Large cap French equity fund One of the biggest French funds (EUR 3bn in assets under management) Conservative capital growth style

Transcription

1 Tricolore Rendement

2 Introduction

3 Main characteristics Large cap French equity fund One of the biggest French funds (EUR 3bn in assets under management) Conservative capital growth style Alpha generation (stock-picking conviction management) Downside protection (the yield stock and cash allocation can amount to 25% of assets) Participation in rises (Value management) Low volatility (optimised risk/return profile). An excellent track record +10% each year on average from fund launch in 1998 to 2008 (versus -0.9% for the SBF 120) 80% of rise captured in bullish phases* Outperformance 90% of the time in bearish phases* Low volatility: 16.6% over 3 years** versus 23.1% for the SBF120 Award-winning performance Trophée d Or for the best euro-denominated equity fund over 10 years (Le Revenu) Best fund in Large Cap funds (Victoire des Sicav 2009 France La Tribune & Morningstar) (*): Monthly base since launch (1998) to 31/12/2008(**): From June2006 to June 2009 (Source: Europerformance) EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 3

4 Investment team

5 A complementary team Pierre NEBOUT Deputy Director Co- head of European equity management More than 15 years experience in French equity management. A graduate of the Institut d Etudes Politiques - Paris and the Ecole Supérieure d Electricité. First position in 1992 working on a microcredit programme for the Banco del Desarrollo in Santiago de Chile. From 1994 to 2004, in the Fonds d Epargne (Livret A) division at the Caisse des Dépôts et Consignations, he co-managed a EUR 10bn French equity fund. Joined Edmond de Rothschild Asset Management in July 2004 to head up French equity funds François BRETON Co-manager Graduated from ESSEC Has worked on both M&A and LBO: First worked in investment banking from 2003, in M&A at BNP Paribas, then in Leveraged Finance at the Bank of Scotland in Paris. Joined Edmond de Rothschild Asset Management in 2008 Charles-Antoine de CHATILLON Analyst Graduated from Supélec First worked for Calyon in Hong Kong in equity derivatives research. Joined Edmond de Rothschild Asset Management in 2009 EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 5

6 Fund objectives and investment style

7 An investment style that is particularly suited to the current environment ALPHA GENERATION Stock picking conviction management Non-benchmarked management 10 biggest positions can represent 50% of AUM A concentrated portfolio: between 30 and 50 stocks No speculative positions, low stock turnover Yield management: Targets stocks with high, dependable dividend payouts Yield is a significant and defensive component in the overall performance of equities. DOWNSIDE PROTECTION Portfolio construction: 50% minimum in defensives 50% maximum in cyclicals and financials Active cash management: Cash can represent up to 25% of the portfolio PARTICIPATION IN RISES Value management Choosing stocks trading at a discount to intrinsic value that have the potential to be rerated. Conservative capital growth LOW VOLATILITY Capital protection and appreciation over the long term Optimising the risk/return profile Recommended investment horizon > 5 years EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 7

8 Performance since launch (end 1998) up to end 2008 ALPHA GENERATION 80% of rise captured in bullish phases* Outperformance 90% of the time in bearish phases* % Surperformance cumulée - (axe droite) 400 SBF 120 Tricolore Rendement 250% 80% % 40% 20% 0% -20% % +160% 150% -40% -60% SBF 120 Tricolore Rendement Catégorie "Actions françaises - général" % 9% 50% % +10% each year on average since launch (versus -0.9% for the SBF 120) (*): Monthly base since launch (1998) to 31/12/2008 Past performance is not a reliable indicator of future returns and is not constant over time. Fund launch date: 04/12/1998 EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 8

9 Active cash management DOWNSIDE PROTECTION Tricolore Rendement: cash position since ,500 6,000 5,500 20% Economic overheating fears (inflation) 1 st subprime alert Financial crisis starts 23% 23% Lehman Brothers collapses 20% 25% 20% 5,000 4,500 15% 17% 15% Economic crisis starts 15% 4,000 3,500 11% Bear Stearns collapses 11% 3,000 8% 10% 2,500 Market rally kicks off 2,000 5% mars 06 juin 06 oct 06 févr 07 juin 07 sept 07 janv 08 mai 08 sept 08 déc 08 avr 09 août 09 déc 09 mars 10 % Cash dans l'actif Net de Tricolore Rendement (axe droite) Indice CAC 40 (axe gauche) EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 9

