EDM Strategy Fund

EDM Strategy FundGrowth & low volatility

Agoust 2012 This document is reserved for professional investors only as defined by the MIFID

Growth & low volatilityEuropean Equities since 1995

EDM Strategy Fund Index

1- Fund´s Performance

2- Investment Philosophy

3- Portfolio

4- Performance over the crisis

2

4- Performance over the crisis

5- Fund Managers

6- European Equities

7- About EDM Asset Management

8- Summary

Fund’s Performance

3

Fund’s Performance

Higher return and lower volatility

Fund’s PerformanceEDM Strategy Fund

Year EDM STRATEGY STOXX 50Relative

Performance2000 15,83% 1,88% 13,95%

2001 -8,55% -18,66% 10,11%

2002 -34,36% -35,05% 0,69%

2003 2,35% 10,50% -8,16%

2004 6,96% 4,30% 2,66%

2005 23,96% 20,70% 3,26%

2006 15,98% 10,39% 5,59%

4All EDM return data are expressed in euros and are stated net of expenses and fees.Each Set of comparisons takes into account: a) Retail class at fund level (the one with the highest charge). b) Price returns at Indice level (ex dividends)

2006 15,98% 10,39% 5,59%

2007 2,55% -0,36% 2,91%

2008 -28,74% -43,43% 14,69%

2009 25,50% 24,06% 1,43%

2010 11,88% 0,04% 11,84%

2011 -5,00% -8,39% 3,39%

2012 13,45% 6,91% 6,54%

Total Return 20,66% -47,74% 68,40%

Annual Return 1,50% -5,03% 6,53%

Annualized Volatility 12,85% 16,32% -3,47%


EDM Strategy

Consistent Alpha generation in both bear and bull markets

5Stoxx 50 has been selected due to its high concentration (50 weights) in European Equities, including relevant countries such as Switzerland and the UK.

Each Set of comparisons takes into account: a) Retail class at fund level (the one with the highest charge). b) Price returns at Indice level (ex dividends)

Stoxx 50

EDM STRATEGY STOXX 50

EDM Strategy Fund Fund’s Performance

EDM Strategy

Beating all the main european indices

6

Each Set of comparisons takes into account: a) Retail class at fund level (the one with the highest charge). b) Price returns at Indice level (ex dividends)

Ranking 2011: 35 / 345 EU Equity Funds

Ranking Allfunds Bank:

Ratings & Ranking


5 YEARS 3 YEARS 1 YEAR VOLATILITY

EDM Strategy Sicav -3,3% 39,7% -0,8% 13,8%

European Equity Funds -26,0% 35,7% -8,1% 19,2%Data as of: 30.04.2012

Rating Lipper:

Data as of: 30.04.2012

Rating Morningstar 5Y:

7

Investment Philosophy

8


• Long-only traditional investment style (bottom-up)

• Stock picking. No benchmarking (low overlapping against its benchmark)

• Long-term investment horizon (5 years on average)

• Low turnover (15% average for the last 6 years)

Portfolio construction

Investment PhilosophyEDM Strategy Fund

9

•High liquidity (92% of the portfolio can be sold within one trading day)

• Restricted investment universe: only 100 companies globally

• Concentrated portfolio, maximum 30 companies

•Always fully equity invested (competition among stocks)

• European currency diversification (EUR, GBP, CHF, DKK)

• 100 % currency hedged (we do not predict currency fluctuations)

• Demanding criteria: High quality of the business (Average Portfolio ROE=31%)

• Sustainable EPS growth (5Y Average EPS growth= 11%)

• Low debt balance-sheet (Average Net Debt/EBITDA = 0,9)

• Recurrent and solid cash-flows

Stock picking methodology


10

• Recurrent and solid cash-flows

• Focus on understandable and predictable businesses at reasonable prices

• Management quality & integrity are crucial for us


• Following certain long-term Macro-trends:

� Economic hub shifting from West to East

� Transformation of world demographics

How do we manage to obtain such a low volatility?

