Gam star china equity citywire zurich 2010

This document is confidential and intended solely for the use of the person to whom it is given or sent and may not be reproduced, copied or given, in whole or in part, to any other person.

GAM Star China EquityMay 2010

2

A glimpse on performancePerformance from 9 Jul 2007 to 5 May 2010

Source: GAM, MSCI, Financial TimesPast performance is not indicative of future performance. Performance is provided net of fees. Funds do not have the security of

capital which is characteristic of a bank deposit. Presented as

supplemental information only. Please refer to the relevant GIPS compliant report and the GIPS supplemental text.

3

Fund Objective

Capital appreciation. A portfolio focusing on quoted equity and equity related securities of companies with assets in, or revenues derived from, China and Hong Kong. A fundamental stock-picker with a macro overlay.

Fund Type FSA Recognised Irish UCITS

Fund Manager Michael Lai

Inception Date 9 July 2007

Currency Classes* USD

Index MSCI China Free

Minimum Initial Investment USD 10,000

Dividend Policy Net income will be distributed annually**

Dealing Day Any business day

Purchase Fee Up to 5.00%

Annual Fee 1.35%***

GAM Star China EquityFund features

*

Currency hedging may be employed to protect against exchange rate risk**

Distributor status will be applied for.***

Excludes administration and custodian fees –

please see Prospectus for further details on fees.

4

Michael LaiOverall strategy and portfolio construction

Top Down/Bottom Up, Research focus: India, Australia, ASEAN

Michelle LamDealing, Greater China

Mansfield MokGreater China

John Jay LeeKorea, Taiwan(Tech)

Asian Equity Investment TeamAn experienced team of specialists

5

Investment philosophy

●

Asian markets are immature and inefficient

●

Significant mispricings

exist

●

Thereby creating significant opportunities for stock pickers with local knowledge

Market inefficiencies can be exploited by skilled bottom-up stock pickers

6

Investment philosophy

0%

10%

20%

30%

40%

50%

60%

70%

Shinsegae(Korea)

LianhuaSupermarket

(China)

Prez ChainStore (Taiwan)

Ramayana(Indonesia)

Asian Supermarkets & Retail Giants Western Counterparts

Variance between high and low EPS estimates as % of mean estimate

0%

10%

20%

30%

40%

50%

60%

70%

Wal-Mart Tesco

2010F2009 2010F

Number of analysts covering the stock

38 38 16 15 20 19 14 14 28 28 33 33

An illustration of market inefficiency

Source: Bloomberg

2011F

7

Investment approachSeeks a deep understanding of Chinese markets

●

Relatively immature region with inefficient capital markets–

Equity markets remain inefficient in reaction to information as some sectors remain under-researched

●

Seek to pick stocks through understanding the dynamics of the Chinese market–

Top down macro-economic analysis tied to

our

philosophy–

Bottom-up fundamental analysis–

Comprehensive and disciplined company

visits enhance our market knowledge and timing facilitating

early insights

●

Seek to identify opportunities and barriers

for growth

of different industries–

Identify

the inflection points and catalysts for change

continuously

8

Investment approach

Macro/Top Down Analysis Industry dynamics Government policy Market cycle/ Mean revision

Credit environment

Approach/Strategy Market dominators Secular trend GARPDeep value

Small/Mid caps

Themes/Sectors

IT

Autos

Packaging

Financials

Materials

IT

Telco equipment

Consumer staples

Consumer discretionary

Alternative energy

Insurance

Banks

Materials

Properties/ conglomerates

Telco services

SOE restructurings

9

GAM Star China Equity –

Process overview

2Bottom-Up Company Analysis

Portfolio Construction and Monitoring

Top-Down Theme Identification1 3

Universe

~2,000 stocks

100–150 stocks across three to five themes

Buy list 50–75 stocks

•

Global, regional and country macro research

•

Valuation screens

•

Company visits

•

Proprietary fundamental analysis

•

Technical analysis for relative positions

•

Company visits for competitive advantages

•

12-month price

targets

Portfolio Construction

•

Thematic portfolio framework•

Stock positions sized on conviction

•

Portfolio of 25-50 positions

•

Ongoing company dialogue•

Development of themes•

Portfolio risk modeling•

Compliance oversight

Monitoring

Allocations and holdings are subject to change.

