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GAM Star Fund p.l.c.Unaudited Semi-Annual Report2006GAM Star Fund p.l.c. is a company incorporated with limited liability as an investmentcompany with variable capital under the laws of Ireland. It is an umbrella fund withsegregated liability between sub-funds.

Board of GAM Star Fund p.l.c.Andrew Bates*Mary Canning* (Resigned 26 October 2006)David Dillon*Andrew HangesWilliam Norris (Appointed 26 October 2006)*Independent non-executive DirectorsManager, Registrar and SecretaryGAM Fund Management LimitedGeorge’s Quay House43 Townsend StreetDublin 2, IrelandRegistered Address of the CompanyGeorge’s Quay House43 Townsend StreetDublin 2, IrelandCustodianJ.P. Morgan Bank (Ireland) plc.JP Morgan HouseInternational Financial Services CentreDublin 1, IrelandIndependent AuditorsPricewaterhouseCoopersChartered Accountants and Registered AuditorsGeorge’s QuayDublin 2, IrelandLegal Advisers to the Companyand the Manager as to Irish LawDillon Eustace33 Sir John Rogerson’s QuayDublin 2, Ireland

GAM Star Fund p.l.c.Table of ContentsGeneral Information 2Investment Objectives and Policies 3GAM Star American Equity 5GAM Star Asian Equity 9GAM Star Asia-Pacific Equity 13GAM Star Continental European Equity 17GAM Star European Equity 21GAM Star European Systematic Value 26GAM Star Worldwide Equity 31GAM Star International Equity 35GAM Star Japan Equity 39GAM Star UK Dynamic Equity 43GAM Star US Equity 48GAM Star EUR Bond 52GAM Star GBP Bond 60GAM Star USD Bond 66Balance Sheet 76Notes to the Balance Sheet 80Total Expense Ratios 116Portfolio Turnover Rates 117Fund Manager Profiles 118Contact Information 120

GAM Star Fund p.l.c.General InformationPrincipal ActivitiesGAM Star Fund p.l.c. (“the Company”) was incorporated and registered in Irelandunder the Companies Acts, 1963 to 2006 as an investment company withvariable capital on 20 February 1998 and is authorised by the FinancialRegulator as an undertaking for collective investment in transferable securitiespursuant to the European Communities (Undertakings for Collective Investment inTransferable Securities) Regulations, 1989 and is subject to the EuropeanCommunities (Undertakings for Collective Investment in Transferable Securities)Regulations, 2003 (S.I. No. 211 of 2003) (as amended).It is an umbrella type company in that shares may be issued in relation todifferent Funds (“the Funds”) from time to time. A separate portfolio of assets willbe maintained for each Fund and will be invested in accordance with theinvestment objective and policies applicable to such a Fund as set out on pages3 and 4.The Company is authorised for sale in Austria, Belgium, Finland, France,Germany, Hong Kong, Italy, Luxembourg, the Netherlands, Norway, Spain,Sweden, Switzerland and the UK.DirectorsThe Directors of the Company are:Andrew BatesMary Canning (Resigned 26 October 2006)David DillonAndrew HangesWilliam Norris (Appointed 26 October 2006)Application for sharesAll applications should be made directly to the Manager or via the Germaninformation and distribution agent of the Company, the Austrian paying agent ofthe Company, or via the Swiss representative of the Company. Shares will bepurchased on the relevant Dealing Day and a contract note will be sent to thepurchaser. Prospective shareholders should note that the price of shares may godown as well as up.Redemption of sharesRedemption of shares and requests for the switch of shares can be submitteddirectly to the Manager or via the German paying agent of the Company, theAustrian paying agent of the Company, the Swiss representative of the Company.This should be done in writing by post, by facsimile, by email or by telephone.FeesIn general, the fees payable by the Company can be apportioned as follows:Ordinary SharesSelling Agents SharesManager 0.15% p.a 0.15% p.aSponsor and otherparties for distribution Up to 0.825% p.a 1.1625.% p.aCo-Investment Managerand/or DelegateInvestment Manager Up to 0.525% p.a 0.4375% p.aThe above fees of the Sponsor, Co-Investment Manager and Delegate InvestmentManager may be raised in accordance with the combined limits set out in theProspectus.The Sponsor is allowed to make payments for the distribution of GAM Star Fundplc to distributors and selling agents (trailer fees) as well as institutional investors(reimbursements) out of the Sponsor Fee.Publication of PricesPrices are quoted in the Financial Times, the Wall Street Journal Europe, and theAsian Wall Street Journal; in Germany in the Börsen-Zeitung and in Switzerland inthe Neue Zürcher Zeitung.ReportsAnnual and semi-annual reports are sent to all shareholders.Purchases and SalesPlease contact the Manager or other local GAM Contacts (as per page 120) toobtain a complete list of all purchases and sales for any Fund free of charge.ProspectusFurther details concerning the Company are contained in the prospectus, thesimplified prospectus and the articles of incorporation. Copies of both, as well ascopies of the annual and semi-annual reports, are available on application to theManager or via the German information and distribution agent of the Company,the Austrian paying agent of the Company, or via the Swiss representative of theCompany free of charge.Place of performance and forum in SwitzerlandIn the case of shares which are distributed in Switzerland or from Switzerland, theplace of performance and the forum are at the domicile of the Swissrepresentative of the Fund in Zürich.Distributor Status (relevant to UK Shareholders only)In respect of the period ended 30 June 2006 and all prior periods, the Companyhas been certified as a distributing fund as defined in the United Kingdom andCorporation Taxes Act 1988.It is intended that each Fund of the Company will pursue a distribution policy inorder to obtain certification in subsequent periods.2

GAM Star Fund p.l.c.Investment Objectives and PoliciesGeneralPlease note the following in relation to the investment objectives and policies ofthe Funds:(i) any Fund, the name of which contains a reference to a specific type ofsecurity, country or region will invest at least two thirds of its non-liquidassets in that specific type of security, country or region.(ii) any Fund, the name of which contains a specific reference to a specificcurrency will invest at least two thirds of its non-liquid assets in securitiesdenominated in that specific currency;(iii) where the investment policy of a Fund states that investments are made“primarily” in a specific type of security, country or region, that Fund willinvest at least two thirds of its non-liquid assets in that specific country orregion;(iv) where the investment policy of a Fund refers to investments incompanies of a specific country or region, this means (in the absence of anyother definition) that these companies will have their registered office in thespecific country or region stated, notwithstanding their being listed on anystock exchange mentioned in the investment policy of the Fund.4

GAM Star American EquityComment31.12.2006Manager:Gordon GrenderPortfolio AnalysisThe US economy continued to grow reasonably well, despite the long-awaitedand substantial correction in the housing market, which prompted a bounce inequity markets during the second half of 2006. The S&P 500 appreciated by12.7% over the six months to 31 December 2006, whilst the Fund returned avery disappointing 0.75% as measured by the USD Accumulation class.In the face of rising long-term interest rates year-on-year, a modestly decliningmoney supply and an inverted yield curve, we believe that strong economicgrowth from here is unlikely. The Federal Reserve policy makers have movedcloser to replacing their bias for higher interest rates with a neutral stance,although inflation remains a major concern. Falling fuel prices are helping in thisregard, but other costs such as medical expenditures continue to rise. So, even ifthe period of rising interest rates - which began in July 2004 - may now be over,the Fed seems unlikely to lower interest rates during the first half of 2007. In themeanwhile, investors’ close scrutiny of the Fed's comments and new economicdata is likely to be a source of uncertainty in the near term.Against the background of appreciating equity markets, the portfolio did notperform as well as we would have liked. In essence, we were overly pessimisticabout prospects early in the year, which meant that our generally conservativepositions lagged the main indices.One of the main detractors from performance was the Fund’s positioning in theretail sector, in particular its bias towards lower-end retailers. This segment of themarket has remained depressed as, thus far, poorer Americans have not reallyparticipated in the significant economic growth of the past decade. However, weare hopeful of an increase in the minimum wage and the impact this will have onretailers during 2007. Certain stocks in the portfolio which had performed verywell in 2005, such as Conns, began to show signs of picking up towards the endof the reporting period and have continued to do so since then.Stock selection within healthcare also proved unfavourable, in part due to somepoor short-term news. However, the fundamentals in stocks such as Sierra HealthServices, the leading health maintenance organisation in Las Vegas and Nevadaand one of our key holdings in the sector remain attractive. The company is wellplaced to benefit from the rapidly growing population of Nevada, something thatwe believed was not priced into its valuation and the stock has increased 30%from its November low.Overall, we believe that modest sales growth, corporate profit margins at 50-yearhighs and low wages relative to total GDP do not create a particularly attractivebackground for equity investment. The portfolio therefore continues to be focusedon companies that trade on lower than average market multiples, despite theirpotential for solid long-term growth. The level of cash in the Fund remainsreasonably high in reflection of our cautious outlook, but we continue to seekinteresting opportunities and plan to add to existing positions in the event ofweakness.Analysis, by geographic area %United States 88.48Israel 1.16Canada 0.02Net Current Assets 10.34100.00Analysis, by industry %Retailing 28.09Insurance 15.28Diversified Financials 6.16Capital Goods 5.67Software & Services 5.19Energy 5.15Health Care Equipment & Services 5.04Pharmaceuticals & Biotechnology 4.62Materials 2.88Transportation 2.64Consumer Durables & Apparel 2.04Semiconductors & Semiconductor Equipment 1.94Media 1.80Banks 0.77Real Estate 0.57Commercial Services & Supplies 0.44Technology Hardware & Equipment 0.43Telecommunication Services 0.43Food Beverage & Tobacco 0.29Automobiles & Components 0.23Net Current Assets 10.34100.00Analysis, by investment %Equity Quoted 89.66Net Current Assets 10.34100.005

GAM Star American EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %850,000 United Auto Group 20,034,500 9.56375,000 Chubb 19,843,125 9.48580,000 Conn’s 13,496,600 6.441,547,980 Power-One 11,253,815 5.37250,000 Sierra Health Services 9,010,000 4.3053,000 Bear Stearns Companies 8,623,895 4.12250,000 Keystone Automotive Industries 8,487,500 4.0596,667 ConocoPhillips 6,948,424 3.32481,077 Fred’s A 5,784,951 2.76252,662 CA INC 5,721,531 2.73290,000 Huntsman 5,498,400 2.62108,000 Infinity Property & Casualty 5,226,120 2.4972,000 XL Capital A 5,185,440 2.4791,750 Best Buy 4,510,889 2.15271,000 USA Truck 4,344,130 2.0799,000 Merck 4,314,915 2.0680,000 Bank of America 4,268,000 2.0450,000 Fortune Brands 4,267,000 2.04238,000 Dollar General 3,822,280 1.82375,000 IXYS 3,333,750 1.59282,000 Petrohawk Energy 3,238,770 1.55100,000 Tribune 3,076,500 1.4740,050 Kohls 2,743,025 1.3152,500 Wyeth 2,671,463 1.27150,000 Retalix 2,439,000 1.1660,000 MoneyGram 1,882,500 0.9099,000 Fremont General 1,604,790 0.7749,800 Hub International 1,563,222 0.75776,305 Neopharm 1,296,429 0.6250,000 Universal Truckload Services 1,187,500 0.5743,400 Pfizer 1,124,060 0.5441,000 Sprint Nextel 774,900 0.3725,000 Arbor Realty 751,625 0.3670,357 Citadel Broadcasting 700,404 0.336,234 Alcon 697,273 0.3355,000 Gerber Scientific 691,075 0.3311,939 Medco Health Solutions 638,080 0.3015,000 Viad 609,600 0.2915,000 Delta and Pine Land 606,825 0.2953,000 AMIS Holdings 559,680 0.2710,574 Monsanto 554,871 0.2622,000 Trex 503,250 0.2421,162 LKQ 485,774 0.236,000 Consolidated Tomoka Land 433,710 0.21205,128 SoftBrands 346,666 0.1711,750 Acco Brands 311,023 0.1540,000 TRX 267,400 0.139,381 Williams Companies 244,891 0.1250,000 Oxigene 239,750 0.1150,000 Microtek Medical Holdings 230,500 0.116

GAM Star American EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %73,200 Abraxas Petroleum 226,920 0.1137,000 Scottish Re Group 197,580 0.098,700 Microsemi 170,954 0.0840,000 Edgar Online 139,800 0.07125,000 Mitek Systems 128,124 0.0630,000 Cherokee 120,450 0.062,050 Embarq 107,778 0.055,000 Complete Production Services 105,925 0.0515,000 Optibase 57,150 0.0310,000 Knova Software 48,750 0.02515,872 Inflazyme Pharmaceuticals 40,935 0.022,064 Globalstar* 28,700 0.011,800 Technology Solutions 12,384 0.0125,000 MDI 10,625 0.01437 Liberty Media 9,426 0.0087 Liberty Media A 8,523 0.001,840 Pegasus Communications A 3,882 0.0049,250 Elcom International 3,817 0.00170,000 Clarent 3,400 0.00104 Liberty Gobal A 3,033 0.00104 Liberty Gobal C 2,913 0.00175 Discovery A 2,818 0.0091 Polycom 2,813 0.003,650 C2 Global Technologies 1,916 0.0016,666 Storage Engine 50 0.00Total Investments 187,888,487 89.66Net Current Assets 21,664,254 10.34Net Assets 209,552,741 100.00Total Investment at Cost 154,968,528*Not listed on an official stock exchange.Analysis of Net Assets %Transferable securities admitted to an official stock exchange listing 89.65Transferable securities other than those admitted to an official stock exchange listing or dealt on another regulated market 0.01Net Current Assets 10.34100.007

GAM Star American EquityPortfolio Changes31.12.2006Total PurchasesCostUS$000sTotal SalesProceedsUS$000sKeystone Automotive Industries 5,300Sierra Health Services 4,550Tribune 3,381Bear Stearns Companies 2,433Universal Truckload Services 1,790Infinity Property & Casualty 1,710Michaels Stores 1,400Wyeth 1,329Retalix 999Huntsman 863Fred’s A 764Gerber Scientific 599Best Buy 572Conn’s 526TRX 320Microsemi 213Edgar Online 159Complete Production Services 102Knova Software 37Alberto-Culver 5,229United Auto Group 3,319Chubb 1,760Total for the period 10,308Total for the period 27,0478

GAM Star Asian EquityComment31.12.2006Manager:Michael LaiPortfolio AnalysisThe USD Accumulation class of the Fund returned 21.01% for the period 28August, its date of inception, to 31 December 2006. Over the same period, theMSCI AC Far East ex Japan index gained 21.7% in USD terms. The Fundbenefited from its allocations to China and Singapore, as well as the strength ofour financial, real estate and consumer staples holdings. Despite the lacklustreperformance of the IT sector as a whole, holdings in Taiwan’s technologycompanies advanced and contributed to overall performance. However, theFund’s underweight stance in materials and telecoms was a slight drag onperformance relative to the index.Asian markets enjoyed a buoyant end to the year, boosted by weaker oil pricesand expectations of an economic soft landing in the US. Equity risk appetiteremained exceptionally high, with tight emerging market credit spreads and nearrecord-low volatility. China was the best performing market over the period; withgains in the A-share market amid talks of restructuring in the telecom industry,and plans to introduce a single uniform tax rate for both foreign and domesticbusinesses, lifting the H-shares that trade on the Hong Kong stock exchange.The successful listings of ICBC and China Merchants Bank also boostedsentiment.However, the rally was not uniform across the region. The export-oriented SouthKorea lagged the regional averages on concerns over slower global growthcombined with a strong Korean won. Thailand suffered in December when itscentral bank decided to impose capital controls in light of strong capital inflows.Although the decision was quickly reversed, the damage to sentiment wasirreversible. Taiwan also underperformed while, for the region as a whole, IT andconsumer discretionary sectors ranked among the worst performing sectors overthe period.Looking ahead, recently released economic data has been supportive and wecannot identify any short-term catalyst that could derail China’s, or indeed India’s,current economic boom. Combined with attractive valuations – the forecastaverage P/E for the region is currently 13.5x 2007 earnings – the investmentbackdrop remains positive. We are particularly optimistic about the outlook forChinese banks, given a low non-performing loan rate and forecast loan growth ofsome 15% per year. The growing size of these stocks also means that they nowappear on the radar screens of foreign investors.The portfolio remains fully invested and is focused on domestically-orientedcompanies, especially property and financials. We are looking to raise itsexposure to Taiwan, which has for long been depressed by on-going politicaltensions with China; the 2008 presidential election could be a catalyst for a reratingof the market.Analysis, by geographic area %China 31.41Republic of Korea 22.25Taiwan 19.31Singapore 11.07Hong Kong 10.45Malaysia 3.97India 3.29Thailand 0.64Net Current Liabilities (2.39)100.00Analysis, by industry %Capital Goods 15.13Banks 13.77Real Estate 12.31Technology Hardware & Equipment 10.78Semiconductors & Semiconductor Equipment 9.53Energy 6.16Diversified Financials 6.02Telecommunication Services 4.93Materials 4.04Insurance 3.90Consumer Durables & Apparel 2.82Food & Staples Retailing 2.48Retailing 2.47Software & Services 2.34Food Beverage & Tobacco 1.83Transportation 1.49Utilities 1.39Consumer Services 0.77Automobiles & Components 0.23Net Current Liabilities (2.39)100.00Analysis, by investment %Equity Quoted 99.87Equity Unquoted 1.25Equity Warrants 0.59Convertible bonds to Unquoted Equities 0.55Convertible bonds to Equities 0.13Net Current Liabilities (2.39)100.009

GAM Star Asian EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %5,627,000 Industrial & Commercial Bank of China-H 3,494,267 2.72472,000 Hon Hai Precision Industry 3,371,429 2.624,940 Samsung Electronics 3,261,462 2.54943,000 China Life Insurance-H 3,218,906 2.501,471,000 China Merchants Bank-H 3,118,641 2.4333,410 Kookmin Bank 2,671,004 2.084,728,000 China Telecom-H 2,595,598 2.025,000 Samsung Electronics Pfd 2,567,204 2.001,912,000 China Overseas Land & Investment 2,566,377 2.001,211,000 Taiwan Semiconductor Manufacturing 2,503,018 1.95248,446 Forhuman 2,373,594 1.861,602,000 PetroChina-H 2,277,979 1.77204,000 Hong Kong Exchanges & Clearing 2,237,889 1.74253,000 China Mobile 2,185,858 1.701,007,200 Guangzhou R&F Properties-H 2,175,490 1.69186,000 Keppel 2,140,929 1.673,012,000 AMVIG 2,052,404 1.602,186,000 China Petroleum & Chemical-H 2,024,959 1.582,826,000 Chang Hwa Commercial Bank 1,970,872 1.53781,000 Sembcorp Industries 1,950,717 1.523,043,000 China Construction Bank-H 1,934,641 1.5168,620 Woongjin Coway 1,903,652 1.48875,000 Huaku Construction 1,890,440 1.473,318,000 Maanshan Iron & Steel-H 1,819,397 1.42168,000 Swire Pacific A 1,804,628 1.40790,000 Cathay Financial 1,792,865 1.401,728,000 Datang International Power Generation-H 1,789,540 1.391,184,000 Wistron 1,759,558 1.37308,200 Bank of East Asia 1,747,444 1.361,982,000 Far Eastern Textile 1,732,007 1.35776,000 Sembcorp Marine 1,725,681 1.34816,100 IJM 1,705,025 1.331,737,000 CNOOC 1,650,351 1.2842,046 Hynix Semiconductor 1,649,062 1.2883,000 High Tech Computer 1,641,660 1.28496,000 BOCI CPC-Luzhou Laojiao-A* 1,609,251 1.25395,000 Hong Kong Land 1,568,150 1.2266,050 Woori Finance 1,566,024 1.22867,682 S. Kumars Nationwide 1,557,756 1.21403,000 Singapore Exchange 1,504,614 1.1722,830 Doosan 1,385,756 1.081,164,000 China Everbright 1,360,345 1.06288,000 ZTE-H 1,324,659 1.03492,000 Ta Ann 1,317,110 1.0220,587 Hyundai Engineering & Construction 1,256,250 0.98118,000 MediaTek 1,222,188 0.9538,060 LG 1,221,603 0.95291,000 Capitaland 1,181,345 0.921,297,000 Golden Eagle Retail 1,150,591 0.9095,000 Foxconn Technology 1,137,755 0.89238,616 Kerry Properties 1,114,390 0.87736,000 Cosco Corp Singapore 1,101,552 0.861,730 Shinsegae 1,073,344 0.841,248,000 Midas 1,062,110 0.83250,000 Powertech Technology 1,045,343 0.81120,463 Interpark 1,040,127 0.8113,040 SK 1,023,570 0.80* Not listed on an official stock exchange10

GAM Star Asian EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %363,000 Asustek Computer 993,139 0.7713,008 Hana Tour Service 991,685 0.7730,051 Aban Offshore 942,163 0.733,200 Orion 937,634 0.73816,000 Far EasTone Telecom 925,935 0.721,760,000 First Pacific 911,905 0.71988,000 China Milk Products 898,826 0.7071,000 Guoco Group 877,231 0.6839,420 Woori Investment & Securities 850,921 0.66549,000 Chicony Electronics 825,143 0.641,283,700 Central Pattana Public (Foreign) 823,813 0.64575,000 Pos Malaysia & Services 812,819 0.63429,000 Greentown China 799,204 0.62221,000 Weichai Power-H 780,660 0.61418,700 Lion Diversified 750,220 0.58158,155 Crompton Greaves 748,561 0.58286,000 Hysan Development 747,358 0.58700,000 Bugs Interactive 0% CB 29-09-2009 708,726 0.55469,000 Olam 649,945 0.5120,630 Daewoo Shipbuilding & Marine Engineering 645,519 0.50227,000 Everlight Electronics 645,437 0.501,114,000 China Communications Services-H 634,484 0.491,170,000 Huabao International 634,038 0.49740,000 SPG Land 625,071 0.493,627,000 ICBC KBC Fin-CW07 07-05-07 4449 568,905 0.44180,000 Li & Fung 558,884 0.43697,000 Beijing Jingkelong-H 547,976 0.4350,274 Parsvnath Developers 523,253 0.411,033,300 IGB 521,041 0.414,000 Hyundai Mipo Dockyard 511,828 0.40346,781 Bugs Interactive 495,934 0.3939,000 Motech Industries 481,441 0.37379,000 Synnex Technology International 479,784 0.37773,000 Metro 429,753 0.3316,400 Samwhan 425,871 0.33714,000 Bank of Kaohsiung 413,588 0.32414,000 China Communications Construction-H 409,316 0.3236,822 Amtek Auto 298,774 0.23969,000 ICBC KBC Fin-CW07 07-05-08 4430 196,840 0.15120,000 S Kumars 2% CB 08-04-2011 162,600 0.1313,000 Hutchison Whampoa 132,123 0.1092,000 Zhuzhou CSR Times Electric-H 127,155 0.10Total Investments 131,573,884 102.39Net Current Liabilities (3,070,285) (2.39)Net Assets 128,503,599 100.00Total Investment at Cost 111,535,587Analysis of Net Assets %Transferable securities admitted to an official stock exchange listing 101.14Transferable securities other than those admitted to an official stock exchange listing or dealt on another regulated market 1.25Net Current Liabilities (2.39)100.0011

GAM Star Asian EquityPortfolio Changes31.12.2006Major PurchasesCostUS$000sMajor SalesProceedsUS$000sHigh Tech Computer 3,577Samsung Electronics 3,324Hon Hai Precision Industry 3,171Forhuman 3,005Taiwan Semiconductor Manufacturing 2,818Samsung Electronics Pfd 2,742Kookmin Bank 2,692Industrial & Commercial Bank of China-H 2,532Cathay Financial 2,492China Telecom-H 2,334AMVIG 2,300Hynix Semiconductor 2,203China Merchants Bank-H 2,097China Construction Bank-H 2,005Woongjin Coway 2,000Far Eastern Textile 1,855Keppel 1,821China Life Insurance-H 1,813China Mobile 1,806Daewoo Shipbuilding & Marine Engineering 1,799PetroChina-H 1,796Swire Pacific A 1,759China Overseas Land & Investment 1,737Sembcorp Industries 1,734Bank of East Asia 1,713Huaku Construction 1,710Chang Hwa Commercial Bank 1,700Sembcorp Marine 1,690Shinsegae 1,688Hong Kong Land 1,538Datang International Power Generation-H 1,498Hong Kong Exchanges & Clearing 1,487Woori Finance 1,483MediaTek 1,482S. Kumars Nationwide 1,481CNOOC 1,481Far EasTone Telecom 1,455China Petroleum & Chemical-H 1,416Infosys Technologies 1,570Hana Financial Group 1,355High Tech Computer 1,261Daewoo Shipbuilding & Marine Engineering 1,085KT&G 1,063Cathay Financial 1,046Cheung Kong 1,012Daewoo International 1,012Shinsegae 975Chi Mei Optoelectronics 973HSBC 925Singapore Petroleum 856Korea Zinc 821Pantai 790Yanzhou Coal Mining-H 678Taiwan Semiconductor Manufacturing 674Hynix Semiconductor 626Bangkok Bank (Foreign) 622United Industrial 606Bugs Interactive 605Great Eagle Holdings 592China Construction Bank-H 579LG Chem 578Far EasTone Telecom 578Foxconn Technology 553Hopewell Highway Infrastructure 491Hysan Development 480Catcher Technology 430Korea Development 404China Overseas Land & Investment 395Orion 395Hon Hai Precision Industry 372Cheng Uei Precision Industry 370Woongjin Coway 358Bank of East Asia 356Quanta Storage 345MediaTek 338Motech Industries 335China Milk Products 323Far Eastern Textile 307MCOT (Foreign) 299Total for the period 140,282Total for the period 29,51712

GAM Star Asia-Pacific EquityComment31.12.2006Managers:Lesley KayeMichael LaiPortfolio AnalysisAsian markets rallied strongly in the second half of 2006, buoyed by weaker oilprices and expectations of an economic soft landing in the US. The Fundreturned 5.11% in the six months to 31 December 2006 as measured by theEUR Accumulation class versus a 5.2% rise in the MSCI Pacific index in EURterms. The Fund’s holdings in China were a significant contributor toperformance, whilst an overweight exposure to Singapore was also favourable. Onthe other hand, Japan continued to lag other markets. The Fund lacked exposureto the better performing areas of the Japanese market, namely exporters anddefensives, but the impact of this was largely offset by gains in our technologystocks and residual holdings in the steel sector.The Fund maintained its broad split of assets, with about two third of assetsinvested in Japan and one third in the other Asia Pacific markets. This representsan underweighting of Japan relative to the index. The Japanese market continuedto consolidate, gaining a modest 2.17% as softer economic data worriedinvestors. At the same time, however, the data gives little cause to expectaggressive monetary tightening, or the reversal of the carry trade that isdepressing the yen.Other Asia Pacific markets rallied to a strong finish in 2006. Equity risk appetitewas exceptionally high, with tight emerging market credit spreads and a nearrecord-low volatility index. China was a notable outperformer; gains in the A-sharemarket amid talks of restructuring in the telecom industry, and plans to introducea single uniform tax rate for both foreign and domestic businesses, lifted the H-shares that trade on the Hong Kong stock exchange. The successful listings ofICBC and China Merchants Bank also boosted sentiment. However, market gainswere not uniform across the region. The export-oriented South Korea laggedpartly as a result of the strong won, whilst the Thai market fell sharply inDecember as its central bank imposed credit controls to limit capital inflows.Although the decision was quickly reversed, the damage to sentiment provedirreversible.We remain optimistic on the prospects for the region in the year ahead. In Japan,the modest slowing of the economy appears to have passed and companiesappear well placed to benefit from the return to growth. We continue to find realvalue in the domestic segments of the market, which underperformed the marketin 2006 but should resume market leadership as the Bank of Japan movestowards a neutral monetary policy and as the secular recovery becomes moreentrenched. We are playing this theme predominantly through our holdings inJapanese banks. Another emerging theme is technology, particularly companiestargeting solutions for the growing functionality of mobile handsets.Recent economic data out of Asia ex-Japan has been supportive and we cannotidentify catalysts that could derail China’s, or indeed India’s, current economicboom. Combined with attractive valuations, the investment backdrop for theregion remains positive. We are particularly optimistic on the outlook for Chinesebanks as a result of low non-performing loans and forecast low growth of some15% per year. The growing size of these stocks also means that they now appearon the radar screens of foreign investors.Analysis, by geographic area %Japan 62.70Australia 12.81China 9.54Singapore 5.07Hong Kong 3.58Taiwan 1.29Republic of Korea 0.79Net Current Assets 4.22100.00Analysis, by industry %Capital Goods 16.02Banks 13.34Materials 12.02Consumer Durables & Apparel 7.88Insurance 6.48Semiconductors & Semiconductor Equipment 5.10Energy 4.12Technology Hardware & Equipment 3.92Real Estate 3.66Diversified Financials 3.63Software & Services 3.34Telecommunication Services 3.18Transportation 2.36Automobiles & Components 2.15Food Beverage & Tobacco 1.98Pharmaceuticals & Biotechnology 1.93Food & Staples Retailing 1.72Household & Personal Products 1.45Commercial Services & Supplies 1.39Retailing 0.11Net Current Assets 4.22100.00Analysis, by investment %Equity Quoted 95.78Net Current Assets 4.22100.0013

GAM Star Asia-Pacific EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %1,887,700 Mitsubishi 35,477,122 3.87726,600 Sony 31,095,099 3.392,553,000 Mitsui Trust 29,313,771 3.202,303 Mitsubishi UFJ Financial 28,532,401 3.115,099 NTT Data 25,568,880 2.7939,530,000 Industrial & Commercial Bank of China-H 24,547,429 2.68287,300 Tokyo Electron 22,647,604 2.473,876,000 Nippon Steel 22,252,287 2.4310,482,500 China Merchants Bank-H 22,223,763 2.42364,700 Elpida Memory 20,003,284 2.1812,546 NTT DoCoMo 19,758,725 2.15625,500 Yamaha Motor 19,702,028 2.15319,904 Rio Tinto 18,737,455 2.044,029,000 Mitsubishi Heavy Industries 18,274,411 1.99908,000 BHP Billiton 18,128,942 1.983,750 Japan Tobacco 18,127,126 1.982,007 Inpex 16,503,742 1.804,742,000 Kobe Steel 16,210,945 1.77727,800 AEON 15,771,904 1.72899,000 Sharp 15,536,454 1.691,970,000 Fujitsu 15,479,694 1.691,872,000 Itochu 15,338,591 1.67646,671 QBE Insurance 14,696,744 1.60978,400 Sumitomo 14,624,021 1.594,236,000 China Life Insurance-H 14,459,475 1.581,253,000 Mitsui Sumitomo Insurance 13,713,485 1.49492,000 Kao 13,286,128 1.451,263,790 Brambles 12,785,766 1.391,724,000 Nippon Yusen Kabushiki Kaisha 12,605,451 1.371,522,000 Sumitomo Chemical 11,812,423 1.29670,000 Daiwa House Industry 11,663,307 1.273,093,000 Singapore Exchange 11,547,819 1.26437,600 St George Bank 11,379,544 1.24316,000 Millea 11,161,060 1.222,791,000 Hong Kong Land 11,080,270 1.211,371,000 Sekisui Chemical 10,911,113 1.19630,000 JGC 10,847,927 1.18861,000 Asahi Glass 10,352,539 1.13870,000 Keppel 10,014,021 1.09353,400 Hitachi Construction Machinery 9,513,645 1.0413,913,000 AMVIG 9,480,445 1.03179,885 CSL 9,274,025 1.01627,733 Toll 9,071,830 0.99127,900 Murata Manufacturing 8,642,690 0.94437,795 Babcock & Brown 8,571,702 0.93427,000 Shionogi & Co 8,410,525 0.921,154,800 Hon Hai Precision Industry 8,248,571 0.902,137,000 Ebara 8,176,082 0.891,513,000 Oji Paper 8,044,425 0.881,235,000 Furukawa Electric 7,774,831 0.851,602,899 Kerry Properties 7,485,897 0.8214

GAM Star Asia-Pacific EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %546,947 Jardine Strategic 7,247,048 0.797,544,000 China Petroleum & Chemical-H 6,988,239 0.762,172,000 Taisei 6,631,574 0.721,625,000 Capitaland 6,596,860 0.721,145,217 Bank of East Asia 6,493,195 0.71211,350 Aiful 5,947,020 0.651,410,000 Taiheiyo Cement 5,530,805 0.60986,527 Promina 5,396,969 0.59624,500 China Mobile 5,395,526 0.593,706,000 PetroChina-H 5,269,781 0.57725,000 Computershare 5,070,038 0.554,782,000 CNOOC 4,543,453 0.50148,000 Woodside Petroleum 4,451,670 0.49393,500 Swire Pacific A 4,226,912 0.46106,320 Hynix Semiconductor 4,169,916 0.45355,500 Sun Hung Kai Properties 4,083,817 0.457,364,000 China Telecom-H 4,042,720 0.44181,600 High Tech Computer 3,591,874 0.38112,280 Woongjin Coway 3,114,865 0.34314,000 Li & Fung 974,942 0.10340,800 Inter Delta 4,925 0.00Total Investments 878,639,567 95.78Net Current Assets 38,702,617 4.22Net Assets 917,342,184 100.00Total Investment at Cost 704,975,934Analysis of Net Assets %Transferable securities admitted to an official stock exchange listing 95.78Net Current Assets 4.22100.0015

GAM Star Asia-Pacific EquityPortfolio Changes31.12.2006Major PurchasesCostUS$000sMajor SalesProceedsUS$000sTokyo Electron 21,977Mitsui Trust 19,882Industrial & Commercial Bank of China-H 17,163Japan Tobacco 16,817Elpida Memory 15,444China Merchants Bank-H 14,864AEON 8,817Furukawa Electric 8,669Murata Manufacturing 8,589Shionogi & Co 8,236China Life Insurance-H 7,959NTT Data 7,639Mitsubishi 7,434Fujitsu 6,445Bank of East Asia 5,744Aiful 5,238China Mobile 4,146NTT DoCoMo 4,015China Telecom-H 3,612Hynix Semiconductor 3,539Oji Paper 3,356JGC 3,143Ebara 3,040Rio Tinto 2,811Mitsubishi Heavy Industries 2,524Total for the period 242,344Sumitomo Mitsui Financial 31,594Toyota Motor 20,354Sumitomo Metal Mining 10,668Sharp 9,293TonenGeneral Sekiyu KK 8,502East Japan Railway 8,317Sekisui House 8,215Jardine Strategic 8,002Rio Tinto 7,259Kookmin Bank 5,754Sumitomo Chemical 5,258Hitachi Construction Machinery 5,182Brambles 4,846Hong Kong Land 4,583Taiwan Semiconductor Manufacturing 4,412Nippon Steel 4,346Sekisui Chemical 4,318Sony 4,221Cheung Kong 4,169QBE Insurance 4,131Taiheiyo Cement 3,851Woodside Petroleum 3,211Computershare 3,139Capitaland 2,895PetroChina-H 2,887AEON 2,859Singapore Exchange 2,676Ajinomoto 2,630Total for the period 209,75816