EDM Strategy Fund

11

• Lack of sectorswhose profits are not easily foreseen:

� Banking & Insurance

� Cyclical sectors

� Regulated tariffs

� Commodities

�High leveraged sectors



20%

30%

40%∆∆∆∆ EPS EDM Strategy: +12,1% CAGR∆∆∆∆ EPS Stoxx 50: + 3,5% CAGR

12

-30%

-20%

-10%

0%

10%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e

EDM Strategy DJ Stoxx 50



Over the last three years, our profit growth forecasts for EDM Strategy companies have barelydeviated from their eventual full-year results. This is particularly significant, as our investmentstrategy is based on the profits of our selected companies:

2009 2010 2011

13

2009 2010 2011

EDM forecast at year start 8.30% 8.70% 11.90%

Reported result at year end 9.10% 8.30% 12.30%

-0.80% 0.40% -0.40%

* EDM 2012 Profit growth forecast is +9%

Portfolio

14

Portfolio

Portfolio

Roche 6,99%

Tesco 6,49%

Danone 6,31%

Capita Group 5,93%

SAP 5,73%

Grifols 5,19%

Eutelsat 4,10%

Brenntag 4,07%

BME 4,03%

Coloplast 3,75%

PORTFOLIO TOP HOLDINGS

EDM Strategy Fund

31-dic-11 (1) (2) (3) (3) (4) (5)2011-2016 Dividend

ROE EPS Growth P/E 2011 P/E 2012 PEG Yield

AGGREKO PLC 30% 11,0% 23,3 20,3 2,12 1,1%

AIR LIQUIDE SA 17% 11,0% 17,6 16,6 1,60 2,5%

ALSTOM 11% 13,0% 5,6 6,9 0,43 6,0%

BOLSAS Y MERCADO 34% 8,0% 11,0 10,9 1,38 9,5%

BRENNTAG AG 16% 12,0% 11,8 11,2 0,98 1,9%

CAPITA GROUP PLC 49% 10,9% 12,8 11,9 1,18 3,6%

CHRISTIAN DIOR 18% 9,0% 13,4 11,8 1,49 2,4%

COLOPLAST-B 46% 15,0% 16,3 14,8 1,09 0,0%

DANONE 17% 10,0% 161,0 15,2 1,61 2,7%

ESSILOR INTL 16% 15,0% 21,9 19,7 1,46 1,5%

EUTELSAT COMMUNI 22% 10,0% 22,0 15,0 2,18 2,5%

GRIFOLS SA 18% 15,0% 20,3 15,5 1,35 0,0%

INDITEX 30% 10,0% 20,6 18,3 2,06 2,5%

INTERTEK GROUP 33% 10,0% 19,5 16,6 1,95 1,6%

15

Coloplast 3,75% INTERTEK GROUP 33% 10,0% 19,5 16,6 1,95 1,6%

LINDT & SPRUE-PC 15% 10,0% 26,1 23,5 2,61 1,6%

NOVO NORDISK-B 40% 11,5% 22,8 20,0 1,98 1,5%

RECKITT BENCKISE 35% 10,5% 13,1 12,9 1,25 4,2%

ROCHE HLDG-GENUS 103% 7,5% 11,6 11,5 1,54 4,1%

SAP AG 20% 11,5% 15,1 13,6 1,32 1,5%

SODEXO 17% 10,0% 16,9 15,2 1,69 2,4%

STRAUMANN HLDG-R 20% 15,0% 20,7 21,0 1,38 1,2%

TALKTALK TEL 9% 10,0% 8,5 7,8 0,85 5,3%

TELEFONICA 44% 4,0% 9,2 8,5 2,31 11,4%

TEMENOS GROU-REG 16% 15,5% 12,3 11,8 0,80 0,0%

TESCO PLC 17% 10,0% 11,2 10,3 1,12 4,1%

WINCOR NIXDORF 32% 10,0% 9,9 9,5 0,99 4,9%

TOTAL 31% 11,0% 13,9 12,9 1,27 3,1%

Source: Bloomberg

(1) Profit after taxes/ Equity(2) EDM estimates for 5 years CAGR(3) EDM & Bloomberg data(4) (3) / (2)(5) Dividend/Price

PortfolioEDM Strategy Fund

Companies Description

COMPANY DEFINITION FINANCIAL SITUATION COUNTRY

AGGREKO World leader in rental of electric power generators and temperature control systems. Also for events (Olympics, concerts…) and natural disasters. 29 countries. Net Debt/EBITDA 0.7x UK

