Oddo european mid and small cap funds
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  • 1. BERLIN 16-18 November 2011Citywire - 16, 17, 18 November 2011 Oddo Avenir Europe Morningstar® Oddo Avenir Euro Morningstar® 1
  • 2. European Mid and Small Cap fundsOddo Avenir Europe Morningstar®Oddo Avenir Euro Morningstar®Pascal Riegis, Analyst portfolio manager November 2011Grégory Deschamps, Analyst portfolio managerSébastien Maillard, Analyst portfolio managerFrédéric Doussard, Analyst portfolio manager
  • 3. 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 One of the longest Avenir and a 12-year track record for Oddo Avenir Europe track record in theCitywire - 16, 17, 18 November 2011 A stable management team with high team spirit, in charge of the funds for 8 years European market Over €2,572m assets under management 3 open-ended funds (AuM: €1,681m): Oddo Avenir Europe (Pan-Europe), Oddo A sound offer 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 Risks of capital and the equity risk. All risks are detailed on slides 44 and 45 Source: Oddo AM. Data as of 10/31/2011 3
  • 4. Contents 1 Philosophy 5Citywire - 16, 17, 18 November 2011 2 People 7 3 Process 9 4 Products 33 5 Performance 36 6 Appendices 47 4
  • 5. 1. Philosophy Focus on value creators, delivering high Return on Capital EmployedCitywire - 16, 17, 18 November 2011 5
  • 6. One investment philosophy, one investment process, one mission « Investing in tomorrow’s best companies » Mid Cap: already structured companies with billion euros market capitalisationsCitywire - 16, 17, 18 November 2011 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 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 6
  • 7. 2. People A stable and united committed teamCitywire - 16, 17, 18 November 2011 7
  • 8. A stable and united team, collective investment decisions, shared values An experienced team in charge of the funds since July 2003 Investment RoleCitywire - 16, 17, 18 November 2011 experience Grégory Deschamps Analyst-portfolio manager 19 years Frédéric Doussard Analyst-portfolio manager 12 years Sébastien Maillard Analyst-portfolio manager 8 years Pascal Riégis Analyst-portfolio manager 24 years Maryse Sauvageot Assistant manager 27 years 8
  • 9. 3. Process 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 capitalCitywire - 16, 17, 18 November 2011 Quantitative filter Fundamental analysis Valuation Portfolio construction and management Risk management 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 9
  • 10. Bottom-up investment process A rigorous four steps investment process 4. Portfolio 2. Fundamental construction 1. Quantitative filter 3. Valuation analysis and managementCitywire - 16, 17, 18 November 2011 Universe of European Small and Qualitative analysis of the Valuation of companies with Investment rules and Mid Cap stocks. €150m to €10bn investable universe positive fundamental opinion risk management Around 3,000 stocks Around 300 stocks Risk/Reward profile Around 40 lines* Investment universe screened: Fundamental research: Discounted Cash Flow method Concentrated portfolio composed based on two different scenario: of managers’ strongest -High Return On Capital Employed - Company’s financial performance convictions - Best case scenario - Positive and enduring Free Cash - Consistency of strategy - Around 40 lines* Flows to finance organic - Worst case scenario - Average holding period 3 years* or small bolt-on acquisition or - Competitive edge acquisition-led expansion Peer comparison method -Market capitalizations in €bn* over the long term - Management’s quality (PER, EV / EBITDA ...) - No macro bets (Cyclical / Non cyclical balance)* - European companies with an - Sell-side research international development - Controlled volatility and liquidity by - Regular visits to the companies the management team - No style bias *Observation over the past 8 years 10
  • 11. Citywire - 16, 17, 18 November 2011 Quantitative filter Fundamental analysis Valuation Portfolio construction and management Risk management by the management team 11