GAM Star ContinentalEuropean EquityWith effect from January 2007, John Bennett is the Investment Manager responsiblefor this fund.Comment31.12.2006Manager:John BennettPortfolio AnalysisThe Fund's NAV rose by 10.42% in the six months to 31 December 2006 asmeasured by the GBP Accumulation class. This compares with a rise of 12.8% inthe benchmark MSCI Europe ex-UK index, expressed in GBP.During latter half of 2006 we deployed capital in the large-cap ‘growth’ end of themarket. This was in recognition of the fact that so-called value stocks and sectorshad performed very well, to the extent that the respective ratings had converged.Since then, it is fair to say that the value end of the market has continued toperform well, with, as yet, no meaningful change in market leadership. Ourconcern is that this has been aggravated by what we would term ‘a dash forcertainty’; it seems that well capitalised buyers such as private equity andinfrastructure funds have not yet been discouraged by valuations among the likesof utilities and commercial property. Nevertheless we would urge caution againstsuch areas of the market. The reminder that such assets do not guarantee linearcash flows may prove a sore one when it comes. A further lesson that may needto be re-learned is that the pain will be sorest where there is most leverage.We have therefore continued to look to identify beneficiaries of a phenomenon weare great believers in: mean reversion. Sectors such as media and technologyhave offered up selective opportunities for us to strengthen our positioning ingrowth stocks, with names such as Publicis, Wolters Kluwer, Vivendi andSchibsted being the mainstays of our media exposure. In technology, late 90'ssaints turned new millennium sinners such as Cap Gemini and Epcos seem tohave done their penance.One lesson learned by us is that good investment themes last. Too often have wefound ourselves looking back ruefully as the early adoption of a theme has notbeen maximised, as profits were too hastily booked. Reassuringly, we may havekicked this habit if our German theme is anything to go by. Having gone againstthe flow in backing Germany to export its way out of recession, we now find betteropportunities in the domestic sector. Thus, the German banking sector as well asVIB Vermoegen in real estate as well as Douglas, Metro and Karstadt are holdingsin the fund. These are joined by restructuring situations such as Bayer, Daimler,Volkswagen and Siemens.One stock worthy of mention as it demonstrates our understanding of valueinvesting is Tessenderlo. This Belgian chemicals business has been a poorperformer over an extended period. A visit to the company in November 2006indicated that management action is being taken in key areas such as workingcapital management. This is coinciding with an upturn in some of the company’skey markets, at a time when stock market capitalisation has fallen to around thebook value of the business. The stock represents 4% of the fund's assets.While we believe that 2007 is likely to be characterised by a rise in volatility,perhaps as credit terms tighten around the world, we see no reason to think thata bear market in European equities is imminent. One reason for this is that, in thewestern facing world of financial markets, the highly beneficial effects of productand labour markets to the near and far east of Europe are, in our view, not yetsufficiently appreciated.Analysis, by geographic area %Germany 26.50France 20.44Switzerland 13.90Netherlands 13.07Italy 7.18Belgium 6.70Sweden 5.61Spain 3.68Norway 2.20Ireland 0.82Net Current Liabilities (0.10)100.00Analysis, by industry %Banks 12.98Telecommunication Services 9.06Materials 7.87Insurance 7.20Diversified Financials 6.03Pharmaceuticals & Biotechnology 5.99Energy 5.90Media 4.68Utilities 4.48Software & Services 4.06Automobiles & Components 3.98Capital Goods 3.93Food Beverage & Tobacco 3.82Real Estate 3.45Health Care Equipment & Services 3.14Commercial Services & Supplies 2.23Transportation 2.12Household & Personal Products 1.87Food & Staples Retailing 1.80Semiconductors & Semiconductor Equipment 1.57Consumer Durables & Apparel 1.35Retailing 1.35Technology Hardware & Equipment 1.24Net Current Liabilities (0.10)100.00Analysis, by investment %Equity Quoted 94.93Preference Shares 5.17Net Current Liabilities (0.10)100.0017

GAM Star ContinentalEuropean EquityPortfolio Statement31.12.2006Holding Description Fair Value Net Assets€ %96,428 Tessenderlo Chemie N.V. 3,111,249 4.0242,095 Total 2,301,544 2.9842,480 Novartis (Registered) 1,854,115 2.4012,735 Roche Holding Genussscheine 1,729,857 2.2450,393 TNT 1,641,300 2.125,702 Nestlé (Registered) 1,534,088 1.9859,030 ENI 1,504,084 1.948,992 Fresenius 1,457,154 1.887,570 Air Liquide 1,363,357 1.761,333 Porsche Pfd 1,288,971 1.678,117 Allianz (Registered) 1,258,216 1.63113,305 Tele2 1,255,594 1.62182,928 Unicredito Italiano 1,214,642 1.5711,805 Alstom (New) 1,212,964 1.5722,932 Adecco 1,184,770 1.5322,277 Credit Suisse Group (Registered) 1,180,006 1.5370,000 Alta Fides 1,168,300 1.51125,300 VIB Vermoegen 1,159,025 1.5013,615 BNP Paribas 1,125,620 1.4610,641 E.ON 1,099,109 1.4217,933 Software (Registered) 1,064,144 1.3814,995 Sanofi-Aventis 1,049,275 1.366,250 Swatch Group 1,046,400 1.3513,733 Siemens 1,031,898 1.3395,450 KPN 1,028,951 1.339,160 Henkel KGaA Preferred 1,022,256 1.3294,455 Infineon Technologies 1,009,724 1.3170,950 Banco Santander 1,003,588 1.3029,350 ING Groep 986,600 1.2820,200 Bouygues 982,124 1.2722,500 Bayerische Motoren Werke 981,000 1.2723,890 Bayer 975,548 1.2610,450 KBC Groep 969,760 1.2562,565 Epcos 961,624 1.2458,337 Telefonica 939,809 1.2220,000 UBS (Registered) 920,172 1.1929,654 AXA 909,933 1.1849,435 Banco Bilbao Vizcaya Argentaria 901,942 1.1732,260 Schibsted 872,769 1.13157,347 Intesa Sanpaolo 870,129 1.1341,700 Unilever 864,441 1.124,115 Zurich Financial Services 839,208 1.0950,590 Profdoc 827,962 1.0720,896 Suez 819,959 1.06128,000 TeliaSonera 800,416 1.0332,700 ABN AMRO 796,409 1.0336,500 Wolters Kluwer 794,970 1.0324,490 Fortis Group 791,762 1.026,041 Muenchener Rueckversicherung (Registered) 791,371 1.0227,395 Commerzbank 787,606 1.027,750 Deutsche Bank 785,385 1.0214,070 Electricite De France 777,016 1.0018

GAM Star ContinentalEuropean EquityPortfolio Statement31.12.2006Holding Description Fair Value Net Assets€ %6,855 PPR 775,301 1.0098,197 Enel 767,410 0.9925,686 Vivendi 760,819 0.9828,370 Royal Dutch Shell A 758,330 0.9816,190 Carrefour 743,688 0.9621,730 Belgacom 725,021 0.9411,150 Deutsche Postbank 710,757 0.9247,335 Deutsche Telekom (Registered) 657,483 0.8520,035 CRH 633,006 0.8230,000 France Telecom 628,650 0.8134,500 SanPaolo IMI 607,200 0.7946,445 Reed Elsevier NV 599,837 0.7817,000 Hannover Rueckversicherung 596,020 0.7718,485 Publicis Groupe 590,688 0.7658,200 Alleanza Assicurazioni 588,402 0.7640,364 Aegon 583,058 0.754,415 Société Générale 568,211 0.7315,332 Heineken 552,489 0.7172,069 Semcon 543,391 0.705,697 OPG Groep 508,030 0.6621,000 Svenska Handelsbanken 481,694 0.6267,310 Know IT 465,605 0.607,652 Phonak Holding 460,374 0.605,553 L’Oreal 421,334 0.548,815 DaimlerChrysler 413,732 0.5337,200 Sandvik 410,689 0.538,560 Cap Gemini 407,114 0.534,583 Volkswagen 393,955 0.517,300 Volvo B 380,743 0.495,390 Casino Guichard-Perrachon 379,321 0.4930,000 Metris International Holding 375,000 0.4837,000 VIB Vermoegen 342,250 0.445,600 Metro 269,864 0.3512,200 Karstadt 268,155 0.3510,750 ASML 202,423 0.271,039 Cumerio Strip VVPR 68 0.001,039 Umicore Strip VVPR 62 0.00Total Investments 77,418,290 100.10Net Current Liabilities (74,432) (0.10)Net Assets 77,343,858 100.00Total Investment at Cost 67,269,350Analysis of Net Assets %Transferable securities admitted to an official stock exchange listing 100.10Net Current Liabilities (0.10)100.0019

GAM Star ContinentalEuropean EquityPortfolio Changes31.12.2006Major PurchasesCost€000sMajor SalesProceeds€000sLindab International AB 3,092Tessenderlo Chemie N.V. 2,982Alta Fides 1,700Air Liquide 1,363Tele2 1,342Commerzbank 1,056Nestlé (Registered) 1,030Epcos 980Swatch Group 965Banco Santander 962UBS (Registered) 953Schibsted 913PPR 908Infineon Technologies 906KBC Groep 896Banco Bilbao Vizcaya Argentaria 890Telefonica 830Bayer 799Roche Holding Genussscheine 784Novartis (Registered) 770Metris International Holding 750TNT 745Total 739BE Group AB 739Zurich Financial Services 705Svenska Handelsbanken 696VIB Vermoegen 651Porsche Pfd 637Unilever 617Reed Elsevier NV 582Alleanza Assicurazioni 574Bayerische Motoren Werke 551Lindab International AB 3,308Commerzbank 1,584Bayer 1,386Aareal Bank 1,155Praktiker Bau-Und Heimwerkermaerkte 1,012Novartis (Registered) 903Eniro 867Credit Agricole 859ProSiebenSat.1 Media Pfd 857BNP Paribas 838Lagardère Groupe 814BE Group AB 762Fortis Group 752Mediobanca 704Telegraaf Media 699Deutsche Post 668Ekornes 642Altana 632Telecom Italia SpA RNC 615AB Lindex 605Philips 596Volkswagen 570Akzo Nobel 557Compagnia Assicuratrice Unipol 549Unilever 540Aegon 516SNS Reaal 514ING Groep 510Alta Fides 507Metropole Television (M6) 505Parlamat 493Total 462P4 Radio 441Wegener NV-CVA 438Total for the period 54,987Total for the period 43,55520

GAM Star European EquityComment31.12.2006Manager:John BennettPortfolio AnalysisThe Fund's NAV rose by 13.72% in the six months to 31 December 2006 asmeasured by the EUR Accumulation class. This compares with a rise of 14.3% inthe benchmark MSCI Europe index in EUR.In our twelve month report to 30 June 2006, we noted that we had deployedcapital in the large-cap ‘growth’ end of the market. This was in recognition of thefact that so-called value stocks and sectors had performed very well, to the extentthat the respective ratings had converged. Since then, it is fair to say that thevalue end of the market has continued to perform well, with, as yet, nomeaningful change in market leadership. Our concern is that this has beenaggravated by what we would term ‘a dash for certainty’; it seems that wellcapitalised buyers such as private equity and infrastructure funds have not yetbeen discouraged by valuations among the likes of utilities and commercialproperty. Nevertheless we would urge caution against such areas of the market.The reminder that such assets do not guarantee linear cash flows may prove asore one when it comes. A further lesson that may need to be re-learned is thatthe pain will be sorest where there is the most leverage.We have therefore continued to look to identify beneficiaries of a phenomenon weare great believers in: mean reversion. Sectors such as media and technologyhave offered up selective opportunities for us to strengthen our positioning ingrowth stocks, with names such as Publicis, Wolters Kluwer, Vivendi and DailyMail being the mainstays of our media exposure. In technology, late 90's saintsturned new millennium sinners such as Cap Gemini and LogicaCMG seem tohave done their penance.One lesson learned by us is that good investment themes last. Too often have wefound ourselves looking back ruefully as the early adoption of a theme has notbeen maximised, as profits were too hastily booked. Reassuringly, we may havekicked this habit if our German theme is anything to go by. Having gone againstthe flow in backing Germany to export its way out of recession, we now find betteropportunities in the domestic sector. Thus, the German banking sector as well asconsumer plays such as Metro and Karstadt are holdings in the fund. These arejoined by restructuring situations such as Bayer, Daimler, Volkswagen andSiemens.While we believe that 2007 is likely to be characterised by a rise in volatility,perhaps as credit terms tighten around the world, we see no reason to think thata bear market in European equities is imminent. One reason for this is that, in thewestern facing world of financial markets, the highly beneficial effects of productand labour markets to the near and far east of Europe are, in our view, not yetsufficiently appreciated.Analysis, by geographic area %United Kingdom 29.28Germany 18.76France 16.67Netherlands 12.92Switzerland 11.15Italy 5.04Sweden 2.68Belgium 1.76Ireland 0.81Spain 0.69Net Current Assets 0.24100.00Analysis, by industry %Banks 12.28Telecommunication Services 10.88Insurance 10.07Energy 8.78Media 6.80Pharmaceuticals & Biotechnology 6.05Food & Staples Retailing 6.00Automobiles & Components 4.71Materials 4.59Capital Goods 4.38Diversified Financials 4.23Utilities 3.71Food Beverage & Tobacco 2.86Software & Services 2.76Retailing 2.22Transportation 2.04Health Care Equipment & Services 1.90Household & Personal Products 1.52Semiconductors & Semiconductor Equipment 1.36Consumer Durables & Apparel 1.35Commercial Services & Supplies 1.27Net Current Assets 0.24100.00Analysis, by investment %Equity Quoted 95.61Preference Shares 4.15Net Current Assets 0.24100.0021

GAM Star European EquityPortfolio Statement31.12.2006Holding Description Fair Value Net Assets€ %10,486,600 BT Group 46,949,884 4.591,123,485 Royal Dutch Shell A 30,030,754 2.932,036,426 HSBC Holdings 28,110,874 2.753,196,900 BP 26,895,290 2.6323,790 Porsche Pfd 23,004,216 2.251,088,730 GlaxoSmithKline 21,685,472 2.129,134,120 Legal & General 21,319,408 2.08642,435 TNT 20,924,108 2.041,926,288 Daily Mail & General Trust A 20,491,061 2.00120,237 Fresenius 19,484,406 1.90350,150 Total 19,144,451 1.87100,110 Air Liquide 18,029,811 1.76411,535 Novartis (Registered) 17,962,180 1.75156,490 Alstom (New) 16,079,348 1.57112,575 Roche Holding Genussscheine 15,291,612 1.49707,500 Unilever 14,666,475 1.4392,105 Allianz (Registered) 14,277,196 1.39543,040 ENI 13,836,659 1.3582,380 Swatch Group 13,792,392 1.3566,100 Zurich Financial Services 13,480,354 1.322,236,420 Tesco 13,424,957 1.31325,500 Bayer 13,291,793 1.305,656,050 Cable & Wireless 13,222,422 1.29235,805 Electricite De France 13,022,331 1.271,046,010 Alliance Boots PLC 12,984,761 1.27251,050 Adecco 12,970,371 1.27138,355 KBC Groep 12,839,344 1.25262,690 Bouygues 12,771,988 1.25122,000 E.ON 12,601,380 1.231,205,775 Prudential 12,513,588 1.22210,680 Software (Registered) 12,501,751 1.22193,443 Swiss Reinsurance (Registered) 12,449,836 1.221,138,655 KPN 12,274,701 1.20189,740 Deutsche Postbank 12,094,976 1.181,086,465 Infineon Technologies 11,614,311 1.13243,400 Carrefour 11,180,579 1.09132,535 BNP Paribas 10,957,331 1.0783,520 Muenchener Rueckversicherung (Registered) 10,941,120 1.0796,815 Henkel KGaA Preferred 10,804,554 1.061,689,472 TeliaSonera 10,564,696 1.03340,462 AXA 10,447,076 1.021,888,870 Intesa Sanpaolo 10,445,451 1.024,975,000 Vodafone Group 10,440,522 1.02358,340 Commerzbank 10,302,275 1.0122

GAM Star European EquityPortfolio Statement31.12.2006Holding Description Fair Value Net Assets€ %3,728,000 LogicaCMG 10,290,898 1.0190,945 PPR 10,285,880 1.001,546,090 Unicredito Italiano 10,266,038 1.002,490,500 Invensys 10,189,939 1.00890,845 Pearson 10,186,599 1.00308,160 Fortis Group 9,962,813 0.97226,675 Bayerische Motoren Werke 9,883,030 0.9735,770 Nestlé (Registered) 9,623,697 0.942,550,000 Morrison Supermarkets 9,610,816 0.94179,605 Credit Suisse Group (Registered) 9,513,623 0.935,972,300 ITV 9,477,593 0.93194,980 UBS (Registered) 8,970,755 0.882,537,370 Kingfisher 8,946,991 0.87263,445 CRH 8,323,545 0.81107,080 Siemens 8,045,991 0.79369,150 Wolters Kluwer 8,040,087 0.79233,370 ING Groep 7,844,733 0.77534,445 Aegon 7,720,058 0.75239,540 Publicis Groupe 7,654,501 0.75183,635 Rio Tinto 7,398,401 0.72185,530 Suez 7,280,197 0.71389,140 Banco Bilbao Vizcaya Argentaria 7,099,859 0.69101,250 Sanofi-Aventis 7,084,969 0.69547,130 Reed Elsevier NV 7,066,184 0.6968,670 Deutsche Bank 6,959,018 0.68222,670 Vivendi 6,595,485 0.64280,715 Svenska Handelsbanken 6,438,990 0.63263,290 ABN AMRO 6,412,428 0.63428,100 Fiat 6,198,888 0.61328,355 SanPaolo IMI 5,779,048 0.56915,490 J. Sainsbury 5,563,464 0.54493,000 Sandvik 5,442,738 0.53113,520 Cap Gemini 5,399,011 0.5360,635 Volkswagen 5,212,185 0.51155,000 Belgacom 5,171,575 0.5173,455 Casino Guichard-Perrachon 5,169,396 0.50650,000 Enel 5,079,750 0.5096,360 Volvo B 5,025,806 0.4923

GAM Star European EquityPortfolio Statement31.12.2006Holding Description Fair Value Net Assets€ %38,800 Société Générale 4,993,560 0.49138,160 Heineken 4,978,597 0.4962,230 L’Oreal 4,721,701 0.4680,000 DaimlerChrysler 3,754,800 0.3774,200 Metro 3,575,699 0.35162,000 Karstadt 3,560,760 0.35125,290 ASML 2,359,212 0.22Total Investments 1,021,277,369 99.76Net Current Assets 2,479,738 0.24Net Assets 1,023,757,107 100.00Total Investment at Cost 871,198,757Analysis of Net Assets %Transferable securities admitted to an official stock exchange listing 99.76Net Current Assets 0.24100.0024

GAM Star European EquityPortfolio Changes31.12.2006Major PurchasesCost€000sMajor SalesProceeds€000sAlliance Boots PLC 12,351Swiss Reinsurance (Registered) 12,064BT Group 11,948KBC Groep 11,858PPR 11,603Morrison Supermarkets 11,243TNT 10,734Infineon Technologies 10,340Muenchener Rueckversicherung (Registered) 10,135LogicaCMG 10,036Legal & General 9,840Swatch Group 9,705Vodafone Group 9,566Invensys 9,532Rio Tinto 9,421Société Générale 8,954HSBC Holdings 8,912Zurich Financial Services 8,651Air Liquide 7,846Royal Dutch Shell A 7,561Wolters Kluwer 7,482Daily Mail & General Trust A 7,237Banco Bilbao Vizcaya Argentaria 6,922Reed Elsevier NV 6,922BP 6,704Sanofi-Aventis 6,509Commerzbank 6,336Svenska Handelsbanken 6,110Nestlé (Registered) 5,875Tesco 5,743GlaxoSmithKline 5,697Henkel KGaA Preferred 5,555KPN 5,399Intesa Sanpaolo 5,354Unilever 5,340Cap Gemini 5,231Enel 5,145Casino Guichard-Perrachon 5,089Volvo B 5,086Sandvik 5,083BT Group 21,378Commerzbank 13,308Cable & Wireless 12,003HSBC Holdings 11,526Alstom (New) 8,725ProSiebenSat.1 Media Pfd 8,363Eniro 8,154Bayer 7,713Aareal Bank 7,490Credit Agricole 7,368Anglo American 7,309Daily Mail & General Trust A 7,150Pearson 6,204Lagardère Groupe 6,103Deutsche Postbank 6,008Telegraaf Media 5,868Volkswagen 5,412ABN AMRO 5,363Heineken 5,275Fortis Group 5,190Rio Tinto 5,031Société Générale 4,871Aegon 4,863Philips 4,544BHP Billiton 4,298Getronics 4,264Metro 4,023Parlamat 3,997Morrison Supermarkets 3,926ING Groep 3,856Henkel KGaA Preferred 3,742ITV 3,729Sanofi-Aventis 3,667Nestlé (Registered) 3,514Telecom Italia 3,331Deutsche Post 3,293BG Group 3,280TeliaSonera 2,628Tesco 2,612Total for the period 479,103Total for the period 261,21825

GAM Star EuropeanSystematic ValueComment31.12.2006Manager:Ross HollymanPortfolio AnalysisOver the 6 months ended 31 December 2006, the Fund returned 16.92% asmeasured by the EUR Accumulation class compared with a gain of 14.3% for theMSCI Europe index in Euro terms.Value stocks performed particularly well during the third quarter, which helpedthe Fund to outperform. Significantly, this contrasted with the final quarter of theyear in which performance was driven much more by earnings and pricemomentum. Overall, our quantitative attribution analysis indicates thatmomentum has played an important role in generating performance and, as thecross-sectional dispersion of valuation ratios continues to trend downwards, webroadly expect this theme to persist.In terms of sectors, we received good allocation effects from our overweightpositions in financials and industrials although the outperformance of consumerstaples and consumer discretionary (both underweighted in the fund) did nothelp. On a stock level, top performers included C&C Group, Air France-KLM andBT Group whilst underweight positions in Vodafone, Telefonica and Allianz hadthe greatest negative impact upon active returns.As we have noted previously, our primary concerns over the period were theslowing US housing market, and its implications for our overweight stance incyclicals, as well as the excess liquidity that contributed to the increasingly manicbid frenzy. The market’s reaction to the latter phenomenon has been to inflatevaluations for ‘recovery’ situations and to focus on potential takeover activity tothe exclusion of all else. This investment approach is unlikely in our view togenerate positive active returns over the medium to long term. In addition, strongreturns from emerging markets and increasingly tight credit spreads suggested acertain level of complacency among investors.However, despite some weakness in November, markets continued to trackupwards and equity volatility downwards, which essentially led to relative benignconditions. During portfolio rebalancing, we observed no significant changes atthe country and sector level with the possible exception of extending ourunderweight position in the energy sector.Analysis, by geographic area %United Kingdom 31.61France 14.21Germany 8.75Switzerland 8.64Sweden 6.84Italy 6.50Netherlands 4.66Spain 4.39Denmark 4.00Belgium 1.88Greece 1.47Finland 1.12Norway 0.98Austria 0.89Ireland 0.77Poland 0.44United States 0.30Net Current Assets 2.55100.00Analysis, by industry %Banks 24.52Capital Goods 10.41Insurance 9.92Diversified Financials 8.88Materials 7.54Telecommunication Services 5.19Energy 4.89Utilities 4.77Real Estate 3.98Transportation 3.88Retailing 2.48Food Beverage & Tobacco 2.23Consumer Durables & Apparel 2.20Food & Staples Retailing 2.07Media 1.38Automobiles & Components 1.08Consumer Services 0.86Commercial Services & Supplies 0.74Pharmaceuticals & Biotechnology 0.39Technology Hardware & Equipment 0.04Net Current Assets 2.55100.00Analysis, by investment %Equity Quoted 96.86Preference Shares 0.59Net Current Assets 2.55100.0026

GAM Star EuropeanSystematic ValuePortfolio Statement31.12.2006Holding Description Fair Value Net Assets€ %1,170,900 Barclays 12,698,674 2.83879,400 Banco Santander 12,439,113 2.77143,200 BNP Paribas 11,839,060 2.64338,500 ING Groep 11,378,678 2.54677,000 HBOS 11,371,023 2.54806,650 HSBC Holdings 11,135,016 2.48432,600 ENI 11,022,648 2.46410,200 Royal Dutch Shell B 10,886,795 2.4389,150 Deutsche Bank 9,034,461 2.01285,200 AXA 8,751,362 1.951,908,550 BT Group 8,544,829 1.9164,000 Société Générale 8,236,800 1.84220,100 Fortis Group 7,115,833 1.59904,350 Enel 7,067,495 1.58535,900 Aviva 6,535,222 1.4687,750 BASF 6,504,908 1.45275,650 Scottish & Southern Energy 6,355,086 1.42194,700 Credit Agricole 6,206,063 1.38503,100 Nordea Bank 5,885,548 1.31534,000 KPN 5,756,520 1.28108,550 Credit Suisse Group (Registered) 5,749,861 1.282,416,700 Legal & General 5,640,676 1.26147,800 ThyssenKrupp 5,283,850 1.1842,500 Assurances Generales de France 5,015,000 1.12392,900 Alliance Boots PLC 4,877,308 1.0955,950 Schneider Electric 4,702,598 1.05181,100 British Land 4,606,332 1.03691,900 Unicredito Italiano 4,594,216 1.02726,650 J. Sainsbury 4,415,876 0.9883,100 Volvo B 4,334,210 0.971,912,100 Royal & Sun Alliance Insurance 4,324,671 0.96201,300 Deutsche Lufthansa 4,193,079 0.93118,000 Land Securities Group 4,068,906 0.9193,200 Voestalpine 3,986,164 0.89275,600 Telenor 3,928,910 0.88452,650 FirstGroup 3,866,853 0.8681,250 Sodexho Alliance 3,856,531 0.8679,100 FLSmidth 3,813,331 0.854,400 Sulzer 3,797,162 0.85165,100 Alpha Bank 3,780,790 0.84202,800 JM AB 3,737,143 0.83192,050 Boliden 3,735,659 0.83595,200 TeliaSonera 3,721,936 0.83358,900 Great Portland Estates 3,690,082 0.8253,500 MAN 3,662,610 0.8235,050 Panalpina Welttransport 3,611,878 0.8147,700 Carlsberg B 3,591,676 0.8027

GAM Star EuropeanSystematic ValuePortfolio Statement31.12.2006Holding Description Fair Value Net Assets€ %21,400 Swatch Group 3,582,874 0.807,300 Georg Fischer 3,574,142 0.8061,700 Trygvesta 3,568,152 0.80120,000 Vivendi 3,554,400 0.7918,500 Swiss Life Holding 3,511,282 0.78165,000 Natexis 3,509,550 0.78446,700 British Airways 3,493,053 0.78103,600 Danske Bank 3,480,139 0.7851,400 NKT Holdings 3,448,096 0.77256,050 C&C Group 3,438,752 0.77157,900 Banca Popolare di Verona e Novara Scrl 3,434,325 0.77392,900 Brixton 3,365,168 0.75663,800 Kesa Electricals 3,347,255 0.7543,200 Fomento de Construcciones y Contratas S.A. (FCC) 3,331,800 0.74346,400 De la Rue 3,312,393 0.74662,600 Amlin 3,203,625 0.71105,400 Outokumpu Oyj 3,128,799 0.701,092,300 DSG International 3,098,247 0.6939,600 Baloise Holdings 3,000,264 0.67122,800 Skandinaviska Enskilda Banken 2,959,471 0.66418,200 Bradford & Bingley 2,914,332 0.6588,200 Vontobel 2,893,059 0.64263,500 National Grid 2,881,165 0.64840,700 Halma 2,866,193 0.6460,900 Akzo Nobel 2,813,885 0.6328,200 Salzgitter 2,811,540 0.63110,500 ProSiebenSat.1 Media Pfd 2,666,365 0.596,500 Rieter 2,571,416 0.5767,000 MTU Aero Engines 2,391,900 0.53559,750 Brown (N) 2,342,116 0.5220,500 PPR 2,318,550 0.5226,750 Volkswagen 2,299,430 0.5169,700 Air France-KLM 2,223,430 0.5022,700 Vinci 2,197,928 0.4993,000 Acerinox 2,142,720 0.48251,700 Pennon Group 2,129,666 0.47140,300 Swedish Match 1,991,465 0.4457,800 Alfa Laval AB 1,975,115 0.4484,600 KGHM Polska Miedz 1,964,542 0.4449,700 Metso Oyj 1,901,522 0.42134,400 Hellenic Exchange SA Holdings 1,873,536 0.42126,400 Benetton 1,828,376 0.4198,300 Banco Bilbao Vizcaya Argentaria 1,793,484 0.4064,200 Swedbank AB 1,769,261 0.3943,095 AstraZeneca 1,753,175 0.394,300 Banque Cantonale Vaudoise 1,564,121 0.35174,700 Unite Group 1,408,203 0.3128

GAM Star EuropeanSystematic ValuePortfolio Statement31.12.2006Holding Description Fair Value Net Assets€ %15,050 Ems-Chemie 1,369,424 0.3176,100 Peab AB NPV 1,366,554 0.3039,000 Gaz De France 1,358,955 0.3039,000 Belgacom 1,301,235 0.29283,049 ASM SpA 1,173,946 0.265,150 Verwaltungs- und Privat-Bank 1,035,881 0.23120,700 Robert Wiseman Dairies 1,007,609 0.223,851 Helvetia Patria 953,213 0.2156,500 Frigoglass 944,680 0.2119,500 Imtech 935,415 0.2142,300 Rathbone Brothers 750,316 0.1716,000 Swiss Prime Site 726,442 0.1621,818 Kier Group 702,987 0.162,305 Forbo 698,582 0.1658,900 Sandvik 650,258 0.144,300 E.ON 444,147 0.1044,200 Sparebanken Midt-Norge 438,861 0.1051,878 TT electronics 197,930 0.04698 Huber & Suhner AG 85,963 0.02Total Investments 437,123,119 97.45Net Current Assets 11,416,792 2.55Net Assets 448,539,911 100.00Total Investment at Cost 386,298,086Analysis of Net Assets %Transferable securities admitted to an official stock exchange listing 97.45Net Current Assets 2.55100.0029

GAM Star EuropeanSystematic ValuePortfolio Changes31.12.2006Major PurchasesCost€000sMajor SalesProceeds€000sRoyal Dutch Shell B 11,507HBOS 10,944Banco Santander 10,405Barclays 10,398Credit Suisse Group (Registered) 9,811AXA 7,471BP 6,986BT Group 6,873Alfa Laval AB 6,670Enel 6,520Aviva 5,778Scottish & Southern Energy 5,603BASF 5,566Air France-KLM 4,951Scottish Power 4,829TeliaSonera 4,799Alliance Boots PLC 4,768Volvo B 4,456Sandvik 4,319Mitchells & Butlers 4,270J. Sainsbury 4,192Unicredito Italiano 4,110Total for the period 383,880Banco Santander 8,928UBS (Registered) 8,541BP 8,391Banco Bilbao Vizcaya Argentaria 7,726Barclays 7,220Scottish Power 6,329HBOS 6,081Credit Suisse Group (Registered) 6,045Fortum 5,481Royal Dutch Shell B 5,272Alfa Laval AB 5,203Mitchells & Butlers 4,771Air France-KLM 4,268Suez 3,835Nokia Oyj 3,831AWG 3,794Danske Bank 3,771Sandvik 3,652Investec 3,633Scottish & Newcastle 3,576Skanska AB 3,559Norsk Hydro 3,498Bayerische Motoren Werke 3,450Corus Group 3,295Viridian 3,233Euler Hermes 3,125ProSiebenSat.1 Media Pfd 3,124Marks & Spencer 3,120CNP Assurances 3,080Hanson 3,049AB Lindex 3,005Total for the period 296,11030

GAM Star Worldwide EquityComment31.12.2006Manager:Taube HodsonStonex Partners LimitedPortfolio AnalysisGlobal equity markets made significant progress over the six months to31 December 2006, with the Fund’s benchmark, the MSCI World index, returning13.4% in USD terms. The Fund lagged its benchmark slightly with a gain of12.54% as measured by the USD Income class, though this masks the Fund’sstrong relative performance during the first half of 2006. Over the full year, theFund returned 26.17% as measured by the USD Income class, outperformingthe MSCI World by 5.6%.On a macro-economic level, robust corporate earnings as well as ongoing mergerand acquisition activity provided a positive backdrop for stock markets. In the US,investor sentiment was buoyed early in the period by the US Federal Reserve’sdecision to pause its cycle of rising interest rates. Furthermore, the fearedcollapse in consumer spending due to falling house prices has not materialisedand hopes of a soft landing of the US economy supported equity markets. Therewas a brief period of uncertainty, when the US dollar’s weakness gathered pacein November, prompting a short-lived sell-off.In Europe, the economic recovery gathered pace, with the previous laggards,such as Germany and France, enjoying stronger GDP growth and fallingunemployment figures as well as robust consumer and business confidencenumbers. Although the associated inflation concerns prompted the EuropeanCentral Bank to raise interest rates three times over the period to 3.5%, Europeanstock markets managed to outperform most of their major peers.During the third quarter, we participated in the IPO of Standard Life and madenew investments in Celesio, a European drug and pharmacy business and PICCProperty & Casualty, a Chinese insurer in which we have profitably invested in thepast. The successful holding in Mitsubishi Estate was switched into TokyuCorporation, one of Japan's largest private railway companies, which owns anextremely valuable portfolio of retail and commercial premises in Tokyo. We feltthat Tokyu Corporation was better value than Mitsubishi Estates and is wellplaced to benefit from a revival of Japanese consumption. Disposals made duringthe third quarter included the Fund’s longstanding and substantial holding in theGerman reinsurance company Cologne Re, where we booked a sizeable profit.Later in the period, we purchased the Japanese stock Kurita Water, which makeswater treatment equipment for drinking water and provides ultra-pure water forelectronics manufacturers. Another investment was Prudential, which has been apoor performer over the last three years of rising UK stocks, and which traded ona lower price to NAV than most comparable life assurers. Exelon, the largestnuclear operator in the US, was added to the portfolio, as we expect nuclearpower to become increasingly important as an energy source due to the carbonemissions from fossil fuels.Analysis by geographic area %United Kingdom 18.43United States 12.57France 10.69Japan 8.40Germany 7.17Australia 6.44Canada 4.88Switzerland 2.73Hong Kong 2.48China 1.85Italy 1.73Norway 1.66Sweden 1.55Netherlands 1.24Ireland 1.11Singapore 1.11Belgium 0.97Portugal 0.65Republic of Korea 0.38South Africa 0.29Currency Forwards (0.03)Net Current Assets 13.70100.00Analysis by industry %Banks 13.07Energy 8.47Insurance 7.78Media 7.44Telecommunication Services 7.26Transportation 5.93Food & Staples Retailing 3.76Materials 3.54Food Beverage & Tobacco 3.46Diversified Financials 3.31Utilities 3.16Pharmaceuticals & Biotechnology 3.12Software & Services 3.05Capital Goods 2.96Retailing 2.60Health Care Equipment & Services 1.91Consumer Services 1.02Commercial Services & Supplies 0.99Consumer Durables & Apparel 0.97Semiconductors & Semiconductor Equipment 0.90Household & Personal Products 0.87Real Estate 0.76Currency Forwards (0.03)Net Current Assets 13.70100.00Analysis by investment %Equity Quoted 85.22Equity Unquoted 1.11Currency Forwards (0.03)Net Current Assets 13.70100.0031

