D

D

D

D

D

D

ED

M

EDM StrategyEuropean Equities

Return Date: 31/10/2016Portfolio Date: 31/10/2016

Historical Performance vs. BenchmarkTime Period: 01/01/2000 to 31/10/2016

2000 2002 2004 2006 2008 2010 2012 2014 201620,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

180,0

EDM Strategy STOXX 50 EURO STOXX 50Europe Large-Cap Growth Equity (Category)

Returns

YTD 1 year 3 years 5 years 7 years 10 years 15 years-40,0

-20,0

0,0

20,0

40,0

60,042,036,6

51,0

30,6

-0,3-15,6-12,4 -18,8-23,3

16,821,4

-2,3-12,5-9,3 -12,2

-23,7

11,4

28,1

-0,4-10,6-6,5

EDM Strategy STOXX 50 EURO STOXX 50

Retu

rn

Statistical Risk1 year 3 years 5 years 7 years 10 years 15 years

AlphaBetaVolatilityCorrelationSharpe RatioSortino Ratio

0,92

0,270,20

12,340,890,62

-0,41

0,84-0,380,88

12,343,511,00

-0,270,694,50

0,830,540,82

11,200,85

0,734,19

0,760,49

11,720,862,08

0,070,05

2,740,70

12,460,840,100,14

All 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)EDM Strategy is available on the following fund platforms: Allfunds Bank, Inversis, RBC and MFEX.

Fund´s Manager CommentEuropean equity markets lost ground during the month of October. EDM Strategy’s performance declined in the past month, shedding -4%, while the MSCI Europe closed with declines of -0.92%. The fund’s underperformance is attributable to several factors. On the one hand, it suffered the effects of the ongoing correction of the pharmaceutical industry: Novo Nordisk (-12%), Grifols (-8%), and Roche (-5.6%), which hold considerable positions in the fund. Moreover, Capita and Aggreko have continued to suffer from the compression of multiples. Essilor and Dassault Systèmes delivered additional adverse contributions in October, publishing slightly lower-than-expected third quarter sales results. The absence of banks, oil companies, and commodities in the fund has not helped matters, given that these more cyclical sectors are the only ones in the index that showed gains during the month.

On the last Friday of the month, Novo Nordisk announced its Q3 results, which were somewhat lower than expected in terms of sales though effective cost controls resulted in online profits. However, the company narrowed the range of growth guidelines to the bottom of the previous range for 2016 (+5-6% and +5-7% in sales and operating profit, respectively). It also released preliminary guidelines for 2017 of low single-digit growth, which would be lower than the consensus expects. Lastly,it slashed its growth guidelines for 2016-2020’s average annualised operating profit from +10% to +5%, due primarily to greater price pressure and increased insulin competition from the US. As a result of a major correction underway since early this year, it has depreciated considerably and trades at a 2017E P/E ratio of 15x, in line with the rest of the pharmaceutical sector, which is now justified to a certain extent. We believe, however, that Novo Nordisk will likely return to the path of double-digit growth from 2018, owing to its highly innovative product portfolio.

There was positive news from the luxury sector: LVMH published strong sales in the third quarter and our position in Christian Dior appreciated +10%, again highlighting the advantages of its diversification both by luxury segment and by geography. In Q3, like-for-like sales grew +6%, propelled by the fashion and leather goods division (+5%) where the Louis Vuitton brand is important, and the selective distribution division (Sephora stores), whose sales climbed +8% organically. The luxury firm, Richemont (Cartier and other brands), also contributed positively, appreciating +7.5% throughout the month.

We have started a position in the French company, Elis, the European leader in linen and work uniform rentals, laundry services, and health and hygiene services. Its mission is to help companies outsource activities that are not central to the business.

The EDM Strategy fund trades at a 2017E P/E ratio of 16x, which is a very attractive valuation for a selection of high-quality companies with profit growth that will outperform the European market in the coming years.

5 Years Risk-RewardTime Period: 01/11/2011 to 31/10/2016

Std Dev

0,0 3,0 6,0 9,0 12,0 15,0 18,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0 EDM Strategy

STOXX 50

EURO STOXX 50

Europe Large-Cap Growth Equity (Category)

Retu

rn

Fund´s DataInception DateMonth End PriceFund Size (€)Base CurrencyAverage Market Cap (mil) (Long)ISIN

31/10/1995340,23

230.067.159Euro

17.162LU0028445327

SnapshotCategory

Custodian / Administrator

Auditor

Domicile

UCITS

Europe Equity Large Cap

RBC Investor Services Bank SA

Deloitte SA

Luxembourg

Yes

EDM Asset Management www.edmassetmanagement.com -1- Tel. +34914110398 +34934160143 edm@edm.es

