oddo european mid and small cap funds
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TRANSCRIPT
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Oddo Avenir EuropeOddo Avenir Euro
16-18 November 2011
BERLIN
Morningstar®
Morningstar®
November 2011Pascal Riegis, Analyst portfolio managerGrégory Deschamps, Analyst portfolio managerSébastien Maillard, Analyst portfolio managerFrédéric Doussard, Analyst portfolio manager
European Mid and Small Cap fundsMorningstar®
Morningstar®Oddo Avenir EuropeOddo Avenir Euro
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Mid Cap equities by Oddo AM
«
Investing in tomorrow’s best companies
»
Oddo AM: a recognized know-how in Mid Caps with a 19-year track record for Oddo Avenir and a 12-year track record for Oddo Avenir Europe
A stable management team with high team spirit, in charge of the funds for 8 years
Over €2,572m assets under management
3 open-ended funds (AuM: €1,681m): Oddo Avenir Europe (Pan-Europe), Oddo Avenir Euro (Euro zone), Oddo Avenir (70% French equities)
Dedicated funds and mandates (€891m of AuM)
All three funds are exposed to a certain number of risks, in particular the risk of loss of capital and the equity risk. All risks are detailed on slides 44 and 45
One of the longest track record in the European market
A sound offer
Source: Oddo AM. Data as of 10/31/2011
Risks
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1
6
Philosophy 5
People 7
Process 9
Products 33
Performance 36
Appendices 47
4
5
Contents
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3
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Focus on value creators, delivering high Return on Capital Employed1. Philosophy
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Mid Cap: already structured companies with billion euros market capitalisations
Value creators on the whole cycle: self-financing growth, preserved profitability and self-financing even in recession times, whatever the sector
European companies with an international development: tomorrow’s global leaders, capturing growth where it is
Looking for a Risk/Return optimisation, with a risk of loss of capital: avoid individual appreciation bias, avoid mistakes and if any limit capital loss risk
No style bias, no macroeconomic bets: but a structural underweighting of non-value creator sectors and/or purely domestic businesses versus a structural overweighting on sectors with numerous attractive investment opportunities
One team: a stable management team with high team spirit, in charge of the funds for 8 years.One mission: our client capital growth over the long term
One investment philosophy, one investment process, one mission
«
Investing in tomorrow’s best companies
»
Opinions expressed in this document correspond to our market anticipations at the time of publication of this document. They may
change with market conditions and may not commit contractual responsibility of Oddo AM in any case
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A stable and united committed team2. People
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A stable and united team, collective investment decisions, shared values
An experienced team in charge of the funds since July 2003
Investment experienceRole
Grégory Deschamps
Frédéric Doussard
Sébastien Maillard
Pascal Riégis
Maryse Sauvageot
19 years
12 years
8 years
24 years
27 years
Analyst-portfolio manager
Analyst-portfolio manager
Analyst-portfolio manager
Assistant manager
Analyst-portfolio manager
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Picking value creators offering an attractive risk/return profile on the mid and long term, while controlling liquidity and volatility, with a risk of
loss of capital
3. Process
Opinions expressed in this document correspond to our market anticipations at the time of publication of this document. They may
change with market conditions and may not commit contractual responsibility of Oddo AM in any case
Quantitative filter
Fundamental analysis
Valuation
Portfolio construction and management
Risk management by the management team
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Bottom-up investment process
A rigorous four steps investment process
Universe of European Small andMid Cap stocks. €150m to €10bn
Around 3,000 stocks
Investment rules and risk management
Around 40 lines*
Valuation of companies with positive fundamental opinion
Risk/Reward profile
Qualitative analysis of the investable universe
Around 300 stocks
Discounted Cash Flow methodbased on two different scenario:
- Best case scenario
-
Worst case scenario
Peer comparison method (PER, EV / EBITDA ...)