  • 12. Value creators The right fuel to finance growth Construction: Lafarge vs Sika (total return, EUR) 1800Citywire - 16, 17, 18 November 2011 1600 1400 Sika + 1137.6% 1200 1000 800 600 Stoxx 600 + 279.8% 400 200 Lafarge + 39.0% 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 The examples of Lafarge and Sika are not investment recommendations Past performance is not a reliable indication of future returns and is not constant over time Source: Datastream. Data as of 09/30/2011 12
  • 13. Value creators on the whole cycle Compared ROE between Oddo Avenir Europe and Stoxx 600 (for information) 25%Citywire - 16, 17, 18 November 2011 19.8% 20% 18.3% 16.3% 15% 14.5% 12.9% 10% 9.2% 5% 0% 2007 2009 2011e Oddo Avenir Europe Stoxx 600 The HSBC Smaller Europe + UK figures are not available. That is why we present the Stoxx 600 figures Past performance is not a reliable indication of future returns and is not constant over time Sources: Oddo AM, Oddo Securities base Factset. Data as of 07/07/2011 13
  • 14. Value creators on the whole cycle Return On Capital Employed and free cash flow yield* of Oddo Avenir Europe main holdings 12% DSM FaivelayCitywire - 16, 17, 18 November 2011 Ipsos 10% Rexel SKF Free Cash Flow Yield* 2011e Imtech 8% Amadeus Ingenico Aryzta Sodexo Fresenius 6% Moyenne Bic Dassault Systèmes Biomérieux 4% Rolls Royce Safran 2% Brenntag Infineon Michelin 0% 12% ROCE post tax 2011e * Free Cash Flow Yield = Free Cash Flow per Share / Current Market Price per Share Past performance is not a reliable indication of future returns and is not constant over time Source: Oddo AM. Data as of 10/07/2011 14
  • 15. European companies with international development 75% of their activity outside of their origin country Rest of the world 20%Citywire - 16, 17, 18 November 2011 America 25% Rest of Europe 30% Origin country 25% % of turnover Source: Oddo AM. Data as of 12/31/2010 15
  • 16. Citywire - 16, 17, 18 November 2011 Quantitative filter Fundamental analysis Valuation Portfolio construction and management Risk management by the management team 16
  • 17. Fundamental analysis “Identify tomorrow’s best companies” Mid Cap Already structured companies, with leadership position on their market, billion euros market capitalisationsCitywire - 16, 17, 18 November 2011 Value creators on the Companies able to preserve fair profitability and to finance their own long term whole cycle development even in recession times International Tomorrow’s global leaders, capturing growth where it is development Solid growth Companies built on a strong and understandable business model, offering organic perspectives development perspectives, with small acquisitions at a good price A solid and tested Performing companies, pure players in one business line and with strong management management teams 17
  • 18. DSM: a top leader in nutrition at the price of a traditional chemical company 3 new companies in the Top 10 Market capitalization: €6.2bn Mid CapCitywire - 16, 17, 18 November 2011 Refocusing done concerning activities with solid ROCE by the end of 2010 Value creators on the whole cycle 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 International DSM is the worldwide leader in vitamins (30% of market shares) development 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 Solid growth intensive cattle breeding, which favors the use of high quality vitamins. perspectives 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 A solid and tested management Rolf-Dieter Schwalb joined DSM in 2006, CFO and member of the board since 2006 The example of DSM is not an investment recommendation Source: Oddo AM. October 2011 18
  • 19. Brenntag: a chemicals distribution worldwide leader on a market that is likely to consolidate 3 new companies in the Top 10 Market capitalization: €3.5bn Mid CapCitywire - 16, 17, 18 November 2011 Strong resistance of the activity in 2009 thanks to the fragmentation of the suppliers and Value creators on the the customers whole cycle 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 International realizes half of its activity in Europe and a third in North America development Benefits from the growing trend of distribution outsourcing by chemical producers Solid growth Strongly value-creating strategy of local companies acquisitions perspectives Stephen Clark joined Brenntag in 1981, CEO since 2010, member of the board since 1993 A solid and tested management Jurgen Buchsteiner joined Brenntag in 2000, CFO and member of the board since 2010 The example of Brenntag is not an investment recommendation 19 Source: Oddo AM. October 2011