GAM Star Worldwide EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %41,500 BNP Paribas 4,529,282 2.1121,850 Allianz (Registered) 4,471,139 2.08120,600 CVS 3,725,334 1.73423,600 Unicredito Italiano 3,713,052 1.7347,900 Fraport 3,434,807 1.60122,650 France Telecom 3,392,831 1.58403,312 TeliaSonera 3,329,310 1.55326,100 Hutchison Whampoa 3,314,246 1.5483,450 Vivendi 3,263,010 1.521,166,875 Vodafone Group 3,232,663 1.5091,740 Royal Dutch Shell B 3,214,180 1.4842,660 Total 3,079,050 1.438,550 Nestlé (Registered) 3,036,660 1.41164,700 HSBC Holdings 3,001,279 1.40419,300 Computershare 2,932,230 1.3653,890 Rio Tinto 2,866,141 1.3394,950 Alcoa 2,847,076 1.3233,429 Swiss Reinsurance (Registered) 2,840,148 1.3293,600 Deutsche Post 2,830,174 1.32192,700 National Grid 2,781,482 1.292,233,000 Bank of Communications-H 2,710,147 1.2660,300 ING Groep 2,675,824 1.24194,900 Prudential 2,670,143 1.2490,150 Standard Chartered 2,632,502 1.2265,200 Home Depot 2,617,128 1.2218,030 Eurazeo 2,575,313 1.2030,540 Deutsche Postbank 2,569,935 1.20247,900 British Sky Broadcasting 2,534,747 1.18219,100 Yell Group 2,447,247 1.14179,600 WPP Group 2,429,764 1.13238,800 HM Rivergroup* 2,388,000 1.11162,000 DBS 2,382,353 1.11144,103 Alliance Boots PLC 2,361,447 1.1032,140 ConocoPhillips 2,310,223 1.0731,170 Electricite De France 2,272,373 1.0655,320 Petro-Canada 2,267,233 1.05282,150 AMP 2,254,675 1.0562,600 Hilton Hotels 2,184,740 1.0267,670 National Australia Bank 2,161,950 1.01269,900 Home Retail Group 2,161,255 1.01181,409 Experian Group 2,127,479 0.9939,800 Celesio 2,118,413 0.9958,750 Schibsted 2,098,214 0.9882,000 AGFA Gevaert 2,096,227 0.97192,500 Cadbury Schweppes 2,059,684 0.96241,000 Chiba Bank 2,038,444 0.95804,900 Hutchison Telecommunications International 2,028,290 0.94215,000 Bank of Kyoto 2,008,147 0.9332,790 Carrefour 1,988,347 0.92104,100 Mediceo Paltac 1,980,484 0.92305,000 Tokyu 1,954,685 0.9195,400 Intel 1,931,850 0.9032,400 Florida East Coast Industries 1,929,906 0.9090,855 Newcrest Mining 1,891,755 0.8823,400 Lagardère Groupe 1,885,084 0.88163,000 Nikko Cordial 1,867,473 0.8769,000 Kao 1,863,298 0.8754,700 Manulife Financial 1,847,656 0.8664,550 Addax Petroleum 1,809,637 0.84* Private company. Not listed on an official stock exchange.32

GAM Star Worldwide EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %106,000 Talisman Energy 1,800,918 0.84143,150 Human Genome Sciences 1,780,786 0.8339,000 Astellas Pharma 1,775,482 0.8328,300 Exelon 1,749,789 0.8125,000 Takeda Pharmaceutical 1,719,793 0.8062,700 SNC - Lavalin Group 1,698,338 0.7930,600 St Joe 1,636,488 0.76185,000 Kamigumi 1,515,056 0.7055,312 Statoil 1,464,389 0.6855,600 Pfizer 1,440,040 0.67107,800 Portugal Telecom 1,399,588 0.65239,700 Standard Life 1,393,225 0.6562,200 Kurita Water Industries 1,341,384 0.6252,980 DIRECTV 1,320,791 0.612,462,000 PICC Property & Casualty-H 1,259,805 0.59326,750 RM 1,242,672 0.58781,350 Futuris Corporation 1,223,490 0.57281,300 Macarthur Coal 1,222,688 0.5731,000 Verizon Communications 1,154,440 0.54210,100 ABB Grain 1,113,755 0.5233,250 ACE Aviation 1,076,054 0.50400,237 Oil Search 1,056,107 0.4953,970 LG Phillips ADR (1 Rep. 0.5 Ord. Sh) 813,058 0.3831,300 Telkom 631,048 0.29169,850 Colt Telecom 445,189 0.2176,000 NetBank 352,640 0.151,255 Idearc Inc 35,993 0.0278,750 Publicard 1,378 0.000 Tecsec NP Rts 0 0.00185,630,550 86.33Open Forward contracts Description Unrealised loss Net AssetsUS$ %Net unrealised loss on currency forwards (Note 12 (a)) (69,695) (0.03)(69,695) (0.03)Total Investments 185,560,855 86.30Net Current Assets 29,462,451 13.70Net Assets 215,023,306 100.00Total Investment at Cost 165,399,234Analysis of Net Assets %Transferable securities admitted to an official stock exchange listing 85.19Transferable securities other then those admitted to an official stock exchange listing or dealt on another regulated market 1.11Net Current Assets 13.70100.0033

GAM Star Worldwide EquityPortfolio Changes31.12.2006Major PurchasesCostUS$000sMajor SalesProceedsUS$000sPrudential 2,513CVS 2,250Hutchison Whampoa 2,076Celesio 2,000Nikko Cordial 1,997Tokyu 1,873Exelon 1,751Electricite De France 1,382Bank of Kyoto 1,348Kurita Water Industries 1,335Nestlé (Registered) 1,327Home Depot 1,275Home Retail Group 1,272British Sky Broadcasting 1,260Yell Group 1,245ConocoPhillips 1,191Carrefour 1,179Standard Life 1,114Deutsche Postbank 1,068ING Groep 1,050GUS (NEW) 962Chiba Bank 961HSBC Holdings 912PICC Property & Casualty-H 900Talisman Energy 891BNP Paribas 861Eurazeo 816Allianz (Registered) 809Schibsted 789AMP 772Intel 734Unicredito Italiano 705Experian Group 675Human Genome Sciences 659Fraport 646Royal Dutch Shell B 633Tespol New Co. 631Telkom 622Vivendi 620France Telecom 605Vodafone Group 602TeliaSonera 599Koelnische Rueckvers 7,206Volkswagen (Non Voting) Pfd 3,370Marathon Oil 1,741Energy Partners 1,605Alumina Limited 1,265Origin Energy 1,256Mitsubishi Estate 1,103Electricite De France 921TeliaSonera 779Bank of China-H 730DIRECTV 611Tespol New Co. 372Burberry Group 255Bank of Communications-H 214Ragusa Beteilingungs 134Total for the period 21,561Total for the period 59,53334

GAM Star International EquityComment31.12.2006Manager:Sean TaylorPortfolio AnalysisThe Fund enjoyed strong performance over the reporting period, appreciating by14.68% as measured by the USD Accumulation class versus a total return of theMSCI World index of 13.4% in USD terms. This brings the Fund’s return for 2006to 23.13% as measured by the USD Accumulation class versus an index gain of20.6%.The period started with challenging market conditions, following the weak patchof May and June, which was mainly due to concerns of slower global growth.However, those fears appeared overdone and buoyant economic growth, solidcorporate earnings and reasonable valuations led to a rise in global equitymarkets. In the developed markets, Europe and the Pacific region outperformed,while the US was a slight underperformer and Japan was the laggard. Havingbeen a solid performer for the fund in 2005, Japan’s weighting was reduced andreplaced with an increased weighting in the Pacific region.In attribution terms, most of the Fund’s outperformance came from assetallocation. However, the Fund’s approximate 9% cash position detracted fromperformance. This was held as a counterbalance for increasing the riskierpositions.In terms of geographical allocation, the Fund was overweight in Europe,underweight in the US and Japan, and also overweight in the Pacific andemerging markets throughout the period. Stock selection in Europe was weak,but strong in Australia and Hong Kong. Performance in emerging markets wasstrong, with Russia, India, and Brazil contributing significantly, while Korea, Chinaand Taiwan detracted from performance.On a stock level, the main developed market contributors for 2006 were Telstra,Britsh Telecommunications, Unicredito, BNP, Chevron and Cisco. Detractors fromperformance included Juniper, Goodyear, Corning and Siemens. Within emergingmarkets, the top contributors were China Petroleum, Unified Energy in Russia,Petrobras and Unibanco in Brazil, and SIM Technology in Hong Kong. Detractorswere Goldfields of South Africa, Orascom Construction of Egypt and TevaPharmaceuticals of Israel.Looking forward over the next 12 months, the global economic environment looksreasonably similar to last year, particularly in terms of supportive liquidity, solidgrowth and reasonable valuations. If earnings remain solid and return on equity ismaintained, then global equities should experience another year of goodperformance. However, as the shift of growth from the developed to thedeveloping markets continues, we are likely to see more volatility and potential forcorrections similar to May/June 2006 along the way.The Fund’s current strategy is to have overweight positions in the Pacific andemerging markets, while maintaining an underweight in the US and Japan.Analysis, by geographic area %United States 21.15United Kingdom 14.74Japan 7.44Australia 4.96Russian Federation 4.62Switzerland 3.19Mexico 3.04Italy 3.01Singapore 2.80Germany 2.71Netherlands 2.70Hong Kong 2.62Brazil 2.13Norway 2.10Finland 1.98France 1.59Taiwan 1.53China 1.42Spain 1.39Ireland 1.16Poland 1.14Hungary 1.07Israel 0.96Republic of Korea 0.84Kazakhstan 0.60Europe 0.01Net Current Assets 9.10100.00Analysis, by industry %Banks 19.89Energy 11.16Telecommunication Services 9.22Technology Hardware & Equipment 8.03Pharmaceuticals & Biotechnology 5.62Insurance 5.05Materials 4.37Capital Goods 3.81Diversified Financials 3.79Utilities 3.45Software & Services 3.24Automobiles & Components 2.26Food Beverage & Tobacco 2.00Semiconductors & Semiconductor Equipment 1.82Consumer Durables & Apparel 1.62Media 1.50Health Care Equipment & Services 1.32Real Estate 1.02Consumer Services 0.86Food & Staples Retailing 0.46Retailing 0.35Index Futures 0.06Net Current Assets 9.10100.00Analysis, by investment %Equity Quoted 90.84Futures 0.06Net Current Assets 9.10100.0035

GAM Star International EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %73,900 Unicredito Italiano 647,768 3.015,550 Unified Energy 604,395 2.8125,500 HSBC Holdings 464,679 2.164,440 Petrol Brasileiro ADR 456,987 2.1347,400 CDC Corporation 450,063 2.099,537 America Movil SAB de CV ADR 430,929 2.002,390 Roche Holding Genussscheine 428,565 1.9920,850 Nokia Oyj 426,486 1.9837,200 BP 413,140 1.9232,000 United Overseas Bank 403,809 1.8821,560 BHP Billiton 394,359 1.8320,400 Marvell Technology 391,476 1.826,600 Orkla 373,016 1.7412,395 Standard Chartered 361,951 1.684,870 Chevron 358,042 1.67167,000 Telstra 355,034 1.6511,400 InterOil 345,249 1.617,956 China Mobile (HK) ADR 343,739 1.603,578 Boeing 317,798 1.4812,050 GlaxoSmithKline 316,842 1.4752,877 BT Group 312,517 1.455,800 Bank of America 309,430 1.44330,000 China Petroleum & Chemical-H 305,689 1.4214,100 Telefonica 299,862 1.393,600 WellPoint 283,230 1.3212,000 QBE Insurance 272,721 1.278,374 ABN AMRO 269,233 1.251,900 Toyota Motor ADR 255,322 1.19108,000 Sigma Pharmaceuticals 253,458 1.188,400 Allied Irish Banks 249,166 1.1620 Mitsubishi UFJ Financial 247,785 1.1515,200 Powszechna Kasa Oszczednosci 246,065 1.144,300 Canon 242,350 1.134,800 Mobile Telesystems ADR 240,840 1.125,500 Sony ADR 235,593 1.107,300 Yamaha Motor 229,936 1.075,000 OTP Bank 229,438 1.0722,500 Antofagasta 224,443 1.0457,300 Grupo Financiero Banorte 224,122 1.041,075 Allianz (Registered) 219,976 1.023,050 ConocoPhillips 219,234 1.0219,000 Sun Hung Kai Properties 218,263 1.024,600 AFLAC 211,531 0.983,206 Johnson & Johnson 211,516 0.986,958 Microsoft 207,766 0.977,600 Cisco Systems 207,708 0.9714,500 Barclays 207,593 0.9738,200 Sun Microsystems 207,044 0.965,250 Vivendi 205,282 0.9589,651 Cathay Financial 203,458 0.953,600 Bayer 194,063 0.904,000 JP Morgan Chase 193,180 0.904,300 ING Groep 190,813 0.8924,000 Fujitsu 188,585 0.8836

GAM Star International EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %28,000 ABC Learning Centres 185,869 0.8683,000 Mizuho Trust & Banking 184,398 0.8660,000 Royal & Sun Alliance Insurance 179,143 0.833,660 Coca-Cola 176,485 0.822,700 Hypo Real Estate Holding 169,909 0.797,100 Bank Hapoalim ADR 167,143 0.787,100 Adtran 161,135 0.7565 Transneft 149,013 0.69410 Nestlé (Registered) 145,618 0.682,652 Suez 137,376 0.656,500 KazakhGold GDR 128,375 0.6011,000 Keppel 126,614 0.59148,960 Chinatrust Financial 124,457 0.582,800 Fortis Group 119,501 0.568,800 WPP Group 119,053 0.556,300 Corning 117,842 0.551,900 Compagnie Financiere Richemont 110,722 0.521,250 Altria Group 107,200 0.50320 Samsung Electronics GDS 104,960 0.4913,350 RHM 99,093 0.467,200 Lloyds TSB Group 80,526 0.372,925 Statoil 77,440 0.363,700 Lotte Shopping GDR 75,295 0.3525,000 Singapore Petroleum 71,247 0.336,650 Tellabs 68,262 0.322,400 Retalix 39,024 0.1919,527,239 90.84UnrealisedNet AssetsHolding Description gains %Open Futures Contracts9 Nikkei 225 Index (CME) Yen Future March2007* 9,827 0.0520 DJ Euro Stoxx 50 (EUX) Futures March 2007* 2,376 0.0112,203 0.06Total Investments 19,539,442 90.90Net Current Assets 1,956,937 9.10Net Assets 21,496,379 100.00Total Investment at Cost 16,818,470*Counterparty – Goldman Sachs InternationalAnalysis of Net Assets %Transferable securities admitted to an official stock exchange listing 90.90Net Current Assets 9.10100.0037

GAM Star International EquityPortfolio Changes31.12.2006Major PurchasesCostUS$000sMajor SalesProceedsUS$000sTelstra 434Telstra 433Unified Energy GDR 432CDC Corporation 426Unicredito Italiano 423America Movil SAB de CV ADR Series L 421Mitsubishi 415eBay 415Gazprom ADRs 414Société Générale 409Phelps Dodge 404Marvell Technology 381Wyeth 381ConocoPhillips 355InterOil 336Yahoo! 325China Mobile (HK) ADR 324Boeing 322WellPoint 278BHP Billiton 275Nokia Oyj 261Powszechna Kasa Oszczednosci 248Telefonica 248Orkla 236Sigma Pharmaceuticals 220OTP Bank 216Sun Microsystems 215Johnson & Johnson 214Toyota Motor ADR 213Grupo Financiero Banorte 212Tesco 212Esprit 209Mizuho Trust & Banking 208Google A 207AFLAC 207Wipro ADR 206Yamaha Motor 204Continental 202Keihin 196CSL 195Sun Hung Kai Properties 195QBE Insurance 195Petrol Brasileiro ADR 189BP 173Unibanco - Uniao de Bancos BrasileirosADR 171Transneft 159True 156Unibanco - Uniao de Bancos Brasileiros ADR 531eBay 478Credit Agricole 441BNP Paribas 440Yahoo! 438Wyeth 435Gazprom ADRs 426Telstra 422Mitsubishi 412Société Générale 411Tesco 407AT&T 400Kookmin Bank ADR 379Phelps Dodge 375Telstra 348Google A 318Pfizer 299Macquarie Korea Infrastructure GDR 297Deutsche Bank 281Sanofi-Aventis 278Novartis (Registered) 266ConocoPhillips 266Sumitomo Mitsui Financial 265Esprit 258Keihin 245Commerzbank 239Fujitsu 237HSBC Holdings 236Unicredito Italiano 235Bank of America 231Bayerische Motoren Werke 225Wipro ADR 222Infosys Technologies ADR 215CSL 200Cathay Financial 199Continental 191Altadis 190Chinese Estates 169Bouygues 167Hong Kong Land 163True 159PetroChina ADR 159China Petroleum & Chemical-H 143Teva Pharmaceuticals ADR 142Total for the period 14,052Total for the period 13,71738

GAM Star Japan EquityComment31.12.2006Manager:Lesley KayePortfolio AnalysisFor the six months to 31 December 2006, the Fund’s NAV gained 4.85% asmeasured by the JPY Accumulation class while the Topix index rose by 6.5% inyen terms.Some softer economic data, combined with the Bank of Japan’s stated intentionto raise interest rates, depressed investor sentiment during the second half of2006. Despite a respite in December that allowed the market to finish the periodslightly higher, the market continued to lag the rest of the world.Over the period, one of the notable aspects of the Japanese market was the rallyin export stocks as the yen resumed its downward trend, whilst the rise inuncertainty also supported defensive and asset-rich companies such as utilitiesand real estate – all areas where the Fund is underweight. Conversely, some ofthe domestic-reflation related names in the Fund, especially financials, performedrelatively poorly. Although these trends were a challenge for the Fund, we wereencouraged by the fact that gains in our steel and technology sector holdings,such as Nippon Steel, Elpida and NTT Data, went some way to offset them.Overall, the Fund ended the period 1.6% behind the index, reversing some of thegains made the previous year.We have continued to re-orientate the Fund towards the technology sector,focusing on some of the major consumer electronics businesses as well as agroup of smaller niche operators in components and SPE sectors. Sony nowranks as one of the largest holdings in the portfolio, reflecting our positive view ofits operational performance and optimism regarding the company’s ability totackle high-profile problems that have plagued its share price development.Elsewhere in the sector, we believe that technology markets will be increasinglygeared towards solutions that allow for the growing functionality of mobilehandsets. Japanese manufacturers have dominant market shares inminiaturisation and should therefore be key beneficiaries of such a shift.The modest slowing of the economy appears to have passed and we believe thatthe Bank of Japan is unlikely to raise rates at a pace that would upset therecovery. In fact, our view is that a move towards neutral monetary policy couldboost confidence. We have seen some excellent results from companies gearedtowards the domestic economy and find some real value within these sectors.The companies appear well placed to resume market leadership as the secularrecovery becomes more entrenched. We are playing this theme predominantlythrough our holdings in Japanese banks and trading companies.Having taken a well earned break in 2006, multiples in the Japanese markethave contracted and valuations are more attractive than they were 12 monthsago. We were doubtful about the optimism surrounding Japanese shares at thebeginning of 2006 and find the current somewhat pessimistic climate morepromising.Analysis, by geographic area %Japan 98.75Net Current Assets 1.25100.00Analysis, by industry %Capital Goods 21.54Banks 12.31Consumer Durables & Apparel 12.11Materials 11.48Semiconductors & Semiconductor Equipment 6.98Automobiles & Components 6.54Software & Services 4.07Transportation 3.73Technology Hardware & Equipment 3.53Insurance 3.24Telecommunication Services 2.41Food Beverage & Tobacco 2.38Food & Staples Retailing 1.88Energy 1.87Household & Personal Products 1.57Pharmaceuticals & Biotechnology 0.99Diversified Financials 0.94Retailing 0.75Media 0.42Net Current Assets 1.25100.00Analysis, by investment %Equity Quoted 98.75Net Current Assets 1.25100.0039

GAM Star Japan EquityPortfolio Statement31.12.2006Holding Description Fair Value Net Assets¥ %2,184,400 Sony 11,129,518,000 4.457,082 Mitsubishi UFJ Financial 10,445,950,000 4.174,388,600 Mitsubishi 9,819,492,500 3.927,039,000 Mitsui Trust 9,622,313,000 3.8414,070 NTT Data 8,399,790,000 3.362,099,700 Yamaha Motor 7,873,875,000 3.15743,500 Tokyo Electron 6,977,747,500 2.793,837,000 Sumitomo 6,827,941,500 2.739,841,000 Nippon Steel 6,726,323,500 2.69993,200 Elpida Memory 6,485,596,000 2.5932,119 NTT DoCoMo 6,022,312,500 2.412,904,000 Sharp 5,974,980,000 2.3910,331 Japan Tobacco 5,945,490,500 2.386,462 Mizuho Financial 5,486,238,000 2.1913,325,000 Kobe Steel 5,423,275,000 2.179,974,000 Mitsubishi Heavy Industries 5,385,960,000 2.155,038,000 Itochu 4,914,569,000 1.965,148,000 Fujitsu 4,815,954,000 1.921,827,200 AEON 4,714,176,000 1.884,787 Inpex 4,686,473,000 1.876,153,000 Furukawa Electric 4,611,673,500 1.843,441,000 Mitsui Sumitomo Insurance 4,483,623,000 1.79254,100 SMC 4,294,290,000 1.722,060,000 Daiwa House Industry 4,269,350,000 1.71501,100 Murata Manufacturing 4,031,349,500 1.611,223,000 Kao 3,931,945,000 1.574,337,000 Nippon Yusen Kabushiki Kaisha 3,775,358,500 1.51863,000 Millea 3,628,915,000 1.451,095,600 Hitachi Construction Machinery 3,511,398,000 1.403,788,000 Sumitomo Chemical 3,500,112,000 1.406,155,000 Isuzu Motors 3,440,645,000 1.373,608,000 Sekisui Chemical 3,418,580,000 1.373,360,000 Kamigumi 3,276,000,000 1.312,155,000 Asahi Glass 3,084,882,500 1.232,535 Sumitomo Mitsui Financial 3,067,350,000 1.236,474,000 Taiheiyo Cement 3,023,358,000 1.211,693,000 Sekisui House 2,936,508,500 1.174,790,000 Mitsui Mining & Smelting 2,859,630,000 1.141,130,100 JS Group 2,828,075,250 1.131,333,000 JGC 2,732,650,000 1.094,312,000 Oji Paper 2,729,496,000 1.09266,400 Sumco 2,678,652,000 1.07979,300 Bridgestone 2,604,938,000 1.041,699,000 Sumitomo Metal Mining 2,596,921,500 1.041,059,000 Shionogi & Co 2,483,355,000 0.995,417,000 Ebara 2,467,443,500 0.99611,000 Aisin Seiki 2,440,945,000 0.98700,200 Aiful 2,345,670,000 0.942,888 East Japan Railway 2,294,516,000 0.924,721,000 Aozora Bank 2,195,265,000 0.881,113,500 Namco Bandai 1,939,717,000 0.7740

GAM Star Japan EquityPortfolio Statement31.12.2006Holding Description Fair Value Net Assets¥ %360,700 Hikari Tsushin 1,888,264,500 0.752,425,000 Asahi Kasei 1,887,862,500 0.755,103,000 Taisei 1,854,940,500 0.74645,200 Ushio 1,580,740,000 0.62111,500 Rohm 1,321,832,500 0.53384,600 Fuji Soft 1,085,533,500 0.4314,381 Sky Perfect Communications 1,046,217,750 0.424,510 Net One Systems 710,325,000 0.281,085,000 Gunze 649,915,000 0.26Total Investments 247,186,219,000 98.75Net Current Assets 3,138,003,319 1.25Net Assets 250,324,222,319 100.00Total Investment at Cost 217,130,267,814Analysis of Net Assets %Transferable securities admitted to an official stock exchange listing 98.75Net Current Assets 1.25100.0041

GAM Star Japan EquityPortfolio Changes31.12.2006Major PurchasesCost¥000sMajor SalesProceeds¥000sTokyo Electron 6,698,668Mitsui Trust 5,962,257Elpida Memory 4,969,249Japan Tobacco 3,110,800Aiful 3,043,004Mizuho Financial 2,944,009AEON 2,807,323Sumitomo Metal Mining 2,789,137Aozora Bank 2,759,940Furukawa Electric 2,591,830Asahi Kasei 2,563,220Sumco 2,544,434Bridgestone 2,505,740Shionogi & Co 2,379,728NTT Data 2,349,423Fujitsu 2,333,844Hikari Tsushin 2,286,509Sumitomo Mitsui Financial 1,812,912Murata Manufacturing 1,558,114SMC 1,532,986Oji Paper 1,458,951NTT DoCoMo 1,443,974Mitsui Mining & Smelting 1,407,249Rohm 1,297,097Sumitomo 1,099,953Mitsubishi UFJ Financial 975,420Mitsubishi Heavy Industries 934,375Sony 848,786Sumitomo Mitsui Financial 10,912,347Toyota Motor 7,724,000Sumitomo Metal Mining 5,633,153TonenGeneral Sekiyu KK 3,168,822Nippon Steel 3,102,138Sharp 2,671,634Sekisui Chemical 2,542,909Fujitsu 2,332,184Mitsui & Company 2,293,207Sumitomo Chemical 2,030,534Daiwa House Industry 1,690,446Taiyo Yuden 1,565,184Sanyo Electric 1,544,184Mitsubishi UFJ Financial 1,479,789Nippon Telegraph and Telephone 1,457,828AEON 1,454,384Isuzu Motors 1,273,531Sony 1,135,065Mitsui Sumitomo Insurance 1,110,929Asahi Kasei 979,540Hitachi Construction Machinery 978,707Taisei 927,778Japan Tobacco 893,836Ajinomoto 854,641JS Group 773,164Inpex 765,603Total for the period 71,310,981Total for the period 80,611,41142

GAM Star UK Dynamic EquityComment31.12.2006Manager:Ross HollymanPortfolio AnalysisThe second half of 2006 saw the UK market continue the strong performanceseen in the first half. The FTSE All-Share Index return for the period was 10.0%,giving a full year total return of 16.7% in GBP terms. This performance masks asignificant divergence between larger and smaller companies within thebenchmark index. The FTSE 100 returned 8.2% for the six months, against12.0% for the FTSE 250 and 16.3% for FTSE Small Cap while AIM actuallyshowed a negative return of (1.66%). The Fund as measured by the GBPAccumulation class returned 7.42% for the six months. The stock- pickingperformance within the Fund remained strong, however this was offset to someextent by allocation.The unprecedented levels of bid activity continued in the second half of 2006and were particularly prevalent within the mid cap arena. John Laing, Corus,Scottish Power, Thames Water, RHM, McCarthy & Stone, AWG, Crest Nicholsonand London Scottish Bank were all subject to bid activity of some sort or other.Corporate earnings news remained relatively strong, but in August we had asurprise rate rise from the Bank of England (BoE) which prompted a sell off. Thiswas short lived and days later the market began to rally as sentiment waspositively impacted by a retreating oil price, speculation that a pause in USmonetary tightening was an increasing possibility and bid activity that continuedto excite the market. This was followed by a further rate increase in Novemberwhich did little to dampen market enthusiasm. The rate rises coincided with aweakening of the dollar and we did start to see many dollar-related earningsdowngrades filtering through the market.The pharmaceutical and oil & gas sectors were among the worst performing overthe period as earnings downgrades and worries over falling commodity pricescame to the fore. Telecoms performed well, with strong performances from BTand Vodafone in the second half of the year.The IPO pipeline remained strong throughout the second half of the year and weselectively added names to the portfolio, many of which have been significantcontributors to Fund performance. Particular names include Talarius, ScottWilson and Eros International.Money flows appear to remain strong and it looks likely that, while moneyremains relatively cheap, the level of both corporate activity and M&A activity byprivate equity houses will continue. However, the recent interest rate rises will tosome extent limit the levels of leverage that can be used in these transactions,and in cases where debt levels were not fixed, some pain shall be felt.Most of the ingredients are now in place for a market rotation away from smallermore cyclical stocks into the large cap names that we continue to emphasise inthe portfolio. We would expect any signs of slowing growth, margin pressure orany shocks in credit markets to hasten the pace of this rotation. Such a change isdifficult to time, and the fund moved to this stance too early. This has led todisappointing performance, with the Fund lagging the FTSE All-Share by 2.6%over the second half, as positive stock selection failed to compensate for theheadwind of our overly conservative stance.Analysis, by geographic area %United Kingdom 93.40Net Current Assets 6.60100.00Analysis, by industry %Capital Goods 14.38Energy 9.62Commercial Services & Supplies 8.47Pharmaceuticals & Biotechnology 7.66Telecommunication Services 7.13Banks 6.67Insurance 4.78Materials 4.30Health Care Equipment & Services 4.14Utilities 3.93Diversified Financials 3.41Software & Services 2.75Media 2.62Real Estate 2.53Technology Hardware & Equipment 2.48Consumer Services 2.17Transportation 1.57Retailing 1.48Consumer Durables & Apparel 1.17Food & Staples Retailing 1.01Automobiles & Components 0.77Food Beverage & Tobacco 0.66Index Futures (0.30)Net Current Assets 6.60100.00Analysis, by investment %Equity Quoted 93.69Equity Warrants 0.01Futures - Equity Indices (0.30)Net Current Assets 6.60100.00Whilst we remain very relaxed about the valuation of the market overall, thanks inno small part to attractive ratings on large-cap stocks, we remain concernedabout valuations in other areas. In particular, we suspect that five years of strongperformance from consumer cyclical sectors and mid-cap stocks, buoyed bystrong demand, operational gearing and margin benefits from increased overseassourcing, are still more than priced in.43

GAM Star UK Dynamic EquityPortfolio Statement31.12.2006Holding Description Fair Value Net Assets£ %428,462 Royal Dutch Shell B 7,667,327 4.86459,896 GlaxoSmithKline 6,176,403 3.913,489,759 Vodafone Group 4,938,009 3.13517,100 HSBC Holdings 4,812,908 3.05829,100 BP 4,703,070 2.981,489,000 BT Group 4,494,919 2.85158,600 AstraZeneca 4,350,398 2.76556,430 Barclays 4,068,894 2.58489,700 National Grid 3,610,313 2.291,180,069 Talarius 3,310,094 2.10978,125 Caretech 3,090,875 1.96516,545 Hargreaves Services 2,394,186 1.52343,300 BG Group 2,378,211 1.51197,600 Greene King 2,249,676 1.43331,600 Cookson Group 2,093,225 1.33658,192 Scott Wilson 1,986,094 1.261,286,000 Royal & Sun Alliance Insurance 1,961,150 1.24605,757 Eros International* 1,932,365 1.22180,262 Carter & Carter Group 1,892,751 1.20118,148 Chemring Group 1,869,692 1.18285,097 Care UK 1,848,141 1.17217,600 Victrex 1,752,768 1.111,105,100 Legal & General 1,739,151 1.10316,130 British Airways 1,666,795 1.06468,871 Centrica 1,665,078 1.06348,800 Bradford & Bingley 1,638,924 1.04250,884 De la Rue 1,617,575 1.02177,200 Charter 1,604,989 1.02390,409 J. Sainsbury 1,599,701 1.01917,356 ITE Group 1,596,199 1.0158,109 Rio Tinto 1,578,531 1.00608,400 Morgan Crucible 1,561,307 0.99691,300 Premier Research Group 1,556,289 0.99164,068 BHP Billiton 1,532,805 0.97790,630 Abacus Group 1,478,478 0.94305,100 Aggreko 1,331,380 0.841,868,300 Vertu Motors 1,289,127 0.821,266,816 Vislink 1,285,818 0.811,659,569 Mecom 1,228,081 0.78235,100 Man Group 1,227,222 0.783,858,400 Innovation Group 1,220,219 0.77912,045 Silverjet 1,217,580 0.77146,100 Aviva 1,201,307 0.76180,277 Dignity 1,182,166 0.751,084,250 Dolphin Capital 1,176,411 0.75197,000 WSP Group 1,121,915 0.71626,572 Interactive Prospect Targeting Holdings 1,099,634 0.701,416,000 Jarvis 1,070,850 0.681,187,100 Powerleague 961,551 0.61* Private placement.44

GAM Star UK Dynamic EquityPortfolio Statement31.12.2006Holding Description Fair Value Net Assets£ %1,196,500 Renew Holdings 945,235 0.6085,700 Admiral 939,486 0.6059,400 Scottish & Southern Energy 923,373 0.5999,100 March Networks 914,198 0.58280,300 Domino Printing Sciences 903,267 0.57281,900 Vp 902,080 0.57545,468 Galliford Try 891,840 0.57200,000 Balfour Beatty 887,500 0.56132,781 Synergy Healthcare 885,317 0.56588,700 Fonebak 883,050 0.56270,000 Amlin 880,200 0.56551,800 Inspicio 874,603 0.55159,100 Unite Group 864,709 0.55350,900 Pure Wafer 859,705 0.54160,500 Weir Group 857,873 0.54625,500 Augean 847,553 0.54896,285 Velosi 846,989 0.54211,800 Carillion 842,170 0.53126,000 Tullet Prebon PLC 823,095 0.52291,100 Hiscox 815,080 0.5244,750 Wolverhampton & Dudley Breweries 811,094 0.51170,263 VT Group 810,452 0.51292,000 Invensys 805,555 0.51132,500 Capita Group 803,613 0.51153,570 IMI 778,600 0.491,659,604 Ennstone 773,790 0.49336,000 Shanks Group 769,440 0.497,072,100 Real Estate Investors 734,084 0.4788,136 Isotron 704,427 0.454,597,900 Virotec 689,685 0.4411,657 Daejan Holdings 674,532 0.43354,700 Orchid Development 617,178 0.39541,300 Puma Brandeburg 588,664 0.37153,331 Lavendon 563,491 0.36450,000 Regus 561,375 0.36709,995 Themutual.Net 560,896 0.36248,800 Inspired Gaming 543,628 0.34450,000 Raven Russia 519,188 0.3357,686 Keller 514,559 0.3314,114,050 Mama Group 493,992 0.31268,844 H&T Group 485,263 0.3183,000 Alfred McAlpine Group 482,645 0.31533,000 Elementis 451,051 0.293,322,000 The Greenhouse Fund 440,165 0.28291,700 Alternative Networks 433,175 0.271,599,722 Hydrodec 423,926 0.27164,142 Tarsus Group 407,072 0.26285,585 ITM Power 349,842 0.22182,422 Styles & Wood Group 340,445 0.22169,050 Creston 339,579 0.2245