Concentrated portfolio composed of managers’ strongest convictions
- Around 40 lines*- Average holding period 3 years*-Market capitalizations in €bn*- No macro bets (Cyclical / Non cyclical balance)*- Controlled volatility and liquidity by the management team- No style bias
1. Quantitative filter 2. Fundamental analysis 3. Valuation
4. Portfolio construction and management
Investment universe screened:
-High Return On Capital Employed
-
Positive and enduring Free CashFlows to finance organicor small bolt-on acquisition or acquisition-led expansionover the long term
-
European companies with an international development
Fundamental research:
-
Company’s financial performance
- Consistency of strategy
- Competitive edge
- Management’s quality
- Sell-side research
-
Regular visits to the companies
*Observation over the past 8 years
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Quantitative filter
Fundamental analysis
Valuation
Portfolio construction and management
Risk management by the management team
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Value creators
The right fuel to finance growth
Construction: Lafarge vs Sika (total return, EUR)
Source: Datastream. Data as of 09/30/2011
The examples of Lafarge and Sika
are not investment recommendationsPast performance is not a reliable indication of future returns and is not constant over time
Stoxx 600 + 279.8%
Lafarge + 39.0%
Sika + 1137.6%
0
200
400
600
800
1000
1200
1400
1600
1800
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
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Compared ROE between Oddo Avenir Europe and Stoxx 600 (for information)
Value creators on the whole cycle
Past performance is not a reliable indication of future returns and is not constant over timeSources: Oddo AM, Oddo Securities base Factset. Data as of 07/07/2011
The HSBC Smaller Europe + UK figures are not available. That is why we present the Stoxx
600 figures
Oddo Avenir Europe Stoxx
600
19.8%
14.5%
18.3%
16.3%
9.2%
12.9%
0%
5%
10%
15%
20%
25%
2007 2009 2011e
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Value creators on the whole cycle
* Free Cash Flow Yield = Free Cash Flow per Share
/ Current
Market
Price per Share
Return On Capital Employed and free cash flow yield* of Oddo Avenir Europe main holdings
Source: Oddo AM. Data as of 10/07/2011Past performance is not a reliable indication of future returns and is not constant over time
12%
Aryzta
Biomérieux
Brenntag
Michelin
SKF
Infineon
FaivelayIpsos
IngenicoAmadeus
Dassault Systèmes
DSM
Fresenius
Imtech
Rolls RoyceSafran
Rexel
Sodexo
BicMoyenne
0%
2%
4%
6%
8%
10%
12%
Free
Cas
h Fl
ow Y
ield
* 201
1e
ROCE post tax 2011e
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Source: Oddo AM. Data as of 12/31/2010
European companies with international development
Origin
country
America
Rest
of the world
Rest
of Europe
25%
30%
25%
20%
75% of their
activity
outside
of their
origin
country
% of turnover
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Quantitative filter
Fundamental analysis
Valuation
Portfolio construction and management
Risk management by the management team
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Fundamental analysis
“Identify tomorrow’s best companies”
Mid Cap
A solid and tested management
Solid growth perspectives
International development
Value creators on the whole cycle
Already structured companies, with leadership position on their market, billion euros market capitalisations
Companies able to preserve fair profitability and to finance their own long term development even in recession times
Tomorrow’s global leaders, capturing growth where it is
Companies built on a strong and understandable business model, offering organic development perspectives, with small acquisitions at a good price
Performing companies, pure players in one business line and with
strong management teams
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DSM: a top leader in nutrition at
the price
of a traditional
chemical
company
Mid Cap
A solid and tested management
Solid growth perspectives
International development
Value creators on the whole cycle
Market
capitalization: €6.2bn
Refocusing
done
concerning
activities
with
solid
ROCE by the end of 2010
DSM generates
by now
61% of its
EBITDA thanks
to nutrition (vitamins, infantile nutrition, enzymes…), which
is
a growing
sector, very
profitable, and not that
cyclical
DSM is
the worldwide
leader in vitamins
(30% of market
shares)
All in all, 37% of the turnover is
generated
in emerging
countries
Nutrition: the group takes
advantage
of the expansion of food-processing
industry
and intensive cattle
breeding, which
favors
the use of high
quality
vitamins.