10 Dividend A significant component in overall equity performance DOWNSIDE PROTECTION PARTICIPATION IN RISES 30% European equities: breakdown in capital gain and dividend yield contributions to overall performance of equities (annualised over 10 years) 50% 25% 40% 20% 15% 10% 30% 20% 5% 10% 0% 0% Plus-value (capital gain) - axe gauche Rendement (dividend yield) - axe gauche Contribution du rendement à la performance globale - axe droite EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 10

11 Dividends A defensive contributor, less volatile than earnings 2.5 France Telecom 7.0 Total Earnings Per Share Dividend Per Share 0.0 Dividends are less volatile than earnings and therefore less exposed to market cycles Earnings Per Share Dividend Per Share 2.5 Vivendi 3.0 GDF Suez Earnings Per Share Dividend Per Share Earnings Per Share Dividend Per Share EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 11

12 are more appropriate than share buybacks and have a big signal effect Share buybacks: a discretionary way of distributing cash to shareholders Strong divergence between insurance and banking: Insurance: 3.8% yield Banks: 2.4% yield Banks pay scrip dividends to reinforce capital ratios (regulatory risk, i.e. Basel III) Preference for Insurance 20,000 CAC 40: share buybacks 19,200 3,500 3,000 Dividend payouts in 2008, 2009 and 2010e 17,500 2,500 15,000 12,500 11,240 2, % 10,000 7,500 7,618 9,209 6,264 7,869 1,500 1, % 4.0% 5,000 2, , BNP Paribas Crédit Agricole Dexia 0% Dividende versé en Cash Société Générale 2.3% Axa 4.8% CNP A ssurances Dividende versé en Actions Scor 6.1% EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 12

13 Performance in 2008 DOWNSIDE PROTECTION Tricolore Rendement 2008 ranking: 2/119 funds Caution in first half of 2008: High cash position at start to year to face up to market s first fall out Big, rather protective, positions in Gaz de France and Suez Structural underexposure to financials since end 2006 Second half protected by yield stocks: Telecoms Pharmaceuticals Caution on deep value despite tempting valuations Surperformance cumulée - (axe droite) SBF 120 Tricolore Rendement 20 janv 08 févr 08 mars 08 avr 08 mai 08 juin 08 juil 08 août 08 sept 08 oct 08 déc 08 Past performance is not a reliable indicator of future returns and is not constant over time 15% outperformance on SBF 120, thanks to cash and yield stocks 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 13

14 Performance in 2009 PARTICIPATION IN RISES Surperformance cumulée - (axe droite) SBF 120 Tricolore Rendement 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% 20 déc 08 févr 09 mars 09 avr 09 mai 09 juin 09 juil 09 août 09 sept 09 oct 09 déc 09 Past performance is not a reliable indicator of future returns and is not constant over time -5% 86% participation in the market s rise in 2009 EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 14

15 Performance in 2008 and 2009 DOWNSIDE PROTECTION PARTICIPATION IN RISES % % 90 16% 80 14% Surperformance cumulée - (axe droite) SBF 120 Tricolore Rendement 12% 10% 8% 6% 40 4% 30 2% 20 déc 07 févr 08 mars 08 avr 08 mai 08 juin 08 juil 08 août 08 sept 08 oct 08 nov 08 janv 09 févr 09 mars 09 avr 09 mai 09 juin 09 juil 09 août 09 sept 09 oct 09 déc 09 0% 2008 and 2009 showcased Tricolore Rendement s ability to capitalise on performance over time Past performance is not a reliable indicator of future returns and is not constant over time EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 15

16 Performance in PARTICIPATION IN RISES Surperformance cumulée - (axe droite) SBF 120 Tricolore Rendement 48% 44% 40% 36% 32% 28% 24% 20% 16% 12% 8% 4% 50 déc 02 févr 03 mai 03 août 03 nov 03 févr 04 mai 04 août 04 nov 04 Past performance is not a reliable indicator of future returns and is not constant over time 0% Outperformance as markets started to recover thanks to the fund gradually switching from yield to value stocks, EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 16

17 Risk/return LOW VOLATILITY Fund rankings of French equities general in terms of 3-year volatility (%, from June 2006 to June 2009) SBF Tricolore Rendement Past performance is not a reliable indicator of future returns and is not constant over time Tricolore Rendement was ranked 3 rd for 3-year volatility (since June 2006) Source : Europerformance EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 17

