1. EDM Inversión Return Date: 31/03/2012
Spanish Equities Portfolio Date: 31/03/2012
Snapshot Fund´s Data
Name EDM-Inversión FI Inception Date 02/04/1987
Category Europe OE Spain Equity NAV (Daily, €) 30,95
Custodian / Administrator Bankinter SA
Fund Size (€) 29.453.384,00
Auditor KPMG
Domicile Spain
Management Fee 2,25
Morningstar Rating Overall ÙÙÙÙÙ Base Currency Euro
UCITS Yes ISIN ES0168674036
15 Years Risk-Reward Fund´s Manager Comment
Time Period: 01/04/1997 to 31/03/2012 March saw a return to volatility on the Spanish market. The country is facing a complex
8,0 EDM Inversión situation due to public finances, labour reforms, restructuring of the banking sector leading to
IBEX 35 losses not reflected by some banks, measures to cut the electricity tariff deficit and general
Spanish Equity Category budgets that are facing severe spending cutbacks and tax hikes. On the socio-political front,
6,0
there was a general strike in the country (no impact on the markets) and an unexpected defeat
for the PP party in Andalusia. This series of events has hit equity, but the main issue troubling
4,0
investors is the lack of growth in the Spanish economy and no prospects of this changing for
the time being. The measures adopted by Spain so far look to be on the right track, but will
have no immediate impact. However, even against this backdrop, not all companies are
2,0 performing the same way. There is a group of companies that are recording a very different
trend to Spain’s stock market indices, thanks to recognition of their high quality results and low
dependence on the domestic market. By selecting these, EDM Inversión has secured returns
Return
0,0 that differ starkly from those offered by the Ibex 35.
0,0 4,0 8,0 12,0 16,0 20,0 24,0 28,0
Std Dev
Historical Performance vs. Benchmark
Time Period: 01/01/2000 to 31/03/2012
257,5
235,0
212,5
190,0
167,5
145,0
122,5
100,0
77,5
55,0
32,5
10,0
2000 2002 2004 2006 2008 2010 2012
EDM Inversión IBEX 35 Spanish Equity Category
Returns
300,0
250,0
200,0
150,0
100,0
50,0
0,0
Return
-50,0
YTD 1 year 3 years 5 years 7 years 10 years 15 years 20 Years
EDM Inversión IBEX 35 Spanish Equity Category
Statistical Risk
1 Year 3 Years 5 Years 7 Years 10 Years 15 Years 20 Years
Alpha 5,56 6,09 1,34 3,35 4,79 3,37 1,67
Beta 0,78 0,85 0,86 0,87 0,82 0,78 0,77
Std Dev 9,80 18,77 19,07 17,51 16,20 17,40 17,13
Correlation 0,91 0,96 0,96 0,96 0,95 0,93 0,91
Sharpe Ratio -1,09 0,30 -0,30 0,05 0,35 0,25 0,26
Sortino Ratio -1,25 0,44 -0,38 0,07 0,48 0,35 0,36
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 Asset Management www.edm.es/en -1- Tel. +34914110398 +34934160143 edm@edm.es

2. EDM Inversión Return Date: 31/03/2012
Portfolio Date: 31/03/2012
Spanish Equities
Portfolio Holdings Equity Sectors
% %
Grifols SA 10,5 Basic Materials 6,5
Tecnicas Reunidas, S.A. 9,8 Consumer Cyclical 4,6
Spain(Kingdom Of) 3.15% 8,6
Financial Services 20,7
Grupo Catalana de Occidente S.A. 7,5
Real Estate 0,0
Telefonica SA 7,0
Bolsas y Mercados Espanoles 4,8 Consumer Defensive 0,0
Repsol YPF SA 4,6 Healthcare 17,5
Jazztel PLC 4,4 Utilities 11,1
Industria De Diseno Textil SA 4,2 Communication Services 12,5
Miquel y Costas y Miquel SA 4,0 Energy 5,0
Other 34,6 Industrials 17,8
Total 100,0
Technology 4,4
Portfolio construction Stock picking methodology
Ÿ Long-only traditional investment style (bottom-up) Ÿ Focus on understandable and predictable businesses at reasonable prices
Ÿ Stock picking. No benchmarking (low overlapping against its benchmark) Ÿ Management quality & integrity are crucial for us
Ÿ Long-term investment horizon (5 years on average) Ÿ Demanding criteria: High quality of the business (ROE = 14,5%)
Ÿ Low turnover (18% average for the last 6 years) Ÿ Sustainable EPS growth (9,4%)
Ÿ High liquidity (93% of the portfolio can be sold within one trading day) Ÿ Recurrent and solid cash-flows
Ÿ Concentrated portfolio, maximum 20 companies Ÿ Companies focused on international markets to generate growth
Ÿ Fully invested (never below 80%): competition among stocks Ÿ Lack of sectors whose profits are not easily foreseen:
- Banking
- Cyclical sectors
Sectors vs. Benchmark Style Box
EDM
Ibex 35
Inversión
Market Cap %
Large
Equity Econ Sector Basic Materials % 6,47 1,92 26,8 0,0 4,6
Market Cap Giant 12,3
Mid
Equity Econ Sector Consumer Cyclical % 4,59 9,20 Market Cap Large 19,1
11,6 32,5 14,0
Equity Econ Sector Financial Services % 20,65 34,42
Market Cap Mid 58,0
Small
8,5 2,1 0,0 Market Cap Small 10,6
Equity Econ Sector Real Estate % 0,00 0,00
Market Cap Micro 0,0
Value Blend Growth
Equity Econ Sector Consumer Defensive % 0,00 1,56
Holdings-Based Style
Equity Econ Sector Healthcare % 17,55 1,13 EDM Inversión 31/03/2012
Ibex 35 31/03/2012
Giant
Equity Econ Sector Utilities % 11,08 11,87
Large
Equity Econ Sector Communication Services % 12,45 18,34
Equity Econ Sector Energy % 5,05 8,66
Mid
Equity Econ Sector Industrials % 17,80 10,35
Small
Equity Econ Sector Technology % 4,36 2,56
Micro
Deep-Val Core-Val Core Core-Grth High-Grth
EDM Asset Management www.edm.es/en -2- Tel. +34914110398 +34934160143 edm@edm.es