GAM Star UK Dynamic EquityPortfolio Statement31.12.2006Holding Description Fair Value Net Assets£ %8,162,540 Newport Network Group 306,095 0.193,488,200 Redstone 265,975 0.17254,012 Advance AIM 241,311 0.151,738,590 Blavod Extreme Spirits 226,017 0.1417,132 Latchways 200,573 0.13229,442 Chime Communications 126,767 0.08729,400 Secora 125,822 0.0851,000 RM 99,068 0.06244,305 Azure Dynamics 92,836 0.06563,372 CNG Travel Group 52,112 0.037,000 Interserve 28,254 0.022,100,042 Mama Group Wts 2006-12-15 15,750 0.016,209,640 Rolls-Royce B 6,210 0.00147,876,071 93.70UnrealisedNet AssetsHolding Description gains/(losses) %Open Futures Contracts640 FTSE 100 Index Futures (LIF) March 2007* 230,400 0.15-360 FTSE 250 Index Futures (LIFFE) March 2007* (707,400) (0.45)(477,000) (0.30)Total Investments 147,399,071 93.40Net Current Assets 10,415,629 6.60Net Assets 157,814,700 100.00Total Investment at Cost 131,125,391*Counterparty – UBS Investment BankAnalysis of Net Assets %Transferable securities admitted to an official stock exchange listing 92.18Transferable securities other than those admitted to an official stock exchange listing or dealt on another regulated market 1.22Net Current Assets 6.60100.0046

GAM Star UK Dynamic EquityPortfolio Changes31.12.2006Major PurchasesCost£000sMajor SalesProceeds£000sJ. Sainsbury 4,909BP 4,217Rio Tinto 3,984BHP Billiton 3,948GlaxoSmithKline 3,237Scottish & Newcastle 3,206Vodafone Group 3,036Royal Dutch Shell B 3,033Cookson Group 2,910IMI 2,583National Grid 2,422Anglo American 2,408Care UK 2,369AstraZeneca 2,133Greene King 2,084Abacus Group 2,077Morgan Crucible 1,847Vislink 1,762Victrex 1,743Bradford & Bingley 1,632Royal Bank of Scotland 1,625Premier Oil 1,612Mitchells & Butlers 1,595Centrica 1,583Carter & Carter Group 1,525Charter 1,310Southern Cross Healthcare 1,303Standard Life 1,228Royal & Sun Alliance Insurance 1,188Total for the period 118,724GlaxoSmithKline 5,177HSBC Holdings 4,286J. Sainsbury 3,444Royal Bank of Scotland 3,300BP 3,192Lloyds TSB Group 3,183Scottish & Newcastle 3,101Royal Dutch Shell B 3,092Reckitt Benckiser 2,779IMI 2,583British American Tobacco 2,560Aviva 2,460Anglo American 2,323Rio Tinto 2,284BHP Billiton 2,211FirstGroup 2,185Charter 2,059Premier Oil 1,928Tate & Lyle 1,785SAB Miller 1,771Ashtead Group 1,751London Stock Exchange 1,733Babcock 1,705Marks & Spencer 1,694BG Group 1,612Royal Dutch Shell A (GB) 1,560Johnson Matthey 1,548Abbot Group 1,520Vodafone Group 1,515Barclays 1,497Standard Life 1,490Chemring Group 1,463Total for the period 143,64547

GAM Star US EquityComment31.12.2006Manager:Fayez SarofimPortfolio AnalysisA powerful rally that began in mid-July propelled the S&P 500 index to a six-yearhigh in mid-December. As economic momentum in the US showed signs ofslowing, large-cap stocks began to register improved relative results. The Fund,for the six months, returned 11.75% as measured by the USD Accumulationclass, compared with a gain of 12.7% for the S&P 500 index in USD terms. Themonthly pattern of relative results was distinguished by pronouncedoutperformance in both July and December, with offsetting relative weakness inSeptember.The Fund’s relative results for the six months benefited from the net stockselection effect, which was largely offset by the overall impact of sector allocationdecisions. The largest contributions from selection derived from our stock focuswithin the consumer discretionary and energy sectors. As oil prices retreated inthe period, S&P energy issues collectively trailed the market. However, theportfolio’s energy stocks made the largest contribution to both relative andabsolute performance. The high quality, diversified international oil companies inthe portfolio, with their strong cash flows and high returns on capital, handilyoutperformed their industry peers as well as the market. Exxon Mobil andChevron posted particularly strong gains. Consumer discretionary issues such asMcGraw-Hill, McDonalds, Hilton Hotels, and Target were also among the leadingportfolio issues. By contrast, the main restraints on relative results includedweakness in key technology holdings, the overweight in the lagging consumerstaples sector, and the size and focus of our representation in financials. Othertop-performing stocks in the Fund included Merrill Lynch, Microsoft, AmeripriseFinancial, AIG, Sysco and United Health.We believe that the US economy will continue to moderate in 2007 and expectthat the orderly slowdown will diffuse inflationary pressures. However, thisprojected pattern may continue to be interrupted by occasional inflation or growthscares. We believe a recession will be avoided. Low unemployment, steady jobgrowth and wage increases should enable consumers to make gradualadjustments in spending and saving. Furthermore, the strength of corporatebalance sheets suggests a constructive outlook for hiring and capital spendingdespite some restraint from the projected slowdown in final sales.The performance gap between high quality large caps and smaller, riskier issuesnarrowed in 2006, and we expect the returns from large caps to overtake those ofsmaller cap stocks in forthcoming quarters as the domestic economy continues toslow. Profits of large caps have not been rewarded in recent years; consequentlyvaluations are quite reasonable. S&P earnings have increased some 80% so farin this decade while the index is essentially flat. Corporate earnings power isprojected to become even more concentrated in high quality multinationals asindustry consolidations increase and these dominant companies extend theirpenetration of world markets. In the most recently measured ten-year period, USsales through overseas affiliates tripled while domestic sales less than doubled.Our strategic focus on companies with significant overseas exposure, stablegrowth profiles and reasonable valuations should prove increasingly rewardingin 2007.Analysis, by geographic area %United States 93.48Net Current Assets 6.52100.00Analysis, by industry %Energy 18.44Food Beverage & Tobacco 15.58Diversified Financials 13.33Capital Goods 7.26Pharmaceuticals & Biotechnology 6.50Media 5.14Food & Staples Retailing 4.84Software & Services 4.07Household & Personal Products 3.49Semiconductors & Semiconductor Equipment 2.75Retailing 2.70Banks 2.40Consumer Services 2.21Materials 1.22Transportation 1.21Insurance 0.99Health Care Equipment & Services 0.90Technology Hardware & Equipment 0.45Net Current Assets 6.52100.00Analysis, by investment %Equity Quoted 93.48Net Current Assets 6.52100.0048

GAM Star US EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %31,972 Exxon Mobil 2,450,174 7.3125,100 Altria Group 2,152,576 6.4240,100 General Electric 1,492,121 4.4525,033 Citigroup 1,393,837 4.1616,900 ConocoPhillips 1,214,772 3.6316,000 Chevron 1,176,320 3.5118,200 Procter & Gamble 1,169,259 3.4922,500 Coca-Cola 1,084,950 3.2415,600 McGraw-Hill 1,060,644 3.1715,500 PepsiCo 969,603 2.8945,500 Intel 921,375 2.7513,300 Johnson & Johnson 877,468 2.6216,600 Walgreen 761,276 2.2724,800 Microsoft 740,528 2.2115,200 JP Morgan Chase 734,084 2.197,700 Nestle ADR 685,300 2.0530,820 News Corporation A 661,397 1.977,000 Merrill Lynch 651,525 1.9412,000 Bank of America 640,200 1.9112,500 Abbott Laboratories 609,063 1.826,600 HSBC Holdings ADR 604,692 1.8013,400 Emerson Electric 590,672 1.769,200 American Express 557,980 1.677,500 Total ADR 539,663 1.618,600 Target 490,630 1.4610,000 Occidental Petroleum 488,050 1.4618,700 Pfizer 484,330 1.4510,300 Home Depot 413,442 1.239,300 McDonald's 412,083 1.236,900 Praxair 409,067 1.225,400 United Parcel Service B 404,757 1.217,400 Automatic Data Processing 364,376 1.097,800 Wal-Mart Stores 360,204 1.074,600 Capital One Financial 353,533 1.065,700 Caterpillar 349,496 1.044,625 American International Group 331,243 0.996,700 Anheuser-Busch Companies 329,506 0.989,400 Hilton Hotels 328,060 0.9810,000 Halliburton 310,400 0.935,600 UnitedHealth Group 300,888 0.907,600 Sysco 279,224 0.8310,200 Yahoo! 260,508 0.784,700 Whole Foods Market 220,571 0.6649

GAM Star US EquityPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %4,000 Eli Lilly 208,340 0.622,375 SunTrust Banks 200,616 0.604,000 QUALCOMM 151,160 0.452,420 Ameriprise Financial 131,769 0.40Total Investments 31,321,732 93.48Net Current Assets 2,185,807 6.52Net Assets 33,507,539 100.00Total Investment at Cost 24,029,035Analysis of Net Assets %Transferable securities admitted to an official stock exchange listing 93.48Net Current Assets 6.52100.0050

GAM Star US EquityPortfolio Changes31.12.2006Total PurchasesCostUS$000sMajor SalesProceedsUS$000sHalliburton 315QUALCOMM 151Total for the period 466BP ADR 900Altria Group 394Intel 381McGraw-Hill 345Wal-Mart Stores 320Procter & Gamble 317Pfizer 304Exxon Mobil 271Eli Lilly 268General Electric 226Johnson & Johnson 208Emerson Electric 194Coca-Cola 187Chevron 160CBS B 158Citigroup 156PepsiCo 154Nestle ADR 143Microsoft 130Anheuser-Busch Companies 127United Parcel Service B 121Bank of America 108Occidental Petroleum 99Abbott Laboratories 96Viacom B New 94ConocoPhillips 93Walgreen 90McDonald’s 68Total for the period 6,77151

GAM Star EUR BondComment31.12.2006Manager:Emanuele Ravano,PIMCO Europe LtdPortfolio AnalysisGAM Star EUR Bond returned 1.21% over the six month period to 31 December2006, underperforming its benchmark by 118 basis points. In terms ofperformance attribution, an overall underweight to Europe was positive as bondyields in the region rose due to continued rate hikes by the European CentralBank (ECB). Underweight positions on the longer end of the yield curve were alsopositive as rates rose more in that area than on shorter maturities.Positions on the short end of the US dollar curve detracted from performance.The US Federal Reserve did not hike rates in the latter half of 2006, maintainingrates at 5.25% due to a stream of positive data coming out of the US. Elsewhere,our focus on the short-to-intermediate portion of the UK yield curve alsodetracted as longer-dated gilts outperformed on the back of continued supportfrom rising pension fund allocations to long-dated fixed income assets.Analysis, by maturity %Up to one year 22.16One to five years 14.30Five to ten years 26.31More than ten years 50.72Other (0.36)Currency Forwards 0.00Net Current Liabilities (13.13)100.00In the first half of the year, inflation concerns and firm economic growthheightened fears of tighter monetary conditions ahead, causing spreads to widenin credit sectors. However, these spreads subsequently tightened steadily over thelatter half of the year, detracting from returns as the fund held an underweightposition in credit.The US Federal Reserve (Fed) finally paused its rate hike cycle, signaling that itwanted to assess the effects of earlier increases before any further move on itspart. Meanwhile, strong US economic data caused expectations of interest ratecuts by the Fed due to a slowing US economy to get pushed back. Elsewhere,the Bank of Japan ended its zero interest rate policy, raising the short term rate to0.25%, given firm Japanese economic data and positive inflation.In Europe, bond yields also rose considerably as the European Central Bank(ECB) expressed concerns over the rate of growth of monetary aggregates andcredit extension. The ECB proceeded to raise interest rates by 75 basis pointsduring the six-month period. Economic activity showed signs of a widespreadrecovery as consumer and business confidence measures in France, Germanyand Italy, hitherto the eurozone’s lagging economies, picked up whileunemployment fell. Industrial production and external demand were the maindrivers of economic growth in the eurozone during the period.UK gilt yields also rose across the curve in the last six months of 2006 on theback of two hikes of 25 basis points each by the Bank of England in August andNovember. Increased consumer confidence, higher than expected retail sales, animproving backdrop for manufacturing and a resilient housing market,strengthened the case for an interest rate hike. Despite the robust growth pictureand higher energy prices, the inflationary outlook remained benign as businessesdid not seem to pass on higher costs to consumers and wage demands remainedmute.52

GAM Star EUR BondPortfolio Statement31.12.2006Holding Description Fair Value Net Assets€ %Commercial Paper2,000,000 Banque Fed. Cred. Mutuel ECP-EUR 2007-02-12 1,983,845 2.271,000,000 JP Morgan & Co ETD – GBP 2007-01-02 1,483,108 1.70700,000 JP Morgan & Co ETD – EUR 2007-01-02 700,000 0.804,166,953 4.77Corporate Bonds10,753,976 KNYKREIT FRN 2038-10-01 1,418,314 1.637,468,858 Realkredit Danmark FRN 2038-10-01 984,548 1.13400,000 Banca Intesa SPA 5.50% 2016-12-19 587,643 0.68460,000 Veolia Enviroment 4.375% 2017-01-16 447,050 0.51250,000 HSBC Capital Funding FRN Perpetual 428,459 0.49390,000 RBS Capital Trust FRN Perp 425,763 0.49440,000 Barclays Bank PLC Perpetual 425,638 0.49400,000 BBVA Sub Capital Unipersonal FRN 2016-10-24 400,884 0.46400,000 Deutsche Telecom 4.5% 2013-10-25 393,520 0.45400,000 Bat Holdings BV 4.375% 2014-09-15 393,130 0.45500,000 Unicredito Luxem Fin 5.584% 2017-01-13 378,672 0.43460,000 DaimlerChrysler 7.2% 2009-09-01 361,693 0.41200,000 AXA SA FRN Perpetual 304,747 0.35310,000 BBVA Intl. Pref Unipersonal 3.798% Perp 285,789 0.33260,000 BNP Paribas Capital Trust 6.625% FRN Perp 283,894 0.32290,000 Aviva Plc FRN Perpetual 283,388 0.321,200,000 Realkredit Danmark FRN 2038-10-01 157,219 0.18200,000 Time Warner FRN 2009-11-13 151,722 0.17100,000 Brisa-Auto Estradas Port FRN 2016-12-05 99,142 0.11100,000 Shinsei Bank FRN 2016-02-23 97,168 0.11600,000 NYKREDIT FRN 2038-10-01 78,609 0.0950,000 BNP Paribas FRN Perp 49,733 0.068,436,725 9.66Government bonds9,000,000 Bundes Deutschland 4% 2007-02-16 9,002,934 10.308,100,000 France O.A.T 3.5% 2015-04-25 7,831,372 8.966,000,000 Italy 4.25% 2014-08-01 6,070,170 6.955,000,000 Spain 3.00% 2007-07-30 4,977,250 5.705,000,000 Bundesobligation 3.5% 2008-10-10 4,967,400 5.685,000,000 Portuguese OT’s 3.25% 2008-07-15 4,952,100 5.674,030,000 Bundes Deutschland 4.75% 2028-07-04 4,397,729 5.032,700,000 France O.A.T 4% 2013-10-25 2,706,734 3.102,300,000 France O.A.T 4% 2014-10-25 2,304,211 2.642,000,000 US Treasury IL 0.875% 2010-04-15 1,531,690 1.751,200,000 Italy 3.75% 2015-08-01 1,168,068 1.341,325,000 US Treasury 0% 2007-03-15 994,156 1.14680,000 France O.A.T 4% 2055-04-25 671,119 0.77600,000 US Treasury 0% 2007-03-01. 450,724 0.52130,000 Brazil 8.50% 2012-09-24 153,569 0.18140,000 Banque Central de Tunisie 4.75% 2011-04-07 141,309 0.16160,000 Russia 5% Step 2030-03-31 137,119 0.1652,457,654 60.0553

GAM Star EUR BondPortfolio Statement31.12.2006Holding Description Fair Value Net Assets€ %Other bonds350,000 Pemex Project 7.500% 2013-12-18 566,273 0.65700,000 DaimlerChrysler FRN 2009-08-03 531,501 0.61200,000 Telecom Italia SPA 4.75% 2014-05-19 195,500 0.22100,000 STB Finance Cayman FRN Perp 147,191 0.17130,000 General Electric Capital 4.625% 2066-09-15 130,849 0.15100,000 Gallaher Group PLC 4.5% 2014-04-02 100,444 0.111,671,758 1.91Mortgage Pass Thru16,000,000 Fannie Mae TBA 6.0% 2035-01-12 12,203,615 13.975,700,000 Fannie Mae TBA 5.5% 2037-11-07 4,267,930 4.881,277,380 SAEC 5 A 3MEUR+10BP REGS 2042-05-25 1,277,265 1.461,000,000 Perma 9X 4A (3EUR+11) FRN 2042-06-10 999,050 1.14900,000 EMPOP 2006-1 A2 3MEUR+13BP FRN 2033-03-21 899,749 1.03730,978 Impas 4 A 3MEUR+14 FRN 2044-03-22 730,917 0.84700,000 Cordr 1 A2 3MEUR+12 MBIA FRN 2033-06-30 700,178 0.80700,000 FSTNT 2 A2 EU0001M+12BP FRN 2043-08-10 700,154 0.80700,000 GRANM 2005-4 A5 3MEUR+10 FRN 2054-12-20 700,021 0.80652,806 Dutch XII A 3MEUR+12 REGS 2037-07-02 653,106 0.75600,000 MONAS 2006-I A2 STEP 3MEUR+14 17-11-2044 600,329 0.69600,000 Velah 3 A 3MEUR+13 FRN 30-07-2040 600,252 0.69600,000 Holmes Financing PLC FRN 2021-07-15 599,820 0.69512,765 Siena 2003-4 A2 3MEUR+23 FRN 2038-12-16 514,730 0.59500,000 Delphinus BV Mtg FRN 2091-09-25 501,255 0.57500,000 MFPLC 5X 3A1 FRN 2042-02-08 500,215 0.57500,000 ITFIN 2005-1 A2 3MEUR+10BP 2020-09-14 499,557 0.57418,293 Split 2 A 3ME+14BP FRN 2018-10-25 418,593 0.48411,476 Lusitano Mortgages PLC FRN 2047-10-16 411,517 0.47400,000 LOCAT 2005-3 A2 3MEUR+15 FRN 2026-12-12 400,310 0.46400,000 Velal 2 A 3MEUR+15 FRN 2028-12-15 400,298 0.46400,000 AGRI 2006-1 A2 3MEUR+15 FRN 2023-12-08 400,043 0.46400,000 SANTM 1 A2 3MEUR+12BPS FRN 26-10-2038 399,971 0.46400,000 Bancaja Fondo de Titulizacion (BCJAF) FRN 2043-09-25 399,852 0.46377,429 EMERM 4 A STEP 1MEUR+12 FRN 2048-07-15 377,580 0.43351,796 STORM 2005 A 3MEUR+15 FRN 2047-05-26 352,348 0.40307,851 SCIP 2 A5 3ME+20BP FRN 2025-04-26 307,849 0.35303,667 Dutch MTG Loan (DMPLII) FRN 2036-05-20 305,250 0.35300,000 Granite Mortages (GRAN) FRN 2043-07-20 301,015 0.34300,000 Velah 4 A1 3MEUR+12 FRN 2042-10-25 300,009 0.34300,000 Beluga Master Issuer BV (BLUGA) 2006-1 A2 FRN 2099-04-28 300,000 0.34300,000 Lothian Mortgages 2050-04-24 299,907 0.34300,000 Arkle 2006-1X 5A1 FRN 2052-02-17 299,903 0.34200,000 ARRMF 2006-1X A2C 3MEUR + 8BP FRN 2056-04-12 200,000 0.23200,000 LOCAT 2006-4 A2 3MEUR+16 2028-12-12 199,938 0.23200,000 VOBA Finance SRL 2006-1 A2 3MEUR+17 2043-06-28 199,938 0.23100,000 DECO 2005-E1X A2 3MEUR+26 2014-07-27 100,188 0.11100,000 FGOLD 1 A2 FRN 2025-07-30 100,002 0.1189,863 MAGEL 3 A 3MEUR+13 FRN 2058-05-15 89,895 0.1033,512,549 38.3354

GAM Star EUR BondPortfolio Statement31.12.2006Holding Description Fair Value Net Assets/(Liabilities)€ %Mortgage-backed100,000 OPERA GER1 A 3MEUR+21 FRN 2015-01-22 100,000 0.11100,000 0.11Open Futures Contracts-123 Long Gilt Future (LIFFE) March 2007* 214,991 0.25-106 90 Day Sterling (LIFFE) June 2007* 74,396 0.09-66 US 10Yr Note Future (CBT) March 2007* 66,579 0.08-90 90 Day Euro$ Future (CME) December 2008* 35,168 0.045 90 Day Euro$ Future’s September 2007* (519) (0.00)5 90 Day EURO$ (CME) December 2007* (2,271) (0.00)2 Euro-BOBL Futures March 2007* (2,860) (0.00)48 90 Day Sterling (LIFFE) June 2008* (4,429) (0.01)-22 90 Day Euro$ (CME) September 2008* (6,882) (0.01)133 90 Day Eur$ (CME) March 2008* (8,238) (0.01)20 90 Day Euro EURIBOR (LIFFE) December 2007* (11,750) (0.01)37 90Day Euro EURIBOR (LIFFE) Futures June2007* (16,487) (0.02)172 90 Day Sterling Future (LIFFE) March 2008* (24,321) (0.03)11 90 Day Sterling (LIFFE) Futures December 2007* (47,552) (0.05)137 Euro-Bund (EUX) Future March 2007* (369,010) (0.42)(103,185) (0.10)Options1,400,000 OTC ECAL USD VS JPY 119.00 Calls September 2007 10,260 0.01137 Euro Bund (RXH7P) 112.50 PUT February 2007 2,740 0.00195 90 Day Euro$ (EDZ7C) 98.25 Calls December 2007 923 0.0064 90 Day LIBOR (LIFFE) 92.25 PUT March 2008 593 0.0031 90 Day Euro$ (EDH8P) 93.00 Puts March 2008 294 0.00-14 Euro Bund (RXH7C) 119.50 Calls March 2007 (280) (0.00)-21 Euro Bund (EUX) 115.00 Puts March 2007 (6,720) (0.01)-24 Euro Bund (EUX) 115.50 PUT March 2007 (11,520) (0.01)(Total Cost of Options (€2,740)) (3,710) (0.01)55

GAM Star EUR BondPortfolio Statement31.12.2006Notional Amount Description Maturity Date Fair Value Net Assets/(Liabilities)€ %Credit Default Swaps2,300,000 DJ ITRAXX5HI2 SP DUB 20-11-2006 79738 2011-06-20 28,185 0.03900,000 DJ ITRAXX5HI2 SP LSI 20-06-2011 79746 2011-06-20 11,029 0.01800,000 DJ ITRAXX6HI2 SP HUS 20-12-2011 C97359 2011-12-20 2,974 0.00800,000 DJ ITRAXX6HI2 SP DUB 20-12-2011 C97375 2011-12-20 2,974 0.00800,000 DJ ITRAXX6HI2 SP BRC 20-12-2011 C97425 2011-12-20 2,974 0.0060,000 Nordic Tel Holdgs 20-06-2009 076049 2009-06-20 821 0.0050,000 Nordic Tel Co Hldgs 20-06-2009 76056 GST 2009-06-20 626 0.00290,000 Vnesheconombank BKL SP BRC 2008-11-20 2008-11-20 452 0.00500,000 Ukraine BP GST 2007-12-20 97508 2007-12-20 377 0.00280,000 Gazprom SP MYC 20-12-2007 C97573 2007-12-20 157 0.00280,000 VTB CAPITAL SA SP GST 20-12-07 C97581 2007-12-20 38 0.0060,000 United Utilities Plc Yankee BP GST 20-03-2012 C02615 2012-03-20 14 0.0060,000 ICI BP MYC 20-03-2012 C98001 2012-03-20 (2) (0.00)60,000 Compass Group BP DUB 20-03-2012 2012-03-20 (13) (0.00)500,000 Ukraine SP GST 2008-12-20 97516 2008-12-20 (15) (0.00)60,000 Continental Aktiengesell 20-03-2012 BP GST C89422 2012-03-20 (29) (0.00)130,000 Akzo Nobel N.V. BP GST 20-03-2012 C97862 2012-03-20 (30) (0.00)60,000 Valeo BP GST 20-03-2012 C98050 2012-03-20 (42) (0.00)130,000 Wolters Kluwer NV BP GST 20-03-2012 C97870 2012-03-20 (63) (0.00)130,000 Koninklijke DSM NV BP GST 20-03-2012 2012-03-20 (63) (0.00)60,000 Thomson BP GST 20-03-2012 C98043 2012-03-20 (86) (0.00)140,000 Continental Aktiengesell 20-03-2012 BP GST C98209 2012-03-20 (100) (0.00)200,000 Kelda Group Plc 20-03-2012 C98027 BP GS 2012-03-20 (191) (0.00)100,000 Shinsei Bank BP MLC 2011-03-20 94760 2011-03-20 (536) (0.00)300,000 DJ ITRAXX6EU4 BP UAG 20-12-2016 C95916 2016-12-20 (1,789) (0.00)800,000 DJ ITRAXX6HI4 BP HUS 20-12-2016 97367 2016-12-20 (3,849) (0.00)800,000 DJ ITRAXX6HI4 BP DUB 20-12-2016 C97383 2016-12-20 (3,849) (0.00)800,000 DJ ITRAXX6HI4 BP BRC 20-12-2016 C97433 2016-12-20 (3,849) (0.00)1,500,000 DJ CDX IG5 BP UAG 20-12-2015 MYC 2016-12-20 (11,743) (0.01)1,700,000 DJ CDX IG5 BP JPM 2015-12-20 2015-12-20 (13,307) (0.02)1,000,000 DJ ITRAXX5HI4 BP LSI 20-06-2016 79712 2016-06-20 (21,306) (0.02)2,000,000 DJ ITRAXX5HI4 BP DUB 20-06-2016 79720 2016-12-20 (42,615) (0.05)(Total Cost of Credit Default Swaps (€20,108)) (52,856) (0.06)Currency Notional Amount Fund pays Fund receives Termination Date Fair Value Net Assets/(Liabilities)€ %Interest Rate SwapsUSD 11,600,000 5% 3M LIBOR USD 2017-06-20 118,518 0.14GBP 8,100,000 5% 6M LIBOR GBP 2009-03-22 112,305 0.13NZD 5,400,000 6.5% 3BBR 2017-06-15 62,868 0.07GBP 7,800,000 6M LIBOR GBP 2008-06-20 56,440 0.06EUR 3,600,000 4% 6M EURIBOR EUR 2017-03-21 56,263 0.06USD 5,200,000 5% 3M LIBOR USD 2017-06-20 53,129 0.06GBP 3,200,000 5% 6M LIBOR GBP 2009-03-22 44,367 0.05EUR 14,300,000 4% 6M EURIBOR 2009-03-21 41,907 0.05EUR 900,000 4% 6M EURIBOR 2037-03-21 41,276 0.05GBP 2,400,000 5% 6M LIBOR GBP 2013-03-20 38,687 0.04GBP 300,000 6M LIBOR GBP 5% 2037-03-22 35,484 0.04EUR 600,000 4% 6M EURIBOR 2037-03-21 27,517 0.0356

GAM Star EUR BondPortfolio Statement31.12.2006Currency Notional Amount Fund pays Fund receives Termination Date Fair Value Net Assets/(Liabilities)€ %USD 500,000 4% 6M EURIBOR 2037-03-21 22,931 0.03EUR 2,100,000 5% 3M LIBOR USD 2017-06-20 21,456 0.02EUR 800,000 6M EURIBOR 4.75% 2035-09-15 20,112 0.02USD 900,000 6M EURIBOR 4.68% 2035-09-15 18,563 0.02EUR 1,500,000 5% 3M LIBOR USD 2017-06-20 15,326 0.02EUR 2,300,000 4% 6M EURIBOR 2012-03-21 13,709 0.02EUR 3,100,000 4% 6M EURIBOR 2010-06-20 12,968 0.01EUR 6,900,000 4% 6M EURIBOR 2008-12-19 10,876 0.01EUR 400,000 6M EURIBOR 4.75% 2035-09-15 10,056 0.01GBP 600,000 5% 6M LIBOR GBP 2009-09-20 7,851 0.01JPY 260,000,000 6M LIBOR JPY 2.50% 2036-06-20 3,356 0.00USD 3,200,000 5% 3M LIBOR USD 2009-06-20 2,205 0.00USD 4,500,000 5% 3M LIBOR USD 2009-09-19 67 0.00USD 1,800,000 5% 3M LIBOR USD 2009-12-19 (598) (0.00)NZD 1,000,000 3MBKB** 7.25% 2010-06-15 (1,024) (0.00)NZD 2,000,000 3MBKB** 7.25% 2010-06-15 (2,047) (0.00)USD 3,700,000 3M LIBOR USD 5% 2009-06-20 (2,549) (0.00)GBP 200,000 4% 6M LIBOR GBP 2035-09-15 (3,135) (0.00)GBP 200,000 4% 6M LIBOR GBP 2035-09-15 (3,142) (0.00)GBP 400,000 3.91% 6M LIBOR GBP 2035-09-15 (3,239) (0.00)USD 15,000,000 5% 3M LIBOR USD 2009-12-19 (4,985) (0.01)NZD 2,400,000 3MB 7.25% 2009-06-20 (5,068) (0.01)USD 500,000 3M LIBOR USD 2017-12-19 (5,192) (0.01)GBP 400,000 4% 6M LIBOR GBP 2035-09-15 (6,269) (0.01)NZD 3,000,000 7.25% 3MBKB** 2009-06-15 (6,337) (0.01)USD 9,300,000 5% 3M LIBOR USD 2009-06-20 (6,406) (0.01)USD 200,000 5% 3M LIBOR USD 2037-06-20 (6,774) (0.01)GBP 1,200,000 5% 6M LIBOR GBP 2008-12-20 (8,192) (0.01)EUR 500,000 3% 6M EURIBOR 2009-03-21 (10,818) (0.01)USD 1,200,000 3M LIBOR USD 5% 2017-09-19 (12,177) (0.01)GBP 800,000 4% 2035-09-15 (12,540) (0.01)JPY 170,000,000 2% 6M LIBOR JPY 2016-06-20 (14,003) (0.02)EUR 4,600,000 6M EURIBOR 4% 2009-06-20 (14,204) (0.02)USD 500,000 3M LIBOR USD 5% 2037-06-20 (16,937) (0.02)GBP 2,700,000 6M LIBOR GBP 5% 2008-12-20 (18,433) (0.02)USD 1,000,000 5.50% 3M LIBOR USD 2016-12-20 (18,594) (0.02)GBP 900,000 6M LIBOR GBP 5% 2012-03-22 (21,175) (0.02)GBP 900,000 6M LIBOR GBP 5% 2012-03-22 (21,175) (0.02)EUR 12,100,000 6M EURIBOR 4% 2008-06-20 (23,272) (0.03)GBP 3,500,000 6M LIBOR GBP 5% 2008-06-21 (25,420) (0.03)CAD 13,800,000 4.5% 3MCBK*** 2008-06-20 (29,893) (0.03)JPY 160,000,000 2% 6M LIBOR JPY 2011-12-20 (30,906) (0.04)GBP 2,800,000 6M LIBOR GBP 5% 2017-03-22 (31,205) (0.04)JPY 430,000,000 2% 6M LIBOR JPY 2016-06-20 (34,952) (0.04)USD 3,500,000 3M LIBOR USD 5% 2017-12-19 (36,345) (0.04)USD 35,000,000 3M LIBOR USD 5% 2008-06-20 (38,106) (0.04)EUR 25,300,000 6M EURIBOR 4% 2008-09-19 (45,756) (0.05)GBP 7,600,000 6M LIBOR GBP 5% 2008-12-20 (51,884) (0.06)USD 1,600,000 3M LIBOR USD 5% 2037-06-20 (54,204) (0.06)NZD 26,100,000 3MBKB** 7.25% 2009-06-15 (55,135) (0.06)USD 55,200,000 3M LIBOR USD 5% 2008-06-20 (60,099) (0.07)** 3 month bank bill for New Zealand*** 3 month Canadian Bankers Acceptances57

GAM Star EUR BondPortfolio Statement31.12.2006Currency Notional Amount Fund pays Fund receives Termination Date Fair Value Net Assets/(Liabilities)€ %GBP 5,900,000 6M LIBOR GBP 5% 2017-03-22 (65,752) (0.08)GBP 5,700,000 6M LIBOR GBP 5% 2010-03-20 (68,022) (0.08)GBP 11,500,000 6M LIBOR GBP 5% 2008-06-20 (83,211) (0.10)EUR 47,600,000 6M EURIBOR 4% 2008-06-20 (91,550) (0.10)GBP 900,000 5% 6M LIBOR GBP 2035-09-15 (91,620) (0.10)EUR 2,500,000 6M EURIBOR 4% 2037-03-21 (114,655) (0.13)EUR 5,700,000 6M EURIBOR 4% 2035-09-15 (117,516) (0.13)GBP 1,500,000 6M LIBOR GBP 5% 2037-03-22 (177,420) (0.20)GBP 7,800,000 6M LIBOR GBP 5% 2012-03-22 (184,017) (0.21)GBP 8,500,000 6M LIBOR GBP 5% 2012-03-22 (200,531) (0.23)GBP 2,400,000 5% 6M LIBOR GBP 2035-09-15 (244,325) (0.28)(Total Cost of Interest Rate Swaps (€785,973)) (1,332,572) (1.53)Holding Description Fair Value Net Assets/(Liabilities)€ %Swap options24,000,000 SWP091499 4.35 CALL Dec07 34,051 0.0412,300,000 SWP099369 4.685 CALL Dec07 33,688 0.0412,100,000 SWP099328 4.4475 CALL Sep07 14,361 0.0223,300,000 SWP099591 4.75 CALL June 2007 11,004 0.014,700,000 SWP091473 4.35 CALL Dec07 6,668 0.0120,000,000 SWP091093 4.75 Calls February 2007 651 0.00-8,600,000 SWP091119 4.78 Calls February 2007 (1,700) (0.00)-1,100,000 SWP091481 4.745 CALL Dec07 (7,408) (0.01)-3,000,000 SWP099625 4.80 CALL June 2007 (10,057) (0.01)-2,900,000 SWP099351 4.795 CALL Sep07 (16,298) (0.02)-2,800,000 SWP091523 4.7425 CALL Dec07 (18,752) (0.02)-2,800,000 SWP091556 4.755 CALL Dec07 (19,281) (0.02)-3,000,000 SWP099377 4.947 CALL Dec07 (30,937) (0.04)(Total Cost of Swap Options €13,799) (4,010) (0.00)Open Forward contractsNet unrealised gain on currency forwards (Note 12 (a)) 3,733 0.003,733 0.00Total Investments 98,853,039 113.13Net Current Liabilities (11,471,703) (13.13)Net Assets 87,381,336 100.00Total Investment at Cost 101,160,269*Counterparty – JP Morgan BankAnalysis of Net Assets %Transferable securities admitted to an official stock exchange listing 67.96Transferable securities dealt on another regulated market 45.17Net Current Assets (13.13)100.0058