  • 20. Amadeus: technological partner of the travel industry 3 new companies in the Top 10 Market capitalization: €5.5bn Mid CapCitywire - 16, 17, 18 November 2011 Rise in net earnings in 2008 and 2009 in spite of the air transport struggle Value creators on the whole cycle Over the past 10 years, Amadeus strengthened its position by becoming the world’s first International GDS and holds a 37 % market share today development Excellent visibility over the next years thanks to the contracts duration (10-15 years) and to the airline companies remaining to migrate on Amadeuss system Services extension offered to travel agencies Solid growth perspectives Development of softwares for airline companies: management of passengers and freight bookings, yield management, fuel management, flights schedule, … A solid and tested Luis Maroto, joined Amadeus in 2000, CEO since 2011 management Ana de Pro, joined Amadeus in 2010, CFO since 2010 The example of Amadeus is not an investment recommendation 20 Source: Oddo AM. October 2011
  • 21. Citywire - 16, 17, 18 November 2011 Quantitative filter Fundamental analysis Valuation Portfolio construction and management Risk management by the management team 21
  • 22. Risk/return optimisation One goal : a controlled volatility over time 160 Valuation through in-house DCF models: “best case” scenario versus “worst case” 140Citywire - 16, 17, 18 November 2011 scenario, with a risk of loss of capital Best Case Scenario 120 + 40% Optimization of risk / return profile 100 according to market conditions Price (€) 80 A strict buy and sell discipline: 60 – Buy discipline : only stocks in which the Investment decision 60€ management team has strong fundamental 40 convictions and with an attractive growth potential / downside risk profile are integrated in the portfolio. 20 Worst Case Scenario – Sell discipline : collegial decisions to sell or - 20% replace a stock when the target price is reached, 0 when a new class of assets offers a better risk / return profile or when deterioration in the company fundamentals is detected. 22
  • 23. Citywire - 16, 17, 18 November 2011 Quantitative filter Fundamental analysis Valuation Portfolio construction and management Risk management by the management team 23
  • 24. No style bias, no macroeconomic bets But strong disparities between sectors Oddo Avenir Europe Oddo Avenir EuroCitywire - 16, 17, 18 November 2011 Cash Cash 9% 9% Oil & gas 2% Industrials Oil & gas 2% Consumer services Industrials 32% Consumer services 7% 31% 9% Consumer goods 11% Consumer goods 9% Healthcare Healthcare 12% 11% Technology Technology 16% 16% Basic materials Basic materials 12% 13% Source: Oddo AM. Data as of 10/31/2011 24
  • 25. Top 10 holdings European companies with an international development, leadership positions, profitable and performing over the long term Oddo Avenir Europe Oddo Avenir Euro Main holdings Weight in the Main holdings Weight in the portfolio portfolio Amadeus 5.9% Fresenius 5.6%Citywire - 16, 17, 18 November 2011 Rolls-Royce 5.9% Amadeus 5.6% Fresenius 5.7% Brenntag 5.6% Dsm 5.5% Dsm 5.5% Brenntag 4.9% Safran 4.7% Skf 4.4% Sodexo 4.6% Aryzta 4.3% Biomérieux 4.2% Sodexo 4.3% Michelin 3.7% Biomérieux 4.0% Rolls-Royce 3.6% Imtech 3.4% Imtech 3.6% Top 10 holdings 48.3% Top 10 holdings 46.7% 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. Source: Oddo AM. Data as of 10/31/2011 25
  • 26. Citywire - 16, 17, 18 November 2011 Quantitative filter Fundamental analysis Valuation Portfolio construction and management Risk management by the management team : example of Oddo Avenir Europe 26
  • 27. Portfolio liquidity of Oddo Avenir Europe 30% in one day, 72% in five days Liquidity of Oddo Avenir EuropeCitywire - 16, 17, 18 November 2011 86% 72% 30% 1 day 5 days 10 days Simulation : 1/3 of volume based on the 6 months average volume Source: Oddo AM. Data as of 11/08/2011 27
  • 28. Mid Cap: weighted average market cap above €5Bn One goal: a controlled level of liquidity Oddo Avenir Europe Oddo Avenir Euro Weighted average market capitalisation 5,581 5,076Citywire - 16, 17, 18 November 2011 (in €m) Market capitalisations < €1000m (% of NAV) 8% 11% Market capitalisations between €1000m and €5000m 39% 40% (% of NAV) Market capitalisations > €5000m (% of NAV) 44% 39% 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) Source: Oddo AM. Data as of 10/31/2011 28