10

Step 1 –

Top-down theme identification: Overview

●

Constant monitoring of global and regional market dynamics

●

Country specialists form views on their areas of expertise focusing on:–

GDP growth–

Credit cycle–

Earnings growth

●

Regular company visits give insight into industry sector, domestic attitudes and political sentiment

●

Develop potential themes

●

Earnings valuation screens used to:–

Test and validate themes–

Identify core of 100–150 stocks for research focus

Themes bring together macro-economic and company research

Top-Down Theme Identification1


Universe

~2,000 stocks

100–150 stocks across three to five themes

•

Global, regional and country macro research

•

Valuation screens

•

Company visits

–

Interest rates–

Politics–

Valuations

11

Step 2 –

Bottom-up company analysis: Overview

●

Focus on mid-cap segment overlooked by market–

Fundamental analysis seeks improving fundamentals and strong working capital ratios

–

Technical analysis for relative strength to domestic and cross-border peers

●

Over 300 company visits annually focus on working capital management and earnings growth

●

Rolling price targets set based on broad valuation parameters

●

Seek companies:–

Well placed to play out themes–

Undervalued relative to their peers –

Mis-pricing below intrinsic value

●

Produces buy-list of 50–75 stocks

Company research is the backbone of the investment process

Bottom-Up Company Analysis2


Buy list 50–75 stocks

•

Proprietary fundamental analysis

•

Technical analysis for relative positions

•

Company visits for competitive advantages

•

12-month price

targets

–

With strong valuation signals–

In restructuring or turnarounds–

Neglected by market

12

Step 2 –

Bottom-up company analysis

●

Fundamental analysis seeks to identify companies with:

–

Improving fundamentals–

Strong working capital ratios–

Good cashflow

growth to price–

Positive earnings revisions–

Clear catalysts for value realisation

Seek to identify good medium-term investments

●

Company visits focus on:–

Management experience and shareholder focus–

Working capital management–

Earnings growth strategy–

Company strategy–

Competitive positioning–

Target profit margins

●

Strong relationships with companies built over time as 2–3 year investors–

Form close relationships with management to help enact positive change over time

●

Buy-listed companies have:–

Robust business franchises–

Sustainable competitive advantages–

Growing market shares–

Attractive returns on capital–

Sustainable profitability trends

–

Superior cashflow

generation–

Shareholder friendly dividend policies–

Quality management–

Strong corporate governance controls

13

Step 3 –

Portfolio construction and monitoring: Overview

●

Truly active approach to investment management–

Not structured around benchmarks –

Invest in instruments outside indices –

Take significant relative stock and sector

positions

●

Thematic views form portfolio framework

●

Populated with stocks from buy lists–

Positions sized according to conviction

●

Ongoing company monitoring alerts for signs of change or company news early

●

Macroeconomic research highlights evolution of markets, changes in trends and new opportunities

Portfolio Construction and Monitoring3


Portfolio Construction

•

Thematic portfolio framework•

Stock positions sized on conviction•

Portfolio of 25-50 positions

•

Ongoing company dialogue•

Development of themes•

Portfolio risk modeling•

Compliance oversight

Monitoring

14

Risk parameters and sell decision

Sell down positions for a variety of reasons

●

Changing sector dynamics–

Fundamental shift in portfolio away from sector

–

Changes in momentum a key indicator

●

Undesirable change in company management targets/attitudes or change in management altogether

●

Change in working capital ratios triggers price target review

●

Potential in share price realised–

Fair value is achieved–

No prospect of further upward revisions

Risk management embedded in portfolio

●

Risk defined as the risk of drawdown

●

Monitor risk/return trade-off of all invested stocks

●

Guideline portfolio limits:–

No limits on investment in a single country–

< 30% in a single industry–

< 10% in securities of single issuer* –

< 10% of free float of the share capital of single

issuer

●

Able to liquidate ~90% of positions within

1–4

days with minimal market impact

●

Vestek

risk model and UBS PAS platform used to measure and monitor portfolio characteristics

* Note: individual positions may exceed this limit for reasons of share appreciation from time to time.

