HOW ESG ANALYSIS CAN ADD PORTFOLIO VALUE

Transcription

1 HOW ESG ANALYSIS CAN ADD PORTFOLIO VALUE November 2018 Edmond de Rothschild Asset Management EDMOND DE ROTHSCHILD, BOLD BUILDERS OF THE FUTURE.

2 RESPONSIBLE INVESTMENT WITHIN EDMOND DE ROTHSCHILD EDMOND DE ROTHSCHILD, L AUDACE DE BÂTIR L AVENIR. 2

3 RESPONSIBLE INVESTMENT IS IN OUR DNA The Edmond de Rothschild Group wants to embody a different, convictions-driven approach to investment management. This means aiming for more than short-term financial returns and allowing clients to leave their footprint on the world and give their investments a sense of purpose. Ariane de Rothschild Chair of the Edmond de Rothschild Group s Executive Committee LONG TERM INNOVATION DIFFERENTIATION CONVICTION EDMOND DE ROTHSCHILD 3

4 OUR INVESTMENT OFFERING RESPONDS TO THE NEW RESPONSIBLE AND SUSTAINABLE PARADIGM Sustainable Equity Growth Strategy Sustainable Corporate Credit Strategy Equity ESG Engagement Strategy Bespoke SRI Mandates / Quant multiasset Small/Mid-cap private equity strategy European and US-listed equities strategies Open architecture for long-only multi-asset SRI mandates Life-sciences private equity strategy African economic development private equity strategy FORMAL ESG INTEGRATION + POSITIVE SELECTION Comprehensive engagement Best-in-universe Best-in-class INFORMAL ESG INTEGRATION Simple engagement Proxy voting THEMATIC / SRI GROWTH OPPORTUNITIES Formalised ESG methodology Comprehensive engagement IMPACT INVESTING Investing for positive social & environmental value Competitive market offering Open architecture for long-only multiasset SRI mandates Agroforestry private equity strategy Depollution private equity strategy IMPACT FIRST Investment / philanthropy with a focus on environmental and social impact (reduced return on investment) The philanthropic activities of the Edmond de Rothschild Foundations Impact First investment strategy in Africa Social Impact Bond in Israel in education EDMOND DE ROTHSCHILD 4

5 A LEADING SOCIAL INVESTMENT PLAYER SINCE bn in SRI assets under management SRI Ranking by PRI above our peers 2009 Launch of EdR Europe SRI, a best in universe European equity fund (now EdR uro Sustainable Growth) 2009 Appointment of a European midcap team as our dedicated SRI research unit Signatory to the UN's Principles for Responsible Investment 2010 Introduction of an engagement policy for EdR Tricolore Rendement, our flagship French equity fund First dedicated eurodenominated equity SRI mandate for France s ERAFP 2012 Large French institutional mandate for an actively managed global SRI equity allocation 2013 Large diversified mandate for an Italian pension fund with an SRI approach for the equity sleeve 2014 An SRI contact appointed for each investment team Signatory to the Global Statement on investor obligations and duties Signatory to the Montreal Carbon Pledge Roadmap 2 C 2017 State SRI label for our 2 openended funds Source: Edmond de Rothschild Asset Management (France), data at 31/05/2018. *Open-ended and dedicated funds EDMOND DE ROTHSCHILD 5

6 A SPECIALISED RESPONSIBLE INVESTMENT RANGE Equity Fixed Income Edmond de Rothschild Euro Sustainable Growth Edmond de Rothschild Euro Sustainable Credit Edmond de Rothschild Tricolore Rendement Bespoke solutions (SRI institutional mandates*) State SRI label since September 2017 State SRI label since September 2017 Open-ended funds with ESG analysis (Best-in- Universe) Strong ESG Engagement With ESG criteria (Best-in- Class, Best-in-Universe, Best effort, etc.) EDMOND DE ROTHSCHILD 6