  • 29. Lower volatility than the benchmark universe Compared volatility 25%Citywire - 16, 17, 18 November 2011 23% 21% 19% 17% 15% 13% 11% 9% 7% 5% 1 year 3 years 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 time Source: Oddo AM. Data as of 10/28/2011 29
  • 30. Lower volatility than the market Oddo Avenir Europe: only 25% invested in companies having a Beta > 1 2.0 PER > 15 : 1.8 8% of portfolioCitywire - 16, 17, 18 November 2011 Beta > 1 : 25% of portfolio 1.6 1.4 Beta 1.2 1.0 0.8 Average of the portfolio 0.6 0.4 5 10 15 20 25 30 PER 2011 (e) 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%. Past performance is not a reliable indication of future returns and is not constant over time Source: Oddo AM. Data as of 10/07/2011 30
  • 31. Investments in value creators throughout the economic cycle Return on equity compared between Oddo Avenir Europe and Stoxx 600 (for information) 25%Citywire - 16, 17, 18 November 2011 19.8% 20% 18.3% 16.3% 15% 14.5% 12.9% 10% 9.2% 5% 0% 2007 2009 2011e Oddo Avenir Europe Stoxx 600 The HSBC Smaller Europe + UK figures are not available. That is why we present the Stoxx 600 figures Past performance is not a reliable indication of future returns and is not constant over time Sources: Oddo AM, Oddo Securities base Factset as of 07/07/2011 31
  • 32. Strong balance sheets Companies benefiting from a significant competitive advantage rely less on debt 2011e Debt Ratio of companies within the portfolio or the indexCitywire - 16, 17, 18 November 2011 Stoxx 600 ex Financials Stoxx 600 ex Financials, (for information.) Telecom, Utilities (for information.) Oddo Avenir Europe 18% 29% 40% The HSBC Smaller Europe + UK figures are not available. That is why we present the Stoxx 600 figures Sources: Oddo AM, Factset as of 07/07/2011 32
  • 33. 4. Products 3 funds with consistent performance over the long termCitywire - 16, 17, 18 November 2011 33
  • 34. Funds details 3 funds based on a common investment process and management team Oddo Avenir Europe Oddo Avenir EuroCitywire - 16, 17, 18 November 2011 Geographical Europe Euro zone coverage NAV at 10/31/11 €1,005m €161m Benchmark index HSBC Smaller Europe + UK HSBC Smaller Euroland h Citywire ratings (as of 08/31/2011) of the management team’s 3 year risk-adjusted performance Sources: Oddo AM, © 2011 Morningstar, Europerformance-Edhec, Citywire. Data as of 10/31/2011 34
  • 35. Geographic breakdowns Oddo Avenir Europe Oddo Avenir EuroCitywire - 16, 17, 18 November 2011 Cash Cash 9% Italy 1% 9% Austria 1% Germany Austria 1% Spain 28% Ireland 1% Germany 6% Switzerland 3% 33% United Kingdom United Kingdom 4% 6% Spain Sweden 6% 6% Netherlands 15% Switzerland 12% France 18% Netherlands France 14% 27% Source: Oddo AM. Data as of 10/31/2011 35
  • 36. 5. Performance 3 funds delivering alpha over the long termCitywire - 16, 17, 18 November 2011 36
  • 37. Oddo Avenir Europe, performing since inception A continuous value creation Oddo Avenir Europe since inception (05/25/99) 300Citywire - 16, 17, 18 November 2011 250 Oddo Avenir Europe + 143.8% 200 Benchmark index : HSBC Smaller Europe + UK (net total return) 150 + 80.7% 100 Stoxx 50 (for information) (net total return) - 10.0% 50 0 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 Past performance is not a reliable indication of future returns and is not constant over time Source: Oddo AM. Data as of 10/31/2011 37
  • 38. 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 280Citywire - 16, 17, 18 November 2011 260 240 Oddo Avenir Europe 220 + 119.9% 200 180 Benchmark index: HSBC Smaller Europe + UK 160 (net total return) 140 + 75.5% 120 100 Stoxx 50 (for information) (net total return) 80 + 11.8% 60 40 jan.- july- jan.- july- jan.- july- jan.- july- jan.- july- jan.- july- jan.- july- jan.- july- 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 Past performance is not a reliable indication of future returns and is not constant over time Source: Oddo AM. Data as of 10/31/2011 38
