1. EDM Strategy Fund
Growth & low volatility
European Equities since 1995
This document is reserved for professional investors only as defined by the MIFID
June 2012
2. EDM Strategy Fund Index
1- Fund´s Performance
2- Investment Philosophy
3- Portfolio
4- Performance over the crisis
5- Fund Managers
6- European Equities
7- About EDM Asset Management
8- Summary
2
4. EDM Strategy Fund Fund’s Performance
Higher return and lower volatility
Year EDM STRATEGY STOXX 50 Relative Performance
2000 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%
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 4,07% -6,24% 10,31%
Total Return 11,01% -52,40% 63,41%
Annual Return 0,84% -5,80% 6,64%
Annualized Volatility 12,76% 16,29% -3,53%
All EDM return data are expressed in euros and are stated net of expenses and fees. 4
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)
5. EDM Strategy Fund Fund’s Performance
Consistent Alpha generation in both bear and bull markets
EDM Strategy
Stoxx 50
Stoxx 50 has been selected due to its high concentration (50 weights) in European Equities, including relevant countries such as Switzerland and the UK. 5
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)
6. EDM Strategy Fund Fund’s Performance
Beating all the main european indices
EDM Strategy
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)
7. EDM Strategy Fund Fund’s Performance
Ratings & Ranking
Ranking 2011: 35 / 345 EU Equity Funds
Ranking Allfunds Bank:
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:
9. EDM Strategy Fund Investment Philosophy
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)
• European currency diversification (EUR, GBP, CHF, DKK)
• 100 % currency hedged (we do not predict currency fluctuations)
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10. EDM Strategy Fund Investment Philosophy
Stock picking methodology
• 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
• Focus on understandable and predictable businesses at reasonable prices
• Management quality & integrity are crucial for us
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11. EDM Strategy Fund Investment Philosophy
How do we manage to obtain such a low volatility?
• Following certain long-term Macro-trends:
Economic hub shifting from West to East
Transformation of world demographics
• Lack of sectors whose profits are not easily foreseen:
Banking & Insurance
Cyclical sectors
Regulated tariffs
Commodities
High leveraged sectors
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12. EDM Strategy Fund Investment Philosophy
How do we manage to obtain such a low volatility?
∆ EPS EDM Strategy: +12,1% CAGR
40% ∆ EPS DJ Stoxx 50: + 3,5% CAGR
30%
20%
10%
0%
-10%
-20%
-30%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e
EDM Strategy DJ Stoxx 50
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13. EDM Strategy Fund Investment Philosophy
How do we manage to obtain such a low volatility?
Over the last three years, our profit growth forecasts for EDM Strategy companies have barely
deviated from their eventual full-year results. This is particularly significant, as our investment
strategy is based on the profits of our selected companies:
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%
* 2012 Profit growth forecast is +11%
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19. EDM Strategy Fund Portfolio
Following Macrotrends
MACROTRENDS TRENDS MICROTRENDS COMPANIES
Outsourcing of services. CAPITA, SAP, SODEXO
Crisis in the Western economic Low-Cost model prevailing. INDITEX
model.
Deleveraging of governments, businesses and
individuals.
Globalisation of the Western lifestyle. CHRISTIAN DIOR, RECKITT BENCKISER, LINDT&SPURGI
Economic hub shifting Improving economic conditions
from West to East for emerging economies. Business models seek efficiency / Mechanisation of
traditional industry.
WINCOR, AIR LIQUIDE, BRENNTAG, TEMENOS
INTERTEK, BOLSAS Y MERCADOS, KUEHNE&NAGEL,
Globalisation of markets. DSV
Growing dependency on telecommunications.
Economic globalisation. TELEFONICA, EUTELSAT, TALK TALK
Increased international conflicts.
ROCHE, STAUMMAN, GRIFOLS, ESSILOR, COLOPLAST,
Ageing populations in Growing healthcare spending.
NOVO NORDISK
developed countries.
Sophistication of consumer trends. TESCO
Growing demand for nutritional diets. DANONE
Changing population pyramids
in emerging countries.
Implementation of new technologies.
Transformation of
world demographics
Transformation of the energy model. ALSTOM, AGREKKO
Global climate change.
Waste and emissions management.
Incorporation of economic
sustainability
Streamlining of raw materials consumption.