7 HOW ESG ANALYSIS CAN ADD PORTFOLIO VALUE EDMOND DE ROTHSCHILD, L AUDACE DE BÂTIR L AVENIR. 7

8 OUR RESPONSIBLE AND SUSTAINABLE INVESTMENT PHILOSOPHY INNOVATE ENCOURAGE Companies just starting out on the journey to sustainability by investor engagement with their material sustainability issues EX: ENEL REWARD Best-in-class companies whose executive teams have been highly rated for their ESG engagement Innovative companies which have fully integrated sustainability in their business model and strategy so as to have a positive environmental and social impact EX: HERA EX: INTESA Information on securities herein may not in any way whatsoever be construed as an opinion of Edmond de Rothschild Asset Management (France) on future price trends in the said companies, nor, where applicable, on the likely price trend of the financial instruments that these companies might issue. Any information herein cannot be interpreted as a solicitation to buy or sell these stocks. EDMOND DE ROTHSCHILD 8

9 SUSTAINABLE DEVELOPMENT BUSINESS CASES Water, waster, recycling Energy efficiency Renewable energy Ageing populations Sustainable mobility New consumer trends Food Safety Acquisition by GIVAUDAN in 2018 Information on securities herein may not in any way whatsoever be construed as an opinion of Edmond de Rothschild Asset Management (France) on future price trends in the said companies, nor, where applicable, on the likely price trend of the financial instruments that these companies might issue. Any information herein cannot be interpreted as a solicitation to buy or sell these stocks. Source: Edmond de Rothschild Asset Management (France). EDMOND DE ROTHSCHILD 9

10 ESG RATINGS THE ADVANTAGES OF OUR IN-HOUSE ANALYSIS Meetings with all portfolio companies More than 130 company meetings in 2017 (Including 41 out of the 44 portfolio companies seen in 2016/17) And 100% of midcap companies Follow-up meetings (Allianz, BNP, Danone, Umicore, SAP, Tarkett, etc.) Meetings ahead of AGMs (Intesa, Accor, Atos, etc.) Site visits (GTT, Nestle, Vestas, etc.) New issues taken on board e.g. integration of a Process Safety criterion for mines, chemical companies, etc following the Samarco accident in Brazil in November 2015 e.g. systematic inclusion of ODD in our sovereign debt analysis from April 2017 and in our company analysis from April 2018 Integration of controversial issues Rio Tinto, rated 8.1/20 (BB) by EdRAM (France) due to a number of controversial issues Bayer s bid on Monsanto triggered numerous queries, and it was downgraded in June and September 2016 A more responsive rating procedure Volkswagen downgraded on September and the group has since always been in the auto sector s lowest quartile We research small, mid cap, high-yield and unlisted companies which are not covered, or insufficiently, by external ESG providers ESG initiation in an IPO (e.g. Innogy) Information on stocks may not in any way whatsoever be construed as an opinion of Edmond de Rothschild Asset Management (France) on future price trends in the said companies, nor, where applicable, on the likely price trend of the financial instruments that these companies might issue. Any information herein cannot be interpreted as a solicitation to buy or sell these stocks. Portfolio holdings are likely to change over time EDMOND DE ROTHSCHILD 10

11 ADVANTAGES OF AN INTERNAL ANALYSIS SEIZING OPPORTUNITIES FINECO 2018e Market cap ( M) 6100 Sales growth 8,7% EPS growth 12,3% Dividend yield 3.2% Common Tier 1 20,7% ESG Rating (EdRAM) 13,5/20 Customer satisfaction 96% Employee Engagement index 81% A TRUE LEADER IN DIGITALIZATION OF FINANCIAL SERVICES Efficient online trading and investment platform Excellent user experience thanks to an internalized customer care : in the Private Banking and Wealth Management Survey 2018, Fineco Bank ranked first in Italy in the category Innovative Technology Client Experience. Its customer satisfaction rate is at the high level of 96%. Innovative and transparent GROWING FUNDS THROUGH FINANCIAL ADVISORS In-house private banking Increased offering of guided funds GOOD HUMAN RESOURCES AND COMPLIANCE CULTURE Resulting in high employment engagement score and low turnover No controversies Source: FINECO. Information on stocks may not in any way whatsoever be construed as an opinion of Edmond de Rothschild Asset Management (France) on future price trends in the said companies, nor, where applicable, on the likely price trend of the financial instruments that these companies might issue. Any information herein cannot be interpreted as a solicitation to buy or sell these stocks. Portfolio holdings are likely to change over time EDMOND DE ROTHSCHILD 11