Performing
chemistry: DSM benefits
from
metal
substitution by resisting
plastics in order
to limit
energy
consumption
Feike
Sijbesma
joined
DSM in 1998, CEO since
2007, member
of the board
since
2000
Rolf-Dieter Schwalb
joined
DSM in 2006, CFO and member
of the board
since
2006
3 new companies
in the Top 10
The example of DSM is not an investment recommendationSource: Oddo AM. October 2011
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Brenntag: a chemicals distribution worldwide leader on a market that is likely to consolidate3 new companies
in the Top 10
Mid CapMarket
capitalization: €3.5bn
Strong resistance of the activity in 2009 thanks to the fragmentation of the suppliers and the customers
Brenntag
brings an added value on products with low volumes: availability of products, optimization of the logistic costs
Brenntag
is the worldwide leader on its market with a 7 % market share. The company realizes half of its activity in Europe and a third in North America
Benefits
from
the growing trend of distribution outsourcing by chemical producers
Strongly value-creating strategy of local companies acquisitions
Stephen Clark joined Brenntag
in 1981, CEO since 2010, member of the board since 1993Jurgen
Buchsteiner
joined Brenntag
in 2000, CFO and member of the board since 2010
The example of Brenntag
is not an investment recommendationSource: Oddo AM. October 2011
A solid and tested management
Solid growth perspectives
International development
Value creators on the whole cycle
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Amadeus: technological partner of the travel industry
Mid Cap Market
capitalization: €5.5bn
Rise in net earnings in 2008 and 2009 in spite of the air transport struggle
Over the past 10 years, Amadeus strengthened its position by becoming the world’s first GDS and holds a 37 % market share today
Excellent visibility over the next years thanks to the contracts
duration (10-15 years) and to the airline companies remaining to migrate on Amadeus's system
Services extension offered to travel agencies
Development of softwares
for airline companies: management of passengers and freight bookings, yield management, fuel management, flights schedule, …
Luis Maroto, joined
Amadeus in 2000, CEO since
2011
Ana de Pro, joined
Amadeus in 2010, CFO since
2010
The example of Amadeus is not an investment recommendationSource: Oddo AM. October 2011
A solid and tested management
Solid growth perspectives
International development
Value creators on the whole cycle
3 new companies
in the Top 10
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Quantitative filter
Fundamental analysis
Valuation
Portfolio construction and management
Risk management by the management team
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0
20
40
60
80
100
120
140
160
Pric
e (€
)
Investment decision 60€
Best Case Scenario + 40%
Worst Case Scenario - 20%
Risk/return optimisation
Valuation through in-house DCF models: “best case” scenario versus “worst case”scenario, with a risk of loss of capital
Optimization of risk / return profile according to market conditions
A strict buy and sell discipline:–
Buy discipline : only stocks in which the management team has strong fundamental convictions and with an attractive growth potential / downside risk profile are integrated in the
portfolio.
–
Sell discipline : collegial decisions to sell or replace a stock when the target price is reached, when a new class of assets offers a better risk / return profile or when deterioration in the company fundamentals is detected.
One goal : a controlled volatility over time
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Quantitative filter
Fundamental analysis
Valuation
Portfolio construction and management
Risk management by the management team
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Oddo Avenir Europe Oddo Avenir Euro
No style bias, no macroeconomic bets
But strong disparities between sectors
Source: Oddo AM. Data as of 10/31/2011
Industrials 32%
Technology 16%
Cash 9%
Basic materials12%
Healthcare11%
Consumer goods11%
Oil & gas 2%Consumer services
7%Industrials 31%
Technology 16%
Basic materials13%
Healthcare 12%
Consumer goods9%
Oil & gas 2%
Cash 9%
Consumer services9%
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Top 10 holdings
Source: Oddo AM. Data as of 10/31/2011
European companies with an international development, leadership
positions, profitable and performing over the long term
Main holdings Weight in the portfolio
Top 10 holdings
Main holdings Weight in the portfolio
Top 10 holdings 46.7%
Oddo Avenir Europe Oddo Avenir Euro
48.3%
Opinions expressed in this document correspond to our market anticipations at the time of publication of this document. They may
change with market conditions and may not commit contractual responsibility of Oddo AM in any case.
These companies are not investment recommendations.