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21. EDM Strategy Fund Performance over the crisis period
EDM Strategy vs. Stoxx50 since the beginning of the crisis (performance)
+45%
-38%
-7%
EDM Strategy
- 40%
Stoxx 50
-58%
+34%
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22. EDM Strategy Fund Performance over the crisis period
EDM Strategy vs. Stoxx50 since the beginning of the crisis (volatility)
23. EDM Strategy Fund Performance over the crisis period
EDM Strategy vs. Competitors since the beginning of the crisis (performance/volatility)
Annualized
Fund/ Benchmark/Category Volatility
Allianz Return
EDM Strategy -0,81 13,76
Carmignac Portf Grande Europe A -5,18 15,80
Franklin
LFP Europe Impact Emergent R -3,57 16,56
Franklin European Growth A 0,49 16,14
EDM
Invesco Invesco European Growth A -2,23 16,21
Fidelity Bestinver
Tocqueville Value Europe P -6,44 16,64
LFP Agressor Fidelity European Dynamic Grth A -2,59 19,04
Category
Carmignac Allianz RCM Europe Eq Growth AT 4,27 19,54
Agressor -3,27 23,01
Tocqueville Bestinver Internacional -1,65 23,06
STOXX 50 -10,19 17,87
Stoxx
EDM
EURO STOXX 50
EDM ED -13,69 21,77
ED ED Europe Large-Cap Growth Equity Category M -3,69 17,58
M M Euro Stoxx
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25. EDM Strategy Fund Fund Managers
Ricardo Vidal, 42. CO-CIO
Consumption Sector Specialist
Holds an MBA from ESADE University (Barcelona). Worked at Banco Vitalicio (Insurance
Company) and Gesindex SGIIC (Financial Services) from 1993 until 1997. Holds the Certified of
European Financial Analyst (CEFA). Joined EDM in July 1997. He is currently a Board Member of
EDM Gestión, SGIIC. EDM partner since 2005.
Adolfo Monclús, 38. CO-CIO.
Retail, Business Services and TMT´s Sector Specialist
Graduated in Business Administration by the Universitat Internacional de Catalunya & in
Economics Finance by Bentley College (USA). Holds an International MBA from Instituto de
Empresa (Madrid). Worked at Argentaria and BBVA in the Mid-Corporate Banking area. Joined
EDM in July 2005 after finishing his MBA. EDM partner since 2010.
Beatriz López, 34. Fund Manager & analyst
Medical, Food and Insurance Specialist
Graduated in Economics from Universitat Pompeu Fabra (UPF) in 1999, followed by a Masters
Degree in Finance from CEMFI (Bank of Spain) in 2001. Holds the Chartered Alternative
Investment Analyst (CAIA) by the CAIA Association. She started her career at Banco Sabadell
where she became Senior Equity Analyst. Joined EDM in 2007. EDM partner since 2011.
26. EDM Strategy Fund Fund Managers
Juan Grau,66 Gonzalo Cuadrado,41
EDM Inversión Fund Manager Fund Manager & analyst
Spanish Stocks Specialist Pharmacy, construction and
infrastructure Sector Specialist
Business education. Graduate in business
Management from IESE, Graduate in Financial Graduated in Economy by UB. Holds a
Analysis and Tax from EADA and Analysis and Master in Finances by the IEF, the CEFA,
Budget Control form TEA-CEGOS. He worked in the CIIA and the CAIA. Holds the
several industrial companies as CFO during 16 “Certificado de Experto en Valoración de
years. Partner and Founder, in 1989, of EDM Empresas”(CEVE) by IEAF. Worked as a
Group. He is currently Chairman of EDM Gestión, fund manager and analyst in Caixa
SGIIC and a Board Member of EDM Holding. Penedès. Analyst and asset manager in
EDM since 2004. EDM partner since 2010.
Alberto Fayos,39
Fund Manager & analyst
• No distinction between analyst & portfolio manager
Specialised industries and Financials
Sector Specialist
• Collective discussion & Individual decision
Holds a Bachelor in Actuarial and Finances and a
Degree in Statistics from University of Barcelona • Investment Team over the last 6 years:
(UB) . Holds the CEFA Certified. Worked at Gaesco
Gestión SCIIC from 1997 until 2005. Worked at Non-existent staff turnover
Banc Sabadell Gestión SGIIC from 2006 until
2009. Joined EDM in March 2009 as an Analyst
and Portfolio Manager.
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 where
he 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. 26
Since then it has been managed exclusively by EDM Asset Management.
28. EDM Strategy Fund European Equities
European Equities valuation reaching 30 years low
P/E
Source: SocGen 28
29. EDM Strategy Fund European Equities
Divergences between profits and prices during 2010 & 2011
Source: Bloomberg 29
30. EDM Strategy Fund European Equities
P/E Ratios USA vs. Europe
USA EUROPE
S&P500
13,5x Stoxx600 11,3x
Walmart
12,6x Tesco 9,5x
Procter &
16,9x Reckitt Benckiser 14,5x
Gamble
13,0x Alstom 9,2x
General Electric
19,0x Air Liquide 17,6x
Praxair
16,4x BME 11,5x
CME
20,7x Tod’s 18,2x
Coach
13,5x Telefónica 8,5x
ATT
30
33. EDM Strategy Fund About EDM Asset Management
Regulated companies in three European domiciles
EDM
HOLDING, S.A.