AIR LIQUIDE World leader in production and distribution of industrial gases. 75 countries. Asia 22%, USA 23%, EU 50%. Market share of 27% in large industries and 30% in healthcare Net Debt/EBITDA 1.5x FRANCE

ALSTOM World leader in high-speed rail. Construction of power plants. Responsible for building 25% of the installed MW base in the world. Emerging markets: 60% Net Debt/EBITDA 1.6x FRANCE

BME Leader in securities markets and financial systems in Spain. Dividend of 10%. Stable business. Stock Exchanges, AIAF , MEFF, IBERCLEAR, MAB, Infobolsa… Positive net cash. No debt. SPAIN

BRENNTAG World leader in chemical product distribution (7% market share). 70 countries, 150,000 clients (TOP 10 represent just 4% of sales), 2,000 suppliers and 10,000 products. Net Debt/EBITDA 2.3x GERMANY

CAPITA Leader in UK professional services, support and outsourcing for companies (23% market share). Sales split between public sector (50%) and private sector (50%) Net Debt/EBITDA 2.5x UK

CHRISTIAN DIOR European leader in luxury sector: Moet Chandon, Dom Perignon / Louis Vuitton, Céline, Loewe, Kenzo/ Tag Heuer, Hublot, Bulgari / Sephora, Le Bon Marché. Japan (8%) and Asia (27%)Net Debt/EBITDA 1x FRANCE

COLOPLAST Leader in Ostomy and Urology. Also wound care products. Specialised business with few players. Market share of 45% in breast prostheses. Net Debt/EBITDA 0.1x DENMARK

DANONE One of the largest food groups in the world, leader in dairy products (50%), water and children's foods. 120 countries. 50% in emerging markets Net Debt/EBITDA 0.9x FRANCE

16

DANONE One of the largest food groups in the world, leader in dairy products (50%), water and children's foods. 120 countries. 50% in emerging markets Net Debt/EBITDA 0.9x FRANCE

ESSILOR World leader in ophthalmic lenses (30% market share). Strong in R&D (200 prods./year). Low penetration (2,400 million people need glasses and don't use them). 80% USA and EU Net Debt/EBITDA 0.6x FRANCE

EUTELSAT European leader and 3rd worldwide providing services through satellites (27 in total, 23 of which are owned). 3,800 TV channels. Net Debt/EBITDA 2.5x FRANCE

GRIFOLS European leader (and 3rd worldwide) in hemoderivatives and treatment of diseases via blood or blood components (80%). Also Diagnosis and hospitals (20%) Net Debt/EBITDA 3.8x SPAIN

INDITEX World leader in fashion retailing -Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe - 5,527 retail outlets. 82 markets. Positive net cash. No debt. SPAIN

INTERTEK GROUP International leader in services related to quality, certification and security for many sectors. Asia 37%, USA 34%, EMEA 29%. 100 countries Net Debt/EBITDA 1.9x UK

LINDT & SPRUE Leader in premium chocolates (35% market share). 5% world market share in chocolates. 80% of sales through its own network. Vertically integrated Positive net cash. No debt. SWITZERLAND

NOVO NORDISK World leader in treatment of diabetes, with over 80 years of experience in the field. (75% of sales). Low competition. 179 countries. Positive net cash. No debt. DENMARK

RECKITT BENCKISE European leader in personal and household hygiene products. Air Wick, Calgon, Cillit Bang, Flor, Strepsils, Durex. 35% of sales come from products launched in the last 3 years. 130 countriesNet Debt/EBITDA 0.7x UK

ROCHE World leader in oncology and virology drugs. 150 countries. 40% Americas, 30% Europe and 30% Asia. Low exposure to generic drugs. 78% pharma and 22% diagnosisNet Debt/EBITDA < 1x SWITZERLAND

SAP AG World leader in business software. 120 countries. Contracts last minimum 5 years (20% of cost of software). EMEA 32%, Germany 18%, Americas 36% and Asia 16% Slightly leveraged GERMANY

SODEXO World leader in social catering and restaurant vouchers. High customer retention rate (94%). Low capital intensiveness. 76 countries Net Debt/EBITDA 0.9x FRANCE

STRAUMANN World leader in development, production and sale of dental implants (19% market share). R&D represents 6% of Sales. 60 countries. Banking on USA for growth Positive net cash. No debt. SWITZERLAND