Biomérieux
Rolls-Royce
Dsm
Amadeus
Skf
Sodexo
Imtech
Fresenius
Brenntag
Aryzta
4.4%
4.3%
4.0%
3.4%
5.9%
5.9%
4.9%
5.7%
5.5%
4.3%
Imtech
Brenntag
Sodexo
Rolls-Royce
Biomérieux
Amadeus
Michelin
Fresenius
Safran
Dsm
4.2%
5.5%
3.6%
3.7%
3.6%
5.6%
4.7%
5.6%
4.6%
5.6%
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Quantitative filter
Fundamental analysis
Valuation
Portfolio construction and management
Risk management by the management team : example of Oddo Avenir Europe
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Portfolio liquidity of Oddo Avenir
Europe
Simulation : 1/3 of volume based on the 6 months average volume
Liquidity of Oddo Avenir Europe
Source: Oddo AM. Data as of 11/08/2011
30% in one day, 72% in five days
30%
72%86%
1 day 5 days 10 days
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Never more than 6% of the AuM on one single position (observation over the past 8 years)
Oddo AM internal rule: never more than 5% of the capital of a company (for all funds managed by Oddo AM)
Weighted average market capitalisation (in €m)
Market capitalisations between €1000m and €5000m(% of NAV)
Market capitalisations > €5000m(% of NAV)
Market capitalisations < €1000m(% of NAV)
Oddo Avenir Europe Oddo Avenir Euro
Mid Cap: weighted average market cap above €5Bn
Source: Oddo AM. Data as of 10/31/2011
One goal: a controlled
level
of liquidity
8% 11%
5,581 5,076
39% 40%
44% 39%
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Compared volatility
Lower volatility than the benchmark universe
Oddo Avenir Europe HSBC Smaller
Europe + UK (net total return) Stoxx
50 (net total return) for information
Past performance is not a reliable indication of future returns and is not constant over timeSource: Oddo AM. Data as of 10/28/2011
5%
7%
9%
11%
13%
15%
17%
19%
21%
23%
25%
1 year 3 years
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Oddo Avenir Europe: only 25% invested in companies having a Beta > 1
Lower volatility than the market
Past performance is not a reliable indication of future returns and is not constant over timeSource: Oddo AM. Data as of 10/07/2011
Price Earning Ratio (PER) = current stock price / earnings per share : in general, a high
PER suggests
that
investors
are expecting
higher
earnings
growth
in the future compared
to companies
with
a lower
PER..
Beta : the β
of an asset
indicates
its
financial
risk
compared
to the market. Example: an asset
with
a beta of 0.5. If the market
falls
by 10%, the asset
will
fall
by 0.5 x 10% = 5%. Conversely, if the market
rises
by 10%, the asset
will
gain 5%.
PER 2011 (e)
Bet
a
PER > 15 : 8% of portfolioBeta > 1 :
25% of portfolio
Average of the portfolio
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
5 10 15 20 25 30
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Past performance is not a reliable indication of future returns and is not constant over timeSources: Oddo AM, Oddo Securities base Factset
as of 07/07/2011
Return on equity compared between Oddo Avenir Europe and Stoxx 600 (for information)
Investments in value creators throughout the economic cycle
The HSBC Smaller Europe + UK figures are not available. That is why we present the Stoxx
600 figures
Oddo Avenir Europe Stoxx
600
19.8%
14.5%
18.3%
16.3%
9.2%
12.9%
0%
5%
10%
15%
20%
25%
2007 2009 2011e
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Strong
balance sheets
Companies benefiting from a significant competitive advantage rely less on debt
2011e Debt Ratio of companies within the portfolio or the index
Sources: Oddo AM, Factset
as of 07/07/2011
The HSBC Smaller Europe + UK figures are not available. That is why we present the Stoxx
600 figures
Stoxx
600 ex Financials(for information.)
