHINA GROWTH I 9,754.72 478,469.62 1.75

VERITAS ASIAN FUND A (USD) 4,582.03 654,792.88 2.39

WANGER INV. EURO. SMALLER CO. FUND 20,294.39 611,672.91 2.24

2,713,158.12 9.92

JERSEY

MERRILL LYNCH INTL GOLD & GENERAL 110,446.64 634,113.28 2.32

634,113.28 2.32

LUXEMBOURG

BLUEBAY-INV. GRADE BD I (EUR) BP 4,821.39 547,854.32 2.00

CAF-LATIN AMER. EQ. INSTITUT. -ACC. - 172.81 521,325.69 1.91

JPMF-GLOBAL NATURAL RESOURCES ’A’ 32,573.29 432,247.56 1.58

PF(LUX)-US EQ.VALUE SEL. I 10,000.00 708,802.13 2.59

SISF-GLOBAL ENERGY ’C’ 35,035.00 679,644.68 2.49

TRANSTREND OMNITREND EUR INST. 160.00 329,946.32 1.21

3,219,820.70 11.78

SWITZERLAND

NIPPON GROWTH FUND 1,178.11 546,381.42 2.00



3,356,556.79 12.27



CASH AT BANKS 1,112,673.17 4.07

OTHER NET LIABILITIES -289,404.34 -1.06

TOTAL NET ASSETS 27,347,623.92 100.00


31






Luxembourg 11.78


Switzerland 10.27

Ireland 9.92

Bermuda 3.69

Bahamas 3.42

France 2.81

Jersey 2.32

Switzerland 2.00

96.99



96.99

32


NOTES TO THE FINANCIAL STATEMENTS AS AT JUNE 30, 2009 (continued)

NOTE 1 GENERAL

Pictet Alternative Funds (Investment Company with Variable Capital, Luxembourg) hasthe status of an undertaking for collective investment and qualifies under the part II ofthe Law of December 20, 2002 as amended regarding undertakings for collectiveinvestment. The SICAV was incorporated on December 3, 2004 under the laws of theGrand Duchy of Luxembourg. The articles of incorporation of the SICAV (the "Articles")were published in the Mémorial on December 15, 2004.

The SICAV is registered with the register of commerce and companies of Luxembourgunder Number B 104 485.

As at June 30, 2009, the SICAV includes four Sub-Funds in operation:

- Pictet Alternative Funds - World Equity Hedge, denominated in US Dollar (USD).- Pictet Alternative Funds - Pleiad, denominated in US Dollar (USD).- Pictet Alternative Funds - Mosaic Diversified, denominated in US Dollar (USD).- Pictet Alternative Funds - Global, denominated in Euros (EUR).

The SICAV offers the following classes of shares:

• I Shares are suitable for institutional investors;• P Shares and R shares, through their broad range of features, meet different

commercial practices current at the date of this Prospectus in the countries in whichthe SICAV is marketed, and their flexibility enables them to be adapted wherenecessary in line with developments in their target markets. It should be noted that insome countries, part of the management fee may be passed on to the intermediariesinvolved in marketing the shares of the SICAV.

• Z Shares are reserved for institutional investors who have concluded a specificremuneration agreement with Pictet & Cie, Geneva, or any other entity of the PictetGroup.

• I, P, R and Z Shares are subject to a minimum initial subscription amount and may bedistinguished by their pricing as stated hereafter.

• HI, HP, HR and HZ Shares ("Hedged Shares") seek to hedge for their correspondingshares most of the exchange rate risk of the USD against the Swiss franc, the GBPand the EUR respectively for the Pictet Alternative Funds - World Equity Hedge,Pictet Alternative Funds - Pleiad and the Pictet Alternative Funds - Mosaic Diversifiedsub-funds.

• HI, HP, HR and HZ Shares ("Hedged Shares") seek to hedge for their correspondingshares most of the exchange rate risk of the EUR against the Swiss franc and the USDrespectively for the Pictet Alternative Funds - Global sub-fund.