TALKTALK Leader among UK broadband operators (25% share in individuals segment). Developing "Last-Mile Telephony" Net Debt/EBITDA 1.5x UK

TELEFONICA Leading integrated telecoms operator at a worldwide level. 25 countries and customer base in excess of 306.6 million Net Debt/EBITDA 2.6x SPAIN

TESCO Leader in retail in UK and 3rd worldwide. Warren Buffett is the major shareholder. 13 countries. UK (65%), EU (15%) and Asia (17%) Net Debt/EBITDA 2.5x-3x UK

WINCOR NIXDORF A leading supplier in I.T. solutions for Retailers and Banks. 50% software/services and 50% hardware. EU (43%), Germany (29%), Americas (13%) and Asia (15%) Net Debt/EBITDA 0.7x GERMANY

Market Cap

Portfolio

SectorConsumer goods

4%

Pharma

16%

Medical Devices

11%

Chemicals

Distribution

8% Food

8%IT

8%

Retail

10%

Specialised

Giant

40%

Mid

43%

Small

4%

EDM Strategy Fund

17

CurrencyCHF

15%

DKK

8%

GBP

24%

EUR

53%

Specialised

industries

9%Services

24%

Switzerland 15%

Germany

14%

Denmark

8%

Spain

16%

France

22%

Great Britain

24%

Country

Large

13%


European companies but Global exposure

Companies Europe USA EmergingAGGREKO 13% 20% 67%

AIR LIQUIDE 55% 21% 23%

ALSTOM 45% 12% 43%

BME 100% 0% 0%

BRENNTAG 51% 32% 17%

CAPITA 100% 0% 0%

CHRISTIAN DIOR 35% 22% 43%

COLOPLAST 73% 17% 10%

DANONE 46% 9% 45%

Global exposure sales

18

DANONE 46% 9% 45%

ESSILOR 38% 40% 22%

EUTELSAT 69% 13% 18%

GRIFOLS 44% 34% 22%

INDITEX 77% 12% 12%

INTERTEK 29% 33% 38%

LINDT 67% 28% 5%

NOVO NORDISK 31% 39% 30%

RECKITT BENCKISER 45% 30% 25%

ROCHE 35% 37% 28%

SAP 50% 26% 24%

SODEXO 44% 39% 17%

STRAUMANN 60% 22% 17%

TALK TALK 100% 0% 0%

TELEFONICA 57% 0% 43%

TEMENOS 34% 7% 59%

TESCO 69% 1% 32%

WINCOR NIXDORF 80% 8% 12%

TOTAL PORTFOLIO 50% 20% 30%


Economic hub shifting from West to EastEconomic hub shifting from West to East

Crisis in the Western economic model.Crisis in the Western economic model.

Improving economic conditions for emerging economies.Improving economic conditions for emerging economies.

Low-Cost model prevailing.Low-Cost model prevailing.

Globalisation of the Western lifestyle.Globalisation of the Western lifestyle.

Growing dependency on telecommunications.Growing dependency on telecommunications.

Business models seek efficiency / Mechanisation of traditional industry.Business models seek efficiency / Mechanisation of traditional industry.

Deleveraging of governments, businesses and individuals.Deleveraging of governments, businesses and individuals.

Outsourcing of services.Outsourcing of services.

Globalisation of markets.Globalisation of markets.

MACROTRENDS TRENDS MICROTRENDS COMPANIES

INDITEXINDITEX

CAPITA, SAP, SODEXOCAPITA, SAP, SODEXO

CHRISTIAN DIOR, RECKITT BENCKISER, LINDT&SPURGICHRISTIAN DIOR, RECKITT BENCKISER, LINDT&SPURGI

INTERTEK, BOLSAS Y MERCADOS, KUEHNE&NAGEL, DSVINTERTEK, BOLSAS Y MERCADOS, KUEHNE&NAGEL, DSV

WINCOR, AIR LIQUIDE, BRENNTAG, TEMENOSWINCOR, AIR LIQUIDE, BRENNTAG, TEMENOS

Following Macrotrends

19

Economic globalisation.Economic globalisation.

Transformation of world demographicsTransformation of world demographics

Global climate change. Incorporation of economic sustainability

Global climate change. Incorporation of economic sustainability

Changing population pyramids in emerging countries.Changing population pyramids in emerging countries.

Ageing populations in developed countries.Ageing populations in developed countries.