18 Investment process

19 Investment process INVESTMENT UNIVERSE: SBF 120 Numerous investment opportunities in the SBF 120: Capitalisation size Sector exposure Geographical reach INVESTIBLE UNIVERSE Quantitative Screening Index stocks are ranked according to criteria (Scoring method) : valuation, yield, gearing, etc Macroeconomic scenario and sector allocation Strong cooperation with other teams at EdRAM (international management, sector management, diversified management, etc) Use of research from external strategists and economists FUNDAMENTAL ANALYSIS Close proximity to companies and sell-side analysts Due Diligence Analysis of business and positioning, corporate strategy, financial analysis, broker consensus, market performance, etc, Valuations 3 scenarios : Bear Case, Base Case and Bull Case Attractive risk/reward: ensuring downside is asymmetrical compared to upside PORTFOLIO Portfolio construction 50% minimum in defensives 50% maximum in cyclicals and financials Portfolio monitoring Risk monitoring Sell discipline Strict sell discipline Positions are reduced as soon as a stock no longer meets investment criteria Risk monitoring Analytical reports on market risks and performance contribution EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 19

20 Tricolore Rendement no longer has a French bias INVESTMENT UNIVERSE Tricolore Rendement: geographical exposure of company sales as percentage of portfolio holdings Rest Reste of the du World Monde 24% 24% France 45% Europe 31% EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 20

21 SANOFI-AVENTIS VIVENDI FRANCE TELECOM SA TOTAL SA SES SCOR SE NEOPOST SA UNIBAIL-RODAMCO SODEXO LAGARDERE S.C.A. M6-METROPOLE TELEVISION THALES SA ZODIAC AEROSPACE AIR LIQUIDE SA CARREFOUR SA GDF SUEZ PUBLICIS GROUPE CNP ASSURANCES DANONE BIC PAGESJAUNES GROUPE EDF TELEPERFORMANCE INGENICO ILIAD SA VINCI SA BOUYGUES SA IPSOS PERNOD-RICARD SA L'OREAL CREDIT AGRICOLE SA CASINO GUICHARD PERRACHON ESSILOR INTERNATIONAL SCHNEIDER ELECTRIC SA VALLOUREC SILIC AXA SA EUTELSAT COMMUNICATIONS ICADE ALSTOM GEMALTO DASSAULT SYSTEMES SA SECHILIENNE-SIDEC CAP GEMINI TECHNIP SA LVMH MOET HENNESSY LOUIS VUI HERMES INTERNATIONAL PPR COMPAGNIE DE SAINT-GOBAIN KLEPIERRE FONCIERE DES REGIONS APRIL GROUP IPSEN SUEZ ENVIRONNEMENT SA CIMENTS FRANCAIS BNP PARIBAS BUREAU VERITAS SA AVERAGE BONDUELLE S.C.A. STMICROELECTRONICS NV HAVAS SA UBISOFT ENTERTAINMENT LEGRAND SA SECHE ENVIRONNEMENT SEB SA ADP SOCIETE GENERALE STALLERGENES BOURBON SA VEOLIA ENVIRONNEMENT ACCOR SA SAFRAN SA ARCELORMITTAL ALTEN NEXITY MAUREL ET PROM LAFARGE SA EIFFAGE ORPEA SAFT GROUPE SA ATOS ORIGIN SA REMY COINTREAU VALEO SA AREVA - CI GROUPE STERIA SCA NATIXIS GROUPE EUROTUNNEL SA - REGR EADS NV GECINA SA TELEVISION FRANCAISE (T.F.1) EDF ENERGIES NOUVELLES SA CIE GENERALE DE GEOPHYSIQUE EURAZEO PEUGEOT SA DERICHEBOURG CLUB MEDITERRANEE SA FIMALAC ALCATEL-LUCENT CARBONE LORRAINE ALTRAN TECHNOLOGIES SA IMS INTL METAL SERVICE SPERIAN PROTECTION IMERYS SA WENDEL DEXIA SA THOMSON (EX-TMM) MICHELIN (CGDE)-B ERAMET EULER HERMES SA JC DECAUX SA AIR FRANCE-KLM RENAULT SA REXEL SA NEXANS SA ARKEMA HAULOTTE GROUP BENETEAU NICOX SA RHODIA SA S.O.I.T.E.C. THEOLIA Quantitative screening INVESTIBLE UNIVERSE Methodology SBF 120 stocks are ranked according to criteria (Scoring method) Stocks with the best scoring are retained Sources: Bloomberg, Factest, Datastream Screening: examples Ranking of SBF 120 INDEX components 20/05/2009 OVERALL RANKING Selection criteria Valuations Yield Gearing Profitability Risk Capitalisation size Momentum Broker consensus EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 21

