Gottex Q3 2008 Trading Statement

Assets under Management The group’s assets under management (AuM) were USD 13.5 billion at 30 September 2008, compared to USD 15.6 billion at 30 June 2008 representing a decrease of 13.6%. This was mainly caused by negative performance in extremely challenging markets, even though Gottex’s market neutral and directional products have performed better than or in-line with the broader market indices and relevant hedge fund benchmarks.

Client subscriptions for the period were USD 0.38 billion, whilst client redemptions account for USD 0.87 billion. Total net client subscriptions and redemptions for the first 9 months of 2008 amounted to outflow of USD 0.55 billion. The foreign exchange impact and other rebalancing factors had a negative effect of USD 0.19 billion in Q3 2008, while performance related adjustments accounted for a USD 1.44 billion decrease.

Outlook Many of Gottex’s products have performed in-line with or better than the broader market indices and relevant benchmarks, but the unprecedented turmoil in the financial industry had a negative impact on performance, and has continued into October.

According to industry reports, increased redemptions in hedge fund products and allocations are expected, predominantly in the high net worth individual and private bank segments. Gottex believes the institutional sector to be more resilient as it is driven by the diversification benefits of alternative investments as well as performance. Gottex continues to compete for substantial institutional mandates, but we believe that subscriptions will remain affected by the volatility in financial markets, and the related slowing of decision making amongst investors. Gottex expects a further short term downward impact on AuM due to deleveraging trends, investor portfolio adjustments resulting from concentration issues and liquidity requirements as well as foreign exchange impacts.

Gottex believes that the structural factors for the alternative asset management industry remain positive. As such, Gottex is positive about the long term growth prospects in the industry and for Gottex in particular. Growth depends on, amongst others, achieving positive absolute returns and relative outperformance, which will be helped by the return of confidence in the global financial markets. The coordinated efforts by governments and central banks around the world should start to allow some respite in the almost unrelenting and extreme volatility. Gottex believes that it is well placed to capitalise on the market dislocations when markets stabilise and that Gottex will be well positioned to resume its historical growth.

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