Growing dependency on telecommunications.Growing dependency on telecommunications.

Increased international conflicts.Increased international conflicts.

Sophistication of consumer trends.Sophistication of consumer trends.

Implementation of new technologies. Implementation of new technologies.

Growing healthcare spending.Growing healthcare spending.

Growing demand for nutritional diets.Growing demand for nutritional diets.

Transformation of the energy model.Transformation of the energy model.

Streamlining of raw materials consumption.Streamlining of raw materials consumption.

Waste and emissions management.Waste and emissions management.

TELEFONICA, EUTELSAT, TALK TALKTELEFONICA, EUTELSAT, TALK TALK

ROCHE, STAUMMAN, GRIFOLS, ESSILOR, COLOPLAST, NOVO NORDISKROCHE, STAUMMAN, GRIFOLS, ESSILOR, COLOPLAST, NOVO NORDISK

TESCOTESCO

DANONEDANONE

ALSTOM, AGREKKOALSTOM, AGREKKO

Performance over the crisis period

20


EDM Strategy vs. Stoxx50 since the beginning of the crisis (performance)

Performance over the crisis periodEDM Strategy Fund

-38% +66,50%+4%

EDM Strategy

21

+51%

-31%

-58%Stoxx 50


EDM Strategy vs. Stoxx50 since the beginning of the crisis (volatility)

EDM Strategy Fund

22

EDM Strategy vs. Competitors since the beginning of the crisis (performance/volatility)

Performance over the crisis periodEDM Strategy Fund

EDM

Franklin

Invesco

Allianz

JPMBestinver

Fund/ Benchmark/CategoryAnnualized Return

Volatility

EDM StrategyEDM StrategyEDM StrategyEDM Strategy 0,880,880,880,88 13,9513,9513,9513,95

Carmignac Portf Grande Europe A -3,85 15,69

LFP Europe Impact Emergent R -2,54 16,36

Franklin European Growth A 2,33 16,14

Invesco European Growth A -0,63 16,13

Tocqueville Value Europe P -5,29 16,46

23

EDM

EDM

EDM EDM EDM

Carmignac

LFP

Tocqueville

Fidelity

Agressor

JOHCM

Stoxx

Euro Stoxx

Category

Tocqueville Value Europe P -5,29 16,46

Fidelity European Dynamic Grth A -1,11 18,87

Allianz RCM Europe Eq Growth AT 6,05 19,54

Agressor -2,57 22,66

JPM Europe Strategic Div D -4,10 18,94

JOHCM European Select Val -0,40 19,21

Bestinver Internacional -0,80 22,71

STOXX 50 -8,16 17,91

EURO STOXX 50 -11,63 21,74

Europe Large-Cap Growth Equity Category -2,03 17,50

Fund Managers

24

Fund Managers

RicardoVidal, 42. CO-CIOConsumption Sector Specialist

Holds an MBA from ESADE University (Barcelona). Worked at Banco Vitalicio (InsuranceCompany) and Gesindex SGIIC (Financial Services) from 1993 until 1997. Holds the Certified ofEuropean Financial Analyst (CEFA). Joined EDM in July 1997. He is currently a Board Member ofEDMGestión, SGIIC. EDM partner since 2005.

AdolfoMonclús, 38. CO-CIO.Retail, Business Services and TMT´s Sector Specialist

Fund ManagersEDM Strategy Fund

Graduated in Business Administration by the Universitat Internacional de Catalunya & inEconomics Finance by Bentley College (USA). Holds an International MBA from Instituto deEmpresa (Madrid). Worked at Argentaria and BBVA in the Mid-Corporate Banking area. JoinedEDM in July 2005 after finishing his MBA. EDM partner since 2010.

Beatriz López, 34. FundManager & analystMedical, Food and Insurance Specialist

Graduated in Economics from Universitat Pompeu Fabra (UPF) in 1999, followed by a MastersDegree in Finance from CEMFI (Bank of Spain) in 2001. Holds the Chartered AlternativeInvestment Analyst (CAIA) by the CAIA Association. She started her career at Banco Sabadellwhere she became Senior EquityAnalyst. Joined EDM in 2007. EDM partner since 2011.