22 Close proximity with companies FUNDAMENTAL ANALYSIS One-on-one meetings in 2009 DATE ENTREPRISE SECTEUR TITRE NOM 21/12/2009 HAVAS Media CFO Herve Philippe 01/12/2009 AIR France Transport Member of the Executive Committee Frederic Gagey 13/11/2009 NATIXIS Bank CFO Luc-Emmanuel Auberger 05/11/2009 ANF Real Estate CFO Bruno Keller 30/10/2009 SAINT-GOBAIN Building Materials CFO Laurent Guillot 08/10/2009 SODEXO Support Services IR Pierre Benaich 08/10/2009 REMY COINTREAU Beverages CFO Herve Dumesny 05/10/2009 LAFARGE Building Materials CFO Jean-Jacques Gauthier 28/09/2009 VIVENDI Media CEO Jean-Bernard Levy 18/09/2009 BOUYGUES Construction / Telecom CFO Philippe Marien 15/09/2009 BIOMERIEUX Healthcare CEO Stephane Bancel 14/09/2009 LAGARDERE Media CFO Dominique d'hinnin 11/09/2009 PAGES JAUNES Media CEO Jean-Pierre Remy 09/09/2009 EURAZEO Holding CFO Philippe Audoin 07/09/2009 TF1 Media CFO Philippe Denery 04/09/2009 SOCIETE GENERALE Bank Deputy CEO Severin Cabannes 04/09/2009 THALES Aerospace & Defence CEO Luc Vigneron 03/09/2009 BNP PARIBAS Bank Deputy CEO Georges Chodron de Courcel 02/09/2009 ILIAD Telecom CFO Thomas Reynaud 02/09/2009 VIVENDI Media CFO Philippe Capron 02/09/2009 VINCI Construction CEO Xavier Huillard 01/09/2009 ADP Infrastructure / Transport CEO Pierre Graf 31/08/2009 CARREFOUR Food retailer CFO Pierre Bouchut 28/08/2009 SEB Consumer Goods CFO Jean-Pierre Lac 03/08/2009 CAP GEMINI IT Services CFO Nicolas Dufourcq 31/07/2009 SCOR Insurance CEO Denis Kessler 31/07/2009 PEUGEOT Automotive CEO Philippe Varin 29/07/2009 ATOS ORIGIN IT Services Executive CEO Gilles Grapinet 27/07/2009 DANONE Food & Beverages CFO Pierre-André Terisse 25/06/2009 INGENICO IT Hardware CFO Pierre-Antoine Vacheron DATE ENTREPRISE SECTEUR TITRE NOM 02/06/2009 DANONE Food & Beverages CEO Emmanuel Faber 29/05/2009 SAINT-GOBAIN Building Materials CFO Laurent Guillot 26/05/2009 PPR Retail & Luxury CFO Jean-François Palus 26/05/2009 AIR France Transport CEO Pierre-Henri Gourgeon 05/05/2009 PEUGEOT Automotive CFO Isabel Marey-semper 28/04/2009 ILIAD Telecom Deputy Chairman Xavier Niel 09/04/2009 M6 Media CFO Jérôme Lefébure 07/04/2009 LAGARDERE Media IR Virginie Banet 03/04/2009 LAFARGE Building Materials CEO Bruno Laffont 02/04/2009 PUBLICIS Media CEO Maurice Levy 20/03/2009 ILIAD Telecom CEO Maxime Lombardini 18/03/2009 STERIA IT Services CEO François ENAUD 18/03/2009 VIVENDI Media CFO Philippe Capron 13/03/2009 CARREFOUR Food retailer CEO Lars Olofsson 13/03/2009 CNP Assurances Insurance CFO Antoine Lissowski 12/03/2009 ADP Infrastructure / Transport CEO Pierre Graf 10/03/2009 FRANCE TELECOM Telecom CFO Gervais Pelissier 10/03/2009 BNP PARIBAS Bank Deputy CEO Georges Chodron de Courcel 06/03/2009 GDF SUEZ Utilities CFO Gérard Lamarche 06/03/2009 GROUPE EUROTUNNEL Infrastructure / Transport CEO Jacques Gounon 05/03/2009 VINCI Construction CFO Christian Labeyrie 02/03/2009 THALES Aerospace & Defence CEO Denis Ranque 02/03/2009 PAGES JAUNES Media CEO Michel Datchary 27/02/2009 CGG VERITAS Oil Services CEO Robert Brunck 20/02/2009 SAFRAN Aerospace & Defence CEO Jean-Paul Herteman 16/02/2009 CAP GEMINI IT Services CFO Nicolas Dufourcq 20/02/2009 SCHNEIDER Capital Goods CFO Pierre Bouchut 20/02/2009 SAINT-GOBAIN Building Materials CFO Benoît Bazin 13/02/2009 DANONE Food & Beverages CFO Pierre-André Terisse 60 one-on-one meetings with senior management teams in 2009 EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 22