33



For the Pictet Alternative Funds - World Equity Hedge, Pictet Alternative Funds - Pleiadand the Pictet Alternative Funds - Mosaic Diversified sub-funds:

The reference currency is the :

• US Dollar (USD) for I, P, R and Z Shares;• Swiss Franc (CHF) for HI-CHF, HP-CHF, HR-CHF and HZ-CHF Shares;• Euro (EUR) for the HI-EUR, HP-EUR, HR-EUR and HZ-EUR Shares;• Sterling Pound (GBP) for the HI-GBP, HP-GBP, HR-GBP and HZ-GBP Shares.

I, P, R and Z Shares are subject to a minimum initial subscription amount and may bedistinguished by their pricing as stated hereafter:

For the Pictet Alternative Funds - Global sub-fund:

The reference currency is the :

• Euro (EUR) for I, P, R and Z Shares;• Swiss Franc (CHF) for HI-CHF, HP-CHF, HR-CHF and HZ-CHF Shares;• US Dollar (USD) for the HI-USD, HP-USD, HR-USD and HZ-USD Shares.

I, P, R and Z Shares are subject to a minimum initial subscription amount and may bedistinguished by their pricing as stated hereafter:

The hedged shares are subject to the same minimum initial subscription amounts as theircorresponding shares.

On January 2, 2009, the Board of Directors decided to create a new Sub-Fund "PictetAlternative Funds - Global" by the contribution in king received from the Shareholdersof Argus Fund - Global. The Sub-Fund was activated on January 30, 2009 and the totalnet assets brought to the SICAV was valued at December 31, 2008. This contribution inkind amounted to EUR 25,054,161.63.

On April 1, 2009, the Sub-Fund "Pictet Alternative Funds - Asiasec" changed its name to"Pictet Alternative Funds - World Equity Hedge" and received by way of a contributionin kind 100% of the net assets of Amerosec and Eurosec Fund, two other Luxembourgundertakings for collective investment, based on the net asset value determined onMarch 31, 2009.

I Shares USD 1,000,000P Shares USD 10,000R Shares USD 10,000Z Shares USD 10,000

I Shares EUR 1,000,000P Shares EUR 10,000R Shares EUR 10,000Z Shares EUR 10,000

34



NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) General

The financial statements are presented in accordance with the legal reportingrequirements applicable in Luxembourg.

b) Presentation of financial statements

The reference currency of the SICAV is the USD.

The accounting year of the SICAV terminates on December 31 of each year.

c) Valuation of investment securities

Securities held by the SICAV (including shares or units in closed-end UCI) which arequoted or dealt in on a stock exchange are valued at their latest available publicised stockexchange closing price and where appropriate the bid market price on the stockexchange which is normally the principal market for such security. Securities dealt in onany other organised market are valued in a manner as near as possible to that for quotedsecurities.

The valuation of a security denominated in a currency other than the reference currencyof the SICAV is determined in the national currency and converted into the relevant Sub-Fund currency at the foreign exchange rate in effect as of the relevant Valuation Day.

The valuation of securities not quoted or dealt in on a stock exchange or anotherorganised market and of securities which are so quoted or dealt in but in respect ofwhich no price quotation is available or the price quoted is not representative of thesecurities’ fair market value, are determined prudently and in good faith on the basis oftheir reasonably foreseeable sale prices. All other assets are valued at their respectivefair values as determined in good faith by the Board of Directors in accordance withgenerally accepted valuation principles and procedures.

In determining the value of the assets of the SICAV, shares or units in open-endedunderlying Funds are valued at the actual net asset value for such shares or units as ofthe relevant Valuation Day, or if no such actual net asset value is available they arevalued at the estimated net asset value as of such Valuation Day, or if no such estimatednet asset value is available they are valued at the last available actual or estimated netasset value which is calculated prior to such Valuation Day whichever is the closer tosuch Valuation Day. If events have occurred which may have resulted in a materialchange in the net asset value of such shares or units since the date on which such actualor estimated net asset value was calculated, the value of such shares or units may beadjusted in order to reflect, in the reasonable opinion of the Directors, such change butthe Directors will not be required to revise or recalculate the Net Asset Value on thebasis of which subscriptions, redemptions or conversions may have been previouslyaccepted.