25

Juan Grau,66EDM Inversión Fund ManagerSpanish Stocks Specialist

Business education. Graduate in businessManagement from IESE, Graduate in FinancialAnalysis and Tax from EADA and Analysis andBudget Control form TEA-CEGOS. He worked inseveral industrial companies as CFO during 16years. Partner and Founder, in 1989, of EDMGroup. He is currently Chairman of EDM Gestión,SGIIC and a Board Member of EDMHolding.

Gonzalo Cuadrado,41Fund Manager & analystPharmacy, construction andinfrastructure Sector Specialist

Graduated in Economy by UB. Holds aMaster in Finances by the IEF, the CEFA, theCIIA and the CAIA. Holds the “Certificado deExperto en Valoración de Empresas”(CEVE)by IEAF. Worked as a fund manager andanalyst in Caixa Penedès. Analyst and assetmanager in EDM since 2004. EDM partnersince 2010.

Fund ManagersEDM Strategy Fund

26

manager in EDM since 2004. EDM partnersince 2010.

Alberto Fayos,39Fund Manager & analystSpecialised industries and FinancialsSector Specialist

Holds a Bachelor in Actuarial and Finances and aDegree in Statistics from University of Barcelona(UB) . Holds the CEFA Certified. Worked at GaescoGestión SCIIC from 1997 until 2005. Worked atBanc Sabadell Gestión SGIIC from 2006 until2009. Joined EDM in March 2009 as an Analystand PortfolioManager.

•No distinction between analyst & portfolio manager

• Collective discussion & Individual decision

• Investment Team over the last 6 years: Non-existent staff turnover

In 1995 EDM entrusted the management of its EDM Strategy Fund to the asset management group Comgest, under the same principles that govern the fund today. One of the current fund managers, Ricardo Vidal, joined EDM in 1997 wherehe spent nine years monitoring the companies that Comgest included in the fund. In 2005 the EDM Investments Team began taking an active role in managing the fund, and ultimately Comgest officially ceased to supervise the fund in 2009.Since then it has been managed exclusively by EDM Asset Management.

European Equities

27

European Equities

European Equities valuation reaching 30 years low

European Equities

P/E

EDM Strategy Fund

28Source: SocGen

FRANCE GERMANY

Divergences between profits and prices during 2010 & 2011

European EquitiesEDM Strategy Fund

29Source: Bloomberg

P/E Ratios USA vs. Europe

European EquitiesEDM Strategy Fund

USA EUROPE

S&P500

Walmart

Procter &

13,5x

12,6x

16,9x

Stoxx600

Tesco

Reckitt Benckiser

11,3x

9,5x

14,5x

30

Procter & Gamble

General Electric

Praxair

CME

Coach

ATT

16,9x

13,0x

19,0x

16,4x

20,7x

13,5x

Reckitt Benckiser

Alstom

Air Liquide

BME

Tod’s

Telefónica

14,5x

9,2x

17,6x

11,5x

18,2x

8,5x

About EDM Asset Management

31

About EDM Asset Management

• 23 Years´s experience: founded in 1989

• Leading independent manager in Spain: AUM € 1.3 bn

• 400 M€AUM in european equity portfolios

• Independent: - Fully owned by the Group´s Management

- Focused exclusively on Asset Management

About EDM Asset ManagementEDM Strategy Fund

32

1.299 M€

0100

200300400

500600700800

9001.0001.100

1.2001.300

198919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

11

2012

(Jul

y)

AUM

Regulated companies in three European domiciles

EDM HOLDING, S.A.

EDM SERVICIOS EDM GESTIÓN EDM FUND EDM ASSET

100%


33

Company

Country

Service

EDM SERVICIOS FINANCIEROS

S.A. AV

EDM GESTIÓN S.A. SGIIC

EDM FUND MANAGEMENT, S.A.