GAM Star EUR BondPortfolio Changes31.12.2006Major PurchasesCost€000sMajor SalesProceeds€000sFNMA TBA 6.0% 2036-12-12 12,527Fannie Mae TBA 6.0% 2035-01-12 12,186Fannie Mae TBA 5.5% 2036-09-13 11,924FNMA TBA 5.5% 2036-08-14 11,759Fannie Mae TBA 5.5% 2036-10-12 9,712FNMA TBA 5.5% 2036-11-13 8,323FNMA TBA 5.5% 2036-12-12 8,273Fannie Mae TBA 5.5% 2037-11-07 8,020FNMA TBA 6.0% 2036-11-13 4,751Fannie Mae TBA 6.0% 2036-10-12 4,735Dutch Treasury Cert 0% 2006-09-29 3,981Rabobank USA Financial Discount Note 2006-10-12 2,397UBS Finance LLC Discount Note 2006-10-11 2,393Rabobank USA Financial Discount Note 2006-10-24 2,390UBS Finance LLC Discount Note 2006-10-27 2,364Rabobank USA Financial Discount Note 2006-10-30 2,354HBOS Treasury Services Discount Note 2007-01-30 2,325HBOS Treasury Services Discount Note 2006-12-07 2,309UBS Finance LLC Discount Note 2006-09-01 2,263Rabobank USA Financial Discount Note 2006-08-31 2,260Rabobank USA Financial Discount Note 2006-09-05 2,257Rabobank USA Financial Discount Note 2006-10-10 2,221UBS Finance LLC Discount Note 2006-10-06 2,206Rabobank USA Financial Discount Note 2006-10-05 2,202UBS Finance LLC Discount Note 2006-08-28 2,038Rabobank USA Financial Discount Note 2006-08-29 2,034Rabobank USA Financial Discount Note 2006-08-30 2,028Rabobank USA Financial Discount Note 2006-10-25 1,990Banque Fed. Cred. Mutuel ECP-EUR 2007-02-12 1,984Morgan Stanley Int. ECP-EUR 2006-11-16 1,984UBS Finance LLC Discount Note 2006-10-26 1,983Total for the period 196,710FNMA TBA 6.0% 2036-12-12 12,190Fannie Mae TBA 5.5% 2036-09-13 11,989FNMA TBA 5.5% 2036-08-14 11,928Fannie Mae TBA 5.5% 2036-07-13 11,766Fannie Mae TBA 5.5% 2036-10-12 9,874FNMA TBA 5.5% 2036-11-13 8,276FNMA TBA 5.5% 2036-12-12 8,020Fannie Mae TBA 6.0% 2036-10-12 4,753FNMA TBA 6.0% 2036-11-13 4,724Dutch Treasury Cert 0% 2006-09-29 4,000Fannie Mae TBA 5.5% 2037-11-07 3,766IXIS Corp. Invest Bank ECP-EUR 2006-08-14 2,687UBS Finance LLC Discount Note 2006-08-08 2,409UBS Finance LLC Discount Note 2006-10-11 2,397Rabobank USA Financial Discount Note 2006-10-12 2,388Rabobank USA Financial Discount Note 2006-10-24 2,388Rabobank USA Financial Discount Note 2006-10-30 2,355UBS Finance LLC Discount Note 2006-10-27 2,354HBOS Treasury Services Discount Note 2006-12-07 2,321HBOS Treasury Services Discount Note 2007-01-30 2,319Rabobank USA Financial Discount Note 2006-08-31 2,263Rabobank USA Financial Discount Note 2006-09-05 2,261UBS Finance LLC Discount Note 2006-09-01 2,258Rabobank USA Financial Discount Note 2006-10-10 2,233UBS Finance LLC Discount Note 2006-10-06 2,222Rabobank USA Financial Discount Note 2006-10-05 2,206UBS Finance LLC Discount Note 2006-08-28 2,033Rabobank USA Financial Discount Note 2006-08-29 2,028Rabobank USA Financial Discount Note 2006-08-30 2,026SVENSKA HNDL ECP-EUR 2006-08-14 1,990Nordea Bank AB ECP-EUR 2006-08-14 1,990SPINTAB AB CAP ECP-EUR 2006-08-14 1,990KBC DUBLIN CAP ECP-EUR 2006-08-25 1,988Morgan Stanley Int. ECP-EUR 2006-11-16 1,984Rabobank USA Financial Discount Note 2006-10-25 1,983UBS Finance LLC Discount Note 2006-10-26 1,970Total for the period 183,87859

GAM Star GBP BondComment31.12.2006Manager:Michael AmeryPortfolio AnalysisGAM Star GBP Bond returned 1.27%, underperforming its benchmark by 120basis points over the six month period to 31 December. In terms of performanceattribution, positions on the front end of the UK yield curve detracted as ratescontinued to rise. A focus on the short-to-intermediate portion of the UK curvewas also a negative as longer-dated gilts outperformed, supported by continuedpension fund allocations to long-dated fixed income assets. Elsewhere, ourpositions on the short end of the US curve hurt performance. While the USFederal Reserve paused its interest rate hikes, strong economic data caused themarket to push back its expectations of rate cuts going forward.Sterling-hedged mortgage positions outperformed like-duration government bondsamidst declining volatility and heightened investor demand. Short positions on theUS dollar versus the yen were negative for performance.Analysis, by maturity %Up to one year 34.66One to five years 9.88Five to ten years 10.12More than ten years 63.20Other 0.76Currency Forwards 0.14Net Current Liabilities (18.76)100,00In the first half of the year, inflation concerns and firm economic growthheightened fears of tighter monetary conditions ahead, causing spreads to widenin credit sectors. However, these spreads subsequently tightened steadily over thelatter half of the year, detracting from returns as the fund held an underweightposition in credit.The US Federal Reserve (Fed) finally paused its rate hike cycle, signaling that itwanted to assess the effects of earlier increases before any further move on itspart. Meanwhile, strong US economic data caused expectations of interest ratecuts by the Fed due to a slowing US economy to get pushed back. Elsewhere,the Bank of Japan ended its zero interest rate policy, raising the short term rate to0.25%, given firm Japanese economic data and positive inflation.In Europe, bond yields also rose considerably as the European Central Bank(ECB) expressed concerns over the rate of growth of monetary aggregates andcredit extension. The ECB proceeded to raise interest rates by 75 basis pointsduring the six-month period. Economic activity showed signs of a widespreadrecovery as consumer and business confidence measures in France, Germanyand Italy, hitherto the eurozone’s lagging economies, picked up whileunemployment fell. Industrial production and external demand were the maindrivers of economic growth in the eurozone during the period.UK gilt yields also rose across the curve in the last six months of 2006 on theback of two hikes of 25 basis points each by the Bank of England in August andNovember. Increased consumer confidence, higher than expected retail sales, animproving backdrop for manufacturing and a resilient housing market,strengthened the case for an interest rate hike. Despite the robust growth pictureand higher energy prices, the inflationary outlook remained benign as businessesdid not seem to pass on higher costs to consumers and wage demands remainedmute.60

GAM Star GBP BondPortfolio Statement31.12.2006Holding Description Fair Value Net Assets£ %Commercial Paper800,000 JP Morgan & Co ETD – GBP 2007-01-02 800,000 3.09800,000 3.09Corporate Bonds160,000 HSBC Capital Funding FRN Perpetual 184,891 0.71250,000 RBS Capital Trust FRN Perp 184,022 0.71280,000 Barclays Bank PLC Perpetual 182,631 0.70240,000 DaimlerChrysler 7.2% 2009-09-01 127,239 0.49200,000 BBVA Intl. Pref Unipersonal 3.798% Perp 124,320 0.48180,000 Aviva Plc FRN Perpetual 118,600 0.46160,000 BNP Paribas Capital Trust 6.625% FRN Perp 117,796 0.46100,000 AXA SA FRN Perpetual 102,739 0.40200,000 Unicredito Luxem Fin 5.584% 2017-01-13 102,129 0.3990,000 LeasePlan Finance NV 5.50% 2009-12-01 89,341 0.351,333,708 5.15Government bonds4,800,000 UK Treasury 4.5% 2007-03-07 4,794,192 18.503,840,000 UK Gilt 4.25% 2036-03-07 3,869,184 14.933,000,000 UK Treasury 7.25% 2007-12-07 3,053,700 11.782,600,000 UK (Govt. of) 4.25% 2032-06-07 2,587,520 9.982,300,000 UK Treasury 4.75% 2015-09-07 2,294,020 8.851,900,000 UK Treasury 4.75% 2010-06-07 1,878,910 7.25500,000 UK Treasury 4.25% 2011-03-07 485,250 1.87300,000 UK (Govt. of) 6% 2028-12-07 366,570 1.41550,000 US Treasury 0% 2007-03-15 278,246 1.07250,000 US Treasury 0% 2007-03-01. 126,627 0.49100,000 UK Gilt 4.75% 2038-12-07 110,040 0.4219,844,259 76.55Other bonds220,000 Pemex Project 7.500% 2013-12-18 239,998 0.93110,000 Norinchukin Fin (Cayman) 5.625% 2016-09-28 109,051 0.4250,000 General Electric Capital 5.50% 2066-09-15 49,897 0.19398,946 1.54Mortgage Pass Thru7,000,000 Fannie Mae TBA 6.0% 2035-01-12 3,599,929 13.892,600,000 Fannie Mae TBA 5.5% 2037-11-07 1,312,632 5.07500,000 GRANM 2005-4 A6 3MGBP+12 FRN 2054-12-20 500,000 1.93300,000 Holmes Financing PLC FRN 2040-07-15 300,281 1.1661

GAM Star GBP BondPortfolio Statement31.12.2006Holding Description Fair Value Net Assets/(Liabilities)£ %Mortgage Pass Thru300,000 Perma 9X 5A (3MBP+11) FRN 2042-06-10 299,865 1.16400,000 EMPOP 2006-1 A2 3MEUR+13BP FRN 2033-03-21 269,629 1.04300,000 Velal 2 A 3MEUR+15 FRN 2028-12-15 202,429 0.78300,000 Velah 3 A 3MEUR+13 FRN 30-07-2040 202,363 0.78300,000 Cordr 1 A2 3MEUR+12 MBIA FRN 2033-06-30 202,329 0.78300,000 FSTNT 2 A2 EU0001M+12BP FRN 2043-08-10 202,322 0.78200,000 Arkle 2006-1X 52A 3MEUR+10 FRN 2052-02-17 199,973 0.77246,559 LOCAT 2004-2 A 3ME+18 FRN 2024-12-12 166,544 0.64244,802 Dutch XII A 3MEUR+12 REGS 2037-07-02 165,136 0.64200,000 Bancaja Fondo de Titulizacion (BCJAF) FRN 2043-09-25 134,802 0.52200,000 ITFIN 2005-1 A2 3MEUR+10BP 2020-09-14 134,732 0.52167,317 Split 2 A 3ME+14BP FRN 2018-10-25 112,896 0.44100,000 MFPLC 5X 3A2 FRN 2042-02-08 100,046 0.39100,000 Business Mortgage Finance PLC 2039-02-15 100,010 0.39100,000 ARRMF 2006-1X A2A 3MEUR + 8BP FRN 2056-04-12 99,992 0.39100,000 Lothian Mortgages PLC 2040-04-24 99,959 0.398,405,869 32.46Open Futures Contracts-72 90 Day Sterling (LIFFE) June 2007* 35,338 0.14-12 90 Day Euro$ (CME) Futures June 2007* 3,754 0.0117 90 Day Sterling (LIFFE) June 2008* (175) (0.00)10 90 Day Euro$ (CME) June 2008* (1,722) (0.01)59 90 Day Sterling Future (LIFFE) March 2008* (1,775) (0.01)7 90 Day Euro EURIBOR (LIFFE) December 2007* (2,771) (0.01)-17 90 Day Euro$ (CME) September 2008* (3,256) (0.01)24 90 Day EURO$ (CME) December 2007* (4,967) (0.02)13 US 10Yr Note Future (CBT) March 2007* (6,017) (0.02)-23 90 Day Euro$ Future’s September 2007* (6,314) (0.02)28 90Day Euro EURIBOR (LIFFE) Futures June 2007* (7,179) (0.03)28 90 Day Sterling (LIFFE) Future September 2007* (11,525) (0.04)15 Euro-Bund (EUX) Future March 2007* (27,678) (0.11)88 90 Day Sterling (LIFFE) Futures December 2007* (28,562) (0.11)45 Long Gilt Future (LIFFE) March 2007* (69,750) (0.27)(132,599) (0.51)Options100 90 Day LIBOR (LIFFE) 92.25 PUT March 2008 625 0.0018 90 Day Euro$ (CME) 98.50 Calls March 2008 57 0.00(Total Cost of Options £682) 682 0.00Notional Amount Description Maturity Date Fair Value Net Assets/(Liabilities)£ %Credit Default Swaps700,000 DJ CDX IG5 BP JPM 2015-12-20 Short 2015-12-20 (3,695) (0.01)1,800,000 DJ ITRAXX6EU4 BP UAG 20-12-2016 C95916 2016-12-20 (7,238) (0.03)600,000 DJ ITRAX5HI4 BP JPM 2016-06-20 50135 2016-06-20 (8,620) (0.03)2,500,000 DJ CDX IG5 BP UAG 20-12-2015 MYC 2015-12-20 (13,195) (0.05)(Total Cost of Credit Default Swaps (£1,711)) (32,748) (0.12)62

GAM Star GBP BondPortfolio Statement31.12.2006Currency Notional Amount Fund pays Fund receives Termination Date Fair Value Net Assets/(Liabilities)£ %Interest Rate SwapsEUR 6,100,000 3% 6M EURIBOR 2009-03-21 89,004 0.34GBP 1,000,000 6M LIBOR GBP 5% 2037-03-22 79,752 0.31EUR 4,000,000 3% 6M EURIBOR 2009-03-15 58,225 0.22GBP 4,600,000 5% 6M LIBOR GBP 2009-03-22 43,054 0.17EUR 2,900,000 4% 6M EURIBOR 2017-03-21 30,559 0.12GBP 300,000 6M LIBOR GBP 5% 2037-03-22 23,925 0.09USD 3,400,000 5% 3M LIBOR USD 2017-06-20 23,422 0.09EUR 1,300,000 3% 6M EURIBOR 2009-03-15 18,923 0.07GBP 3,800,000 5% 6M LIBOR GBP 2008-06-20 18,540 0.07GBP 4,000,000 5% 6M LIBOR GBP 2008-12-20 18,371 0.07USD 2,600,000 5% 3M LIBOR USD 2017-06-20 17,911 0.07GBP 200,000 6M LIBOR GBP 5% 2037-03-22 15,950 0.06GBP 1,700,000 5% 6M LIBOR GBP 2009-03-22 15,911 0.06USD 2,300,000 5% 3M LIBOR USD 2017-06-20 15,845 0.06EUR 500,000 4% 6M EURIBOR 2037-03-21 15,462 0.06GBP 1,400,000 5% 6M LIBOR GBP 2009-03-22 13,088 0.05GBP 100,000 6M LIBOR GBP 5% 2037-03-22 7,975 0.03EUR 200,000 4% 6M EURIBOR 2037-03-21 6,185 0.02USD 600,000 5% 3M LIBOR USD 2017-06-20 4,133 0.02GBP 400,000 5% 6M LIBOR GBP 2017-03-22 3,006 0.01GBP 400,000 5% 6M LIBOR GBP 2017-03-22 2,979 0.01USD 400,000 5% 3M LIBOR USD 2017-06-20 2,756 0.01GBP 100,000 3.50% 6M LIBOR GBP 2035-09-15 1,842 0.01EUR 100,000 6M EURIBOR 4.75% 2035-09-15 1,695 0.01GBP 100,000 3% UKRPI** 2036-06-16 1,490 0.01JPY 110,000,000 6M LIBOR JPY 2.5% 2036-06-20 957 0.00USD 100,000 5% 3M LIBOR USD 2017-06-20 689 0.00USD 2,000,000 5% 3M LIBOR USD 2008-09-19 20 0.00USD 1,900,000 5% 3M LIBOR USD 2008-12-19 (53) (0.00)USD 5,300,000 5% 3M LIBOR USD 2008-12-19 (153) (0.00)USD 800,000 5% 3M LIBOR USD 2009-12-19 (179) (0.00)USD 800,000 3M LIBOR USD 5% 2009-06-20 (370) (0.00)USD 800,000 3M LIBOR USD 5% 2009-06-20 (370) (0.00)USD 400,000 3M LIBOR USD 5% 2012-06-20 (624) (0.00)USD 600,000 3M LIBOR USD 5% 2012-06-20 (935) (0.00)USD 200,000 3M LIBOR USD 5% 2017-12-19 (1,400) (0.01)NZD 1,000,000 3MB*** 7.25% 2009-06-20 (1,424) (0.01)USD 6,700,000 5% 3M LIBOR USD 2009-12-19 (1,501) (0.01)NZD 1,400,000 3MBKB**** 3% 2009-06-15 (1,994) (0.01)EUR 1,000,000 6M EURIBOR 6% 2009-06-20 (2,082) (0.01)GBP 200,000 4% 6M LIBOR GBP 2035-09-15 (2,114) (0.01)EUR 1,900,000 6M EURIBOR 4% 2008-09-19 (2,315) (0.01)EUR 2,200,000 6M EURIBOR 4% 2008-12-19 (2,338) (0.01)USD 5,300,000 3M LIBOR USD 5% 2009-06-20 (2,462) (0.01)USD 100,000 5.665% 3M LIBOR USD 2036-12-20 (2,703) (0.01)GBP 300,000 UKRPI** 3% 2016-06-16 (2,902) (0.01)NZD 2,300,000 3MBKB**** 7% 2009-06-15 (3,276) (0.01)USD 12,500,000 3M LIBOR USD 5% 2008-09-19 (3,356) (0.01)USD 500,000 3M LIBOR USD 5% 2017-09-19 (3,420) (0.01)USD 300,000 5.5% 3M LIBOR USD 2016-12-20 (3,761) (0.01)CAD 2,900,000 4.5% 2008-06-20 (4,234) (0.02)JPY 40,000,000 2% 6M LIBOR JPY 2011-12-20 (5,208) (0.02)GBP 600,000 6M LIBOR GBP 5% 2009-09-20 (5,299) (0.02)EUR 400,000 6M EURIBOR 4% 2035-09-15 (5,560) (0.02)EUR 500,000 6M EURIBOR 4% 2035-09-15 (6,949) (0.03)** UK Retail Price Index*** 3 month bank bill**** 3 month bank bill for New Zealand63

GAM Star GBP BondPortfolio Statement31.12.2006Currency Notional Amount Fund pays Fund receives Termination Date Fair Value Net Assets/(Liabilities)£ %EUR 900,000 6M EURIBOR 4% 2017-03-21 (9,482) (0.04)USD 1,400,000 3M LIBOR USD 5% 2017-12-19 (9,802) (0.04)USD 600,000 3M LIBOR USD 5% 2037-06-20 (13,705) (0.05)GBP 200,000 6M LIBOR GBP 5% 2035-09-15 (13,728) (0.05)USD 21,600,000 3M LIBOR USD 5% 2008-06-20 (15,855) (0.06)JPY 290,000,000 2% 6M LIBOR GBP 2016-06-20 (15,893) (0.06)GBP 1,100,000 6M LIBOR GBP 5% 2012-03-22 (17,496) (0.07)GBP 300,000 6M LIBOR GBP 5% 2037-03-22 (23,925) (0.09)GBP 1,900,000 6M LIBOR GBP 5% 2012-03-22 (30,223) (0.12)GBP 2,200,000 6M LIBOR GBP 5% 2012-03-22 (34,994) (0.14)GBP 800,000 5% 6M LIBOR GBP 2035-09-15 (54,911) (0.21)GBP 20,200,000 6M LIBOR GBP 5% 2008-06-21 (98,919) (0.38)(Total Cost of Interest Rate Swaps £61,697) 125,754 0.47Holding Description Fair Value Net Assets/(Liabilities)£ %Swap options5,300,000 SWP099369 4.685 CALL Dec07 9,787 0.0410,200,000 SWP091499 4.35 CALL Dec07 9,758 0.045,300,000 SWP099328 4.4475 CALL Sep07 4,241 0.0210,700,000 SWP099591 4.75 CALL June 2007 3,407 0.012,000,000 SWP091473 4.35 CALL Dec07 1,913 0.01-500,000 SWP091481 4.745 CALL Dec07 (2,269) (0.01)-1,300,000 SWP099625 4.80 CALL June 2007 (2,937) (0.01)-1,300,000 SWP099351 4.795 CALL Sep07 (4,925) (0.02)-1,300,000 SWP091523 4.7425 CALL Dec07 (5,870) (0.02)-1,300,000 SWP091556 4.755 CALL Dec07 (6,036) (0.02)-1,300,000 SWP099377 4.947 CALL Dec07 (9,039) (0.03)(Total Cost of Swap Options £1,213) (1,970) (0.01)Open Forward contractsNet unrealised gain on currency forwards (Note 12 (a)) 36,920 0.1436,920 0.14Total Investments 30,778,821 118.76Net Current Liabilities (4,863,359) (18.76)Net Assets 25,915,462 100.00Total Investment at Cost 31,688,311*Counterparty – JP Morgan BankAnalysis of Net Assets %Transferable securities admitted to an official stock exchange listing 81.15Transferable securities dealt on another regulated market 37.61Net Current Assets (18.76)100.0064

GAM Star GBP BondPortfolio Changes31.12.2006Major PurchasesCost£000sMajor SalesProceeds£000sFNMA TBA 6.0% 2036-12-12 3,709Fannie Mae TBA 6.0% 2035-01-12 3,587FNMA TBA 5.5% 2036-08-14 2,918Fannie Mae TBA 5.5% 2036-10-12 2,912Fannie Mae TBA 5.5% 2036-09-13 2,862FNMA TBA 6.0% 2036-11-13 2,139Fannie Mae TBA 6.0% 2036-10-12 2,118FNMA TBA 5.5% 2036-11-13 1,368FNMA TBA 5.5% 2036-12-12 1,348Fannie Mae TBA 5.5% 2037-11-07 1,317JP Morgan & Co ETD - GBP 2006-12-19 1,000JP Morgan & Co ETD - GBP 2006-12-18 900JP Morgan & Co ETD - GBP 2006-12-27 900JP Morgan & Co ETD - GBP 2007-01-02 800Rabobank USA Financial Discount Note 2006-12-08 662Bank of America Discount Note 2006-11-01 575Rabobank USA Financial Discount Note 2006-12-11 563Rabobank USA Financial Discount Note 2006-12-12 562GRANM 2005-4 A6 3MGBP+12 FRN 2054-12-20 500Rabobank USA Financial Discount Note 2006-07-18 495Rabobank USA Financial Discount Note 2006-07-19 493UK Treasury 4.25% 2011-03-07 490Rabobank USA Financial Discount Note 2006-07-20 488UBS Finance LLC Discount Note 2006-07-21 487Rabobank USA Financial Discount Note 2006-07-25 486Rabobank USA Financial Discount Note 2006-07-24 484HBOS Treasury Services Discount Note 2006-10-26 482FNMA TBA 6.0% 2036-12-12 3,589Fannie Mae TBA 5.5% 2036-10-12 2,929Fannie Mae TBA 5.5% 2036-07-13 2,919Fannie Mae TBA 5.5% 2036-09-13 2,913FNMA TBA 5.5% 2036-08-14 2,863Fannie Mae TBA 6.0% 2036-10-12 2,140FNMA TBA 6.0% 2036-11-13 2,113FNMA TBA 5.5% 2036-11-13 1,348FNMA TBA 5.5% 2036-12-12 1,317EIB 5% 2006-12-07 1,000JP Morgan & Co ETD - GBP 2006-12-19 1,000JP Morgan & Co ETD - GBP 2006-12-18 900JP Morgan & Co ETD - GBP 2006-12-27 900Rabobank USA Financial Discount Note 2006-12-08 666Bank of America Discount Note 2006-11-01 574Rabobank USA Financial Discount Note 2006-12-11 562Rabobank USA Financial Discount Note 2006-12-12 558Rabobank USA Financial Discount Note 2006-07-18 493Rabobank USA Financial Discount Note 2006-07-25 489Rabobank USA Financial Discount Note 2006-07-19 488Rabobank USA Financial Discount Note 2006-07-20 487Rabobank USA Financial Discount Note 2006-07-24 486UBS Finance LLC Discount Note 2006-07-21 484HBOS Treasury Services Discount Note 2006-10-26 466Total for the period 38,222Total for the period 44,22865

GAM Star USD BondComment31.12.2006Manager:Mark Kiesel,PIMCO Europe LtdPortfolio AnalysisGAM Star USD Bond returned 5.18%, outperforming its benchmark by 9 basispoints over the six months to 31 December. In terms of performance attribution,above index duration with an emphasis on shorter maturities on the US yieldcurve detracted from performance. Coupon and security selection in mortgagesadded value. Positions in short duration asset backed bonds, which gained amiddemand for their attractive yields and strong credit quality, were positive, as was asmall position in real return bonds.Exposure to the euro and select emerging market currencies contributed toperformance, as did strategies that benefit from rising eurozone interest rates.In the first half of the year, inflation concerns and firm economic growthheightened fears of tighter monetary conditions ahead, causing spreads to widenin credit sectors. However, these spreads subsequently tightened steadily over thelatter half of the year, detracting from returns as the fund held an underweightposition in credit.Analysis, by Maturity %Up to one year 9.83One to five years 32.99Five to ten years 7.83More than ten years 89.35Other 0.77Currency Forwards (0.03)Net Current Liabilities (40.74)100.00The US Federal Reserve (Fed) finally paused its rate hike cycle, signaling that itwanted to assess the effects of earlier increases before any further move on itspart. Meanwhile, strong US economic data caused expectations of interest ratecuts by the Fed due to a slowing US economy to get pushed back. Elsewhere,the Bank of Japan ended its zero interest rate policy, raising the short term rate to0.25%, given firm Japanese economic data and positive inflation.In Europe, bond yields also rose considerably as the European Central Bank(ECB) expressed concerns over the rate of growth of monetary aggregates andcredit extension. The ECB proceeded to raise interest rates by 75 basis pointsduring the six-month period. Economic activity showed signs of a widespreadrecovery as consumer and business confidence measures in France, Germanyand Italy, hitherto the eurozone’s lagging economies, picked up whileunemployment fell. Industrial production and external demand were the maindrivers of economic growth in the eurozone during the period.UK gilt yields also rose across the curve in the last six months of 2006 on theback of two hikes of 25 basis points each by the Bank of England in August andNovember. Increased consumer confidence, higher than expected retail sales, animproving backdrop for manufacturing and a resilient housing market,strengthened the case for an interest rate hike. Despite the robust growth pictureand higher energy prices, the inflationary outlook remained benign as businessesdid not seem to pass on higher costs to consumers and wage demands remainedmute.66

GAM Star USD BondPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %Commercial Paper2,800,000 UBS Finance LLC Discount Note 2007-01-02 2,798,360 2.372,600,000 San Paolo IMI US Fin Co. Discount Note 2007-01-02 2,598,472 2.20400,000 Viacom Inc (New) 4/2 2007-03-22 400,000 0.34400,000 Viacom Discount Note 2007-05-29 400,000 0.346,196,832 5.25Corporate Bonds1,500,000 Anadarko Petroleum Corp FRN 2009-09-15 1,507,241 1.281,000,000 Pemex Proj FDG Mast. 9.250% 2018-03-30 1,263,500 1.071,100,000 Caterpillar Financial Services FRN 2009-05-18 1,101,983 0.941,000,000 Comcast Corp. FRN 2009-07-14 1,002,930 0.851,000,000 General Motors Corp 0% 2013-11-17 1,001,953 0.85800,000 GAZPROM 144A 9.625 2013-03-01 960,000 0.81850,000 CIT Group FRN 2009-01-30 852,500 0.72750,000 Bear Stearns FRN 2011-01-31 753,185 0.64700,000 UBS PFD Funding Tr V Glbl 6.243% Pfd Peral 726,123 0.62700,000 Citigroup FRN 2008-12-26 700,790 0.59700,000 Westpac Banking FRN 2008-06-06 700,187 0.59700,000 Federal Home Loan MTG 5.5% 2008-06-12 700,074 0.59700,000 Unicredito Italiano NY FRN 2008-05-06 699,975 0.59683,310 WBCMT 2006-WHL7 A1 1MLIB+0 FRN 2018-08-11 683,767 0.58600,000 Time Warner FRN 2009-11-13 600,863 0.51600,000 Skandinav Enskilda Bank NY FRN 2007-07-06 600,156 0.51600,000 BNP Paribas 5.186% Perpetual 577,018 0.49500,000 Reynolds American 6.5% 2010-07-15 509,680 0.43500,000 Oracle FRN 2009-01-13 501,002 0.43500,000 American Express FRN MTN 2009-05-19 500,432 0.42500,000 Home Depot FRN 2009-12-16 500,370 0.42500,000 Bank of Ireland FRN 2008-12-19 500,209 0.42500,000 Nordea Bank Finland NY FRN 2008-05-28 500,177 0.42500,000 BNP Paribas FRN 2008-05-28 500,085 0.42500,000 RBS Capital Trust FRN 2049-09-29 494,968 0.42450,000 Progress Energy Inc FRN 2010-01-15 451,962 0.38400,000 Ventas Realty LP/CAP 6.75% 2010-06-01 414,000 0.35400,000 Qwest Communications 7.25% 2011-02-15 411,000 0.35400,000 Wells Fargo Company FRN 2011-01-21 400,706 0.34400,000 Bank of America FRN 2009-11-06 400,295 0.34400,000 Verizon Communications FRN 2007-08-15 400,002 0.34300,000 YUM Brands Inc 8.875% 2011-04-15 336,834 0.29300,000 France Telecom Multi-Step 2011-03-01 327,073 0.28300,000 XTO Energy 7.5% 2012-04-15 326,294 0.28300,000 Cox Communications 7.125% 2012-10-01 320,197 0.27300,000 Time Warner 6.875% 2012-01-05 317,378 0.27300,000 Comcast Cable 6.75% 2011-01-30 314,615 0.27300,000 Duke Energy 5.625% 2012-11-30 305,798 0.26300,000 Citigroup 5.625% 2012-08-27 304,706 0.26300,000 HBOS Capital Funding LP 6.071% 2049-06-29 304,641 0.26300,000 Nextel Communications 6.8750% 2013-10-31 303,407 0.26300,000 Walt Disney FRN 2009-09-10 300,537 0.2567

GAM Star USD BondPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %300,000 United Technologies FRN 2009-06-01 300,523 0.25300,000 Cardinal Health Inc FRN 144A 2009-10-02 300,371 0.25300,000 JP Morgan Chase & Co FRN 2009-06-26 300,319 0.25300,000 HSBC Finance Corp FRN 2009-10-21 300,271 0.25300,000 Commonwealth Bank Autralia FRN 2009-06-08 300,221 0.25300,000 Santander US Debt SA UNI FRN 2009-11-20 300,207 0.25300,000 Lehman Brothers FRN 2008-11-24 300,207 0.25300,000 Morgan Stanley FRN 2008-11-21 300,149 0.25300,000 American Expr Centurion FRN 2008-05-07 300,137 0.25300,000 HSBC Finance Corp FRN 2008-05-21 300,128 0.25300,000 DNB NOR BANK ASA 144A SR FRN 2009-10-13 300,124 0.25300,000 Wal-Mart Stores FRN 2008-06-16 300,033 0.25300,000 Societe Generale FRN 2007-06-11 299,927 0.25300,000 CBS 5.625% 2012-08-15 296,291 0.25300,000 Rogers Cable 5.50% 2014-03-15 288,357 0.25300,000 HSBC Capital Fund FRN Perpetual 280,146 0.24250,000 Vale Overseas Limited 6.25% 2016-11-01 253,680 0.22250,000 MBNA Capital B FRN 2027-02-01 249,709 0.21250,000 Energy Arkansas Inc 4.5% 2010-06-01 242,909 0.21200,000 Teco Energy Inc. 7.00% 2012-05-01 211,500 0.18200,000 Morgan Stanley FRN 2009-01-22 200,191 0.17200,000 Nevada Power Co 5.875% 2015-01-15 200,074 0.17200,000 Societe Generale FRN 2007-06-20 199,964 0.17200,000 EchoStar DBS 6.3750% 2011-10-01 199,250 0.17150,000 American Airlines 7.858% 2013-04-01 163,969 0.14150,000 Vodafone Group FRN 2007-06-29 150,028 0.13100,000 Teco Energy Inc. 7.50% 2010-06-15 107,000 0.09100,000 Sierra Pacific Resources 6.00% 2016-05-15 100,718 0.09100,000 Skandinav Enskilda Bank NY FRN 2008-02-04 100,050 0.09100,000 Consumers Energy 5% 2015-03-15 95,946 0.0831,621,012 26.77Government bonds10,300,000 US Treasury 3.875% 2010-05-15 10,038,074 8.505,000,000 US Treasury 6.25% 2023-08-15 5,756,645 4.872,300,000 US Treasury IL 0.875% 2010-04-15 2,325,282 1.97700,000 New York City 4.75% 2038-15-06 720,937 0.61600,000 Russia 5% Step 2030-03-31 678,793 0.57500,000 US Treasury 0% 2007-03-01. 495,834 0.42425,000 US Treasury 0% 2007-03-15 420,954 0.3620,436,519 17.30Treasury Notes1,050,000 US Treasury Notes 3.375% 2007-01-15 1,336,008 1.13850,000 US Treasury 2.00% 2026-01-15 813,347 0.692,149,355 1.8268