  • 39. For information: Oddo Avenir Europe vs MSCI Asia ex Japan A continuous value creation: why invest in European equities Oddo Avenir Europe since 01/01/04 280 260 Oddo Avenir EuropeCitywire - 16, 17, 18 November 2011 + 119.9% 240 MSCI Asie ex Japan (for information) 220 (EUR, total return) + 119.0% 200 Benchmark index: 180 HSBC Smaller Europe + UK (net total return) 160 + 75.5% 140 MSCI Europe (for information) (EUR, total return) 120 + 36.0% 100 80 On 01/01/2004 : 60 Management take-over by the management team 40 jan.- july- jan.- july- jan.- july- jan.- july- jan.- july- jan.- july- jan.- july- jan.- july- 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 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 Past performance is not a reliable indication of future returns and is not constant over time Sources: Oddo AM, Datastream. Data as of 10/31/2011 39
  • 40. Oddo Avenir Europe - Performance Cumulative performance since inception (05/25/1999) Oddo Avenir Europe: + 143.8% Benchmark index: HSBC Smaller Europe + UK (net total return): + 80.7%Citywire - 16, 17, 18 November 2011 As information, Stoxx 50 (net total return): - 10.0% YTD 1 year 3 years 5 years Annualised volatility/return since inception (05/25/1999) 12% Oddo Avenir Europe - 14.1% -6.9% +51.0% + 11.1% Oddo Avenir Europe ( ) 8% +7.4% Annualised return in % Ranking 58 / 100 52 / 100 15 / 100 4 / 100 Benchmark index: HSBC Smaller Europe + UK net total return HSBC Smaller Europe + UK - 15.5% - 8.5% + 50.9% - 16.0% 4% +4.9% (net total return) Stoxx 50 (net total return) - 7.6% - 5.7% + 10.3% - 25.2% 0% (for information) Stoxx 50 net total return (for information) Morningstar® average -0.8% - 13.1% - 6.4% + 37.4% - 14.9% -4% European Mid Cap funds 16% 18% 20% 22% 24% 26% (for information) Annualised volatility in % Past performance is not a reliable indication of future returns and is not constant over time Sources: © 2011 Morningstar, Oddo AM. Data as of 10/31/2011 40
  • 41. 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 280 260Citywire - 16, 17, 18 November 2011 240 220 Oddo Avenir Euro 200 + 108.4% 180 Benchmark index: 160 HSBC Smaller Euroland (net total return) 140 + 55.3% 120 Euro Stoxx 50 (for information) (net total return) 100 + 9.0% 80 60 40 dec.-03 sept.-04 june-05 march-06 dec.-06 sept.-07 june-08 march-09 dec.-09 sept.-10 june-11 Past performance is not a reliable indication of future returns and is not constant over time Source: Oddo AM. Data as of 10/31/2011 41
  • 42. Oddo Avenir Euro - Performance 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%Citywire - 16, 17, 18 November 2011 As information, Euro Stoxx 50 (total return): + 9.0% YTD 1 year 3 years 5 years Annualised volatility/return since the portfolio management take-over by the management team (01/01/04) 16% Oddo Avenir Euro - 14.4% - 7.2% + 42.3% + 5.5% Oddo Avenir Euro 12% ( ) Ranking 43 / 100 21 / 100 5 / 100 3 / 100 +9.8% Annualised return in % HSBC Smaller Euroland Benchmark index: 8% net total return HSBC Smaller Euroland - 17.9% - 14.4% + 34.1% - 25.2% +5.8% (net total return) Eurostoxx 50 4% net total return Euro Stoxx 50 (for information) (net total return) - 11.9% - 13.2% + 2.1% - 30.0% +1.1% for information 0% Morningstar® average - 15.6% - 11.9% + 20.5% - 24.3% Euro zone Mid Cap funds -4% for information 16% 18% 20% 22% 24% 26% Annualised volatility in % Past performance is not a reliable indication of future returns and is not constant over time Sources: © 2011 Morningstar, Oddo AM. Data as of 10/31/2011 42
  • 43. Detailed 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 Share A share: FR0000990095 A share : FR0000974149 ISIN codes Share B share: FR0010247783 B share : FR0010251108 Inception date 09/19/1985 05/25/1999 Minimum investment period 5 years 5 yearsCitywire - 16, 17, 18 November 2011 Benchmark index HSBC Smaller Euroland net total return HSBC Smaller Europe + UK net total return To outperform its benchmark index over an investment To outperform growth of the benchmark index on a 5 Investment objective horizon of more than 5 years year-over-year basis Management company Oddo Asset Management Oddo Asset Management Custodian Oddo & Cie Oddo & Cie Initial Minimum Share A share: 1 thousandth of a share A share : 1 thousandth of a share subscription Share 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 A share: up to 2.00% of the net assets, inclusive