Stoxx
600 ex Financials, Telecom, Utilities (for information.) Oddo Avenir Europe
40%
29%
18%
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3 funds with consistent performance over the long term4. Products
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Funds details
3 funds based on a common investment process and management team
Oddo Avenir Europe Oddo Avenir Euro
Geographical coverage
NAV at 10/31/11
Benchmark index
Europe Euro zone
HSBC Smaller
Europe + UK HSBC Smaller
Euroland
Sources: Oddo AM, ©
2011 Morningstar, Europerformance-Edhec, Citywire. Data as of 10/31/2011
€1,005m €161m
Citywire ratings (as of 08/31/2011) of the management team’s 3 year risk-adjusted performance
h
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Geographic breakdowns
Oddo Avenir Europe Oddo Avenir Euro
Source: Oddo AM. Data as of 10/31/2011
Germany 28%
France 18%
Netherlands14%
Switzerland12%
Sweden6%
United Kingdom6%
Cash 9%
Austria 1%
Spain6%
Germany 33%
France 27%
Spain6%
Netherlands15%
Switzerland 3%
Austria 1%Ireland 1%
Italy 1%
United Kingdom4%
Cash 9%
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5. Performance
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Oddo Avenir
Europe, performing since inception
Oddo Avenir Europe since inception (05/25/99)
Oddo Avenir Europe + 143.8%
Benchmark index : HSBC Smaller Europe + UK (net total return) + 80.7%
Stoxx 50 (for information) (net total return) - 10.0%
Source: Oddo AM. Data as of 10/31/2011Past performance is not a reliable indication of future returns and is not constant over time
A continuous value creation
0
50
100
150
200
250
300
may-99 may-00 may-01 may-02 may-03 may-04 may-05 may-06 may-07 may-08 may-09 may-10 may-11
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Oddo Avenir Europe, performing since 01/01/04 (portfolio management take-over by the management team)A continuous value creation
Oddo Avenir Europe since 01/01/04
Source: Oddo AM. Data as of 10/31/2011Past performance is not a reliable indication of future returns and is not constant over time
Oddo Avenir Europe + 119.9%
Benchmark index: HSBC Smaller Europe + UK (net total return) + 75.5%
Stoxx 50 (for information) (net total return) + 11.8%
40
60
80
100
120
140
160
180
200
220
240
260
280
jan.-04
july-04
jan.-05
july-05
jan.-06
july-06
jan.-07
july-07
jan.-08
july-08
jan.-09
july-09
jan.-10
july-10
jan.-11
july-11
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A continuous value creation: why invest in European equities
Oddo Avenir Europe since 01/01/04
Sources: Oddo AM, Datastream. Data as of 10/31/2011
For information: Oddo Avenir Europe vs MSCI Asia
ex Japan
Past performance is not a reliable indication of future returns and is not constant over time
Oddo Avenir Europe + 119.9%
Benchmark index: HSBC Smaller Europe + UK (net total return) + 75.5%MSCI Europe (for information) (EUR, total return) + 36.0%
MSCI Asie ex Japan (for information) (EUR, total return) + 119.0%
On 01/01/2004 : Management take-over by the management team
Opinions expressed in this document correspond to our market anticipations at the time of publication of this document. They may
change with market conditions and may not commit contractual responsibility of Oddo AM in any case
40
60
80
100
120
140
160
180
200
220
240
260
280
jan.-04
july-04
jan.-05
july-05
jan.-06
july-06
jan.-07
july-07
jan.-08
july-08
jan.-09
july-09
jan.-10
july-10
jan.-11
july-11
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1 year 3 years 5 years
Oddo Avenir Europe
Ranking
Benchmark index:
HSBC Smaller Europe + UK
(net total return)
Stoxx
50 (net total return)
(for information)
Morningstar®
average European Mid Cap funds
(for information)
YTD
Cumulative performance since inception (05/25/1999)Oddo Avenir Europe: + 143.8% Benchmark index: HSBC Smaller Europe + UK (net total return): + 80.7%As information, Stoxx
50 (net total return): - 10.0%
Oddo Avenir Europe -
Performance
Annualised volatility/return since inception (05/25/1999)
Past performance is not a reliable indication of future returns and is not constant over timeSources: ©
2011 Morningstar, Oddo AM. Data as of 10/31/2011
+51.0%-6.9% + 11.1%
15 / 10052 / 100 4 / 100
+ 50.9%- 8.5% - 16.0%
+ 10.3%- 5.7% - 25.2%
+ 37.4%- 6.4% - 14.9%
- 14.1%
58 / 100
- 15.5%
- 7.6%
- 13.1% -4%
0%
4%
8%
12%
16% 18% 20% 22% 24% 26%
Annualised volatility in %
Ann
ualis
ed re
turn
in %
Oddo Avenir Europe ( )
+7.4%
HSBC Smaller Europe + UK
net total return +4.9%
Stoxx
50 net total return
(for information) -0.8%
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Oddo Avenir Euro, performing since 01/01/2004 (portfolio management take-over by the management team)A continuous value creation
Oddo Avenir Euro since 01/01/2004