15

External research resources

●

The team draws on external resources to gain insights and develop their strategies:–

Government agencies–

Selected brokers–

Local economists–

Country specialists–

Respected sources of industry information

●

External broker research is efficient way to enhance understanding of major industry trends –

Allows team to focus on own fundamental and technical analysis and company meetings

●

GAM Weekly Investment Meeting facilitates discussion and development of themes with other managers


Asia’s prospects for 2010

17

Structural virtues –

low gearing / healthy corporate balance sheet

18% in 2010 (Sovereign debt crisis)

66% in 1998 (Asian financial crisis)

44% in 2000 (TMT bubble)

27% in 2008 (Sub-prime crisis)

5 %

15 %

25 %

35 %

45 %

55 %

65 %

75 %

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

E20

11E

From 1995 to 2011

Asia ex Japan -

net debit to equity

Source: Credit Suisse

18

Well-capitalised

banking systems

50 %

100 %

150 %

Hong Kong India China US UK Australia

As at end of Dec 2009

Loan-to-deposit ratio

Source: Haver, IMF, UBS estimates

19

Healthy fiscal deficits%

of G

DP

-10 %

-8 %

-6 %

-4 %

-2 %

0 %

Indon

esia

China

Philip

pines Ita

lyTha

iland

Mala

ysia

Portug

al US

Greec

e

India

Spain Fiscal deficits 2010F

Source: CEIC, BoFa

Merrill Lynch Global Research calculations


Outlook for China –

Asia’s Achilles’

heel?

21

Sha

re o

f GD

P (%

) Share of G

DP

(%)

WTO entry manufacturing

expansion

Infrastructure expansion

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E30%

35%

40%

45%

50%

55%

80%

90%

100%

110%

120%

130%

140%

Source: CEIC, UBS estimates

China’s Dubai moment?

Bank credit

Gross investment (RHS)

22

Credit growth has been targeted to selected provinces and citiesThe centre overtakes coastal areas

Source: FT, World Bank, UN, ITU, Earthtrends, International Energy Agency, China’s National Bureau of Statistics

First half 2009 (annual % change)

Chongqing12.5%

Sichuan11.8%

Hubei11.3%

Hunan10.5%

Zhejiang6.3%

Shanghai5.6%

Guangdong7.1% GDP growth below 10%

GDP growth above 10%

23

Nontheless, ChinaPerformance from 1 Dec 1997 to 1 Mar 2010

Source: CEIC, UBS

% y

ear-o

n-ye

ar

24

Government policy having desired effect –

housing sales coolingYear-on-year residential sales volume growth by property from 1 Jan 2007

to 1 Mar 2010

Source: BofA

Merrill Lynch estimate

% y

ear-o

n-ye

ar

25

Construction as a share of GDP is stable in China, unlike the neighbours before the Asian crisis

China

MalaysiaTaiwanKorea

Thailand

Source: CEIC, Haver, UBS estimates

Construction and real estate value-added share in GDP (%) from 1980 to 2008

6%

8%

10%

12%

14%

16%

18%

20%

1980 1985 1990 1995 2000 2005

26


USDIndustry Analysis as at 5 May 2010

Source: GAM, MSCI Note: Totals may not add to 100% due to rounding of data at source.Allocations and holdings are subject to change. Presented as supplemental information only. Please refer to the relevant GIPS compliant report and the GIPS supplemental text.