of tax, A share: up to 2.00% of the net assets, inclusive of tax, Share excluding UCITS excluding UCITS Management fees B share: up to 1.00% of the net assets, inclusive of tax, B share: up to 1.00% of the net assets, inclusive of tax, Share excluding UCITS excluding UCITS A share: 20% of the outperformance relative to the A share: 20% of the outperformance relative to the Share benchmark index if the fund performance is positive benchmark index if the fund performance is positive Performance fees B share: 20% of the outperformance relative to the B share: 20% of the outperformance relative to the Share benchmark index if the fund performance is positive benchmark index if the fund performance is positive 43
  • 44. 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 equityCitywire - 16, 17, 18 November 2011 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. 44
  • 45. Risk profile (2/2) 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.Citywire - 16, 17, 18 November 2011 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. 45
  • 46. 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 fromCitywire - 16, 17, 18 November 2011 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 Management Portfolio 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 France Phone: 33 (0)1 44 51 85 00. www.oddoam.fr 46
  • 47. Citywire - 16, 17, 18 November 201147 6. Appendices
  • 48. Oddo Avenir Europe Performance per year 2010 2009 2008 2007 2006 2005 2004Citywire - 16, 17, 18 November 2011 Oddo Avenir Europe + 28.4% + 42.6% - 39.5% + 8.0% + 31.3% + 31.1% + 24.2% Benchmark index: HSBC Small Cap Europe + 25.6% + 59.1% - 51.3% - 5.8% + 32.8% + 37.2% + 24.2% (total return) Stoxx 50 (total return) (for information) + 3.1% + 28.7% - 41.2% + 2.6% + 13.6% + 24.2% + 7.1% Past performance is not a reliable indication of future returns and is not constant over time Source: Oddo AM 48
  • 49. Oddo Avenir Euro Performance per year 2010 2009 2008 2007 2006 2005 2004Citywire - 16, 17, 18 November 2011 Oddo Avenir Euro + 23.6% + 43.0% - 38.5% + 6.4% + 27.3% + 36.3% + 21.5% Benchmark index: HSBC Smaller Euroland + 14.1% + 52.3% - 49.7% - 2.9% + 31.8% + 36.5% + 23.8% (total return) Euro Stoxx 50 (total return) (for information) - 2.8% + 25.6% - 42.4% + 9.6% + 18.0% + 24.3% + 9.4% Change in investment approach on the 10/31/2005 Past performance is not a reliable indication of future returns and is not constant over time Source: Oddo AM 49
  • 50. International contacts Lorenzo Gazzoletti Bertrand Levavasseur Deputy Managing Director Head of International Sales +33 1 44 51 84 95 +33 1 44 51 88 66 lgazzoletti@oddo.fr blevavasseur@oddo.fr Dario Sari Edouard Vallette Viallard Head of Southern Europe Country Manager Switzerland +33 1 44 51 81 94 +33 1 44 51 80 15Citywire - 16, 17, 18 November 2011 dsari@oddo.fr evalletteviallard@oddo.fr Jürgen Mahler Alain Meyer Country Manager Italy Head of Institutional Clients Switzerland +39 02 45 55 79 77 +41 78 605 3552 jmahler@oddo.fr ameyer@oddo.fr Agathe Schittly Zeineb Belkourati Institutional Sales Belux Institutional Sales Switzerland +33 1 44 51 85 09 +33 1 44 51 86 74 aschittly@oddo.fr zbelkourati@oddo.fr Avidan Geissmann Pascale Abdelnour Institutional Sales Netherlands Institutional Sales Middle East +33 1 44 51 89 17 + 971 4 323 05 65 ageissmann@oddo.fr pascaleabdelnour@bemooddo.com Pauline Heuff International Client Service Manager +33 1 44 51 83 88 pheuff@oddo.fr 50
  • 51. Oddo Avenir Europe Oddo Avenir Euro International funds registration at 10/15/2011 Switzerland Belgium Germany Austria ItalyCitywire - 16, 17, 18 November 2011 Oddo Avenir Europe Oddo Avenir Euro Spain Netherlands Singapore Sweden Luxembourg United Kingdom Oddo Avenir soon Reporting Europe status 51
  • 52. Biography of the management team Grégory DESCHAMPS - Analyst-Portfolio manager, Mid Cap equities A 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 CapCitywire - 16, 17, 18 November 2011 equities Frédéric DOUSSARD - Analyst-Portfolio manager, Mid Cap equities A 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 equities A 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 management A 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 equities Maryse 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 52