GAM Star USD BondPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %Other bonds700,000 Rabobank Capital Fund III 144A FRN Perp2049-12-29 676,179 0.58600,000 Conocophil AU FRN 2009-04-09 600,860 0.51500,000 Fortis Bank NY FRN 2008-04-28 500,147 0.42400,000 Unicredito Luxem Fin FRN 2008-10-24 400,195 0.35300,000 World Savings Bank FSB FRN 2009-03-02 300,999 0.25300,000 Hewlett-Packard FRN 2009-05-22 300,675 0.25300,000 Viacom INC 5.75% 2011-04-30 144A 300,437 0.25300,000 Merrill Lynch FRN 2008-10-23 300,199 0.25300,000 World Savings Bank FSB FRN 2009-05-08 300,139 0.25300,000 ABX Financing Co 144A CO GTD 2016-10-15 298,889 0.25200,000 Teco Energy Inc. 6.75% 2015-05-01 210,000 0.18200,000 Westfield Cap 144A SR NT 2016-10-01 201,123 0.17200,000 Santander US Debt SA FRN 2008-09-19 144A 200,349 0.17200,000 Enbridge Energy Partners 5.875% 2016-12-15 200,293 0.17200,000 Royal Bank of Scotland PLC FRN 2008-07-21 144A 200,211 0.17200,000 Dominion Resources Inc FRN 2008-11-14 200,133 0.17200,000 Nordea Bank Finland NY FRN 2008-03-31 199,869 0.17100,000 Allied Waste North America 6.5% 2010-11-15 100,750 0.09100,000 Skandinav Enskilda Bank NY FRN 2007-10-03 99,972 0.085,591,419 4.73Mortgage Pass Thru22,400,000 Fannie Mae TBA 5.5% 2037-11-07 22,141,011 18.7421,000,000 Fannie Mae TBA 6.0% 2035-01-12 21,144,375 17.9012,794,138 Fannie Mae 5.0% 2036-03-01 12,359,834 10.46986,418 Fannie Mae 5.50% 2036-04-01 975,115 0.83981,232 Fannie Mae 5.50% 2036-04-01 969,989 0.82979,284 END 968,061 0.82961,968 Fannie Mae 5.50% 2036-04-01 950,944 0.81948,535 Fannie Mae 5.50% 2036-02-01 937,667 0.79922,618 Fannie Mae 5.50% 2036-06-01 912,047 0.77900,000 MBNA Credit Card Master Note Trust 2009-08-17 900,823 0.76761,905 Georgia Pacific Corp Term Loan B 2012-12-20 766,349 0.65735,577 Freddie Mac MTG 5.00% 2025-07-15 732,251 0.62596,477 Residential Asset Securities CorporationFRN 2036-06-25 596,894 0.52593,540 CWL 2006-23 2A1 STEP FRN 1MLIB+5 2037-11-25 593,355 0.50540,971 FN ARM 732218 FRN 2043-06-01 543,879 0.46535,826 CWL 2006-11 3AV1 1MLIB+6 2046-06-25 536,170 0.45500,000 CWALT 2006-OA20 A1 1MLIB+18 FRN 2046-01-25 500,862 0.43500,000 CWL 2006-24 2A1 1MLIB+5 FRN 2036-12-26 500,627 0.43500,143 New Century Home Equity Loan Trust FRN 2036-08-25 500,492 0.43500,000 SLMA 2006-8 A1 2012-04-25 499,922 0.42500,000 Federal Home Loan MTG 4% 2026-02-15 492,508 0.42500,000 Master Adjustable Rate Mortgage Trust FRN 2034-11-21 485,871 0.41450,423 INABS 2006-D 2A1 SEQ 1MLIB 2036-11-25 450,712 0.38400,000 Comm 2006-CNL2 A-1 FRN 2019-02-05 401,666 0.34400,000 CHAMT 2003-6 A FRN 2011-02-15 401,180 0.34400,000 Washington Mutual 2006-AR19 1A1A 12MTA+73 FRN 2047-01-25 400,627 0.34400,000 WFHET 2006-3 A1 1MLIB+5 FRN 2037-01-25 400,564 0.3469

GAM Star USD BondPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %400,000 MABS 2006-HE5 A1 1MLIB+6 FRN 2036-11-25 400,501 0.34400,000 Asset Backed Funding Certificates ABFC 2006-OHE1 A2A 2037-01-25 400,256 0.34397,359 Long Beach MTG (LMBLT) FRN 2046-10-25 397,712 0.34396,624 Thornburg Mortgage Securities Trust 2006-6 A1 FRN 2036-12-25 396,489 0.34394,414 HASC 2006-HE2 2A1 FRN 2036-12-25 393,674 0.33389,555 FNR 2006-118 A2 FRN 1MLIB+5 2036-12-25 390,472 0.33379,599 CWL 2006-15 A1 2046-10-25 379,793 0.32348,959 Fremont Home Loan Trust 2006-C 2A1 FRN 2036-10-25 349,182 0.30299,850 CWALT 2006-OA19 A1 FRN 1MLIB+18 2046-12-25 300,886 0.25300,000 Chase Credit Card Master Trust 2003-3 A2010-10-15 300,762 0.25300,000 Arkle 2006-1A 1A 1MLIB-2 144A FRN 2007-10-17 300,517 0.25300,000 CHASE ISSUANCE TRUST 2006-A3 A3 1MLIB-1 300,418 0.25300,000 CHAMT 2002-5 A 1ML+10 2009-10-15 300,361 0.25300,000 DCAT 2006-D A1 2007-08-12 300,285 0.25300,000 TBW Mortgage Backed Pass Through Certificates 2036-12-25 300,282 0.25300,000 Merrill Lynch Mortgage Investors Trust MLMI 2006-FF1 A2A FRN 2036-08-25 300,282 0.25300,000 COAFT 2006-C A1 FRN 2007-12-14 300,255 0.25300,000 Citibank Credit Card Issuance Trust 2003-A4 2009-03-20 300,248 0.25297,958 Washington Mutual 2006-AR17 2A 11COFI+150 FRN 2046-12-25 300,248 0.25300,000 CBASS 2006-CB9 A1 FRN 1ML+6 2036-11-25 300,192 0.25300,000 JPMAC 2006-WMC3 A3 SEQ 1MLIB+11 FRN 2036-08-25 300,192 0.25300,000 JPMAC 2006-CH2 AF1A FRN 2036-10-25 300,166 0.25300,000 NSLT 2006-3 A1 3ML-2 FRN 2012-09-25 300,000 0.25300,000 SLMA 2006-10 A1 3MLIB-3 2013-07-25 300,000 0.25300,000 WMABS 2006-HE5 2A1 STEP 1MLIB+6 2036-10-25 299,906 0.25300,000 Fremont Home Loan Trust FRN 2037-25-01 299,813 0.25300,000 INABS 2006-E 2A1 STEP 1MLIB+6 2037-04-25 299,438 0.25293,237 Impac Secured Assets Corp IMSA 2006-4 A2A FRN 2036-09-25 293,529 0.25291,456 FFML 2006-FF15 A3 1MLIB+5 2036-11-25 291,724 0.25290,986 First Franklin Mtge Loan Assetb Backed -2006-FF16 2A1 1MLIB+1 FRN 25-12-2036 291,146 0.25289,331 Washington Mutual 2006-AR17 1A1A 12MTA+81 FRN 2046-12-25 290,284 0.25287,693 RASC 2006-KS9 AI1 1MLIB+7 FRN 2036-11-25 287,901 0.24274,363 Merrill Lynch Mtge Investor Trust A2A 1MLIB+5 FRN 2037-10-25 274,539 0.23271,196 SVHE 2006-EQ1 A1 SEQ 1MLIB+5 2036-09-01 271,370 0.23269,604 JPMAC 2006-HE3 A2 1MLIB+5 FRN 2036-11-25 269,777 0.23264,137 INABS 2006-A A1 SEQ Step FRN 2036-03-25 264,329 0.22263,417 GS Mortgage Securities Corporation II 2006-FL8A A1 1ML+10 144A 2020-06-06 263,626 0.22261,263 JPMAC 2006-WMC3 A2 SEQ 1ML+5 FRN 2036-08-25 261,410 0.22256,728 LXS 2006-12N A1A1 FRN 2046-08-25 256,954 0.22256,212 Washington Mutual 2005-AR13 A1A 2045-10-25 256,717 0.22254,250 Residential Asset Security Corporation FRN 2036-01-25 254,443 0.22229,712 Merrill Lynch Mortgage Investors Trust MLMI 2006-RM3 A2A FRN 1ML+3 2037-06-25 229,873 0.20226,103 NSLT 2004-4 A3 1ML+9 FRN 2016-10-25 226,238 0.19214,792 LXS 2006-9 A1A 1MLIB+7 FRN 2046-05-25 214,889 0.18200,000 BSCMS 1998-C1-A2 FRN 2008-06-16 202,443 0.17200,000 Long Beach MTG (LMBLT) FRN 2036-11-25 200,194 0.17200,000 SVHE 2006-WF2 A2A FRN 2036-12-25 200,188 0.17200,000 ACCR 2005-3 A2B FRN 2035-09-25 200,181 0.17200,000 ARSI 2006-M1 A2B FRN 2036-07-25 200,156 0.17200,000 BSABS 2006-HE9 1A1 1MLIB+5 FRN 2036-11-25 200,135 0.17200,000 ABSHE 2006-HE7 A2 1MLIB+5 FRN 2036-11-25 200,128 0.1770

GAM Star USD BondPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %200,000 CMLTI 2006-WFH3 A2 1MLIB+11 FRN 2036-10-27 200,128 0.17200,000 SLMA 2006-9 A1 FRN 3MLIB-3 2012-10-25 199,969 0.17200,000 Thornburg Mortgage Securities Trust 2006-2 A1C FRN 2036-04-25 199,627 0.17197,982 Freddie Mac MTG 5.57% 2036-05-15 197,959 0.17195,113 Federal National Mortgage Association FRN 2044-10-01 196,708 0.17192,337 RASC 2006-EMX9 1A1 1MLIB+8 FRN 2035-11-25 192,450 0.16192,366 SURF 2006-BC5 A2B FRN 2037-11-25 192,276 0.16191,811 Morgan Stanley ABS Capital I – MSAC 2036-10-25 191,751 0.16191,229 MSIX 2006-2 A1 1MLIB+5 FRN 2036-12-25 191,323 0.16190,693 LXS 2006-17 WF1 1MLIB+12 FRN 2036-11-25 190,753 0.16189,997 LXS 2006-16N A1A 1MLIB+8 FRN 2046-11-25 190,086 0.16187,835 CMLTI 2006-WFH3 A1 1MLIB+5 FRN 2036-10-27 187,956 0.16187,613 Long Beach MTG (LMBLT) FRN 2036-10-25 187,734 0.16186,803 INDX 2006-AR14 1A1A 1MLIB+9 FRN 2046-11-25 187,470 0.16185,557 Structured Asset Securities Corp SASC 2006-BC3 A2 2036-10-25 185,499 0.16181,564 Merrill Lynch Floating Trust 2006-1 A1 144A 1ML+7 2022-06-15 181,677 0.16176,937 Washington Mutual 2005-AR2 2A1A 2045-01-25 177,365 0.15176,901 ARSI 2006-W1 A2A FRN 2036-03-25 177,037 0.15173,233 Long Beach MTG (LBMLT) FRN 2036-08-25 173,356 0.15168,171 SABR 2006-NC1 A1 1MLIB+6 2036-03-25 168,289 0.14165,079 NCMT 2006-1 A1 1MLIB+7 FRN 2036-03-25 165,212 0.14163,105 NSLT 2006-2 A1 3MLIB-3 FRN 2014-10-27 163,197 0.14162,543 Asset Backed Funding Certificates ABFC 2006-OPT3 FRN 2036-11-25 162,662 0.14158,626 LXS 2006-11 1A1 1MLIB+8 FRN 2046-06-25 158,690 0.14156,071 HAROT 2006-3 A1 1MLIB-5 2007-11-15 156,154 0.13154,718 SURF 2006-BC3 A2A FRN 2037-06-25 154,827 0.13154,452 Structured Asset Investment Loan Trust SAIL 2006-4 2036-07-25 154,551 0.13153,904 SASC 2005-WF4 A2 1ML+9 FRN 2035-11-25 154,023 0.13150,695 Gsamp 2006-FM2 A2A Step 1MLIB+7 2036-09-25 150,803 0.13150,329 SVHE 2006-3 A1 1MLIB+4 FRN 25-11-2036 150,445 0.13149,115 Morgan Stanley ABS Capital I – MSAC 2006-HE4 A1 FRN 2036-06-25 149,211 0.13147,920 Wachovia Auto Loan Owner Trust WALOT 2006-2 A1 2007-11-09 148,034 0.13147,519 LXS 2006-4N A1 1MLIB+9 FRN 2046-04-25 147,614 0.12141,602 Option One Mortgage Loand Trust 2006-2 2A1 FRN 2036-07-25 141,701 0.12142,372 Freddie Mac MTG FRN 2023-10-15 140,105 0.12136,183 Residental Asset Corp FRN 2025-09-25 136,287 0.12134,826 JPMAC 2005-OPT1 A3 1MLIB+21 FRN 2035-06-25 135,172 0.11132,218 CWALT 2005-61 2A1 1MLIB+28 FRN 2035-12-25 132,608 0.11131,075 SACO 2004-2 M1 1MLIB FRN 2035-10-25 144A 131,238 0.11129,985 RALI 2005-Q01 A1 1MLIB+30 FRN 2035-08-25 130,210 0.11125,309 New Century Home Equity Loan Trust FRN 2035-06-25 125,632 0.11123,130 Long Beach MTG (LMBLT) FRN 2036-06-25 123,221 0.10116,631 Washington Mutual 2006-AR17 1A 12MTA+120 FRN 2042-11-25 117,122 0.10113,447 Fannie MAE FNR 2003-15 WF 1MLIB+35 FRN 2017-08-25 113,982 0.10106,458 Home Equity Asset Trust (HEAT) 2036-02-25 106,549 0.09104,306 Long Beach MTG (LMBLT) FRN 2036-04-25 104,385 0.09102,394 Fordo 2006-B A1 2007-09-15 102,485 0.09100,855 JPMAC 2006-WMC1 A2 1MLIB+7 2036-03-25 100,898 0.09100,471 Gsamp Trust FRN 2035-11-25 100,540 0.09100,000 Nelnet Student Loan Trust (3MLIB+9) FRN2016-07-25 100,282 0.08100,000 Bank One Issuance Trust BOIT 2003-A3 A31ML+11 FRN 2010-12-15 100,233 0.0871

GAM Star USD BondPortfolio Statement31.12.2006Holding Description Fair Value Net AssetsUS$ %100,000 Bank One Issuance Trust BOIT 2004-A2 A21ML+3 FRN 2009-10-15 100,071 0.0899,843 HVMLT 2006-122 A1A1 2036-12-19 100,015 0.0897,212 SVHE 2006-NLC1 A1 1MLIB+8 144A 2036-11-25 97,182 0.0895,238 Georgia Pacific Corp Term Loan B 2012-12-20 95,794 0.0895,068 SASC 2006-11 A1 2035-10-25 94,940 0.0892,763 FN ARM 795297 FRN 2044-07-01 93,458 0.0893,391 Morgan Stanley ABS Capital I – MSAC 2036-09-25 93,451 0.0892,788 ABSHE 2004-HE6 A1 1MLIB+27.5 FRN 2034-09-25 92,796 0.0891,879 ACE 2006-FM2 A2A 1MLIB+5 2036-08-25 91,937 0.0891,737 JPMAC 2006-CH1 A2 1MLIB+5 FRN 2028-11-25 91,788 0.0891,599 ACE 2006-HE4 A2A 1MLIB+4 2036-10-25 91,648 0.0889,856 SABR 2006-NC3 A2A 1MLIB+5 2036-11-25 89,906 0.0885,238 Georgia Pacific Corp Term Loan B 2012-12-20 85,735 0.0778,772 TBW Mortgage Backed Pass Through Certificates 2036-09-25 78,859 0.0777,570 ABFC 2006-OPT2 A3A 1MLIB+6 2036-10-25 144A 77,614 0.0775,930 LXS 2006-GB1 A1 1MLIB+9 FRN 2046-05-25 75,933 0.0675,768 Gsamp 2006-S6 A1A 1MLIB+7 2036-11-25 75,813 0.0674,929 Hyundai Auto Receivables Trust HART 2006-B A1 2007-11-15 74,972 0.0674,456 TAROT 2006-C A1 WM12 WC17.3065 2007-11-13 74,515 0.0662,592 Long Beach MTG (LMBLT) FRN 2034-10-25 62,661 0.0562,240 CGCMT 2006-FL2 FRN 2021-08-15 144A 62,347 0.0561,669 Bear Stearns FRN 2035-12-25 61,717 0.0558,908 AMSI 2004-R4 A1A 1MLIB+33 144A 2034-06-25 58,975 0.0555,923 New Century Home Equity Loan Trust FRN 2036-04-25 55,964 0.0554,932 Gsamp Trust FRN 2036-02-28 54,978 0.0551,559 Merrill Lynch (MLMI)FRN 2037-03-255 51,600 0.0447,619 Georgia Pacific Corp Term Loan B 2012-12-20 47,897 0.0446,132 MMLC Mortgage Investors FRN 2028-06-25 46,371 0.0445,661 Residential Asset Security Corporation FRN 2036-02-25 45,697 0.0444,534 Long Beach MTG (LMBLT) FRN 2036-03-25 44,569 0.0444,365 SVHE 2005-OPT3 A2 1MLIB+11 FRN 2035-11-25 44,397 0.0443,204 SMLA 2004-04 A3 FRN 2013-10-25 43,261 0.0440,103 AHM 2005-2 5A2 1MLIB+15 FRN 2035-09-25 40,131 0.0335,236 Fremont Home Loan Trust FRN 2036-25-01 35,261 0.0333,132 SACO 2006-4 A2 1MLIB+7 FRN 2036-03-25 33,153 0.0323,900 JP Morgan MTG Acquisition Corp FRN 2026--01-25 23,918 0.0221,764 Soundview Home Equity Loan Trust FRN2036-02-25 21,780 0.0215,344 AABST 2005-4 1A1 FRN 2035-10-25 15,356 0.016,624 Long Beach MTG (LMBLT) FRN 2035-09-25 6,627 0.016,094 QUEST TRUST 2005-X2 A1 FRN 2035-12-25 6,098 0.014,438 CMLTI 2004-RES1 A1 1MLIB+30 FRN 2034-11-25 4,442 0.0096,249,412 81.47Mortgage-backed525,000 Federal Home Loan Mortgage 4.00% 2022-04-15 519,159 0.44500,000 CARR 2006-NC5 A1 1ML+5 FRN 2037-01-25 500,518 0.42469,108 CWL 2006-18 2A1 SEQ 1MLIB+5 2036-09-25 469,409 0.40379,725 Thornburg Mortgage Securities Trust 2006-5 A1 FRN 2036-08-25 379,252 0.32300,000 CWL 2006-22 2A1 1ML+5 2036-12-25 300,192 0.25269,915 Citigroup Mortgage Loan Trust FRN 2035-12-25 266,175 0.2372

GAM Star USD BondPortfolio Statement31.12.2006Holding Description Fair Value Net Assets/(Liabilities)US$ %190,513 CWL 2006-19 2A1 1MLIB+6 2036-07-25 190,620 0.16190,006 Carrington Mortgage Loan Trust FRN 2036-04-25 190,138 0.16184,150 CWL 2006-17 2A1 ARM 1MLIB+5 2046-10-25 184,268 0.16178,691 CWL 2006-16 2A1 SEQ 1MLIB+5 FRN 2036-10-25 178,806 0.15159,832 Federal Home Loan Mortgage 4.50% 2025-12-15 157,817 0.13104,681 Morgan Stanley (MSC) FRN 2036-02-25 104,758 0.0994,797 Freddie Mac FRN 2016-06-15 94,632 0.0870,935 Freddie Mac FRN 2031-06-15 71,048 0.0653,299 CWL 2006-6 2A1 1ML+7 FRN 2027-02-25 53,335 0.0550,444 CWJL 2005-1 1A1 AS 1MLIB+32 FRN 2035-03-25 50,580 0.0444,806 Harborview Mortgage Loan Trust FRN 2035--06-20 45,003 0.043,755,710 3.18Open Futures Contracts116 90 Day Euro$ (CME) June 2008* 136,375 0.12112 90 Day Eur$ (CME) March 2008* 134,600 0.11117 90 Day Euro$ (CME) September 2008* 51,638 0.04100 90 Day EURO$ (CME) December 2007* 35,000 0.0332 90 Day Euro$ (CME) June 2009* 32,800 0.0332 90 Day Euro$ (CME) March 2009* 32,000 0.03-22 US 10Yr Note Future (CBT) March 2007* 30,938 0.0332 90 Day Euro$ Future (CME) December 2008* 30,000 0.0322 US Long Bond (CBT) Future March 2007* (53,967) (0.05)138 90 Day Sterling (LIFFE) Futures December 2007* (56,092) (0.05)373,292 0.32Options225 90 Day Euro$ (EDU7P) 91.00 Puts September 2007 1,406 0.00160 90 Day Euro$ (CME) 91.75 Puts December 2006 1,000 0.0060 90 Day Euro$ (CME) 92.50 Puts March 2007 375 0.0054 90 Day Euro$ (EDMZP) 91.25 Puts June 2007 338 0.0040 90 Day Euro$ (EDU7P) 90.25 Puts September 2007 250 0.00(Total Cost of Options $4,369) 3,369 0.0073

GAM Star USD BondPortfolio Statement31.12.2006Notional Amount Description Maturity Date Fair Value Net Assets/(Liabilities)US$ %Credit Default Swaps1,700,000 Ford Motor Crdt SP 04/07/06-20/09/11 77864 2011-09-20 129,746 0.111,700,000 GMAC BP DUB 03/07/06-20/09/11 77872 2011-09-20 (106,290) (0.09)23,456 0.02Currency Notional Amount Fund pays Fund receives Termination Date Fair Value Net Assets/(Liabilities)US$ %Interest Rate SwapsUSD 21,600,000 3M LIBOR USD 5% 2008-12-19 1,220 0.00GBP 400,000 4% 6M LIBOR GBP 2035-12-15 469 0.00GBP 300,000 4% 6M LIBOR GBP 2035-12-15 352 0.00USD 5,000,000 3M LIBOR USD 5% 2008-12-19 283 0.00JPY 285,000,000 2% 6M LIBOR GBP 2016-06-20 (30,992) (0.03)CAD 29,300,000 4.50% 3MCBK** 2007-12-15 (53,118) (0.04)(Total Cost of Interest Rate Swaps (US$31,880)) (81,786) (0.07)Notional Amount Description Fair Value Net Assets/(Liabilities)US$ %Swap Options13,000,000 SWP098676 5.50 Calls June 2007 125,359 0.11-6,000,000 SWP098684 5.60 Calls June 2007 (151,782) (0.13)(Total Cost of Swap Options (US$3,900)) (26,423) (0.02)Open Forward contracts US$ %Net unrealised loss on currency forwards (Note 12 (a)) (29,787) (0.03)(29,787) (0.03)Total Investments 166,262,380 140.74Net Current Liabilities (48,128,282) (40.74)Net Assets 118,134,098 100.00Total Investment at Cost 166,255,684* Counterparty – JP Morgan Bank** 3 month Canadian Bankers AcceptancesAnalysis of Net Assets %Transferable securities admitted to an official stock exchange listing 31.73Transferable securities dealt on another regulated market 109.01Net Current Assets (40.74)100.0074

GAM Star USD BondPortfolio Changes31.12.2006Major PurchasesCostUS$000sMajor SalesProceedsUS$000sUS Treasury 5.20% 2006-09-22 (Repo) 23,600US Treasury 5.21% 2006-09-25 (Repo) 23,100Fannie Mae TBA 5.5% 2037-11-07 22,298FNMA TBA 5.5% 2036-12-12 22,103FNMA TBA 5.5% 2036-11-13 21,959Fannie Mae TBA 6.0% 2035-01-12 21,217FNMA TBA 6.0% 2036-11-13 20,102Fannie Mae TBA 6.0% 2036-10-12 20,013Fannie Mae TBA 6.0% 2036-09-13 19,880US Treasury 5.15% 2006-08-21 (Repo) 19,500US Treasury 5.17% 2006-08-22 (Repo) 18,600Fannie Mae TBA 5.5% 2036-10-12 18,071Fannie Mae TBA 5.5% 2036-09-13 17,895FNMA TBA 5.5% 2036-08-14 17,652US Treasury 5.15% 2006-07-10 (Repo) 17,600US Treasury 5.20% 2006-09-21 (Repo) 17,500US Treasury 5.17% 2006-07-07 (Repo) 17,100FNMA TBA 6.0% 2036-12-12 17,096US Treasury 5.20% 2006-08-07 (Repo) 16,700US Treasury 5.16% 2006-07-11 (Repo) 16,700US Treasury 5.19% 2006-08-04 (Repo) 16,600US Treasury 5.16% 2006-08-09 (Repo) 16,300US Treasury 5.20% 2006-08-18 (Repo) 16,200US Treasury 5.18% 2006-08-15 (Repo) 16,100US Treasury 5.22% 2006-08-08 (Repo) 16,100US Treasury 5.19% 2006-08-28 (Repo) 15,300US Treasury 5.15% 2006-07-12 (Repo) 15,200US Treasury 5.20% 2006-08-25 (Repo) 15,000US Treasury 5.20% 2006-08-29 (Repo) 14,700US Treasury 5.17% 2006-07-13 (Repo) 14,600US Treasury 5.20% 2006-08-30 (Repo) 14,500US Treasury 5.20% 2006-09-22 (Repo) 23,600US Treasury 5.21% 2006-09-25 (Repo) 23,100FNMA TBA 5.5% 2036-12-12 22,299FNMA TBA 5.5% 2036-11-13 22,111FNMA TBA 6.0% 2036-11-13 20,115Fannie Mae TBA 6.0% 2036-10-12 20,111Fannie Mae TBA 6.0% 2036-09-13 20,025FNMA TBA 6.0% 2036-08-14 19,891US Treasury 5.15% 2006-08-21 (Repo) 19,500US Treasury 5.17% 2006-08-22 (Repo) 18,600Fannie Mae TBA 5.5% 2036-09-13 18,078Fannie Mae TBA 5.5% 2036-10-12 18,044FNMA TBA 5.5% 2036-08-14 17,902Fannie Mae TBA 5.5% 2036-07-13 17,662US Treasury 5.15% 2006-07-10 (Repo) 17,600US Treasury 5.20% 2006-09-21 (Repo) 17,500FNMA TBA 6.0% 2036-12-12 17,184US Treasury 5.17% 2006-07-07 (Repo) 17,100US Treasury 5.16% 2006-07-11 (Repo) 16,700US Treasury 5.20% 2006-08-07 (Repo) 16,700US Treasury 5.19% 2006-08-04 (Repo) 16,600US Treasury 5.16% 2006-08-09 (Repo) 16,300US Treasury 5.20% 2006-08-18 (Repo) 16,200US Treasury 5.18% 2006-08-15 (Repo) 16,100US Treasury 5.22% 2006-08-08 (Repo) 16,100US Treasury 5.19% 2006-08-28 (Repo) 15,300US Treasury 5.15% 2006-07-12 (Repo) 15,200US Treasury 5.20% 2006-08-25 (Repo) 15,000US Treasury 5.20% 2006-08-29 (Repo) 14,700US Treasury 5.17% 2006-07-13 (Repo) 14,600US Treasury 5.20% 2006-08-30 (Repo) 14,500Total for the period 1,390,325Total for the period 1,408,77075

GAM Star Fund p.l.c.Balance SheetAs at 31 December 2006GAM StarFund GAM Star GAM Star GAM Starp.l.c. American Asian Asia-PacificUS$ Equity Equity EquityNotes 31 Dec 2006 US$ US$ US$Current AssetsCash and bank balances 10(a) 150,870,477 22,054,235 – 31,532,007Debtors 9(a) 50,611,319 2,108,778 525,229 9,560,619Financial assets at fair value 8(a) 6,190,995,934 187,888,487 131,573,884 878,639,567Total current assets 6,392,477,730 212,051,500 132,099,113 919,732,193Current LiabilitiesCreditors 11(a) 116,700,040 2,498,759 3,591,215 2,390,009Bank overdrafts 10(a) 1,737,328 – 4,299 –Financial liabilities at fair value 8(b) 7,136,981 – – –Total current liabilities 125,574,349 2,498,759 3,595,514 2,390,009Net Assets attributable to redeemable participating shareholders at the end of the period 6,266,903,381 209,552,741 128,503,599 917,342,18476

GAM Star Fund p.l.c.GAM StarGAM StarContinental GAM Star European GAM Star GAM Star GAM Star GAM Star GAM StarEuropean European Systematic Worldwide International Japan UK Dynamic US GAM Star GAM Star GAM StarEquity Equity value Equity Equity Equity Equity Equity EUR Bond GBP Bond USD Bond€ € € US$ US$ ¥ £ US$ € £ US$– – 9,811,055 26,648,603 1,980,011 2,551,352,838 10,449,675 2,241,565 4,012,819 874,386 4,563,303134,275 6,087,400 2,479,682 3,764,699 46,738 1,204,216,431 1,059,560 96,592 5,041,255 1,713,570 829,97377,418,290 1,021,277,369 437,123,119 185,630,550 19,539,442 247,186,219,000 148,106,471 31,321,732 101,775,632 31,445,299 166,781,54377,552,565 1,027,364,769 449,413,856 216,043,852 21,566,191 250,941,788,269 159,615,706 33,659,889 110,829,706 34,033,255 172,174,819140,207 2,653,240 873,945 950,851 69,812 617,565,950 1,093,606 152,350 20,525,777 7,451,315 53,138,92168,500 954,422 – – – – – – – – 382,637– – – 69,695 – – 707,400 – 2,922,593 666,478 519,163208,707 3,607,662 873,945 1,020,546 69,812 617,565,950 1,801,006 152,350 23,448,370 8,117,793 54,040,72177,343,858 1,023,757,107 448,539,911 215,023,306 21,496,379 250,324,222,319 157,814,700 33,507,539 87,381,336 25,915,462 118,134,09877

GAM Star Fund p.l.c.Balance SheetAs at 30 June 2006GAM StarFund GAM Star GAM Starp.l.c. American Asia-PacificUS$ Equity EquityNotes 30 June 2006 US$ US$Current AssetsCash and bank balances 10(b) 222,915,116 72,142,313 18,676,735Debtors 9(b) 199,622,051 2,383,284 12,313,075Financial assets at fair value 8(c) 5,077,218,306 190,126,027 772,328,063Total current assets 5,499,755,473 264,651,624 803,317,873Current LiabilitiesCreditors 11(b) 141,753,526 527,881 3,357,076Bank overdrafts 10(b) 16,198,929 – –Financial liabilities at fair value 8(d) 8,039,121 – –Distribution payable on income shares 2,997,819 84,034 –Total current liabilities 168,989,395 611,915 3,357,076Net Assets attributable to redeemable participating shareholders at the end of the period 5,330,766,078 264,039,709 799,960,79778

GAM Star Fund p.l.c.GAM StarGAM StarContinental GAM Star European GAM Star GAM Star GAM Star GAM Star GAM StarEuropean European Systematic Worldwide International Japan UK Dynamic US GAM Star GAM Star GAM StarEquity Equity Value Equity Equity Equity Equity Equity EUR Bond GBP Bond USD Bond€ € € US$ ¥ £ US$ € £ US$– 25,655,380 8,470,234 23,030,289 2,231,003 5,046,457,944 – 101,270 8,388,028 1,904,090 4,919,8146,691,648 16,622,207 3,895,228 422,131 397,223 11,516,636,135 9,552,750 69,152 7,483,076 454,601 20,951,17656,405,266 690,013,901 293,615,383 127,287,945 17,211,371 225,014,060,900 158,639,057 34,156,289 94,997,065 27,265,453 182,599,87163,096,914 732,291,488 305,980,845 150,740,365 19,839,597 241,577,154,979 168,191,807 34,326,711 110,868,169 29,624,144 208,470,861111,333 7,974,539 940,701 754,453 30,932 1,484,059,054 1,664,577 110,524 18,623,003 3,235,723 79,625,6494,600,295 – – –- –- – 5,576,217 – – – –– – – 121,466 – – 1,489,850 – 2,573,408 511,743 931,864– 1,168,205 73,232 1,002,114 3,873 – 29,245 1,006 9,796 135,107 2,1044,711,628 9,142,744 1,013,933 1,878,033 34,805 1,484,059,054 8,759,889 111,530 21,206,207 3,882,573 80,599,61758,385,286 723,148,744 304,966,912 148,862,332 19,804,792 240,093,095,925 159,431,918 34,215,181 89,661,962 25,741,571 127,911,24479

GAM Star Fund p.l.c.Notes to the Balance Sheet1. GAM Star Fund p.l.c.The various funds comprising GAM Star Fund p.l.c. as at 31 December 2006 areas follows:GAM Star American EquityGAM Star Asian Equity(Launched on 28 August 2006)GAM Star Asia-Pacific EquityGAM Star Continental European EquityGAM Star European EquityGAM Star European Systematic ValueGAM Star Worldwide Equity(Launched on 24 February 2006)GAM Star International EquityGAM Star Japan EquityGAM Star UK Dynamic EquityGAM Star US EquityGAM Star EUR BondGAM Star GBP BondGAM Star USD BondThe Company is an umbrella fund with segregated liability between Funds.Accordingly any liability incurred on behalf of or attributable to any Fund of theCompany shall be discharged solely out of the assets of that Fund, and neitherthe Company nor any director, receiver, examiner, liquidator, provisional liquidatoror other person shall apply, nor be obliged to apply, the assets of any such Fundin satisfaction of any liability incurred on behalf of or attributable to any otherFund of the Company, irrespective of when such liability was incurred.2. Accounting policies(a) Basis of presentation of reportThis report has been prepared under the historical cost basis, as modified by therevaluation of investments, and in accordance with the Prospectus.(b) Investments at fair valueThis category has two sub-categories: financial assets and liabilities held fortrading, and those designated by management at fair value through profit or lossat inception. Financial assets or liabilities held for trading are acquired orincurred principally for the purpose of selling or repurchasing in the short term.Derivatives are also categorised as held for trading, as the Company does notdesignate any derivatives as hedges in a hedging relationship.Normal-way purchases and sales of investments are recognised on trade date –the date on which the Company commits to purchase or sell the asset.Investments are initially recognised at fair value, and transaction costs for allfinancial assets carried at fair value through profit or loss are expensed asincurred. Investments are derecognised when the rights to receive cash flowsfrom the investments have expired or the Company has transferred substantiallyall risks and rewards of ownership.The fair value of financial instruments traded in active markets (such as publiclytraded derivatives and trading securities) is based on quoted market prices at thebalance sheet date. The quoted market price used for financial assets held by theCompany is the current bid price and current ask price for financial liabilities.When the Company holds derivatives with offsetting market risks it uses midmarketprices as a basis for establishing fair values for the offsetting risk positionsand applies the bid or asking price to the net open position, as appropriate.80The Company may from time to time invest in financial instruments that are nottraded in an active market (for example in over the counter derivatives). The fairvalue is determined by using valuation techniques. The Company uses a varietyof methods and makes assumptions that are based on market conditions existingat each balance sheet date. Valuation techniques used include the use ofcomparable recent arm’s length transactions, discounted cash flow analysis,option pricing models and other valuation techniques commonly used by marketparticipants.(c) Realised Gains and Losses on Sales of InvestmentsInvestment transactions are accounted for on the trade date. The computation ofrealised gains and losses on sales of financial assets and liabilities at fair valuethrough profit or loss is made on the basis of average cost.(d) Income from InvestmentsAll dividends and interest on investments are quoted ex dividend up to theaccounting date. Bank and other interest receivable are accrued up to this date.(e) Foreign Currency TranslationFunctional currencyThe balance sheets of the individual Funds are prepared in the functionalcurrency of the respective Fund. The aggregated balance sheet of the Companyis prepared in the presentation currency of the Company, the US dollar. Thebalance sheets of the individual Funds in overseas currencies are translated forthe purpose of the aggregation of this report, using exchange rates as at31 December 2006.(f) Management expensesManagement expenses are charged against income and used in determining thedistribution.(g) Allocation of IncomeAll the income of the Funds after deduction of expenses, will be allocatedbetween holders of accumulation shares and holders of income shares inaccordance with their respective interests.(h) Financial instruments with off-balance sheet risk.The Funds may enter into forward foreign currency exchange contracts andfinancial futures, for the purposes of efficient portfolio management.(i) When entering a forward currency contract, the Fund agrees to receive ordeliver a fixed quantity of foreign currency for an agreed price upon anagreed future date. These contracts are valued daily and the Fund’s equitytherein, representing unrealised gains or losses on the contracts, isincluded in the Balance Sheet.There were open forward foreign exchange contracts at 31 December2006, and these are disclosed in note 12.(ii) A futures contract obligates one party to sell and the other party topurchase a specific instrument for an agreed price on an agreed futuredate. Initial margin deposits made with respect to futures contacts arerecognised as assets due from the Fund’s broker (the Fund’s agent inacquiring the future position). Subsequent changes in the daily valuation ofopen contacts are recognised as unrealised gains or losses. Variationmargin payments are made or received on traded futures as appreciationor depreciation occurs.There were open futures contracts at 31 December 2006, and these aredisclosed on the Portfolio Statements on pages 5 to 75.