Money market instruments and cash will be valued at face value. Interest is accrued andrecorded separately and included in the appropriate asset account.

35



In respect of shares or units held by the SICAV, for which issues and redemptions arerestricted and a secondary market trading is effected between dealers who, as mainmarket makers, offer prices in response to market conditions, the Directors may decideto value such shares or units in line with the realisation prices so established.

d) Net realised gain/loss on sales of investments

The net realised gain/loss on sales of investments is calculated on the basis of theaverage cost of the investments sold.

e) Cost of investment securities

Cost of investment securities in currencies other than the currency of the Sub-Fund istranslated into the currency of the Sub-Fund at the exchange rate applicable at purchasedate.

f) Valuation of forward foreign exchange contracts

The unrealised gains or losses resulting from outstanding forward foreign exchangecontracts are determined on the basis of the forward rates applicable at the period-endand are recorded in the statement of operations.

g) Income

Dividends are recorded at ex-date. Interest is recorded on an accrual basis.

h) Loans

Loans are recorded in the accounts up to the amount of cash received. Interest is accruedand recorded separately and is included in the appropriate liabilities account.

NOTE 3 TAXATION

Under current law and practice the SICAV is not liable to any Luxembourg income tax,nor are dividends paid by the Fund liable to any Luxembourg withholding tax. However,the SICAV is normally liable in Luxembourg to a tax of 0.05% per annum of its net assets.Such tax rate is reduced to a rate of 0.01% in respect of the net assets attributable to suchclasses of shares which are reserved for institutional investors within the meaning of,and as provided for in, article 129 of the 2002 Law as amended.

Such tax being payable quarterly and calculated on the Net Asset Value of the relevantclass at the end of the relevant quarter. For the portion of the assets of the Fund investedin other UCIs which are established in Luxembourg, no such tax is payable as providedfor in, article 129 of the 2002 Law as amended.

36



NOTE 4 MANAGEMENT FEE AND SERVICE FEE

An annual management fee and service fee calculated on the average net asset values ofthe classes, will be paid quarterly to the Management Company in payment for theservices provided by it to the SICAV. These fees will also enable the ManagementCompany to remunerate the Investment Manager, Investment Adviser, Pictet & Cie(Europe) S.A. for the functions of transfer agent, domiciliary and administrative agentand distributors, if applicable.

Such fees cannot exceed the amounts specified below:

For the Pictet Alternative Funds - World Equity Hedge, Pictet Alternative Funds - Pleiadand the Pictet Alternative Funds - Mosaic Diversified sub-funds:

* Maximum percentage per year of the average net assets attributable to this type ofshares during the relevant quarter.

Type of shares Fees (max %) *Management Service Custodian Bank

I 1.50% 0.15% 0.10%P 2.00% 0.15% 0.10%R 2.50% 0.15% 0.10%Z 0.00% 0.15% 0.10%HI-CHF 1.50% 0.20% 0.10%HP-CHF 2.00% 0.20% 0.10%HR-CHF 2.50% 0.20% 0.10%HZ-CHF 0.00% 0.20% 0.10%HI-EUR 1.50% 0.20% 0.10%HP-EUR 2.00% 0.20% 0.10%HR-EUR 2.50% 0.20% 0.10%HZ-EUR 0.00% 0.20% 0.10%HI-GBP 1.50% 0.20% 0.10%HP-GBP 2.00% 0.20% 0.10%HR-GBP 2.50% 0.20% 0.10%HZ-GBP 0.00% 0.20% 0.10%

37



For the Pictet Alternative Funds - Global sub-fund:

* Maximum percentage per year of the average net assets attributable to this type ofshares during the relevant quarter.

** As at June 30, 2009, this type of shares was not activated yet.

The rate indicated for the custodian bank fee does not include VAT.

NOTE 5 OTHER FEES PAYABLE

As at June 30, 2009, the other fees payable include mainly service, custodian and auditexpenses.

NOTE 6 SUBSCRIPTIONS AND REDEMPTIONS

a) Subscriptions

Shares in each class are issued at the relevant Net Asset Value (the “Subscription Price”),as determined as of each “Valuation Day”, being the last calendar day of each month (the“Subscription Valuation Day”). The net asset value is made public as soon as practicableafter the relevant Valuation Day.