23 Due diligence & valuations FUNDAMENTAL ANALYSIS Due Diligence Valuation BUSINESS POSITIONING STRATEGY FINANCIAL ANALYSIS BROKER CONSENSUS ANALYSIS MARKET PERFORMANCE ANALYSIS Corporate activity (sales breakdown by activity and geographical zone) Key success factors Relations with clients and suppliers Market survey: size, growth, profitability Competitive positioning Barriers to entry Strategy SWOT analysis: Strengths/ Weaknesses / Opportunities /Threats Analysis of financial performance history and forecasts Top line (impact of volumes, pricing, etc.) Margin trends Cash flow generation Balance sheet Breakdown of Broker Target Prices by interval Breakdown by recommendation (Buy, Sell, Hold) Target Price changes Recent revisions (upgrades and downgrades) Absolute performance (1 year, YTD, 3 months, 1 month, 1 week) Relative performance: versus SBF 120, versus sector index Relative performance versus comparable companies Multiples (P/E, Price to Book, EV/Sales, EV/EBITDA, EV/EBIT) versus comparable companies: premium or discount? juillet-08 août-08 octobre-08 décembre-08 février-09 avril-09 mai-09 juillet-09 septembre-09 BULL CASE 51,2 73% BASE CASE 36,5 23% CURRENT PRICE 29,6 BEAR CASE 24,8-16% RERATING LEVERS - Lever 1 - Lever 2 - Lever 3 etc RISKS: - Risk 1 - Risk 2 - Risk 3 etc Attractive risk/reward: ensuring that downside risk is asymmetrical to upside EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 23

24 Investment strategy

25 After the rally Economy The most serious risks have been avoided Stimulus plans have worked earlier and been more effective than expected Strong emerging country growth Central bank stance still accommodating for the moment Markets => low rates for foreseeable future and less uncertainty favour a contraction in the risk premium M&A back against a backdrop of favourable valuations Destocking cycle in the globalised economy and cost adjustments Historically high margins and free cash flow for a cyclical trough Reasonable valuations and little competition from other asset classes EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 25

26 Risks Beware expanding multiples due to expectations of a strong business recovery Cyclicals trading at mid-cycle and peak cycle multiples Final demand: deleveraging, lagging impact of unemployment, less credit Exiting accommodating monetary policy and stimulus plans The bond market and the transfer of private debt to the public area Risk premium on sovereign debt? EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 26

27 Tricolore Rendement: defensive profile now accentuated YIELD Valuation anomalies to be seized Objective: Downside protection RESTRUCTURING Opportunities on companies forced to restucture independently of the cycle Objective: Participation in rises DEEP VALUE Anomalies corrected: profit taking EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 27

28 Defensives are lagging cyclicals in terms of performance and valuations Defensives vs Cyclicals in terms of performance and valuations in Europe 26 Aut omobile 23 CYCLICALS Valorisation - P/E 2010e Food & HPC Food Dist ribut ion SSII Equipment goods Luxury Banks Mines 11 Medias Ut ilit ies Pharmacy Energy Telecoms DEFENSIVES 8 Insurance 10% 20% 30% 40% 50% 60% 70% 80% 90% Perform ance since 9 March 2009 EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 28