12 ADVANTAGES OF AN INTERNAL ANALYSIS SEIZING OPPORTUNITIES RATIONAL 2018e Market cap ( M) 6,000 Sales growth 10-12% EPS growth 9,2% EBIT margin 26-27% ESG Rating (EdRAM) 14,4/20 Customer satisfaction 93% Employees growth (HY) 15% CO2 Emissions per sold product 216 kg CO2 EMMISSIONS PER APPLIANCE PRODUCED LEADING MANUFACTURER OF COMBI OVENS FOR PROFESSIONAL KITCHENS High demand for XS ovens Excellent profitability RATING OF AN EXTERNAL AGENCY Rated 49/100 in 2017 by an external agency: not eligible INTERNAL ANALYSIS Internal analysis with company contact Environmental efficiencies: operational (less emission per product) and during the use (apparel consuming less energy, water, cleaning chemical, etc) Strong social culture with employees management responsibilities, each product being signed by the employee Client satisfaction at 93% Source: Rational. Information on stocks may not in any way whatsoever be construed as an opinion of Edmond de Rothschild Asset Management (France) on future price trends in the said companies, nor, where applicable, on the likely price trend of the financial instruments that these companies might issue. Any information herein cannot be interpreted as a solicitation to buy or sell these stocks. Portfolio holdings are likely to change over time EDMOND DE ROTHSCHILD 12

13 ADVANTAGES OF AN INTERNAL ANALYSIS AVOIDING RISKS Governance issues: financial statement debates (Summer 2017) followed by accounting fraud accusations December 2017 : the auditors had not signed off on the final results for the year. CEO Markus Jooste resigned the next day Information on stocks may not in any way whatsoever be construed as an opinion of Edmond de Rothschild Asset Management (France) on future price trends in the said companies, nor, where applicable, on the likely price trend of the financial instruments that these companies might issue. Any information herein cannot be interpreted as a solicitation to buy or sell these stocks. Portfolio holdings are likely to change over time EDMOND DE ROTHSCHILD 13

14 ADVANTAGES OF AN INTERNAL ANALYSIS AVOIDING RISKS Summer 2016 : Bayer offered 125$/sh to acquire Monsanto RI team downgraded the ESG rating on reputational, environmental, social and financial risks August 9 : Monsanto lost a $289m verdict in the trial over claims Roundup causes cancer, Bayer falls from 95 to 77e October 22: Superior court cut the damages to 39m, share price falls 78 to 70 Larger ESG risks exist: more case in glyphosate litigation,libality risks in pharma business ( Xarelto, Mirena and Essure etc), dicamba damages, manufacturing disruption in Leverkusen Information on stocks may not in any way whatsoever be construed as an opinion of Edmond de Rothschild Asset Management (France) on future price trends in the said companies, nor, where applicable, on the likely price trend of the financial instruments that these companies might issue. Any information herein cannot be interpreted as a solicitation to buy or sell these stocks. Portfolio holdings are likely to change over time EDMOND DE ROTHSCHILD 14

15 IMPACT MEASUREMENT INDICATORS Regular monitoring of indicators which help improve understanding of extrafinancial risk Euro Sustainable Equity Strategy Benchmark* Green impact (/20) Carbon footprint (kg/ 1,000 invested) Average accident rate (/million of hours worked) Average absenteeism 3.4% 3.6% Percentage of independent board directors 63% 65% Percentage of women on the executive committee 13% 12% Signatories to the UN s Global Compact 71% 83% Source: Edmond de Rothschild Asset Management (France). Data at 06/12/2017. *MSCI EMU. Internal rating EDMOND DE ROTHSCHILD 15