EDM StrategyEuropean Equities

Return Date: 31/10/2016Portfolio Date: 31/10/2016

Holdings-Based Style Map

Mic

roSm

all

Mid

Larg

eG

iant

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

EDM StrategySTOXX 50EURO STOXX 50Category

Style Box

0,0 26,4 49,5

9,0 5,4 9,7

0,0 0,0 0,1

LargeM

idSm

all

Value Blend Growth

Market Cap %

Market Cap Giant 42,7

Market Cap Large 31,6

Market Cap Mid 24,1

Market Cap Small 1,6

Market Cap Micro 0,0

Equity Sectors vs benchmarks

Strategy Stoxx 50 EuroStoxx

Basic Materials

Consumer Cyclical

Financial Services

Real Estate

Consumer Defensive

Healthcare

Utilities

Communication Services

Energy

Industrials

Technology

11,86

26,45

4,86

0,00

10,65

25,49

0,00

0,00

0,00

15,90

4,80

5,67

3,43

19,95

0,00

21,60

21,52

1,45

5,98

10,70

6,11

3,59

7,65

11,84

20,97

1,06

10,76

10,20

4,97

5,75

7,04

12,91

6,83

Equity Country Exposure%

Denmark 11,4

France 23,0

Germany 6,6

Spain 18,3

Sweden 3,0

Switzerland 20,2

United Kingdom 17,4

Equity Sectors%

Basic Materials 11,9

Consumer Cyclical 26,5

Financial Services 4,9

Real Estate 0,0

Consumer Defensive 10,6

Healthcare 25,5

Utilities 0,0

Communication Services 0,0

Energy 0,0

Industrials 15,9

Technology 4,8

Portfolio HoldingsPortfolio Date: 31/07/2016

%Roche Holding AG Dividend Right Cert. 7,5Grifols SA ADR 7,3Novo Nordisk A/S B 6,4Capita PLC 5,8Dufry AG 5,4Industria De Diseno Textil SA 5,1ARM Holdings PLC 4,8Dassault Systemes SA 4,8Diageo PLC 4,6Air Liquide SA 4,3Bolsas y Mercados Espanoles 4,2DSV AS 4,2Essilor International SA 4,1Brenntag AG 4,1Reckitt Benckiser Group PLC 3,9Cie Financiere Richemont SA 3,6Other 19,8Total 100,0

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

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

• Long-term investment horizon

• Low turnover (18% 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 (Average Portfolio ROE = 25.5%)

• Sustainable EPS growth (5Y Average EPS Growth = 11.6%)

• Low debt balance-sheet (Net Debt/EBITDA = 1,2)

• 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.edmassetmanagement.com -2- Tel. +34914110398 +34934160143 edm@edm.es

EDM StrategyEuropean Equities

Return Date: 31/10/2016

Monthly returnsJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YEAR

2016201520142013201220112010200920082007200620052004200320022001

-6,24 -1,31 0,17 0,77 3,52 -4,78 3,72 -1,24 -3,20 -4,055,71 6,52 1,80 -0,62 2,01 -3,66 2,81 -7,13 -2,19 7,99 2,28 -5,75-0,87 4,27 -1,84 -0,01 2,92 0,27 -3,11 1,25 -1,98 -1,53 3,26 -0,792,65 0,30 3,49 1,41 -0,11 -3,13 3,79 -0,30 1,63 2,08 1,73 1,260,80 6,53 0,53 -0,41 -3,20 0,97 7,65 0,26 2,61 -0,63 2,01 2,43-0,45 1,84 -0,30 3,52 0,39 -2,57 -1,27 -7,84 0,67 4,97 -6,97 3,781,08 0,25 5,72 0,98 -2,85 0,45 0,22 -0,57 3,60 0,99 -1,71 3,42-0,07 -4,36 -2,37 11,95 3,28 1,97 5,04 1,95 2,42 -0,96 0,75 4,24-9,86 2,90 -2,83 0,39 0,81 -7,99 1,45 2,81 -3,88 -10,11 -6,81 1,104,12 -1,47 1,85 3,76 -1,30 -1,69 0,32 0,01 1,55 -0,98 -2,01 -1,402,80 2,48 0,74 0,38 -4,07 0,99 4,16 1,49 1,22 1,35 0,98 2,62-0,16 3,58 1,56 1,11 3,44 0,37 4,53 -1,36 4,69 -3,27 3,49 4,043,71 3,80 -2,56 1,00 0,64 1,03 -2,73 -0,97 -0,26 -0,47 2,84 0,98-5,54 -5,88 2,00 5,14 -1,67 4,66 0,98 4,02 -1,66 2,33 0,40 -1,73-1,93 -0,14 3,13 -3,14 -5,24 -10,22 -11,01 0,96 -9,09 2,28 2,08 -7,52-4,44 0,92 -2,78 2,95 3,57 1,44 -1,98 -4,57 -9,60 2,30 1,34 2,88

