EDM StrategyEuropean Equities

Return Date: 31/12/2011

Portfolio Date: 30/09/2011

Historical Performance vs. Benchmark

Time Period: 01/01/2000 to 31/12/2011

2001 2003 2005 2007 2009 201128,0

37,0

46,0

55,0

64,0

73,0

82,0

91,0

100,0

109,0

118,0

127,0

EDM Strategy STOXX 50 EURO STOXX 50

Returns

Ret

urn

YTD 1 year 3 years 5 years 7 years 10 years 15 years 20 years-20,0

-15,0

-10,0

-5,0

0,0

5,0

10,0

15,0

EDM Strategy STOXX 50 EURO STOXX 50

Statistical Risk

YTD 1 year 3 years 5 years 7 years 10 years 15 years 20 years

Alpha

Beta

Std Dev

Correlation

Sharpe Ratio

Sortino Ratio

0,06 0,06

0,78 0,78

3,96 3,96

0,89 0,89

-0,12 -0,12

-0,16 -0,16

5,32

0,73

12,50

0,93

0,35

0,53

5,45

0,77

13,43

0,92

-0,10

-0,13

5,61

0,78

12,28

0,91

0,12

0,16

3,56

0,74

13,06

0,90

0,13

0,17

1,53

0,66

13,38

0,82

0,10

0,13

2,09

0,66

13,14

0,80

0,22

0,30

5 Years Risk-Reward

Time Period: 01/01/2007 to 31/12/2011

Ret

urn

Std Dev0,0 4,0 8,0 12,0 16,0 20,0 24,0 28,0

-14,0

-11,0

-8,0

-5,0

-2,0

1,0 EDM Strategy

STOXX 50

EURO STOXX 50 PR EUR

Europe Large-Cap Growth Equity (Category)

Fund´s Manager Comment

Our fund’s consistent returns during the last bear market come from its lack of exposure to

financial and cyclical sectors, such as automobiles and commodities, which dropped

between 20% and 30%. On the other hand, some of our heavily weighted sectors like food

or pharmaceutical ended 2011 delivering pretty good results.

The adverse European macroeconomic environment contrasts with our companies solid

results, which will end 2011 with profits growth above 10%; main reasons being their high

exposure to emerging markets and their brand´s strengths. In December, we increased our

position in Danone, Air Liquide and Straumann, all of them high quality companies whose

prices are very attractive. In fact, EDM Strategy has reached minimun valuation levels since

launch (P/E 2011: 12.9)

Fund´s Data

Inception Date

NAV (Daily, €)

Fund Size (€)

Base Currency

ISIN

10/31/1990

253.92

65,497,234.00

Euro

LU0028445327

SnapshotName

Global Category

Custodian / Administrator

Auditor

Domicile

UCITS

EDM Intl Strategy

Europe Equity Large Cap

RBC Dexia Investor Services Bank S.A.

Deloitte S.A.

Luxembourg

Yes

EDM Asset Management www.edm.es/en -1- Tel. +34914110398 +34934160143 edm@edm.es

EDM StrategyEuropean Equities

Return Date: 31/12/2011

Portfolio Date: 30/09/2011

Holdings-Based Style

Mic

roSm

all

Mid

Larg

eG

iant

Deep-Val Core-Val Core Core-Grth High-Grth

EDM Strategy 30/09/2011

STOXX 50 31/12/2011

EURO STOXX 50 31/12/2011

Europe Large-Cap Growth Equity (Category) 31/12/2011

Style Box

Morningstar Equity Style Box™

LargeM

idSm

all

Value Blend Growth

Market Cap %

Market Cap Giant 40,1

Market Cap Large 12,8

Market Cap Mid 42,7

Market Cap Small 4,3

Market Cap Micro 0,0

Equity Sectors vs benchmarks

Portfolio Date: 30/09/2011

Strategy Stoxx 50Euro

Stoxx

Basic Materials

Consumer Cyclical

Financial Services

Real Estate

Consumer Defensive

Healthcare

Utilities

Communication Services

Energy

Industrials

Technology

3,84

5,00

4,21

0,00

17,38

26,53

0,00

5,53

0,00

25,06

12,44

7,37

3,48

19,30

0,00

16,30

18,55

3,99

9,10

14,35

5,04

2,52

5,93

9,52

23,21

0,98

9,74

7,56

9,06

9,21

9,87

9,81

5,12

Equity Country Exposure

%

Denmark 7,4

France 21,3

Germany 13,2

Spain 15,7

Switzerland 14,6

United Kingdom 27,8

Portfolio Holdings%

Roche Holding AG 7,1

Capita Group (The) PLC 7,0

Tesco PLC 6,3

Danone 6,2

Sap AG 5,9

Grifols SA 5,0

Eutelsat Communications 4,4

Bolsas y Mercados Espanoles 4,2

Coloplast 4,1

Essilor International 3,9

Brenntag AG 3,8

Industria de Diseño Textil,S.A."inditex" 3,6

Wincor Nixdorf Aktiengesellschaft 3,5

HomeServe PLC 3,3

Novo Nordisk A/S 3,2

Straumann Holding AG 3,2

Other 25,2

Total 100,0

Equity Sectors%

Basic Materials 3,8

Consumer Cyclical 5,0

Financial Services 4,2

Real Estate 0,0

Consumer Defensive 17,4

Healthcare 26,5

Utilities 0,0

Communication Services 5,5

Energy 0,0

Industrials 25,1

Technology 12,4

Portfolio construction

• 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)

• 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)

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

Stock picking methodology

•Focus on understandable and predictable businesses at reasonable prices

• Management quality & integrity are crucial for us

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

• Sustainable EPS growth (11%)

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

• Recurrent and solid cash-flows

• Companies focused on emerging markets to generate growth (1/3 Sales)

• Following certain long-term Macro-trends

• Lack of sectors whose profits are not easily foreseen

EDM Asset Management www.edm.es/en -2- Tel. +34914110398 +34934160143 edm@edm.es