27

Consumption delta is moving EastU

SD b

illion

incr

ease

0

100

200

300

400

500

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

USD change in annual household consumption

China

USA-100

Source: CEIC, CLSA Asia-Pacific Markets

28

Consumer sector –

improving EBIT margins

Consumer sector EBIT margin

8 %

9 %

10 %

11 %

12 %

13 %

2005 2006 2007 2008 2009E 2010E 2011E

Source: Merrill Lynch

29

Ericsson

Nokia Siemens Networks

Alcatel-Lucent

Huawei

Cisco

Motorola

Nortel

ZTE

0 5 10 15 20 25 30USD billion

Crisis creating opportunitiesTelecoms equipment and service revenues –

main vendors, 2008*

Source: BDA, The Economist* Financial year.

30

Alternative energy -BYD Co Ltd P/E relative from 31 Dec 2004 to 30 Apr 2010

Source: Credit

Suisse

Source: Credit Suisse

Mean

+1 standard deviation

-1 standard deviation

BYD Co Ltd -

12m fwd PE0

10

20

30

40

50

2005 2006 2007 2008 2009

31

16 %

18 %

20 %

22 %

24 %

26 %

2005 2006 2007 2008 2009E 2010E 2011E

Telecom services sector –

declining EBIT margin

Telecom sector EBIT margin

Source: Merrill Lynch

32

Chinese banks -

risks priced in?P/BV vs

ROE relative to the region from 30 Jun 2005 to 30 Apr 2010

Source: Company data, Credit Suisse estimates,

33

Summary

●

Asia stands at an extremely strong point in the cycle

●

The region has few areas of vulnerability

●

However, China’s economy faces short term challenges

●

We continue to favour

secular growth areas such as consumer/IT


Performance and AnalysisGAM Star China Equity –

USD

35


USDPerformance from 9 Jul 2007 to 5 May 2010

Source: GAM, MSCI, Financial TimesPast performance is not indicative of future performance. Performance is provided net of fees. Funds do not have the security of

capital which is characteristic of a bank deposit. Presented as

supplemental information only. Please refer to the relevant GIPS compliant report and the GIPS supplemental text.

36


USDTop 10 holdings (of 36) as at 5 May 2010

Source: GAMAllocations and holdings are subject to change. Presented as supplemental information only. Please refer to the relevant GIPS compliant report and the GIPS supplemental text.

37


InvestmentsGeographic allocation as at 5 May 2010


38


InvestmentsIndustry Analysis as at 5 May 2010


39

Fund MSCI China Free Index

Value

P/E 16.9 13.2

Yield 2.0 2.6

Price/Book 2.0 2.6

EV/EBIT 14.1 13.3

Fund MSCI China Free Index

Growth

Historic Earnings Growth 20.4 18.9

Forecast Earnings Growth 9.9 21.4

Forecast Dividend Growth 20.1 20.6

Quality

Return on Equity 14.8 19.9

Dividend Cover 2.9 2.9

Debt / Equity Ratio -7.4 17.5

Risk

Tracking error 10.8 -

Beta 0.9 1.0

No of Stocks 36 122

Percentage in Cash 5.2 -

GAM Star China Equity InvestmentsAggregate statistics as at 31 Mar 2010

Source: GAM/UBS PASHoldings and allocations are subject to change. Performance is provided net of fees. Presented as supplemental information only. Please refer to the relevant GIPS compliant report and the GIPS supplemental text.

Beta (Left Scale) Tracking Error (Right Scale)

0.00

0.20

0.40

0.60

0.80

1.00

1.20

03/09 05/09 07/09 09/09 11/09 01/10 03/100

2

4

6

8

10

12

14

16

18

40

GAM Star China Equity

1 month 3 months 6 months 1 Year 2 Years Since Inception

Quartile 1st 1st 1st 1st 1st 1st

Total Return (%) 8.58 8.18 37.34 125.39 86.25 90.29

Past performance is not indicative of future performance.