8,831,5615,6120,82-5,0011,8825,50-28,742,5515,9823,966,962,35

-34,36-8,55

-12,41

Cumulative returnsYTD 1 year 2 years 3 years 5 years 7 years 10 years 15 years

EDM Strategy

STOXX 50

-12,41

-9,26

-15,57

-12,53

-2,34

-6,17

-0,28

-2,26

30,55

21,37

50,95

16,76

36,59

-23,33

41,98

-18,83

Annualized volatility1 year 2 years 3 years 5 years 7 years 10 years 15 years

EDM StrategySTOXX 50

12,1410,65

14,2914,89

12,3412,70

11,7211,55

11,2012,63

12,3414,91

12,4615,04

Sharpe Ratio1 year 2 years 3 years 5 years 7 years 10 years 15 years

EDM StrategySTOXX 50

-1,31-1,18

-0,01-0,14

0,050,00

0,490,37

0,540,20

0,20-0,20

0,10-0,14

Sortino Ratio1 year 2 years 3 years 5 years 7 years 10 years 15 years

EDM Strategy

STOXX 50

-1,43

-1,27

-0,01

-0,19

0,07

0,00

0,76

0,53

0,83

0,28

0,27

-0,25

0,14

-0,17

Annualized returnsYTD 1 year 2 years 3 years 5 years 7 years 10 years 15 years

EDM Strategy

STOXX 50

-12,41

-9,26

-15,57

-12,53

-1,18

-3,13

-0,09

-0,76

5,48

3,95

6,06

2,24

3,17

-2,62

2,36

-1,38

Statistical risk1 year 2 years 3 years 5 years 7 years 10 years 15 years

Up Capture RatioDown Capture RatioLongest Down-Streak Start DateLongest Down-Streak End DateDown NumberUp NumberBest QuarterWorst QuarterGain/Loss RatioMax DrawdownOverall DeviationOverall Capture Ratio

118,26122,74

01/08/201631/10/2016

7,005,00

-0,67-7,310,39

-17,451,610,96

105,1795,19

01/08/201631/10/2016

12,0012,0014,63-7,310,99

-17,97

1,10

97,8394,13

01/08/201631/10/2016

18,0018,0014,63-7,311,04

-17,97

1,04

102,0391,91

01/08/201631/10/2016

25,0035,0014,63-7,311,46

-17,97

1,11

91,3267,77

01/08/201631/10/2016

33,0051,0014,63-8,401,55

-17,97

1,35

81,5457,23

01/10/200731/01/2008

49,0071,0017,90

-15,311,28

-37,10

1,42

79,8663,72

01/10/200731/01/2008

71,00109,0017,90

-18,321,21

-42,22

1,25

Benchmark correlation1 year 2 years 3 years 5 years 7 years 10 years 15 years

AlphaBetaReturnInformation Ratio (geo)Tracking ErrorCorrelationR2

-0,271,00

-15,57-2,091,660,88

77,59

1,700,90

-1,180,395,200,94

87,82

0,620,89

-0,090,135,060,92

84,38

2,080,865,480,236,440,85

71,63

4,190,736,060,527,190,82

68,03

4,500,693,170,728,240,84

70,06

2,740,702,360,468,260,84

70,31

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

EDM StrategyEuropean Equities

Return Date: 31/10/2016

Histogram Chart

Time Period: 01/01/2000 to 31/10/2016

-15,0 -11,0 -7,0 -3,0 1,0 5,0 9,0 13,0 15,00,0

4,0

8,0

12,0

16,0

20,0

24,0

28,0

32,0

36,0

EDM Strategy STOXX 50

Num

ber O

f Per

iod

Drawdown Chart

Time Period: 01/01/2000 to 31/10/2016

2000 2002 2004 2006 2008 2010 2012 2014 2016-67,5

-60,0

-52,5

-45,0

-37,5

-30,0

-22,5

-15,0

-7,5

0,0

EDM Strategy STOXX 50

12M Rolling Annualizede Volatility

11 12

2012

01 02 03 04 05 06 07 08 09 10 11 12

2013

01 02 03 04 05 06 07 08 09 10 11 12

2014

01 02 03 04 05 06 07 08 09 10 11 12

2015

01 02 03 04 05 06 07 08 09 10 11 12

2016

01 02 03 04 05 06 07 08 09 105,0

10,0

15,0

20,0

EDM Strategy STOXX 50

Vola

tility

3Y Rolling Alpha

Rolling Window: 3 Years 1 Month shift

11 12

2014

01 02 03 04 05 06 07 08 09 10 11 12

2015

01 02 03 04 05 06 07 08 09 10 11 12

2016

01 02 03 04 05 06 07 08 09 100,0

5,0

10,0

EDM Strategy STOXX 50

Alph

a

3Y Rolling Beta

Rolling Window: 3 Years 1 Month shift

11 12

2014

01 02 03 04 05 06 07 08 09 10 11 12

2015

01 02 03 04 05 06 07 08 09 10 11 12

2016

01 02 03 04 05 06 07 08 09 100,60,81,0

EDM Intern. SICAV Strategy R STOXX 50

Beta

All 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)

12M Rolling Annualized Return

11 12

2012

01 02 03 04 05 06 07 08 09 10 11 12

2013

01 02 03 04 05 06 07 08 09 10 11 12

2014

01 02 03 04 05 06 07 08 09 10 11 12

2015

01 02 03 04 05 06 07 08 09 10 11 12

2016

01 02 03 04 05 06 07 08 09 10-20,0

0,0

20,0

40,0

EDM Strategy STOXX 50

Retu

rn

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