100%
EDM SERVICIOS EDM GESTIÓN EDM FUND EDM ASSET
Company
FINANCIEROS S.A. SGIIC MANAGEMENT, S.A. MANAGEMENT, Ltd
S.A. AV
Country SPAIN SPAIN LUXEMBOURG IRELAND
Since 1989 Since 1989 Since 1990 Since 1999
Service Discretionary Domestics Funds International Fuds Fund of
Management SICAV SICAV Hegde Funds
33
34. EDM Strategy Fund About EDM Asset Management
Our Principles
• Independence: •Transparency:
Interests aligned with those of the investor Information that can be understood by investors
Capital held by the executive team Reports audited since 1989
• Experience: • Solvency:
Highly experienced executive team Assets deposited at banks
Very low staff turnover Equity in excess of requirements
• Differentiation: • Continuity:
Investment based on fundamentals 23 years in asset management
Traditional management style Corporate governance: independent directors
34
35. EDM Strategy Fund About EDM Asset Management
EDM Senior Managers
Eusebio Díaz-Morera, 66 Antonio Estabanell, 52
EXECUTIVE CHAIRMAN CEO
Graduated in Economy from Barcelona Holds an MBA from ESADE University
University and MBA from IESE (Barcelona). (Barcelona). Worked at KPMG and two
Before founding EDM in 1989, he was international food companies in the Financial
General Director of PAS (Fund Management Area. Joined EDM in 1990 and since then has
and Corporate Finance), Chairman of Caja de been involved in all investment management
Barcelona (Savings Bank), Chairman of activity within the company. Until 2010 he was
Banca Catalana, and Chairman of Tunel del the Managing Director and CIO.
Cadí (tollway concession)
Javier Prada, 62 Luis Fortuny , 45
DIRECTOR HEAD OF BACK-OFFICE & COMPLIANCE
Graduated in Law, he holds a Master in Graduated in Economics and Finances from
Finance (University of Paris). He started his UAB. In 2006, he received a BA degree in PDD
career in Banif Private Bank (Santander) from IESE Business School. He was working at
where he was Regional Manager and Former SONY from 1990 to 2000 as Accounting
Managing Director. In 1991 he joined Manager and Control Manager. He was Senior
Indosuez-Credit Agricole where he was Private Consultant at Cap Gemini Ernst & Young. He
Banking General Manager and Regional was also Finance Director at Baker & Mc
President. He joined EDM in 2005. Kenzie (Law firm). He joined EDM in 2008.
37. EDM Strategy Fund About EDM Asset Management
EDM performance with other asset types
20 Years 15 Years 10 Years 7 Years 3 Years 2 Years 2012
FUND CATEGORY Inception Date ISIN
RETURN RETURN RETURN RETURN RETURN VOLATILITY RETURN
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
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
37
All EDM return data are expressed in euros and are stated net of expenses and fees.
39. EDM Strategy Fund 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
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 correlation with other fund managers
10. Complementary with other equity styles
39
40. EDM Strategy Fund Summary
EDM STRATEGY FUND
CURRENCY Euro IDENTITY
NAV 267,66 € EUTD - 15% Threshold
FUND AUM 66.300.000 € German Tax Transparency
EUROPEAN PORTFOLIO AUM 405.000.000 € UCITS
INCEPTION DATE 01.01.1995 LEGAL STRUCTURE LU - SICAV - Part 1
MANAGEMENT FEE (Private) 2,50% INCOME DISTRIBUTION Retained
MANAGEMENT FEE (Institutional) 1,25% (in process)Min: 500.000€
CUSTODIAN FEE 0,20% EU TAX DIRECTIVE
TOTAL EXPENSE RATIO 2,79% Eu Tax Directive Start Date 01/05/2011
FUND MANAGERS Ricardo Vidal & Beatriz López Eu Tax End Date 30/04/2012
MANAGER EDM Fund Management Eu Tax Directive Status In Scope-No Tax
CUSTODIAN RBC Dexia Eu Tax Directive 15% Threshold Yes
AUDITOR Deloitte, S.A. Eu Tax Directive 40% Threshold No
DOMICILE Luxembourg Prospectus vs Asset Allocation No
DEALING Daily NAV Taxable Interest Income Accrued No
CATEGORY European Equities Dividend Taxable Interest Incime Accrued No
HOLDING BASED CLASSIFICATION Europe Multi-Cap Growth
MORNINGSTAR CLASSIFICATION Europe Large-cap Growth DISTRIBUTION PLATFORMS
LIPPER CLASSIFICATION Equity Europe Allfunds Bank
Inversis Banco
COUNTRIES REGISTERED FOR SALE MFEX
Luxembourg KBL
Spain ("Traspasable") RBC Dexia España
CROSS REFERENCES CROSS REFERENCES
ISIN LU0028445327 F&E FUND CODE 2550
ISIN CURRENCY CLASS LU0028445327.EUR F&E GROUP CODE 727
BLOOMBERG EDMISFI LX FT MEXLD LXEDIS
REUTERS 002844532X.LU HOLDINGS LOADING ID LU6081
LIPPER 60013965 PERM ID 8590296188
SEDOL 4106744 RIC 002844532X.LU
TELEKURS 353647 RIC LP60013965 40
WKN- GERMAN A0Q1TQ VALOR 353647
41. www.edm.es
Ignacio Pedrosa
Head of Investor Relations
+34 636814186
+34 914110398
ipedrosa@edm.es
http://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
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 the MIFID