GAM Star China Equity is ranked Top Quartile over 1-month, 3-month, 6-month, 1-year, 2-year and since inception periods

Morningstar –

peer group rankings as at 31 Mar 2010

Source: Standard & Poor’s, Offshore and International Fund –

Equity China. Nav-Nav, USD, unadjusted income. Presented as supplemental information only. Please refer to the relevant GIPS compliant report and the GIPS supplemental text.

S&P Fund Management Rating

A

41

GAM Star China EquitySimple performance versus peer group average since 9 Jul 2007 (inception) to 31 Mar 2010

Source: GAM, MSCI, Lipper. Peer group shown is the Lipper

Global Equity China.Past performance is not indicative of future performance. Performance is provided net of fees. Performance shown since launch date of GAM Star China Equity -

USD Acc : 9 July 2007.Presented as supplemental information only. Please refer to the relevant GIPS compliant report and the GIPS supplemental text.

90.29%

0.48%

-1.32%

-60

-40

-20

0

20

40

60

80

100

Jul-07 Nov-07 Mar-08 Jul-08 Nov-08 Mar-09 Jul-09 Nov-09 Mar-10

GAM Star China Equity USD Acc MSCI China TR USD Peer group average

42

GAM Star China EquitySimple performance versus peers since 9 Jul 2007 (inception) to 31 Mar 2010

Source: GAM, MSCI, Lipper. Peer group shown is the Lipper

Global Equity China.Past performance is not indicative of future performance. Performance is provided net of fees. Performance shown since 31 July 2007, actual launch date of GAM Star China Equity -

USD Acc was 9 July 2007. Presented as supplemental information only. Please refer to the relevant GIPS compliant report and the GIPS supplemental text.

-100 %

-80 %

-60 %

-40 %

-20 %

0 %

20 %

40 %

60 %

80 %

100 %

Jul 2007 Jan 2008 Jul 2008 Jan 2009 Jul 2009 Jan 2010

GAM Star China Equity USD Acc First State China Growth I International Opps

Fds

China Equity AAllianz RCM China - A - USD Fidelity Funds -

China Focus A Fortis Primera

Equity China B ACCAllianz RCM China Fund -

A -

USD JKC China Value Schroder

ISF China Opportunities A AccMSCI China TR USD APS China A Share Aberdeen Global -

Chinese Equity A2 AccJyske

Invest Chinese Equities iShares

Dow Jones China Offshore 50 (DE) JF China A Dist USDInvesco

PRC Equity USD A Nomura Funds-China Opportunities I USD iShares

FTSE/Xinhua

China 25 USDdb x-trackers FTSE/XINHUA CHINA 25 ETF Vontobel Fund China Stars Eq

B USD HSBC GIF Chinese Equity AD USDCallander

Fund China Universe C1 Parvest

China C FIT Galileo China

43

Why GAM Star China Equity?

●

Truly active, unconstrained approach

●

Early and deep insight into industry trends

●

Experienced in defending portfolios against the periodic market volatility

●

Volatility tempered with diversification guidelines aims to produce consistent returns

●

Highly experienced Hong Kong-based team

●

S&P A rated


Appendix

45

Michael Lai

Investment Director

Michael Lai

is

the

Investment Director responsible

for

GAM's Asian

funds

and co-manager

of GAM's Pacific funds

with

Lesley Kaye. Before

joining

GAM in 1998, he was Senior Vice

President

at Trust Company of the

West (Asia) responsible

for

Asian

portfolios. Prior to this, he was an investment

manager

at BZW Investment Management (HK). Michael Lai

holds

an MSc

in Econometrics

from

the

London School of Economics

and is

a CFA charterholder. He is

based

in Hong

Kong.