GAM Star Fund p.l.c.Notes to the Balance Sheet(i) Other financial instruments with off-balance sheet riskGAM Star EUR Bond, GAM Star GBP Bond and GAM Star USD Bond may enterinto the following types of instruments:(i) Index optionsAn Index option gives the buyer the right, but not the obligation, to buy(call) or sell (put) an option on a financial index.(ii) Repurchase agreementsSecurities purchased under agreements to resell are valued at cost andadjusted for any movements in foreign exchange rates. Interest rates varyfor each repurchase agreement and are set at the initiation of theagreement. It is the Fund’s policy to value the securities taken as collateralfor the repurchase agreements on a daily basis to protect the Fund in theevent the securities are not repurchased by the counter party. The Fundwill generally obtain additional collateral if the market value of theunderlying securities is less than the face value of the repurchaseagreement plus accrued interest.In the event of default on the obligation to repurchase, the Fund has theright to liquidate the collateral and apply the proceeds in satisfaction of theobligation. In the event of default or bankruptcy by the counterparty to theagreement, realisation and/or retention of the collateral or proceeds may besubject to legal proceedings.(iii) Credit Default SwapsWhen the Fund enters into a Credit Default Swap agreement, an amountequal to the premium paid is recorded as an asset and is subsequentlymarked to market in the balance sheet. Credit Default Swap agreementsare fair valued on the valuation date based upon an estimate of the creditspread of the underlying reference asset, an estimate of expected volatilityand recovery rates using a valuation model.(iv) Interest rate swapsInterest rate swaps may be used as a substitute for a physical security or aless expensive or more liquid way of obtaining desired exposures.(v) Swap optionsSwap options agreements give the option to enter into an interest rate swapagreement on a specified future date in exchange for an option premium.Swap options would generally be used to manage a fund’s interest rate andvolatility exposures.(j) EqualisationAn equalisation account is maintained by each Fund so that the amountdistributed is the same for all shares of the same type notwithstanding differentdates of issue. A sum equal to that part of the issued price of a share whichreflects income (if any) accrued but undistributed up to the date of issue will bedeemed to be an equalisation payment and treated as repaid to shareholders inthe relevant Fund with the first dividend or accumulation to which theshareholder was entitled in the same accounting period as that in which theshares are issued.(k) During the period ended 31 December 2006, the Company participated insecurities lending with J.P. Morgan Chase Bank N.A. London. The Companyearned securities lending income of €65,633 in GAM Star Continental EuropeanEquity, €608,857 in GAM Star European Equity and €266,207 in GAM StarEuropean Systematic Value. The Manager also received securities lending incomeof €7,293 from Star Continental European Equity, €67,651 from GAM StarEuropean Equity, and €29,579 from GAM Star European Systematic Value. As at31 December 2006 the market value and collateral of GAM Star ContinentalEuropean Equity securities on loan was €6,624,230 and €7,238,952respectively, the market value and collateral of GAM Star European Equitysecurities on loan was €88,630,604 and €96,582,119 respectively and themarket value and collateral of GAM Star European Systematic Value securities onloan was €30,270,384 and €32,641,690 respectively.(l) Redeemable participating sharesThe issued redeemable participating share capital is at all times equal to the netasset value of the Company. Redeemable participating shares are redeemable atthe shareholder’s option and are classified as financial liabilities.(m) TaxationUnder current Irish law and practice, the Company qualifies as an investmentundertaking as defined in Section 739B of the Taxes Consolidation Act, 1997 (asamended). It is not chargeable to Irish tax on its income and gains. However, taxcan arise on the happening of a “Chargeable Event” in the Company. AChargeable Event includes any distribution payments to shareholders or anyencashment, cancellation, redemption or transfer of Shares.No Irish tax will arise on the Company in respect of Chargeable Events in respectof a shareholder who is not an Irish Resident and not Ordinarily Resident for taxpurposes in Ireland at the time of the Chargeable Event provided that theappropriate valid declarations in accordance with the provisions of the TaxesConsolidation Act 1997, as amended, are held by the Company; and certainexempted Irish resident investors who have provided the Company with thenecessary signed statutory declarations.Dividends, interest and capital gains (if any) which the Company receives withrespect to its investments may be subject to taxes, including withholding taxes, inthe countries in which the issuers of the investments are located and such taxesmay not be recoverable by the Company or its shareholders.3. Derivatives and other financial instrumentsThe main risks arising from the Funds’ financial instruments are outlined below.The Company’s assets and liabilities comprise financial instruments whichinclude:• Investments including equity and non-equity shares, fixed income securities,and floating rate securities. These are held in accordance with theCompany’s investment objective and policies;• Borrowings; debenture stock; floating rate notes; and term loans: the mainpurpose of which is to raise finance for the Company’s investment activities;• Cash, liquid resources and short-term debtors and creditors that arisedirectly from its investment activities; and• Derivative transactions which the Company also enters into (principallyinterest rate swaps and forward foreign currency contracts), the purpose ofwhich is to manage the interest rate and currency risks arising from theCompany’s investment activities and related financing.81

GAM Star Fund p.l.c.Notes to the Balance SheetAs an investment fund, the Company buys, sells or holds financial assets andliabilities in order to take advantage of changes in market prices or rates.The Company is exposed to market price risk, interest rate risk, credit risk,liquidity risk and currency risk arising from the financial instruments it holds. Therisk management policies employed by the Company to manage these risks arediscussed below.(a) Market Price RiskMarket price risk arises from uncertainty about future prices of financialinstruments held. It represents the potential loss the Funds might suffer throughholding market positions in the face of price movements. The InvestmentManager takes into consideration the asset allocation of the portfolio whenassessing the risk profile associated with particular countries or industry sectorswhilst continuing to follow the investment objectives of the Funds.(b) Foreign Currency RiskA substantial portion of the financial assets of the Funds may be denominated incurrencies other than the functional currency of the Funds with the effect that thebalance sheet and total return can be significantly affected by currencymovements. The Funds may enter into forward foreign currency exchangecontracts in order to hedge against currency movements (as described in note2(h) (i) above.)However, it is not always possible to precisely match the forward foreignexchange amount and the value of the securities involved because the futurevalue of such securities may vary as a consequence of market movements overthe life of the forward exchange contract.The table on pages 98 to 103 sets out the Funds’ total exposure to foreigncurrency risk, the value to be received under foreign currency contracts designedto hedge this exposure and the resulting net unhedged amounts invested inassets denominated in foreign currency.(c) Liquidity RiskThe assets of the Funds comprise mainly realisable securities, which can bereadily sold. However, from time to time, not all securities invested in by theFunds will be listed or rated and consequently liquidity may be low.(d) Redemption RiskThe main liability of the Funds is the redemption of any shares that investors wishto sell. Large redemptions of shares in any of the Funds might result in a Fundbeing forced to sell assets at a time, under circumstances and at a price where itwould, instead, normally prefer not to dispose of those assets.(e) Credit RiskThe Funds may be exposed to a credit risk on parties with whom they trade andmay bear the risk of settlement default. The Company minimises theconcentration of credit risk by undertaking transactions with counterparties onrecognised and reputable exchanges.(f) Interest Rate RiskGAM Star EUR Bond, GAM Star GBP Bond and GAM Star USD Bond invest indebt and other securities of varying quality and ratings. The interest rate profilesof these Funds are set out on page 96. Lower rated securities which may offerhigher yields may be more volatile and may be less liquid than higher ratedsecurities and may also be dealt on markets which are less liquid and havegreater settlement periods than more established markets. The majority of theassets of the other Funds are equity shares and other investments which neitherpay interest nor have a maturity date. However, the Fund may be exposed tointerest rate risk on any cash balances and bank overdrafts.(g) Fair ValueAll the assets of the Funds are held at fair value.4. Share capitalAt 31 December 2006:AuthorisedThe authorised share capital of the Company is €60,000 divided into 30,000subscriber shares of €2.00 each and 1,000,000,000 shares of no par valueinitially designated as unclassified shares.Subscriber sharesThe issued share capital of the Company is €60,000 divided into 30,000subscriber shares of €2.00 each of which €9,529.70 has been paid up andwhich are beneficially owned by the Manager and 363,139,285.46 shares of nopar value designated in different classes in different Funds. The subscribershares do not form part of the net asset value of the Company and are thusdisclosed in the financial statements by way of this note only.In the opinion of the Directors, this disclosure reflects the nature of theCompany’s business as an investment fund.Unclassified sharesThe unclassified shares are available for issue as shares at the discretion of themanager. The issue price is payable in full on acceptance. The shares carry nopreferential or pre-emptive rights. Details of the shares in issue are set out innote 18.5. Exchange ratesThe rates of exchange used to translate assets and liabilities to US dollars at31 December 2006 are:DecemberJune2006 2006Australian dollar 1.2677 1.3444Canadian dollar 1.1657 1.1170Czech koruna 20.8350 22.2700Danish krone 5.6489 5.8310Euro 0.7575 0.7817Hong Kong dollar 7.7780 7.7663Indonesian rupiah 8,993.50 9,263.00Japanese yen 119.0550 114.4400Malaysian ringgit 3.5300 3.6745Nowegian krone 6.2370 6.2238Polish zloty 2.9033 3.1765Pound sterling 0.5108 0.5407Singapore dollar 1.5334 1.5828Swedish krona 6.8444 7.1960Swiss franc 1.2188 1.2229Turkish lira 1.4155 1.5825Taiwan dollar 32.5850 32.369582

GAM Star Fund p.l.c.Notes to the Balance Sheet6. Soft commission arrangementsThe Funds have not engaged in any soft commission arrangements during theperiod.7. Related Party Transactions(a) TradesThere were no trades transacted between the Funds and related parties duringthe period from 1 July 2006 to 31 December 2006.(b) Legal FeesAndrew Bates, Mary Canning and David Dillon may be interested in legal fees ofUS$62,416 paid to the legal advisers of the Company, as partners in DillonEustace.Any such transactions were entered into in the ordinary course of business andon normal commercial terms.(c) FeesEach Fund pays an annual fee in respect of Manager, Sponsor, InvestmentManagement and Delegate Investment Management fees. Details of these fees asapplicable to each Fund can be found in the prospectus and note 13.83

GAM Star Fund p.l.c.Notes to the Balance SheetGAM Star GAM Star GAM StarGAM Star American Asian Asia-PacificFund p.l.c. Equity Equity EquityUS$ US$ US$ US$8. Financial assets/(liabilities) at fair valueFinancial assets at fair value(a) For the period ended 31 December 2006Equities 5,826,159,160 187,888,487 129,936,814 878,639,567Bonds 359,610,684 – 871,326 –Equity warrants 796,581 – 765,744 –Options contracts 24,255 – – –Swap options 314,918 – – –Unrealised appreciation on futures contracts 1,539,541 – – –Unrealised appreciation on forward foreign currency contracts 191,159 – – –Unrealised appreciation on interest rate swaps 2,359,636 – – –6,190,995,934 187,888,487 131,573,884 878,639,567Financial liabilities at fair value(b) For the period ended 31 December 2006Options contracts (24,449) – – –Swap options (350,491) – – –Unrealised depreciation on futures contracts (2,483,797) – – –Unrealised depreciation on forward foreign currency contracts (213,427) – – –Unrealised depreciation on interest rate swaps (4,064,817) – – –(7,136,981) – – –Financial assets at fair value(c) For the year ended 30 June 2006Equities 4,720,217,748 190,126,027 – 772,328,063Bonds 346,711,078 – – –Repurchase agreements 4,400,000 – – –Options contracts 4,130 – – –Swap options 58,022 – – –Credit default swaps 26,609 – – –Unrealised appreciation on futures contracts 2,621,630 – – –Unrealised appreciation on forward foreign currency contracts (Note 15(a)) 447,634 – – –Unrealised appreciation on interest rate swaps 2,731,455 – – –5,077,218,306 190,126,027 – 772,328,063Financial liabilities at fair value(d) For the year ended 30 June 2006Options contracts (20,000) – – –Swap options (62,160) – – –Credit default swaps (78,415) – – –Unrealised depreciation on futures contracts (4,307,441) – – –Unrealised depreciation on forward foreign currency contracts (Note 15(a)) (465,367) – – –Unrealised depreciation on interest rate swaps (3,105,738) – – –(8,039,121) – – –84

GAM Star Fund p.l.c.GAM StarGAM StarContinental GAM Star European GAM Star GAM Star GAM Star GAM StarEuropean European Systematic Worldwide International Japan UK Dynamic GAM Star GAM Star GAM Star GAM StarEquity Equity Value Equity Equity Equity Equity US Equity EUR Bond GBP Bond USD Bond€ € € US$ US$ ¥ £ US$ € £ US$77,418,290 1,021,277,369 437,123,119 185,630,550 19,527,239 247,186,219,000 147,860,321 31,321,732 – – –– – – – – – – – 100,345,639 30,782,782 166,000,259– – – – – – 15,750 – – – –– – – – – – – – 14,810 682 3,369– – – – – – – – 100,423 29,106 125,359– – – – 12,203 – 230,400 – 391,134 39,092 483,351– – – – – – – – 24,768 61,968 37,135– – – – – – – – 898,858 531,669 132,07077,418,290 1,021,277,369 437,123,119 185,630,550 19,539,442 247,186,219,000 148,106,471 31,321,732 101,775,632 31,445,299 166,781,543– – – – – – – – (18,520) – –– – – – – – – – (104,433) (31,076) (151,782)– – – – – – (707,400) – (494,319) (171,691) (110,059)– – – (69,695) – – – – (21,035) (25,048) (66,922)– – – – – – – – (2,284,286) (438,663) (190,400)– – – (69,695) – – (707,400) – (2,922,593) (666,478) (519,163)56,405,266 689,605,091 293,615,383 127,287,945 17,164,048 225,014,060,900 157,623,182 34,156,289 – – –– – – – – – – – 93,371,131 26,714,562 177,850,136– – – – – – – – – – 4,400,000– – – – – – – – 542 411 2,676– – – – – – – – 3,236 – 62,400– – – – – – – – 20,800 – –– 408,810 – – 47,323 – 1,015,875 – 120,234 10,023 –– – – – – – – – 277,717 15,521 63,642– – – – – – – 1,203,405 524,936 221,01756,405,266 690,013,901 293,615,383 127,287,945 17,211,371 225,014,060,900 158,639,057 34,156,289 94,997,065 27,265,453 182,599,871– – – – – – – – (5,777) (650) (11,407)– – – – – – – – (3,422) – (66,300)– – – – – – – – (39,199) (15,283) –– – – – – – (1,489,850) – (393,147) (122,638) (822,030)– – – (121,466) – – – – (182,801) (42,126) (32,127)– – – – – – – – (1,949,062) (331,046) –– – – (121,466) – – (1,489,850) – (2,573,408) (511,743) (931,864)85

GAM Star Fund p.l.c.Notes to the Balance SheetGAM Star GAM Star GAM StarGAM Star American Asian Asia-PacificFund p.l.c. Equity Equity EquityUS$ US$ US$ US$9. Debtors (all due within 1 year)(a) For the period ended 31 December 2006Amounts receivable for subscriptions 31,954,289 984,938 515,971 9,066,582Amounts receivable from brokers for sales of securities 10,078,569 958,585 – –Bond coupon interest receivable 2,640,290 – 1,753 –Accrued income 5,938,171 165,255 7,505 494,03750,611,319 2,108,778 525,229 9,560,619(b) For the year ended 30 June 2006Amounts receivable for subscriptions 104,072,881 2,068,253 – 5,243,760Amounts receivable from brokers for sales of securities 87,280,885 – – 6,250,813Bond coupon interest receivable 2,757,357 – – –Accrued income 5,510,928 315,031 – 818,502199,622,051 2,383,284 – 12,313,07510. Cash and bank balances(a) For the period ended 31 December 2006Cash and bank balances 150,870,477 22,054,235 – 31,532,007Bank overdrafts (unsecured) (1,737,328) – (4,299) –149,133,149 22,054,235 4,299 31,532,007(b) For the year ended 30 June 2006Cash and bank balances 222,915,116 72,142,313 – 18,676,735Bank overdrafts (unsecured) (16,198,929) – – –206,716,187 72,142,313 – 18,676,73586

GAM Star Fund p.l.c.GAM StarGAM StarContinental GAM Star European GAM Star GAM Star GAM Star GAM StarEuropean European Systematic Worldwide International Japan UK Dynamic GAM Star GAM Star GAM Star GAM StarEquity Equity Value Equity Equity Equity Equity US Equity EUR Bond GBP Bond USD Bond€ € € US$ US$ ¥ £ US$ € £ US$133,573 3,481,115 1,933,049 3,199,163 – 1,138,199,823 139,518 39,076 45,000 476,000 –– 707,331 – 300,321 – – 490,043 – 3,776,981 991,023 –– – – – – – – – 1,175,624 240,933 614,835702 1,898,954 546,633 265,215 46,738 66,016,608 429,999 57,516 43,650 5,614 215,138134,275 6,087,400 2,479,682 3,764,699 46,738 1,204,216,431 1,059,560 96,592 5,041,255 1,713,570 829,973123,825 10,005,834 3,264,502 98,169 – 9,003,372,434 289,381 2,199 250,413 26,177 292,0006,525,408 5,384,886 – – 365,644 2,427,317,750 8,926,862 – 5,953,342 152,262 19,901,066– – – – – – – – 1,180,315 276,162 736,59142,415 1,231,487 630,726 323,962 31,579 85,945,951 336,507 66,953 99,006 – 21,5196,691,648 16,622,207 3,895,228 422,131 397,223 11,516,636,135 9,552,750 69,152 7,483,076 454,601 20,951,176– – 9,811,055 26,648,603 1,980,011 2,551,352,838 10,449,675 2,241,565 4,012,819 874,386 4,563,303(68,500) (954,422) – – – – – – – – (382,637)(68,500) (954,422) 9,811,055 26,648,603 1,980,011 2,551,352,838 10,449,675 2,241,565 4,012,819 874,386 4,180,666– 25,655,380 8,470,234 23,030,289 2,231,003 5,046,457,944 – 101,270 8,388,028 1,904,090 4,919,814(4,600,295) – – – – – (5,576,217) – – – –(4,600,295) 25,655,380 8,470,234 23,030,289 2,231,003 5,046,457,944 (5,576,217) 101,270 8,388,028 1,904,090 4,919,81487

GAM Star Fund p.l.c.Notes to the Balance SheetGAM Star GAM Star GAM StarGAM Star American Asian Asia-PacificFund p.l.c. Equity Equity EquityUS$ US$ US$ US$11. Creditors (all due within 1 year)(a) For the period ended 31 December 2006Amounts payable for redemptions 8,945,175 383,235 3,379,836 1,023,059Amounts payable to brokers for purchases of securities 98,214,330 1,812,210 – –Accrued expenses 9,540,535 303,314 211,379 1,366,950116,700,040 2,498,759 3,591,215 2,390,00911. Creditors (all due within 1 year)(b) For the year ended 30 June 2006Amounts payable for redemptions 7,943,745 60,365 – 583,610Amounts payable to brokers for purchases of securities 125,448,381 – – 1,392,212Accrued expenses 8,361,400 467,516 – 1,381,254141,753,526 527,881 – 3,357,07688

GAM Star Fund p.l.c.GAM StarGAM StarContinental GAM Star European GAM Star GAM Star GAM Star GAM StarEuropean European Systematic Worldwide International Japan UK Dynamic GAM Star GAM Star GAM Star GAM StarEquity Equity Value Equity Equity Equity Equity US Equity EUR Bond GBP Bond USD Bond€ € € US$ US$ ¥ £ US$ € £ US$26,880 1,098,660 187,325 38,281 44,563 212,010,031 73,564 86,294 106,066 – 191,926– – – 600,642 – – 774,645 – 20,352,982 7,438,872 52,851,611113,327 1,554,580 686,620 311,928 25,249 405,555,919 245,397 66,056 66,729 12,443 95,384140,207 2,653,240 873,945 950,851 69,812 617,565,950 1,093,606 152,350 20,525,777 7,451,315 53,138,921– 1,413,927 474,234 – – 560,441,930 – – – 4,542 –– 5,308,734 – 524,343 – 570,060,746 1,422,406 – 18,545,370 3,213,170 79,481,781111,333 1,251,878 466,467 230,110 30,932 353,556,378 242,171 110,524 77,633 18,011 143,868111,333 7,974,539 940,701 754,453 30,932 1,484,059,054 1,664,577 110,524 18,623,003 3,235,723 79,625,64989

GAM Star Fund p.l.c.Notes to the Balance Sheet12(a). Forward foreign exchange transactionsAt 31 December 2006 outstanding forward contracts as set out below were held:Purchase currency Contractual amount Sale currency Contractual amount Maturity date Unrealised (loss)/gainsUS$GAM Star Worldwide Equity **Unrealised lossUSD 8,830,246 EUR (6,703,536) 2007-01-12 (24,534)USD 6,696,535 GBP (3,443,131) 2007-01-12 (45,161)(69,695)GAM Star EUR Bond *Unrealised gain€EUR 2,548,135 DKK (19,000,000) 2007-01-31 519EUR 2,100,000 GBP (1,410,423) 2007-01-31 11,048EUR 6,441,967 USD (8,500,000) 2007-01-31 13,20124,768Unrealised lossEUR 44,172 NZD (84,000) 2007-01-11 (593)EUR 1,476,233 GBP (1,000,000) 2007-01-31 (4,848)EUR 1,127,687 USD (1,500,000) 2007-01-31 (6,801)JPY 92,664,600 EUR (600,000) 2007-01-31 (8,793)(21,035)GAM Star GBP Bond *Unrealised gain£USD 5,623,256 EUR (4,208,000) 2007-01-23 31,525GBP 4,145,000 USD (8,074,660) 2007-01-11 21,067USD 758,122 JPY (88,194,000) 2007-01-25 7,539USD 2,055,191 GBP (1,048,000) 2007-01-11 1,637GBP 255,528 USD (500,000) 2007-01-31 20061,968Unrealised lossJPY 30,866,200 EUR (200,000) 2007-01-31 (2,074)USD 2,400,306 GBP (1,228,000) 2007-01-11 (2,103)GBP 508,027 USD (1,000,000) 2007-01-31 (2,631)GBP 1,100,000 USD (2,170,003) 2007-01-11 (8,276)JPY 166,989,000 USD (1,430,827) 2007-02-15 (9,964)(25,048)* Counterparty – J.P. Morgan Chase Bank Ireland PLC** Counterparty – UBS Investment Bank London90

GAM Star Fund p.l.c.Notes to the Balance Sheet12(a). Forward foreign exchange transactions (continued)Purchase currency Contractual amount Sale currency Contractual amount Maturity date Unrealised (loss)/gainsUS$GAM Star USD Bond *Unrealised gainUSD 1,391,014 JPY (163,001,000) 2007-02-15 13,404MXN 4,322,700 USD (394,391) 2007-04-18 3,845PLN 313,000 USD (104,645) 2007-04-18 3,559ZAR 305,500 USD (39,932) 2007-05-16 3,046SGD 122,000 USD (77,287) 2007-01-03 2,286BRL 231,250 USD (105,313) 2007-01-18 2,223INR 3,326,000 USD (73,487) 2007-05-09 1,900KRW 72,277,000 USD (76,001) 2007-03-21 1,875SGD 460,323 USD (300,000) 2007-04-18 1,837BRL 661,050 USD (300,000) 2007-05-03 1,594RUR 2,805,000 USD (105,511) 2007-03-15 1,166SGD 122,000 USD (79,536) 2007-04-03 40037,135Unrealised lossRUR 5,251,000 USD (122,000) 2007-01-03 (98)RUR 7,885,500 USD (300,000) 2007-03-15 (105)KRW 277,950,000 USD (300,000) 2007-04-18 (353)USD 79,154 SGD (122,000) 2007-01-03 (419)CLP 52,780,000 USD (100,099) 2007-06-19 (1,042)PLN 864,765 USD (300,000) 2007-04-18 (1,052)USD 236,794 EUR (180,000) 2007-01-23 (1,104)USD 509,927 GBP (262,000) 2007-01-11 (3,069)EUR 1,057,000 USD (1,412,570) 2007-01-23 (15,580)JPY 377,424,000 USD (3,233,917) 2007-02-15 (44,100)(66,922)* Counterparty – J.P. Morgan Chase Bank Ireland PLC** Counterparty – UBS Investment Bank London91

GAM Star Fund p.l.c.Notes to the Balance Sheet12(b). Forward foreign exchange transactionsAt 30 June 2006 outstanding forward contracts as set out below were held:Purchase currency Contractual amount Sale currency Contractual amount Maturity date Unrealised (loss)/gainsUS$GAM Star Worldwide Equity **Unrealised lossUSD 8,493,045 EUR (6,703,536) 2006-07-26 (98,994)USD 6,349,547 GBP (3,443,131) 2006-07-26 (22,472)(121,466)GAM Star EUR Bond *Unrealised gain€EUR 2,020,902 GBP (1,400,000) 2006-09-29 4,863EUR 2,027,135 GBP (1,400,000) 2006-07-13 4,354EUR 8,127,000 USD (10,205,967) 2006-07-13 156,601EUR 6,023,142 USD (7,600,000) 2006-08-31 107,439EUR 214,000 USD (268,508) 2006-07-20 4,416SEK 200,000 EUR (21,687) 2006-07-13 44277,717Unrealised lossEUR 1,159,269 DKK (8,650,000) 2006-07-13 (321)EUR 300,000 JPY (43,653,000) 2007-07-13 (7,168)GBP 180,000 EUR (262,820) 2006-07-13 (2,748)JPY 200,000,000 EUR (1,369,835) 2006-07-13 (2,240)USD 1,223,752 DKK (7,194,000) 2006-09-07 (12,196)USD 359,680 EUR (281,420) 2006-07-06 (380)USD 268,234 EUR (214,000) 2006-07-05 (4,397)USD 4,519,296 EUR (3,600,000) 2006-07-13 (70,634)USD 5,000,000 EUR (3,974,626) 2006-08-31 (82,717)(182,801)GAM Star GBP Bond *Unrealised gainEUR 178,000 USD (227,715) 2006-07-20 178GBP 3,893,000 USD (7,176,337) 2006-07-27 15,343£15,521Unrealised lossJPY 162,273,000 USD (1,435,809) 2006-08-15 (4,362)USD 227,798 EUR (178,233) 2006-07-06 (167)USD 3,586,827 EUR (2,854,000) 2006-07-20 (37,597)(42,126)92

GAM Star Fund p.l.c.Notes to the Balance Sheet12(b). Forward foreign exchange transactions (continued)Purchase currency Contractual amount Sale currency Contractual amount Maturity date Unrealised (loss)/gainsUS$GAM Star USD Bond *Unrealised gainBRL 231,250 USD (100,000) 2006-07-31 5,810BRL 231,250 USD (99,121) 2006-09-29 5,222CLP 52,780,000 USD (97,129) 2006-09-29 713EUR 1,040,000 USD (1,311,738) 2006-07-20 20,656GBP 59,000 USD (108,760) 2006-07-27 430GBP 84,509 USD (156,176) 2006-07-06 149JPY 377,424,000 USD (3,300,879) 2006-08-15 19,826KRW 72,277,000 USD (74,512) 2006-09-21 1,878PEN 333,000 USD (101,124) 2006-08-21 1,001RUR 2,805,000 USD (101,373) 2006-09-22 3,395SGD 122,000 USD (75,388) 2006-08-24 1,894SKK 3,061,000 USD (99,174) 2006-09-05 2,66863,642Unrealised lossCLP 52,780,000 USD (100,000) 2006-07-31 (2,133)INR 3,326,000 USD (74,109) 2006-08-24 (1,618)MXN 1,050,000 USD (98,768) 2006-08-31 (6,450)PLN 313,000 USD (101,596) 2006-11-24 (2,529)USD 100,631 BRL (231,250) 2006-07-31 (5,179)USD 97,156 CLP (52,780,000) 2006-07-31 (711)USD 139,629 EUR (111,000) 2006-07-20 (2,579)USD 157,151 GBP (85,000) 2006-07-27 (157)USD 98,107 PEN (333,000) 2006-08-21 (4,018)ZAR 305,500 USD (48,991) 2006-11-02 (6,753)(32,127)* Counterparty – J.P. Morgan Chase Bank Ireland PLC** Counterparty – UBS Investment Bank London93

GAM Star Fund p.l.c.Notes to the Balance SheetGAM StarAmericanEquityGAM StarAmericanFocusEquity13 Fees(a) Sponsor andInvestment Manager feesThese are accrued daily andpaid monthly in arrears.Ordinary Shares 1.35% 1.35%Selling Agents A andB Class Shares 1.10% 1.10%(b) Manager feesThese are accrued daily andpaid monthly in arrears.Ordinary Shares 0.15% 0.15%Selling Agents A andB Class Shares 0.15% 0.15%(c) Custodian feeThese are accrued daily andpaid monthly in arrears. 0.04% 0.04%*Total expense ratios (excluding bank interest) are shown on page 116.94

GAM Star Fund p.l.c.GAM StarGAM StarGAM Star Continental GAM Star European GAM Star GAM Star GAM Star GAM StarAsia-Pacific European European Systematic International Japan UK Dynamic US GAM Star GAM Star GAM StarEquity Equity Equity Value Equity Equity Equity Equity EUR Bond GBP Bond USD Bond1.35% 1.35% 1.35% 1.35% 1.35% 1.35% 1.35% 1.35% 0.55% 0.55% 0.55%1.10% 1.10% 1.10% 1.10% 1.10% 1.10% 1.10% 1.10% n/a n/a 0.55%0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15%0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% n/a n/a 0.15%0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%95

GAM Star Fund p.l.c.Notes to the Unaudited Balance SheetGAM Star GAM Star GAM StarGAM Star American Asian Asia-PacificFund p.l.c. Equity Equity EquityUS$ US$ US$ US$14. Market exposure(a) For the period ended 31 December 2006Fair valueSecurities designed at fair value through profit or loss 6,185,769,844 187,888,487 130,808,140 878,639,567Derivative assets held for trading (1,910,891) – 765,744 –6,183,858,953 187,888,487 131,573,884 878,639,567% of net assetsSecurities designed at fair value through profit or loss 98.71 89.66 101.79 95.78Derivative assets held for trading (0.03) – 0.60 –98.68 89.66 102.39 95.78(b) For the year ended 30 June 2006Fair valueSecurities designed at fair value through profit or loss 5,071,328,826 190,126,027 – 772,328,063Derivative assets held for trading (2,149,641) – – –5,069,179,185 190,126,027 – 772,328,063% of net assetsSecurities designed at fair value through profit or loss 95.00 72.01 – 96.55Derivative assets held for trading (0.04) – – –94.96 72.01 – 96.5596

GAM Star Fund p.l.c.GAM StarGAM StarContinental GAM Star European GAM Star GAM Star GAM Star GAM StarEuropean European Systematic Worldwide International Japan UK Dynamic GAM Star GAM Star GAM Star GAM StarEquity Equity Value Equity Equity Equity Equity US Equity EUR Bond GBP Bond USD Bond€ € € US$ US$ ¥ £ US$ € £ US$77,418,290 1,021,277,369 437,123,119 185,630,550 19,527,239 247,186,219,000 147,860,321 31,321,732 100,345,639 30,782,782 166,000,259– – – (69,695) 12,203 – (461,250) – (1,492,600) (3,961) 262,12177,418,290 1,021,277,369 437,123,119 185,560,855 19,539,442 247,186,219,000 147,399,071 31,321,732 98,853,039 30,778,821 166,262,380100.10 99.76 97.45 86.33 90.84 98.75 93.69 93.48 114.84 118.78 140.52– – – (0.03) 0.06 – (0.29) – (1.71) (0.02) 0.22100.10 99.76 97.45 86.30 90.90 98.75 93.40 93.48 113.13 118.76 140.7456,405,266 689,605,091 293,615,383 127,287,945 17,164,048 225,014,060,900 157,623,182 34,156,289 93,371,131 26,714,562 182,250,136– 408,810 – (121,466) 47,323 – (473,975) – (947,474) 39,148 (582,129)56,405,266 690,013,901 293,615,383 127,166,479 17,211,371 225,014,060,900 157,149,207 34,156,289 92,423,657 26,753,710 181,668,00796.61 95.36 96.28 85.51 86.67 93.72 98.86 99.83 104.13 103.78 142.48– 0.06 – (0.08) 0.24 – (0.29) – (1.05) 0.15 (0.45)96.61 95.42 96.28 85.43 86.91 93.72 98.57 99.83 103.08 103.93 142.0397