Source: Oddo AM. Data as of 10/31/2011Past performance is not a reliable indication of future returns and is not constant over time
Oddo Avenir Euro + 108.4%
Benchmark index: HSBC Smaller Euroland (net total return) + 55.3%
Euro Stoxx 50 (for information) (net total return) + 9.0%
40
60
80
100
120
140
160
180
200
220
240
260
280
dec.-03 sept.-04 june-05 march-06 dec.-06 sept.-07 june-08 march-09 dec.-09 sept.-10 june-11
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1 year 3 years 5 years
Oddo Avenir Euro
Ranking
Benchmark index:
HSBC Smaller
Euroland
(net total return)
Euro Stoxx
50 (net total return)
for information
Morningstar®
average Euro zone Mid Cap funds
for information
YTD
Cumulative performance since the portfolio management take-over by the management team (01/01/2004)Oddo Avenir Euro: + 108.4% Benchmark index: HSBC Smaller
Euroland (total return): + 55.3%As information, Euro Stoxx
50 (total return): + 9.0%
Oddo Avenir Euro -
Performance
Annualised volatility/return since the portfolio management take-over by the management team (01/01/04)
Past performance is not a reliable indication of future returns and is not constant over timeSources: ©
2011 Morningstar, Oddo AM. Data as of 10/31/2011
+ 42.3%- 7.2% + 5.5%
5 / 10021 / 100
+ 34.1%- 14.4% - 25.2%
+ 2.1%- 13.2% - 30.0%
+ 20.5%- 11.9% - 24.3%
- 14.4%
43 / 100
- 17.9%
- 11.9%
- 15.6%
3 / 100
-4%
0%
4%
8%
12%
16%
16% 18% 20% 22% 24% 26%
Annualised volatility in %
Ann
ualis
ed re
turn
in %
Oddo Avenir Euro ( )
+9.8%HSBC Smaller Euroland
net total return
+5.8%
Eurostoxx
50 net total return
(for information) +1.1%
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1Detailed characteristics
Fund name Oddo Avenir Euro Oddo Avenir Europe
Legal status French regulated common fund–UCITS III French regulated common fund–UCITS III
Classification Euro Zone equity fund International equity fund
ISIN codesShare A share: FR0000990095 A share : FR0000974149Share B share: FR0010247783 B share : FR0010251108
Inception date 09/19/1985 05/25/1999
Minimum investment period 5 years 5 years
Benchmark index HSBC Smaller Euroland
net total return HSBC Smaller Europe + UK net total return
Investment objective To outperform its benchmark index over an investment horizon of more than 5 years
To outperform growth of the benchmark index on a 5 year-over-year basis
Management company Oddo Asset Management Oddo Asset Management
Custodian Oddo & Cie Oddo & Cie
Initial Minimum subscription
Share A share: 1 thousandth of a share A share : 1 thousandth of a shareShare B share : €1,000,000 B share : €1,000,000
Subscription fees 4% max of the fund NAV 4% max of the fund NAV
Redemption fees Nil Nil
Management feesShare A share: up to 2.00% of the net assets, inclusive of tax,
excluding UCITSA share: up to 2.00% of the net assets, inclusive of tax, excluding UCITS
Share B share: up to 1.00% of the net assets, inclusive of tax, excluding UCITS
B share: up to 1.00% of the net assets, inclusive of tax, excluding UCITS
Performance fees
Share A share: 20% of the outperformance relative to the benchmark index if the fund performance is positive
A share: 20% of the outperformance relative to the benchmark index if the fund performance is positive
Share B share: 20% of the outperformance relative to the benchmark index if the fund performance is positive
B share: 20% of the outperformance relative to the benchmark index if the fund performance is positive
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Risk profile (1/2)
Risk of loss of capital: The Fund has no guarantee or safeguard, so initial capital invested might not be returned in full.
Equity risk: The Fund is invested, directly or indirectly, in one or more equity markets which could experience significant fluctuations. In periods of low equity prices, Fund net asset value could be reduced. The fund has a 100% max exposure to equity markets.
Risk from holding small and mid capitalisation stocks: The Fund may be exposed to small and mid capitalisations.
Upward and downward changes in these stocks can be both more marked and
more rapid than for large capitalisations
and can therefore lead to large fluctuations in net asset value. Moreover the restricted volume on these markets may present a liquidity risk.
This type of investment may impact the valuation of the Fund and the price terms on which the Fund could liquidate its positions, and particularly, in the case of large redemptions, even make it impossible to sell them, with the consequent possible fall in Fund net asset value.
Interest rate risk: This is the risk that bond market yields may rise, which would result in a fall in bond prices, and consequently lead to a fall in Fund net asset value. The fund can hold up to 25 % of its asset in bonds or in euro denominated debt securities.