29 Comparison with previous cycle supports our portfolio positioning Performance and valuation in Europe during previous cycle ( ) DEFENSIVES CYCLICALS 18 Luxury Valuation - P/E 2004 / 2007 SSII Europe 12 Pharmacy Food & HPC Medias Food Distribution Telecoms Equipment Goods Utilities Energy Banks Automobile Insurance 10-5% 5% 15% 25% 35% 45% 55% Average performance / 2007 Mines EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 29

30 Yield stocks have never been as attractive compared to corporate bonds Dividend yield vs Corporate bonds(aa) Corporate bond yield 6% 5% 4% 3% 2% 1% Sector breakdown of Dividend and Corporate bond yields 0% Dividend yield Opérateurs Télécom Utilities Pétrole & Gaz Immobilier Chimie Consumer Staples Biens d'équipement Transport Informatique Matériaux de Construction Automobiles Rendement Dividende Rendement Obligation Ecart actuel vs. Ecart historique Source : Exane Source: JP Morgan Most attractive sectors: Utilities, Oil & Gas and Telecoms Tricolore Rendement yield*: 4.5% (*): Yield on invested portfolio EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 30

31 Tricolore Rendement: portfolio trends 100% 80% 21% 2% 2% 3% 29% 26% 60% 40% 60% 57% 62% 20% 0% 17% 12% 9% Début 2009 Mi Mars 2010 Cash Rendement Cycliques Financières EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 31

32 Tricolore Rendement Main holdings at 31/03/2010 Main positions Breakdown by capitalisation (% net assets) ENTREPRISE % ACTIF NET 10% 2% 18% SANOFI-AVENTIS 9.2% TOTAL SA 8.1% VIVENDI SA 8.0% FRANCE TELECOM 7.0% VINCI 5.0% Total 37,3% 13% 57% Less than 1bn 1-5bn 5-10bn More than 10bn Cash EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 32

33 Tricolore Rendement: market ratios at 31/03/2010 TRICOLORE RENDEMENT* SBF e e Rendement 4.2% 4.2% 3.3% 3.6% P/E 18.6 x 13.0 x 18.0 x 13.1 x Price / Book Value 1.5 x 1.4 x 1.4 x 1.4 x Free Cash Flow Yield 6.8% 5.9% 5.0% 4.6% Croissance BPA -32.1% 43.1% -29.4% 37.3% Source: Factset (*) Ratios boursiers du portefeuille investi EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 33

34 Performance History

35 Comparative rankings Reference universe at 23/04/2010 Performance (%) YTD 1 year 3 years 5 years 3-year Volatility Tricolore Rendement Ranking 75/ /136 12/125 23/108 4/124 Index Europerformance category* Source Europerformance in EUR- Europerformance category : French equities- general * Europerformance index of average of funds in the category EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 35

36 Disclaimer The data, comments and analysis in this bulletin reflect the opinion of the Group Edmond de Rothschild and its affiliates with respect to the markets and their trends, regulation and tax issues, on the basis of its own expertise, economic analysis and information currently known to it. However, they shall not under any circumstances be construed as comprising any sort of undertaking or guarantee whatsoever on the part of the Group Edmond de Rothschild or its affiliates. The Group Edmond de Rothschild shall in no way whatsoever be held responsible for any decision to invest, sell or hold that might be based on the aforementioned comments or analysis. Accordingly, before investing, investors must acquaint themselves with the various regulatory documents relating to each UCITS or any other financial product so as to analyse the risks involved and come to their own conclusions independently of the Group Edmond de Rothschild. If need be, investors should seek the advice of the relevant specialist advisors to ensure that the chosen investments suit their own financial situation. Past performance and volatility is not necessarily a guide to future performance and volatility and is not constant over time. Information documents and prospectuses approved by the French Financial Market Authority (AMF) are available on request or on our Internet site ( Potential investment risks On equity markets, asset prices can move on investor anticipations and entail a risk for share prices. Equity markets historically see higher price fluctuations than on bond markets. If the equity market falls, the fund s net asset value will also fall. The fund s investment style depends on anticipating future trends on equity markets. The fund s performance will depend on the companies selected by the asset management company. As a result, there is a risk that the asset management company might not choose the best-performing companies. As the funds do not have any guarantee or protection, the capital initially invested might not be restituted in full. As the fund does not benefit from any guarantee or protection it is possible that the capital initially invested may not be refunded in full. To a more marginal extent, the fund may also be subject to interest rate and currency risks, limited to respectively 25% and 10%. EDMOND DE ROTHSCHILD ASSET MANAGEMENT GESTION ACTIONS 36