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EQUITY STABILITY EUROPE REPORT AS OF END OF MARCH 2013 NAV: 133% Inception date: 01.2010 Currency: EUR info@kategory.ch

FUND OBJECTIVES Equity Stability Europe is a quantitative market neutral strategy The aim is to generate revenue capturing the implied volatilities of international indices by selling and buying options using an algorithmic trading model with some active steering. Strengths of the strategy are its low volatility and low risk on the maximum drawdown.

NET PERFORMANCE 140% 130% 120%

Fund NAV, 133%

110% 100% 90% 80%

Eurostoxx50, 89%

70% 60% 50%

Fund NAV Performance

Eurostoxx50

1-MONTH

3-MONTH

6-MONTH

1-YEAR

YTD 2013

2012

2011

2010

Compartment (*)

2.53%

5.42%

10.31%

10.77%

5.42%

8.73%

7.43%

7.70%

Benchmark

-0.36%

-0.45%

6.92%

5.92%

-0.45%

13.79%

-17.05%

-5.81%

Over/under performance

2.90%

5.87%

3.39%

4.85%

5.87%

-5.06%

24.48%

13.50%

2013

Jan

Feb

Mar

Jun

Jul

Aug

Sep

Oct

Nov

Dec

YTD annual

2010

1.46%

1.09%

1.56%

-1.85% -0.91%

Apr

May

0.83%

0.96%

0.37%

0.70%

1.09%

0.69%

1.49%

7.70%

2011

0.64%

2.00%

2.55%

0.06%

4.71%

1.09%

1.47%

-15.2%

2.39%

2.87%

1.35%

4.94%

7.43%

2012

1.91%

1.70%

-0.16%

2.10%

3.03%

0.47%

0.02%

-4.58% -0.44%

3.10%

0.97%

0.51%

8.73%

Compartment 2013 (*)

1.53%

1.27%

2.53%

5.42%

Benchmark

2.54%

-2.57% -0.36%

-0.45%

(*) Performance including transaction fees, excluding management fees

STATISTICS Average perf.

Average perf.

Max drawdown

Positive Negative Volatility

Sharpe (vs.

Sharpe (vs.

Duration

Average

since inception

2013

since inception

months

Eurostoxx50)

Euribor1M)

(month)

leverage

Compartment

0.78%

1.78%

-15.37%

14.42

9.98

1.25

250.00%

Benchmark

-0.18%

-0.13%

-13.79%

84.62%

months 15.38%

3.06% 5.23%

MANAGER'S COMMENT While the US markets were still trying to break the records and Japan is still positive about the new leadership, the European markets were shaken up by again another eventual contagion crisis, Cyprus. Do the markets still believe in this contagion story or is it the press that needs some news? The Italian election did not seem to have provided a solution either. Anyhow, we have enjoyed some more volatility thanks to these hic ups and we are coming of our lows on the short term volatility indices (V2X @20% with a peak @23% VIX @13% with a peak @15%). The markets coming down a bit helped us having a good month (a good march expiry) with a 2.53% performance. We are still a bit short oriented due to the negative forward on the underlying (64 points until june expiry) and think that there could be another fall-out because of Italian politics. This document is not an offer or a solicitation to purchase or sell any investment and is issued for information only. An offer can be made only by the approved offering memorandum. The investments described herein are not publicly distributed. This document is confidential and submitted to selected recipients only. It may not be reproduced nor passed to non-qualifying persons or to a non professional audience. Any U.S. person receiving this report and wishing to effect a transaction in any security discussed herein, must do so through a U.S. registered broker dealer. The investment described herein carries substantial risks and potential investors should have the requisite knowledge and experience to assess the characteristics and risks associated therewith. Accordingly, they are deemed to understand and accept the terms, conditions and risks associated therewith and are deemed to act for their own account, to have made their own independent decision and to declare that such transaction is appropriate or proper for them, based upon their own judgment and upon advice from such advisers as they have deemed necessary and which they are urged to consult. Kategory disclaims all liability to any party for all expenses, lost profits or indirect, punitive, special or consequential damages or losses, which may be incurred as a result of the information being inaccurate or incomplete in any way, and for any reason. Kategory, its directors, officers and employees may have or have had interests or long or short positions in financial products discussed herein, and may at any time make purchases and/or sales as principal or agent.

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