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Credit risk: This is the risk of potential deterioration in the rating of an issuer or, in extreme cases, of default, which would have an adverse impact on the prices of the debt securities issued by that issuer and therefore on the net asset value of the Fund, which could lead to a loss of capital. The level of credit risk varies according to forecasts, maturities and the level of confidence in each issuer which might reduce the liquidity of any particular issuer
and have an adverse impact on Fund net asset value, particularly in the case of the Fund liquidating its positions in a market with low transaction volumes.
Discretionary management risk: This risk relates to the management style which is based on anticipating movements on the various markets. There is a risk that at any point in time the Fund would not be invested in the best performing markets or in the best performing assets. Fund performance therefore depends on the ability of the fund manager to anticipate movements in the market or in the securities. This risk may lead to a fall in net
asset value and/or a loss of capital for the unitholder.
Counterparty risk: This is the risk of default by a counterparty leading to payment
default. The Fund may be exposed to counterparty risk through using forward instruments negotiated over-the-counter with financial institutions. The Fund is therefore exposed to the risk that one of these credit institutions cannot
honour
its commitments in respect of these transactions.
Exchange rate risk: This risk affects portfolios invested wholly or partly in securities denominated in foreign currencies, and arises from changes in the parities of these currencies by comparison to the fund reference currency. Thus, a security, the value of which in its own currency does not change, could nevertheless be
affected by fluctuations in that currency against the euro and might therefore cause Fund net asset value to fall. This risk is limited up to 30% max of the total asset of the Fund.Please note that the exchange rate risk is of secondary importance for Oddo Avenir and Oddo Avenir Euro.
Risk profile (2/2)
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Disclaimer
This document has been drawn up by Oddo Asset Management. Its communication to any investor is the responsibility of each promoter, distributor or advisor. It was created for information
purposes only and does not constitute an offer or a personalised
recommendation or a solicitation to subscribe the product mentioned. However, should investors decide to subscribe, they undertake to consult the fund’s prospectus in order to acquaint themselves with the precise nature of any risks incurred and in particular the risk of capital loss and, where applicable, the liquidity risk of underlying assets. The investment must be made in accordance with investors’
investment objectives, their investment horizon and their capacity to deal with the risk arising from the transaction.Any simulations and opinions presented in this document result from analysis carried out by Oddo Asset Management at a particular point in time and are no indication whatsoever of future results. Please note that past performance is not an indication of future results. Performance may vary over time.
For Oddo Avenir
Euro, the KIID is available in French and German. The full prospectus is available in French and in English.For Oddo Avenir
Europe, the KIID is available in French, German, Swedish, Spanish, Italian, Dutch and English. The full prospectus is available in French, Spanish, Italian and English.All these legal documents are available from Oddo Asset Management or on its website at www.oddoam.fr
for documentation in French language and on www.oddoam.com
for documentation in Foreign language.
Investor’s attention is drawn on the fact that mentioned funds and related legal documents have been accredited and regulated by the French securities regulator (AMF). All the mentioned funds are entitled to be sold in France. Oddo Avenir Europe is also entitled to be sold in Germany, in Austria, in the Netherlands, in Italy, in Spain, in Switzerland, in Belgium, in Sweden and in Singapore. Oddo Avenir
Euro is also entitled to be sold in Germany and Austria.