46

Mansfield

Mok

Senior Investment Manager

Mansfield Mok

is a Senior Investment Manager in GAM’s Pacific team responsible for investments in Hong Kong and China for GAM’s Asia-Pacific portfolios. Prior to joining GAM in August 2007, he helped to set up the first Asian equity fund for

Munich Re in 2000, where he managed Asian balanced portfolios and co-managed Asian equity portfolios. Mansfield Mok

started his career as a mid-cap analyst with Hoare Govett

in 1990, where he spent two years, moving on to ING Barings Securities HK Ltd. Mansfield Mok

holds an MSc

in Financial Engineering from City University, Hong Kong, and an MBA and a BSc

in Industrial Engineering. Mansfield Mok

is based in Hong Kong.

47

John Jay Lee

Investment Manager

John Jay Lee is an Investment Manager in GAM’s Pacific team responsible for analysing

and recommending investments in Korea and Taiwan for inclusion in GAM’s Asia-Pacific portfolios. Prior to joining GAM, John Jay Lee served as a Director of Equity Sales at BNP Paribas Securities, selling Korean equities to foreign investors. Prior to this, he worked as a Management Associate for Citibank in New York and Singapore. He holds a BSE in Electrical Engineering and a BA in Economics from the University of Pennsylvania. John Jay Lee is based in Hong Kong.

48

Michelle Lam

Manager

Michelle Lam is a Manager -

Asia Pacific ex Japan Investment Department. Her responsibilities include dealing, providing timely market news, fund flow information and updates on market movements and monitoring orders and executions. Prior to joining

GAM in 2004, Michelle worked in research, sales and sales trading with Barings, Deutsche Morgan Grenfell, HSBC and JP Morgan. She is an Ordinary Member of the HK Securities Institute. Michelle is based in Hong Kong.

49

GIPS Supplemental Information

All GAM's discretionary assets have been allocated to appropriate GIPS composites. GAM's funds often are structured as investment pools with underlying currency classes and it is at the investment pool level that GIPS composite allocations have been made. Supplemental information shown in GAM's materials, including performance, geographic/industrial asset allocations, attribution details and other statistical analyses are based on a sample account of the relevant composite that represents the management style. Other accounts in the composite may have slightly different portfolio characteristics. In some cases sample accounts have history that pre-dates GAM's compliance with GIPS of 30 June 1996. Indices other than the benchmark are sometimes used in presentations for illustrative purposes. Please refer to the relevant GIPS compliant report.

50

GAM China Equity Composite (G274)

Composite Performance Aug 07 Dec 07 2008 2009 YTD

Composite Returns % 24.74 -35.12 100.67 8.90

Benchmark Returns* % 23.89 -50.83 62.63 -1.57

Number of Portfolios in Composite < 6 < 6 < 6 < 6

Composite Asset value (USDm) 36 22 338 495

Total Firm Assets (USDm) 75,783 39,207 49,372 49,372

High Return % N/A N/A N/A N/A

Low Return % N/A N/A N/A N/A

1:

Established in 1983, GAM delivers active investment management to private clients, institutions and intermediaries. All GAM's assets are included in the GIPS definition of the firm. 2:

Deloitte & Touche

LLP have carried out a verification of the firm's compliance with GIPS for the period from 30 Jun 1996 to 31 Dec 2008. A verification includes obtaining an understanding of the policies and procedures applied by management in compiling performance reports.

3:

The composite consists of actively managed long-only portfolios of quoted equity and equity related securities issued by companies with principal offices or significant business activities in the People's Republic of China and Hong Kong.

4:

Derivatives may be used in the portfolios within the composite to gain market exposure as well as for hedging purposes. 5:

Composite results are presented gross of investment management fees and net of trading expenses and net of withholding taxes on dividends, capital gains and interest. For some of the constituent accounts the presented gross of fee returns are also net of administrative expenses. Benchmarks are gross of withholding taxes on dividends.

6:

The composite was created in Aug 2007. 7:

High and low returns (for those constituents present in the composite throughout each period) are presented above to demonstrate

dispersion within the composite. Dispersion information is only

required by GIPS where there are 6 or more portfolios in the composite.