EDM ASSET MANAGEMENT, Ltd

Discretionary Domestics Funds International Fuds Fund of Management SICAV SICAV Hegde Funds

SPAIN Since 1989

SPAIN Since 1989

LUXEMBOURG Since 1990

IRELAND Since 1999


Our Principles

• Independence:

Interests aligned with those of the investor

Capital held by the executive team

• Experience:

•Transparency:

Information that can be understood by investors

Reports audited since 1989

• Solvency:

34

• Experience:

Highly experienced executive team

Very low staff turnover

• Differentiation:

Investment based on fundamentals

Traditional management style

• Solvency:

Assets deposited at banks

Equity in excess of requirements

• Continuity:

23 years in asset management

Corporate governance: independent directors

EDM Senior Managers

Eusebio Díaz-Morera, 66EXECUTIVE CHAIRMAN

Graduated in Economy from BarcelonaUniversity and MBA from IESE (Barcelona).Before founding EDM in 1989, he was GeneralDirector of PAS (Fund Management andCorporate Finance), Chairman of Caja deBarcelona (Savings Bank), Chairman of BancaCatalana, and Chairman of Tunel del Cadí

Antonio Estabanell, 52CEO

Holds an MBA from ESADE University(Barcelona). Worked at KPMG and twointernational food companies in the FinancialArea. Joined EDM in 1990 and since then hasbeen involved in all investment managementactivity within the company. Until 2010 he wastheManaging Director and CIO.


Catalana, and Chairman of Tunel del Cadí(tollway concession)

theManaging Director and CIO.

Luis Fortuny , 45HEADOF BACK-OFFICE& COMPLIANCE

Graduated in Economics and Finances fromUAB. In 2006, he received a BA degree in PDDfrom IESE Business School. He was working atSONY from 1990 to 2000 as AccountingManager and Control Manager. He was SeniorConsultant at Cap Gemini Ernst & Young. Hewas also Finance Director at Baker & Mc Kenzie(Law firm). He joined EDM in 2008.

Javier Prada, 62DIRECTOR

Graduated in Law, he holds a Master inFinance (University of Paris). He started hiscareer in Banif Private Bank (Santander) wherehe was Regional Manager and FormerManaging Director. In 1991 he joined Indosuez-Credit Agricole where he was Private BankingGeneral Manager and Regional President. Hejoined EDM in 2005.

35

Spanish EquitiesEDM Inversión

Credit Short Duration (Investment Grade)EDM Ahorro

EDM performance with other asset types

Year EDM AHORRO INFLATIONRelative

Performance

2000 2,39% 2,48% -0,09%

2001 4,49% 2,05% 2,45%

YearEDM

INVERSIONIBEX 35

Relative Performance

2000 -5,87% -21,75% 15,9%

2001 -0,90% -7,82% 6,9%


36All EDM return data are expressed in euros and are stated net of expenses and fees.

2001 4,49% 2,05% 2,45%

2002 2,19% 2,28% -0,09%

2003 2,22% 1,97% 0,25%

2004 1,61% 2,36% -0,75%

2005 1,18% 2,22% -1,05%

2006 0,01% 1,92% -1,91%

2007 1,58% 3,07% -1,49%

2008 3,15% 1,58% 1,56%

2009 6,94% 0,93% 6,01%

2010 1,73% 2,21% -0,48%

2011 2,00% 2,01% -0,01%

Total Return 33,60% 28,10% 5,50%

Annual Return 2,44% 2,10% 0,34%


2001 -0,90% -7,82% 6,9%

2002 -10,81% -28,11% 17,3%

2003 24,95% 28,17% -3,2%

2004 23,59% 17,37% 6,2%

2005 23,91% 18,20% 5,7%

2006 38,46% 31,79% 6,7%

2007 1,49% 7,32% -5,8%

2008 -37,15% -39,43% 2,3%

2009 26,84% 29,84% -3,0%

2010 -9,00% -17,43% 8,4%

2011 -6,10% -13,11% 7,01%

Total Return 52,41% -26,42% 78,83%

Annual Return 3,57% -2,52% 6,09%


EDM performance with other asset types


FUND CATEGORY20 Years

RETURN

15 Years

RETURN

10 Years

RETURN

7 Years

RETURN

3 Years

RETURN

2 Years

VOLATILITY

2012

RETURNInception Date ISIN

EDM Strategy Europe Equity Large Cap 241,68 81,18 0,70 40,15 28,54 11,28 4,04 31/10/1995 LU0028445327

EDM Ahorro Euro Corporate Credit 115,95 48,55 25,23 17,64 9,29 1,81 1,62 01/04/1991 ES0168673038

EDM Inversión Spanish Equity 331,87 170,68 63,37 18,62 6,94 17,25 -10,87 01/04/1991 ES0168674036

EDM Renta Euro Fixed Income 47,62 23,82 16,27 4,10 0,63 1,00 22/12/1994 ES0127795039

37All EDM return data are expressed in euros and are stated net of expenses and fees.