Oddo Asset ManagementPortfolio management company approved by the Autorité
des Marchés
Financiers under number GP 99011.Société
anonyme
with capital of €7,500,000. Trade Register (RCS) 340 902 857 Paris.12 boulevard de la Madeleine – 75440 Paris Cedex 09 FrancePhone: 33 (0)1 44 51 85 00. www.oddoam.fr
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6. Appendices
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Oddo Avenir Europe
Benchmark index:
HSBC Small Cap Europe
(total return)
Stoxx
50 (total return) (for information)
Oddo Avenir Europe
Performance per year
Past performance is not a reliable indication of future returns and is not constant over timeSource: Oddo AM
2008 2007 2004
+ 8.0%- 39.5% + 24.2%
- 5.8%- 51.3% + 24.2%
+ 2.6%- 41.2% + 7.1%
2009
+ 42.6%
+ 59.1%
+ 28.7%
2006
+ 31.3%
+ 32.8%
+ 13.6%
2005
+ 31.1%
+ 37.2%
+ 24.2%
2010
+ 28.4%
+ 25.6%
+ 3.1%
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Oddo Avenir Euro
Performance per year
Past performance is not a reliable indication of future returns and is not constant over timeSource: Oddo AM
Change in investment approach on the 10/31/2005
Oddo Avenir Euro
2008 2007 2004
+ 6.4%- 38.5% + 21.5%
- 2.9%- 49.7% + 23.8%
+ 9.6%- 42.4% + 9.4%
2009
+ 43.0%
+ 52.3%
+ 25.6%
2006
+ 27.3%
+ 31.8%
+ 18.0%
2005
+ 36.3%
+ 36.5%
+ 24.3%
2010
+ 23.6%
+ 14.1%
- 2.8%
Benchmark index:
HSBC Smaller
Euroland
(total return)
Euro Stoxx
50 (total return) (for information)
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1International contacts
Head of International Sales+33 1 44 51 88 [email protected]
Country Manager Switzerland+33 1 44 51 80 15 [email protected]
Lorenzo Gazzoletti Bertrand Levavasseur
Edouard Vallette Viallard
Deputy Managing Director
+33 1 44 51 84 95 [email protected]
Dario Sari
Head of Southern Europe +33 1 44 51 81 [email protected]
Institutional Sales Switzerland+33 1 44 51 86 [email protected]
Zeineb Belkourati
Jürgen Mahler
Country Manager Italy+39 02 45 55 79 [email protected]
Institutional Sales Belux+33 1 44 51 85 09 [email protected]
Agathe Schittly
Pascale Abdelnour
Institutional Sales Middle East+ 971 4 323 05 [email protected]
Institutional Sales Netherlands+33 1 44 51 89 [email protected]
Avidan Geissmann
International Client Service Manager+33 1 44 51 83 [email protected]
Pauline Heuff
Alain Meyer
Head of Institutional Clients Switzerland+41 78 605 [email protected]
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Oddo Avenir
Europe Oddo Avenir
Euro
International funds
registration at
10/15/2011
Oddo Avenir Europe
Oddo Avenir Euro
Switzerland Belgium Germany Austria Italy
Spain Netherlands Singapore Sweden Luxembourg United Kingdom
Oddo Avenir Europe
soon Reporting
status
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Biography of the management team
Grégory DESCHAMPS - Analyst-Portfolio manager, Mid Cap equitiesA graduate of HEC Paris and the SFAF, Grégory
DESCHAMPS joined Oddo Securities in 1992 as a sell-side analyst and vice head of equities research. Since early 2007, he has joined the Oddo AM teams as an analyst-portfolio manager for Mid Cap equities
Frédéric DOUSSARD - Analyst-Portfolio manager, Mid Cap equitiesA graduate of HEC Paris and the SFAF, Frédéric
DOUSSARD joined Oddo Securities in 1999 as a sell-side analyst, and took the responsibility of the Telecommunication Department in 2004. Since mid 2011, he has joined the Oddo AM teams as an analyst-portfolio manager for Mid Cap equities
Sébastien MAILLARD - Analyst-Portfolio manager, Mid Cap equitiesA graduate of the Ecole
Supérieure
de Commerce of Nantes (AUDENCIA), Sébastien
MAILLARD joined Oddo AM in 2002 as an assistant manager for Mid Caps equities. He has been a Mid Cap equities analyst-portfolio manager since 2003
Pascal RIEGIS - Analyst-Portfolio manager, Head of Mid Cap equities managementA graduate of economy at Pau Business School, member of the SFAF, Pascal RIEGIS began his career in 1987 as a financial analyst for Paribas. After five years of Equity Research at the CIC group, he joined Oddo et Cie in 1995 as Head of Equity Research for Oddo Securities. Since July 2003, Pascal RIEGIS has
been an analyst-portfolio manager of Mid Caps equities
Maryse SAUVAGEOT - Assistant manager for Mid Cap equitiesMaryse
SAUVAGEOT began her career in 1984, within Paribas as a vice-head of the fixed income and Forex
back office, then as a Trader on the short-term interest rates of Paribas Capital Market. She then joined Paribas AM as a trader in the European equities team. Since 2001, Maryse
SAUVAGEOT has worked for Oddo AM teams as a trader