8:

The benchmark shown is MSCI China Free Index in USD. 9:

Additional information regarding policies for calculating and reporting returns is available on request. 10:

The maximum investment management fee for accounts is 1.5% per annum. Management fees may vary by product and jurisdiction. 11:

Prior to Nov 2002 GAM's compliance with GIPS was restricted to the institutional and private client assets which were defined as

two separate firms for GIPS purposes. 12:

In 2005 GAM changed its methodology for calculating its Total Firm Assets to follow the principles and guidelines of The Swiss Financial Market Supervisory Authority (FINMA). This change in methodology resulted in Total Firm Assets as of Nov 2005 being increased by 38%. In May 2009, GAM acquired Augustus Assets Managers Limited resulting in an increase of 22% in GAM's AUM. Please note that the year to date total firm asset data is as at 31 Dec 2009.

13:

FX rates used for valuation of funds and portfolios within the composite are those at 23:00 hours GMT. FX rates for benchmark and composition calculation are those at 16:00 hours GMT.

GAM has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). A complete list and description of composites is available on request.

Source: GAM as at 31 Mar 2010

* The benchmark shown is for comparative purposes only. The composite is not managed to a specific benchmark.

51

Disclaimer

Source: GAM unless otherwise stated. (Unless otherwise noted, where shown, performance is shown net of fees, on a NAV to NAV basis).

This material is confidential and is intended solely for the use

of the person or persons to whom it is given or sent and may not be reproduced, copied or given, in whole or in part, to any other person. Nothing contained herein constitutes investment, legal, tax or other advice nor

is it to be solely relied on in making an investment or other decision. It is not an invitation to subscribe and is by way of information only.

The fund is a sub-fund of GAM Star Fund plc. GAM Star Fund plc is an umbrella fund

with segregated liability between sub-funds. GAM Star Fund plc is authorised as a UCITS pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2003 (S.I. No.211 of 2003) and is a recognised scheme under the Financial Services and Markets Act 2000.

The fund is managed by GAM Fund Management Limited which is regulated by the Financial Regulator in Ireland. Subscriptions will only be received and shares or units (‘Shares’) issued on the basis of the current prospectus for the fund. Copies of the fund’s prospectus, simplified prospectus and financial statements can be obtained free of charge from GAM Fund Management Limited, George’s Court, 54-62 Townsend Street, Dublin 2, from the German information agent, Bank Julius Baer Europe AG, An der Welle

1, D-60322 Frankfurt am

Main, from

the Austrian

representative, UniCredit

Bank Austria

AG, Schottengasse

6-8, A-1010 Wien, or from its representative in Switzerland, GAM Anlagefonds AG, Klausstrasse 10, CH -

8034 Zurich. Shares are not available for sale in any state or jurisdiction in which such sale would be prohibited.

The Shares of the fund have not been registered under the US Securities Act of 1933, as amended (the “Securities Act”), and the fund is not registered under the US Investment Company Act of 1940, as amended (the “Company Act”). Accordingly, unless an exemption is available, such shares may not be offered, sold or distributed in the United States or to US persons. However, pursuant to an exemption from registration under the Securities Act and the Company Act, the shares may be sold or resold in the United States or to certain qualified US investors in transactions that do not constitute a public offering.

The views expressed herein are those of the manager at the time and are subject to changes. The price of Shares may go down as well as up and the price will depend on fluctuations in financial markets outside GAM's control, as a result an investor may not get back the amount invested. Past performance is not indicative of future performance and reference to a security is not a recommendation to buy or sell that security. Prices quoted refer to accumulation Shares unless otherwise stated. Historic data may be subject to restatement from time to time.

In the United Kingdom, this material has been issued and approved by GAM London Ltd, 12 St James's Place, London SW1A 1NX, authorised and regulated by the Financial Services Authority. In Switzerland, issued

by GAM Anlagefonds AG, Klausstrasse 10, CH-8034 Zurich.

Gam star china equity citywire zurich 2010

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