EDM Renta Euro Fixed Income 47,62 23,82 16,27 4,10 0,63 1,00 22/12/1994 ES0127795039

EDM American Growth (USD) US Equity Large Cap Growth -24,22 3,19 45,70 12,58 12,92 31/05/1999 LU0095539242

EDM Cartera Global Equity Large Cap 10,09 11,60 -0,26 11/07/2008 ES0128331008

EDM American Growth (EUR) US Equity Large Cap Growth 41,91 18,24 7,76 10/09/2008 LU0388590050

EDM Credit Portfolio A (EUR) High Yield Fixed Income 43,65 7,89 4,76 08/10/2008 LU0028445590

EDM Emerging Markets Emerging Markets Equity 12,72 1,77 21/12/2009 LU0051440435

EDM High Yield Short Duration High Yield Fixed Income 2,70 06/10/2011 LU0146855530

EDM Credit Portfolio (USD) High Yield Fixed Income -2,29 15/04/2012 LU0761040426

Summary

38

Summary

10 reasons for investing in EDM Strategy Sicav

1. Consistent returns above benchmark (+6% annual outperformance)

2. Very small volatility for an equity fund (-4% annual bellow benchmark)

3. Excellent relative performance throughout the financial crisis (2007-2011)

4. Stable investment philosophy all over 23 years

5. Unique and tested investment process developed by an experienced management team

SummaryEDM Strategy Fund

39

5. Unique and tested investment process developed by an experienced management team

6. Very high quality (ROE) and liquid concentrated portfolio

7. Defensive strategy: focus on "ensured growth" without leveraged or cyclical sectors

8. Portfolio valuation at historial minimum levels

9. Poor overlapping and low correlationwith other fund managers

10. Complementarywith other equity styles

SummaryEDM Strategy Fund

40

www.edm.esIgnacio PedrosaHead of Investor Relations+34 636814186+34 [email protected]://es.linkedin.com/in/ipedrosa

LEGAL NOTICE

1) This information represents disclosure by EDM and is intended merely to inform those to whom it is addressed in compliance with the code of cunsuct applying to all investment services in Spain. For this reason efforts have been made to ensure that it is sufficient and understandable to anybody likely to receive it.

Given that the information may refer to or include separate additional documentation, the recipient is invited to request this from EDM.

If, within the body of information in this notification, there should be any offer regarding products, financial instruments or services, the recipients thereof also have at their disposition supplementary or additional If, within the body of information in this notification, there should be any offer regarding products, financial instruments or services, the recipients thereof also have at their disposition supplementary or additional documentation which will enable them to authorise all the terms and conditions pertaining to the offer of interest to them.

2) EDM is a securities broker registered in Spain (Avda. Diagonal 399 3º 1ª, 08008 Barcelona) and is authorised to provide investment services with regard to securities and financial instruments for clients, in relation to whom it is subject to the supervision of the Comisión Nacional del Mercado de Valores (National Securities Market Commission) (CNMV, Paseo de la Castellana 19, 28046 Madrid), where it is registered under number 139. The broker is a member of the Fondo de Garantía de Inversiones (FOGAIN, the Investment Guarantee Fund).

3) The recipients of this information should bear in mind that any results or data provided may be subject to fees, commission, taxes, expenses or duties, which could lead to a reduction in the gross return, which will depend on the particular nature of each case.

4) It is here left on record that the instruments described in this information are subject to the impact of various common causes, such as:

i- Alterations to the markets due to unforeseen circumstances

i- Liquidity risks and others which affect the progress of the investment.

5) Within this information here figures appear that refer to past returns for the products mentioned. It is obvious that such information should be used as a reference and as valid background data to reach one’s own conclusions, but under no circumstances should it be employed as an indicator guaranteeing future performance.

By the same token, the information contained that might simulate future trends for any product and its performance must, for identical reasons as those cited for past data, be considered as a valid reference to reach one’s own conclusions but in no way seen as a guarantee of returns that will be obtained.

6) Within this documentation there may be figures based on currencies other than those used by recipients hereof. For this reason consideration should be given to any possible change upwards or downwards in the value of the currency and how this affects the results for the products or instruments proposed.

This document is reserved for professional investors only as defined by theMIFID41

EDM Strategy Fund

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