A Subscription Charge of up to 3.5% of the relevant Subscription Price may be added tothe Subscription Price to compensate financial intermediaries and other persons whoassist in the placement of shares.

b) Redemptions

The Shares are redeemable at their relevant Net Asset Value (the "Redemption Price")calculated as of the monthly Valuation Day (the "Redemption Valuation Day"). The Boardof Directors may determine additional Redemption Valuation Days for which allshareholders in identical situations will be treated equally.

A Redemption Charge of up to 3% of the relevant Redemption Price may be levied on theRedemption Price to compensate financial intermediaries and other persons who assistin the placement of shares.

Type of shares Fees (max %) *Management Service Custodian Bank

I 1.25% 0.13% 0.12%P 1.50% 0.13% 0.12%R 2.00% 0.13% 0.12%Z 0.00% 0.13% 0.12%HI-CHF** 1.25% 0.13% 0.12%HP-CHF** 1.50% 0.13% 0.12%HR-CHF** 2.00% 0.13% 0.12%HZ-CHF** 0.00% 0.13% 0.12%HI-USD** 1.25% 0.13% 0.12%HP-USD** 1.50% 0.13% 0.12%HR-USD** 2.00% 0.13% 0.12%HZ-USD** 0.00% 0.13% 0.12%

38



NOTE 7 EXCHANGE RATES AS AT JUNE 30, 2009

The following exchange rates were used for the conversion of the SICAV’s net assetsinto USD as at June 30, 2009:

NOTE 8 FORWARD EXCHANGE CONTRACTS

As at June 30, 2009, the following forward exchange contracts are open:

PAF - WORLD EQUITY HEDGE

The net unrealised gain on these contracts amounts to USD 2,277,576.15 and is includedin the statement of net assets.

PAF - PLEIAD


1 USD = 0.712937 EUR1 USD = 1.087550 CHF1 USD = 0.607221 GBP

Purchase SaleUSD 149,483,400.00 EUR 106,500,000.00 31/07/2009EUR 13,627,352.12 USD 18,031,712.33 31/07/2009EUR 18,033,116.06 USD 24,977,669.05 31/07/2009EUR 18,037,022.71 USD 24,977,669.05 31/08/2009CHF 10,564,645.41 USD 9,303,139.67 31/07/2009CHF 14,646,296.55 USD 13,453,632.07 31/07/2009CHF 14,639,569.74 USD 13,453,632.07 31/08/2009

Purchase SaleUSD 138,956,400.00 EUR 99,000,000.00 31/07/2009CHF 80,187,356.27 USD 70,612,325.00 31/07/2009CHF 72,521,964.56 USD 66,616,419.01 31/07/2009CHF 72,488,656.35 USD 66,616,419.01 31/08/2009EUR 65,968,613.21 USD 87,289,669.00 31/07/2009EUR 63,595,987.72 USD 88,086,802.59 31/07/2009EUR 63,609,765.01 USD 88,086,802.59 31/08/2009

39



PAF - MOSAIC DIVERSIFIED


PAF - GLOBAL

The net unrealised loss on this contract amounts to EUR 61,682.98 and is included in thestatement of net assets.

Purchase SaleUSD 93,339,400.00 EUR 66,500,000.00 31/07/2009CHF 24,213,559.59 USD 21,322,261.00 31/07/2009CHF 28,041,259.95 USD 25,757,828.46 31/07/2009CHF 28,028,381.04 USD 25,757,828.46 31/08/2009EUR 23,241,311.97 USD 30,752,904.00 31/07/2009EUR 22,269,205.62 USD 30,845,076.71 31/07/2009EUR 22,274,029.98 USD 30,845,076.71 31/08/2009

Purchase SaleEUR 10,992,907.80 USD 15,500,000.00 31/07/2009

PICTET ALTERNATIVE FUNDS - Morningstar, Inc.

Documents

Transcript of PICTET ALTERNATIVE FUNDS - Morningstar, Inc.