GAM Star Fund p.l.c.Notes to the Balance Sheet15. Net currency hedgingThe following table sets out the Funds’ exposure to foreign currency risk, the value under the foreign currency contracts designed to hedge this exposure and theresulting net unhedged amounts invested in assets denominated in foreign currency.For those Funds not shown below, all investments are held in the base currency of the Fund therefore incurring no foreign currency risk.(a) as at 31 December 2006Net CurrencyNet Assets Hedging ExposureGAM Star American Equity: US$000s US$000s US$000sCanadian dollar 41 – 41Euro 1,853 – 1,853Pound sterling (9) – (9)1,885 – 1,885GAM Star Asian Equity: US$000s US$000s US$000sSwiss franc (250) – (250)Euro (2,700) – (2,700)Pound sterling (33) – (33)Hong Kong dollar 52,196 – 52,196Indonesian rupiah 4,071 – 4,071Korean won 27,852 – 27,852Malaysian ringgit 5,106 – 5,106Singapore dollar 12,645 – 12,645Thai baht 824 – 824Taiwan dollar 24,832 – 24,832124,543 – 124,543GAM Star Asia–Pacific Equity: US$000s US$000s US$000sAustralian dollar 117,565 – 117,565Swiss franc 388 – 388Euro 6,708 – 6,708Pound sterling (111) – (111)Hong Kong dollar 120,216 – 120,216Indonesian rupiah 5 – 5Japanese yen 575,243 – 575,243Korean won 7,285 – 7,285Singapore dollar 28,159 – 28,159Taiwan dollar 11,840 – 11,840867,298 – 867,298GAM Star Continental European Equity: €000s €000s €000sSwiss franc 10,749 – 10,749Pound sterling 88 – 88Norwegian krone 1,701 – 1,701Swedish krona 4,338 – 4,33816,876 – 16,87698

GAM Star Fund p.l.c.Notes to the Balance Sheet15. Net currency hedging (continued)(a) as at 31 December 2006 (continued)Net CurrencyNet Assets Hedging ExposureGAM Star European Equity: €000s €000s €000sSwiss franc 114,047 – 114,047Pound sterling 299,611 – 299,611Swedish krona 27,472 – 27,472US dollar (50) – (50)441,080 – 441,080GAM Star European Systematic Value: €000s €000s €000sSwiss franc 38,726 – 38,726Danish krone 17,901 – 17,901Pound sterling 141,765 – 141,765Norwegian krone 4,368 – 4,368Polish zloty 1,965 – 1,965Swedish krona 32,127 – 32,127236,852 – 236,852GAM Star Worldwide Equity: US$000s US$000s US$000sAustralian dollar 13,857 – 13,857Canadian dollar 10,500 – 10,500Swiss franc 5,877 – 5,877Euro 48,270 (8,830) 39,440Pound sterling 39,753 (6,697) 33,056Hong Kong dollar 9,312 – 9,312Japanese yen 18,064 – 18,064Norwegian krone 3,563 – 3,563Swedish krona 3,329 – 3,329Singapore dollar 2,382 – 2,382South African comm rand 631 – 631155,538 (15,527) 140,011GAM Star International Equity: US$000s US$000s US$000sAustralian dollar 1,067 – 1,067Swiss franc 685 – 685Euro 3,084 – 3,084Pound sterling 3,173 – 3,173Hong Kong dollar 524 – 524Hungarian forint 229 229Japanese yen 1,103 – 1,103Mexican peso 224 – 224Norwegian krone 450 – 450Polish zloty 246 – 246Singapore dollar 602 – 602Taiwan dollar 328 – 32811,715 – 11,71599

GAM Star Fund p.l.c.Notes to the Balance Sheet15. Net currency hedging (continued)(a) as at 31 December 2006 (continued)Net CurrencyNet Assets Hedging ExposureGAM Star Japan Equity: ¥000s ¥000s ¥000sEuro (118,655) – (118,655)Pound sterling (6,856) – (6,856)US dollar (24,316) – (24,316)(149,827) – (149,827)GAM Star UK Dynamic Equity: £000s £000s £000sEuro (10) – (10)US dollar (24) – (24)(34) – (34)GAM Star US Equity: US$000s US$000s US$000sEuro (93) – (93)Pound sterling (3) – (3)(96) – (96)GAM Star EUR Bond €000s €000s €000sCanadian dollar (30) – (30)Danish krone 2,639 (2,548) 91Pound sterling 2,706 (3,576) (870)Japanese yen (77) 600 523New Zealand dollar (7) (44) (51)US dollar 21,024 (7,570) 13,45426,255 (13,138) 13,117GAM Star GBP Bond £000s £000s £000sCanadian dollar (4) – (4)Euro 2,658 (5,623) (2,965)Japanese yen (20) 673 653New Zealand dollar (7) – (7)US dollar 5,514 (3,733) 1,7818,141 (8,683) (542)GAM Star USD Bond US$000s US$000s US$000sCanadian dollar (53) – (53)Pound sterling (55) (510) (565)Japanese yen (31) 1,843 1,812(139) 1,333 1,194100

GAM Star Fund p.l.c.Notes to the Balance Sheet15. Net currency hedging (continued)(b) as at 30 June 2006Net CurrencyNet Assets Hedging ExposureGAM Star American Equity: US$000s US$000s US$000sCanadian dollar 50 – 50Euro 1,173 – 1,173Pound sterling 112 – 1121,335 – 1,335GAM Star Asia-Pacific Equity: US$000s US$000s US$000sAustralia dollar 118,262 – 118,262Swiss franc (33) – (33)Euro 9,818 – 9,818Pound sterling 103 – 103Hong Kong dollar 41,936 – 41,936Indonesian rupiah 5 – 5Japanese yen 539,063 – 539,063Korean won 9,163 – 9,163Singapore dollar 24,041 – 24,041Taiwan dollar 12,499 – 12,499754,857 – 754,857GAM Star Continental European Equity: €000s €000s €000sSwiss franc 6,727 – 6,727Pound sterling (17) – (17)Norwegian krone 1,677 – 1,677Swedish krona 2,677 – 2,67711,064 – 11,064GAM Star European Equity: €000s €000s €000sSwiss franc 58,310 – 58,310Pound sterling 216,181 – 216,181Swedish krona 14,514 – 14,514US dollar (707) – (707)288,298 – 288,298GAM Star European Systematic Value: €000s €000s €000sSwiss franc 27,487 – 27,487Danish krone 5,716 – 5,716Pound sterling 102,572 – 102,572Hungarian forint 927 – 927Norwegian krone 6,343 – 6,343Polish zloty 1,916 – 1,916Swedish krona 13,585 – 13,585158,546 – 158,546101

GAM Star Fund p.l.c.Notes to the Balance Sheet15. Net currency hedging (continued)(b) as at 30 June 2006 (continued)Net CurrencyNet Assets Hedging ExposureGAM Star Worldwide Equity: US$000s US$000s US$000sAustralian dollar 12,582 – 12,582Canadian dollar 8,472 – 8,472Swiss franc 3,355 – 3,355Euro 40,167 (8,493) 31,674Pound sterling 22,574 (6,350) 16,224Hong Kong dollar 4,653 – 4,653Japanese yen 9,767 – 9,767Norwegian krone 2,163 – 2,163Swedish krona 2,426 – 2,426Singapore dollar 1,494 – 1,494107,653 (14,843) 92,810GAM Star International Equity: US$000s US$000s US$000sAustralian dollar 134 – 134Swiss franc 731 – 731Euro 4,486 – 4,486Pound sterling 3,213 – 3,213Hong Kong dollar 509 – 509Japanese yen 1,266 – 1,266Norwegian krone 157 – 157Singapore dollar 555 – 555Taiwan dollar 491 – 49111,542 – 11,542GAM Star Japan Equity: ¥000s ¥000s ¥000sEuro 6,509,842 – 6,509,842Pound sterling 26,794 – 26,794US dollar (25,969) – (25,969)6,510,667 – 6,510,667GAM Star UK Dynamic Equity: £000s £000s £000sEuro (10) – (10)US dollar 14 – 144 – 4GAM Star US Equity: US$000s US$000s US$000sEuro (13) – (13)Pound sterling (5) – (5)(18) – (18)102

GAM Star Fund p.l.c.Notes to the Balance Sheet15. Net currency hedging (continued)(b) as at 30 June 2006 (continued)Net CurrencyNet Assets Hedging ExposureGAM Star EUR Bond €000s €000s €000sDanish krone 2,099 (2,111) (12)Pound sterling 736 (3,785) (3,049)Japanese yen – (1,070) (1,070)Swedish krona (23) 21 (2)US dollar 15,547 (6,294) 9,25318,359 (13,239) 5,120GAM Star GBP Bond £000s £000s £000sEuro 1,647 (1,938) (291)US dollar 4,384 (3,893) 4916,031 (5,831) 200GAM Star USD Bond US$000s US$000s US$000sEuro 137 (140) (3)Pound sterling 45 (48) (3)Japanese yen 39 0 39221 (188) 33103

GAM Star Fund p.l.c.Notes to the Balance Sheet16. Interest Rate ProfilesThe following table sets out the interest rate profiles for those Funds which hold a substantial amount of assets which pay interest and have a maturity date. Theremaining Fund's assets are equity shares and other investments which neither pay interest nor have a maturity date.(a) as at 31 December 2006Total Investments Weighted Average Weighted Average(including cash) Fixed Interest Rate Period to MaturityGAM Star EUR Bond: €000s % YearsEuroFixed Rate 79,190 3.16 11.46Floating Rate* 25,169 n/a n/aGAM Star GBP Bond: £000s % YearsPound sterlingFixed Rate 26,999 4.25 14.83Floating Rate* 4,659 n/a n/aGAM Star USD Bond: US$000s % YearsUS DollarFixed Rate 118,146 4.26 21.03Floating Rate* 52,035 n/a n/a*Details of the floating rate notes held at period end can be found on the portfolio statements on pages 53 to 74.(b) as at 30 June 2006GAM Star EUR Bond: €000s % YearsEuroFixed Rate 82,936 3.90 8.61Floating Rate 18,906 n/a n/aGAM Star GBP Bond: £000s % YearsPound sterlingFixed Rate 24,551 5.04 13.23Floating Rate 3,937 n/a n/aGAM Star USD Bond: US$000s % YearsUS DollarFixed Rate 167,452 2.35 12.12Floating Rate 19,853 n/a n/a104

GAM Star Fund p.l.c.Notes to the Balance Sheet16. Interest Rate Profiles (continued)(c) as at 31 December 2006Non–interestUp to 1 year 1 – 5 years Over 5 years bearing TotalGAM Star EUR Bond:AssetsCash and bank balances – – – 4,012,819 4,012,819Debtors – – – 5,041,255 5,041,255Financial assets at fair value 19,592,017 12,637,415 68,116,207 1,429,993 101,775,632Total assets 19,592,017 12,637,415 68,116,207 10,484,067 110,829,706LiabilitiesCreditors – – – (20,525,777) (20,525,777)Financial liabilities at fair value – – – (2,922,593) (2,922,593)Total liabilities – – – (23,448,370) (23,448,370)Total interest sensitivity gap 19,592,017 12,637,415 68,116,207GAM Star GBP Bond:AssetsCash and bank balances – – – 874,386 874,386Debtors – – – 1,713,570 1,713,570Financial assets at fair value 9,052,765 2,580,740 19,149,277 662,517 31,445,299Total assets 9,052,765 2,580,740 19,149,277 3,250,473 34,033,255LiabilitiesCreditors – – – (7,451,315) (7,451,315)Financial liabilities at fair value – – – (666,478) (666,478)Total liabilities – – – (8,117,793) (8,117,793)Total interest sensitivity gap 9,052,765 2,580,740 19,149,277GAM Star USD Bond:AssetsCash and bank balances – – – 4,563,303 4,563,303Debtors – – – 829,973 829,973Financial assets at fair value 11,656,894 39,115,653 115,227,712 781,284 166,781,543Total assets 11,656,894 39,115,653 115,227,712 6,174,560 172,174,819LiabilitiesCreditors – – – (53,138,921) (53,138,921)Bank overdrafts – – – (382,637) (382,637)Financial liabilities at fair value – – – (519,163) (519,163)Total liabilities – – – (54,040,721) (54,040,721)Total interest sensitivity gap 11,656,894 39,115,653 115,227,712105

GAM Star Fund p.l.c.Notes to the Balance Sheet16. Interest Rate Profiles (continued)(d) as at 30 June 2006Up to 1 year 1 – 5 years Over 5 years Non–interest TotalGAM Star EUR Bond:AssetsCash and bank balances – – – 8,388,028 8,388,028Debtors – – – 7,483,076 7,483,076Financial assets at fair value 30,469,861 15,359,959 47,541,311 (947,474) 92,423,657Total assets 30,469,861 15,359,959 47,541,311 14,923,630 108,294,761LiabilitiesCreditors – – – (18,713,769) (18,713,769)Distribution payable on income shares – – – (9,796) (9,796)Total liabilities – – – (18,723,565) (18,723,565)Total interest sensitivity gap 30,469,861 15,359,959 47,541,311GAM Star GBP Bond:Cash and bank balances – – – 1,904,090 1,904,090Debtors – – – 454,601 454,601Financial assets at fair value 7,025,691 5,195,891 14,492,980 39,148 26,753,710Total assets 7,025,691 5,195,891 14,492,980 2,397,839 29,112,401LiabilitiesCreditors – – – (3,235,723) (3,235,723)Distribution payable on income shares – – – (135,107) (135,107)Total liabilities – – – (3,370,830) (3,370,830)Total interest sensitivity gap 7,025,691 5,195,891 14,492,980GAM Star USD Bond:AssetsCash and bank balances – – – 4,919,814 4,919,814Debtors – – – 20,951,176 20,951,176Financial assets at fair value 83,354,455 16,483,412 82,412,269 (582,129) 181,668,007Total assets 83,354,455 16,483,412 82,412,269 25,288,861 207,538,997LiabilitiesCreditors – – – (79,625,649) (79,625,649)Distribution payable on income shares – – – (2,104) (2,104)Total liabilities – – – (79,627,753) (79,627,753)Total interest sensitivity gap 83,354,455 16,483,412 82,412,269106

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GAM Star Fund p.l.c.Notes to the Balance SheetGAM Star GAM Star GAM StarAmerican Asian Asia-PacificEquity Equity Equity17. Dealing price per share(a) as at 31 December 2006Ordinary SharesUSD ClassIncome US$15.0154 – –Accumulation US$15.0454 US$12.1008 –GBP ClassIncome £1.3724 – £2.4920Accumulation £1.3931 £1.1712 £2.5518EUR ClassIncome € 6.9205 – € 132.5811Accumulation € 6.9683 € 11.7202 € 135.6172JPY ClassIncome – – –Accumulation – – –CHF ClassIncome – –Accumulation – SFr11.9778 SFr12.4288Selling Agents’ SharesA EUR Class – – –B EUR Class – – –A USD Class – – –B USD Class – – –A JPY Class – – –108

GAM Star Fund p.l.c.GAM StarGAM StarContinental GAM Star European GAM Star GAM Star GAM Star GAM Star GAM StarEuropean European Systematic Worldwide International Japan UK Dynamic US GAM Star GAM Star GAM StarEquity Equity Equity Value Equity Equity Equity Equity EUR Bond GBP Bond USD Bond– US$17.8248 – US$2,536.3600 – US$16.7638 – US$11.1779 – – US$9.9249– US$18.6804 – – US$14.1138 US$16.7638 US$16.8347 US$11.1969 – – US$12.5808– £1.6203 £1.4241 – £1.2997 £99.3374 £1.6296 £1.0235 – £0.9080 –£1.9110 £1.7037 – £1.0111 – £99.3374 £1.6684 – – £1.1918 –– € 223.6478 – – – € 137.7906 – – € 9.6025 – –€ 12.8658 € 233.3988 € 16.6221 – € 13.3917 € 137.7906 € 17.0586 € 10.0952 € 11.3521 – –– – – – – – – – – – –– – – – – ¥1,735.6500 – – – – –– – – – – – – – – – –– SFr11.6359 – – – – – – – – –– – – – – € 134.8600 – – – – –– – – – – € 122.7900 – – – – –– – – – – US$17.3600 – – – – –– – – – – US$16.5500 – – – – –– – – – – ¥1,094.7800 – – – – –109

GAM Star Fund p.l.c.Notes to the Balance SheetGAM StarAmericanEquityGAM StarAsia–PacificEquity17.(b) Dealing price per share as at 30 June 2006Ordinary SharesUSD ClassIncome US$14.9339 –Accumulation US$14.9339 –GBP ClassIncome £1.4454 £2.4322Accumulation £1.4639 £2.4906EUR ClassIncome € 7.1052 € 126.1333Accumulation € 7.1393 € 129.0218JPY ClassIncome – –Accumulation – –CHF ClassIncome –Accumulation – SFr11.4965Selling Agents’ SharesA EUR Class – –B EUR Class – –A USD Class –B USD Class – –A JPY Class – –110

GAM Star Fund p.l.c.GAM StarGAM StarContinental GAM Star European GAM Star GAM Star GAM Star GAM Star GAM StarEuropean European Systematic Worldwide International Japan UK Dynamic US GAM Star GAM Star GAM StarEquity Equity Equity Value Equity Equity Equity Equity EUR Bond GBP Bond USD Bond– US$15.4071 – US$2269.01 – US$16.6782 – US$10.0024 – – US$9.7427– US$15.9063 – US$12.3069 US$16.6782 US$14.8035 US$10.0194 – – US$11.9611– £1.4788 £1.2825 – £1.2079 £104.3593 £1.5280 £0.9691 – £0.9386 –£1.7307 £1.5378 – £0.9528 £104.3593 £1.5531 – – £1.1768 –– € 198.7108 – – € 141.4862 – – € 9.756 – –€ 11.3628 € 205.2484 € 14.2172 – € 12.0651 € 141.4862 € 15.5238 € 9.3184 € 11.2165 – –– – – – – – – – – –– – – – ¥1655.4000 – – – – –– – – – – – – – – –– SFr9.9527 – – – – – – – –– – – – € 138.4800 – – – – –– – – – € 126.5600 – – – – –– – – – US$17.25 – – – – –– – – – US$16.52 – – – – –– – – – Y1045.45 – – – – –111

GAM Star Fund p.l.c.Notes to the Balance SheetGAM Star GAM Star GAM StarAmerican Asian Asia-PacificEquity Equity Equity18. Shares in issue(a) as at 31 December 2006USD ClassIncome 1,891,814.22 – –Accumulation 4,901,372.33 3,207,255.57 –GBP ClassIncome 1,634,240.49 – 1,835,051.12Accumulation 4,561,327.77 12,683,052.07 14,315,252.10EUR ClassIncome 190,674.85 – 32,006.36Accumulation 9,656,660.63 3,265,600.58 4,413,237.42JPY ClassIncome – – –Accumulation – – –CHF ClassIncome – – –Accumulation – 1,026,310.00 4,037,366.16Selling Agents’ SharesA EUR Class – – –B EUR Class – – –A USD Class – – –B USD Class – – –A JPY Class – – –B JPY Class – – –112

GAM Star Fund p.l.c.GAM StarGAM StarContinental GAM Star European GAM Star GAM Star GAM Star GAM Star GAM StarEuropean European Systematic Worldwide International Japan UK Dynamic US GAM Star GAM Star GAM StarEquity Equity Value Equity Equity Equity Equity Equity EUR Bond GBP Bond USD Bond– 3,835,529.02 – 71,171.86 – 2,102,155.66 – 12,537.95 – – 5,464.87– 281,162.34 – – 1,305,477.65 3,747,692.76 2,369,953.22 2,457,138.10 – – 9,385,676.91– 4,307,526.37 1,430,774.01 – 268,141.97 97,257.20 2,139,109.13 794,716.00 – 3,356,608.66 –17,240,749.55 4,882,082.84 – 17,431,190.36 – 155,868.29 75,301,493.57 – – 19,187,187.14 –– 188,380.05 – – – 262,387.95 – – 29,437.90 – –2,213,673.86 3,841,400.48 26,802,682.34 – 135,128.63 4,321,846.24 723,126.47 319,862.99 7,672,509.33 – –– – – – – – – – – – –– – – – – 72,401,105.72 – – – – –– – – – – – – – – – –– 911,574.42 – – – – – – – – –82,595.51– – – – – 20,403.00 – – – – –– – – – – 1,837,410.20 – – – – –– – – – – 229,236.00 – – – – –– – – – – 1,328,637.27 – – – – –– – – – – – – – – – –113

GAM Star Fund p.l.c.Notes to the Balance SheetGAM StarAmericanEquityGAM StarAsia-PacificEquity18. Shares in issue(b) as at 30 June 2006USD ClassIncome 2,148,775.76 –Accumulation 7,373,412.36 –GBP ClassIncome 2,587,629.99 2,270,596.01Accumulation 5,484,410.03 13,525,953.18EUR ClassIncome 247,658.74 32,745.27Accumulation 10,719,743.11 4,126,950.59JPY ClassIncome – –Accumulation – –CHF ClassIncome – –Accumulation – 4,361,318.84Selling Agents’ SharesA EUR Class – –B EUR Class – –A USD Class – –B USD Class – –A JPY Class – –B JPY Class – –114

GAM Star Fund p.l.c.GAM Star GAM Star GAM StarContinental GAM Star European Worldwide GAM Star GAM Star GAM StarEuropean European Systematic Equity International Japan UK Dynamic GAM Star GAM Star GAM Star GAM StarEquity Equity Value Fund Equity Equity Equity US Equity EUR Bond GBP Bond USD Bond– 3,606,143.96 – 65,068.4100 – 2,033,487.43 – 14,042.95 – – 6,857.69– 251,142.79 – – 1,303,098.72 4,116,445.12 2,360,921.47 2,567,782.59 – – 10,688,492.88– 5,379,177.52 1,509,065.54 – 229,175.13 91,174.43 2,645,318.92 1,275,858.75 – 3,215,519.22 –10,391,518.21 5,378,513.33 – 1,261,606.7100 – 156,400.51 80,874,195.38 – – 19,424,655.79 –– 176,511.15 – – – 327,180.19 – – 36,492.42 – –2,849,874.19 2,985,756.60 21,258,871.15 – 211,190.48 4,631,848.90 1,016,848.33 508,381.01 7,962,936.31 – –– – – – – – – – – – –– – – – – 67,141,435.22 – – – – –– – – – – – – – – – –– 1,007,083.74 – – – – – – – – –– – – – – 93,741.61 – – – – –– – – – – 22,610.00 – – – – –– – – – – 2,023,072.62 – – – – –– – – – – 98,964.00 – – – – –– – – – – 2,407,066.30 – – – – –– – – – – – – – – – –115

GAM Star Fund p.l.c.Total Expense Ratios as per Annual Report as at 30 June 2006*%GAM Star American EquityOrdinary Shares 1.59GAM Star Asia-Pacific EquityOrdinary Shares 1.61GAM Star Continental European EquityOrdinary Shares 1.61GAM Star European EquityOrdinary Shares 1.60GAM Star European Systematic ValueOrdinary Shares 1.60GAM Star Worldwide EquityOrdinary Shares 1.56GAM Star International EquityOrdinary Shares 1.60GAM Star Japan EquityOrdinary Shares 1.62Selling Agent’s A Class Shares 1.87Selling Agent’s B Class Shares 2.87GAM Star US EquityOrdinary Shares 1.60GAM Star UK Dynamic EquityOrdinary Shares 1.59GAM Star EUR BondOrdinary Shares 0.82GAM Star GBP BondOrdinary Shares 0.84GAM Star USD BondOrdinary Shares 0.80* The total expense ratios are calculated using the expenses per the audited financial statements (excluding bank interest) and expressed as a percentage of average net assets.116

GAM Star Fund p.l.c.Portfolio Turnover Rates for the year ended 31 December 2006%GAM Star American Equity (43.91)GAM Star Asian Equity* 47.44GAM Star Asia-Pacific Equity 21.74GAM Star Continental European Equity 136.65GAM Star European Equity 104.38GAM Star European Systematic Value 266.65GAM Star Worldwide Equity 14.58GAM Star International Equity 205.23GAM Star Japan Equity (41.77)GAM Star US Equity (24.58)GAM Star UK Dynamic Equity 306.28GAM Star EUR Bond 743.38GAM Star GBP Bond 702.23GAM Star USD Bond 8,144.26* Since inception117

GAM Star Fund p.l.c.Fund Manager ProfilesJohn BennettJohn Bennett is the Investment Director responsible for European markets. MrBennett heads a team of four European equity specialists, running long only as wellas long/short strategies. He has over 16 years’ experience in managing Europeanequity funds. Prior to joining GAM in 1993, he was a Senior Fund Manager at Ivory& Sime responsible for Continental European equity portfolios. He qualified in 1986as a Member of the Chartered Institute of Bankers in Scotland.Gordon GrenderGordon Grender is the Investment Adviser to GAMerica, GAM North AmericanGrowth, GAMerica Capital and GAM Star American Equity. He has beenassociated with GAM since May 1983 and is a Director of GAM InternationalManagement Limited. Mr Grender has been actively involved in fundmanagement in North American stock markets since 1974. Between 1964 and1990, he was also associated with London stockbrokers Kitcat & Aitken.Ross HollymanRoss Hollyman is an Investment Director. He joined GAM in August 2003 tomanage UK equity mandates. Prior to January 2003, Mr Hollyman was a SeniorPortfolio Manager, European Equity Group, with JP Morgan Fleming AssetManagement, where he managed various UK and European balanced andperformance mandates. He joined the Robert Fleming Group in 1991, spendingthe early part of his career building quantitative investment models andprocesses. He began small company analysis in 1996, becoming a fund managerin 1997. Mr Hollyman holds a BSc in Actuarial Sciences from City University. Heis an associate member of the IIMR.Lesley KayeLesley Kaye is the Investment Director responsible for GAM’s Japan funds andco-manager of GAM’s Pacific funds with Michael Lai. She joined GAM in May2001, prior to which she was a Japanese equity broker for 13 years at INGBarings (formerly Baring Securities). Ms Kaye started her career with NikkoSecurities and also spent two years on the Japan desk of Hoare Govett. She holdsa BA in Languages from Bristol University. Ms Kaye is based in London.Fayez SarofimFayez Sarofim is the Adviser to GAM US and GAM Star US Equity. From 1951 to1958 Mr Sarofim worked for Anderson, Clayton & Co. where his last assignmentwas as assistant to the President. In 1958 Mr Sarofim founded Fayez Sarofim &Co. and is the President and Chairman of the Board. He is also a director ofKinder Morgan Inc., Argonaut Group, Unitrin Inc., The Texas Heart Institute andOverseers Memorial Sloan-Kettering Cancer Center. Born in Egypt, Mr Sarofimreceived a BS in Food Technology from the University of California and an MBAfrom Harvard Business School.Ron TabboucheRon Tabbouche is an Investment Director and member of GAM’s InvestmentCommittee for Managed Portfolios. He co-manages a range of GAM funds basedon Managed Portfolios’ strategies. He also specialises in fixed income. Prior tojoining GAM in June 1999, Mr Tabbouche was a Sales Analyst at Deutsche Bank.He began his career as a Fixed Interest Analyst at Commercial Union InvestmentManagement. He holds an MSc in Investment Management from City UniversityBusiness School and a BSc in Economics from the University of London.Sean TaylorSean Taylor is an Investment Director. He joined GAM in 2004 to manage globalmandates. Prior to joining GAM, Mr Taylor was Head of Global Equity at SG AssetManagement, where he was also Head of the Emerging Market Desk. Previouslyhe was a fund manager at Capel-Cure Myers and before that he was at HSBCJames Capel Investment Management. Until 1992 Mr Taylor served as an officerin the British Army having attended the Royal Military Academy, Sandhurst. Hehas an MBA from Manchester Business School.Michael LaiMichael Lai is the Investment Director responsible for GAM's Asian funds and comanagerof 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 forAsian portfolios. Prior to this, he was an investment manager at BZW InvestmentManagement (HK). Mr Lai holds an MSc in Econometrics from the LondonSchool of Economics and is a CFA charterholder. He is based in Hong Kong.118

GAM Star Fund p.l.c.Fund Manager ProfilesTAUBE HODSON STONEX PARTNERS LIMITED (THS)THS, the Delegate Investment Manager for GAM Star Worldwide Equity, is anindependent fund management partnership of five fund managers and oneinvestment analyst: John Hodson, Cato Stonex, Mark Evans, Simon Edelsten andRobert Smithson. Each of the fund managers has over 15 years’ investmentexperience. They find that successful investing relies on the experience of havingmonitored companies and industries through a number of business cycles. Thepartnership structure (with no external shareholders) ensures the investmentteam is stable and makes it easier for the team to take a consistent long-terminvestment perspective. THS is authorised and regulated by the FinancialServices Authority in the United Kingdom.PIMCO EUROPE LIMITEDWith effect from 31 December 2005, PIMCO Europe Ltd acts as DelegateInvestment Manager to GAM Star EUR Bond, GAM Star GBP Bond and GAM StarUSD Bond.Emanuele RavanoEmanuele Ravano is a Managing Director and the head of portfolio management atPIMCO Europe Ltd in London. Mr Ravano joined PIMCO in 2001, prior to which hespent 16 years at Credit Suisse First Boston and at Credit Suisse Asset Managementwhere he was a Managing Director and Head of European fixed income. Mr Ravanoholds a bachelor's degree in economics and business administration from LoyolaCollege in Baltimore.Michael AmeyMichael Amey is a London-based Senior Vice President and portfolio manager atPIMCO Europe Ltd, responsible for sterling portfolios. He joined PIMCO in 2003 havingpreviously been head of UK fixed income at Rothschild Asset Management and latterlyInsight Investment, after their merger. Prior to joining Rothschild in 1994, Mr Ameyspent two years tutoring in the Department of Economics at the University of Durham,from where he holds a BA in Mathematics and Economics and a Master of Science inCorporate and International Finance. He is an associate member of the Society ofInvestment Professionals.Mark KieselMark Kiesel is an Executive Vice President and a senior member of the investmentstrategy and portfolio management group at PIMCO Europe Ltd. He also heads theinvestment-grade corporate desk and manages corporate portfolios for the firm.Previously, Mr. Kiesel served as PIMCO's head of equity derivatives and as a seniorcredit analyst. Mr Kiesel joined PIMCO in 1996, previously having been associated withthe sales and trading divisions of Merrill Lynch and JP Morgan. He holds a bachelor'sdegree in economics from the University of Michigan and an MBA in finance,economics and international business from the University of Chicago Graduate Schoolof Business.119

GAM Star Fund p.l.c.Contact InformationEnquiriesClient ServicesGAM Fund Management LimitedGeorge’s Quay House,43 Townsend StreetDublin 2, IrelandInformation Agent and Sales Office in GermanyGAM Fonds Marketing GmbHFriedrichstrasse 154D-10117 BerlinGermanyTel: +49 (0) 30 226560Representative Office in SwitzerlandGAM Anlagefonds AGKlausstrasse 10CH-8034 ZurichSwitzerlandTel: +41 (0) 44 3883030Freephone: 0800 919 927 (UK only)Tel: +353 (0) 1 6093927Fax: +353 (0) 1 6117941DealingDealing DepartmentGAM Fund Management LimitedGeorge’s Quay House,43 Townsend StreetDublin 2, IrelandFreephone: 0800 919 928 (UK only)Tel: +353 (0) 1 6093974Fax: +353 (0) 1 8290778GAM on the InternetInformation on GAM’s funds –www.gam.comE-Mail: info@gam.comPaying and distribution agent in the Republic ofAustriaBank Austria Creditanstalt AGAm Hof 2, A-1010, Vienna, AustriaPaying agent in the Federal Republic of GermanyBank of America N.A.Frankfurt BranchGrüneburgweg 1660322 Frankfurt am MainPaying agent in SwitzerlandRothschild Bank AGZollikerstrasse 181CH–8034 ZürichDetails of all other paying agents are contained in the Prospectus.Other GAM Contact DetailsBermudaGAM LimitedWessex House, 45 Reid StreetHamilton HM12, BermudaTel: +1 441 295 5825Fax: +1 441 292 9824London (Regulated by the FSA)GAM London Limited12 St James’s PlaceLondon SW1A 1NX, EnglandTel: +44 (0) 20 7493 9990Fax: +44 (0) 20 7493 0715/7491 2644New YorkGAM USA Inc.330 Madison AvenueNew York NY 10017, USATel: +1 212 407 4600Fax: +1 212 407 4684TokyoGAM Japan LimitedTokyo Ginko Kyokai Building3-1 Marunouchi 1-chomeChiyoda-ku, Tokyo 100–0005, JapanTel: +81 (0) 3 5219 8800Fax: +81 (0) 3 5219 8808Hong KongGAM Hong Kong Limited1601 Two Exchange Square, CentralHong KongTel: +852 2525 0015Fax: +852 2868 1432Isle of ManGAM Administration Limited11 Athol Street, Douglas,Isle of Man, IM99 1HH, EnglandTel: +44 (0) 1624 632632Fax: +44 (0) 1624 625956120

GAM Star Fund p.l.c is authorised as a UCITS pursuant to the EuropeanCommunities (Undertakings for Collective Investment in Transferable Securities)Regulations, 2003 (S.I. No.211 of 2003) as amended and is a recognised schemeunder the Financial Services and Markets Act 2000.This unaudited report is issued by the Manager, which is regulated by the IrishFinancial Regulator in respect of its fund administration and managementactivities. The Manager does not conduct investment business in the UK nor doesit intend doing so. As the Manager is not an authorised person for the purposes ofthe Financial Services Authority, the contents of this report have been approvedfor issue in the UK by GAM London Limited, 12 St James Place, London SW1A1NX (authorised and regulated by the Financial Services Authority) for theprovision of investment services.This report is not an invitation to subscribe for shares in any Funds describedherein and is by way of information only. Subscriptions will only be received andshares issued on the basis of the current Prospectus for the Company. Shares inthe Company are not available for sale in any jurisdiction in which such a salewould be prohibited. This document is not available for distribution in anyjurisdiction where such distribution would be prohibited. Without limiting thegenerality of the preceding statement, in particular, shares in the Company are notavailable to US residents generally.Past performance is not a guide to future performance. The price of shares can godown as well as up and may be affected by changes in the rates of exchange. Aninvestor may not get back the amount invested. No recommendation is madepositive or otherwise regarding the individual securities mentioned in thisdocument.This document is intended solely for the use of the person to whom it is sent andmay not be reproduced for any other person.