16 IMPACT MEASUREMENT INDICATORS Regular monitoring of indicators which help improve understanding of extrafinancial risk Euro Sustainable Credit Strategy Benchmark* Top Emitters % top Emitters 8 5% % Carbon footprint (kg/ 1,000 invested) Signatories to the UN s Global Compact 53% 58% % of women on the executive committee 13% 15% % of women on the supervisory board 32% 31% Controversies 2,1 2,6 Source: Edmond de Rothschild Asset Management (France). Data at 06/12/2017. *MSCI EMU. Internal rating EDMOND DE ROTHSCHILD 16

17 QUESTIONS FOR THE AUDIENCE 1. Switzerland aims to reduce greenhouse gas emissions by 2030 (vs 1990) by: a. 20% b. 35% c. 50% 2. Investing 1000 in the MSCI EMU leads to indirect CO2 emission equivalent to a km in a small petrol car b. 1 flight Paris Los Angeles c. 1 tasty prime rib 3. According to a survey by Social Market Foundation, when employees are happy at work a. It diminishes productivity as they work less b. It increases productivity by 12% c. It increases productivity by 20% EDMOND DE ROTHSCHILD 17

18 APPENDIX EDMOND DE ROTHSCHILD, L AUDACE DE BÂTIR L AVENIR. 18

19 EDMOND DE ROTHSCHILD EURO SUSTAINABLE GROWTH KEY POINTS Morningstar Sustainability Rating A Eurozone equity fund which helps capture growth by investing in innovative and sustainable business models SRI label since 2009 (Novethic first, followed by the State label in label in September 2017) A Best-in-Universe approach A selection of the best-ranked companies, irrespective of sector, credit rating or capitalisation size A Multi-disciplinary approach to mainly Eurozone companies Our SRI research and investment team analyses each stock from an industry angle using in-house methodology. Our European equity team seeks to identify sustainable growth companies using a recognised financial analysis approach MARC HALPERIN European Equity Manager JEAN-PHILIPPE DESMARTIN Head of the Responsible Investment team 117M Assets under management Inception date: 05/07/1984 New investment process: 01/06/ % in annualised returns since the new strategy was introduced (I Share Class) 5 years Minimum recommended investment horizon 5/7 SRRI risk level Past performance and volatility is no guarantee of future performance and volatility which may change over time, and can be separately affected by fluctuating exchange rates. Performance data does not take into account the fees and charges received when issuing and redeeming units. Source: Edmond de Rothschild Asset Management (France), data at 31/10/2018. Morningstar rating for the A share at 31/08/2018 in the category Equities Eurozone Large Caps. Morningstar ratings are not market ratings and cannot be interpreted as recommendations to buy, sell or hold units or shares in mutual funds managed by Edmond de Rothschild Asset Management (France). Any reference herein to a ranking or award given to this fund is not an indication of future performanceby these funds or the fund manager. EDMOND DE ROTHSCHILD 19

20 INVESTMENT UNIVERSE POSITIONING Long term growth Business zone visibility Technological innovation/service offer Emergence of new needs Dividend sustainability/growth Share buyback programme Strong sensitivity to economic cycles Significant operational leverage Change of business scope/economic model Potential bid target Source: Edmond de Rothschild Asset Management (France). Data at 29/12/2017 EDMOND DE ROTHSCHILD 20

21 ALLOCATION BY ESG RATING AS AT END OF SEPTEMBER 2018 ESG RATING 50,0% 48,0% 40,0% 39,3% Selectivity rate Average ESG rating 30,0% 20,0% Euro Sustainable Growth 44,51% 13,2 10,0% 7,0% 5,8% Benchmark - 11,6 0,0% AAA AA A Monetary Source: Edmond de Rothschild Asset Management (France), data at 29/08/2018 EDMOND DE ROTHSCHILD 21

22 ALLOCATION BY COUNTRY AS AT END OF SEPTEMBER ,2% 18,1% 12,0% 9,3% 4,2% 4,0% 2,5% 2,2% 2,1% 1,7% France Germany Netherlands Spain Italy Sweden Switzerland Denmark Austria Belgium Source: Edmond de Rothschild Asset Management (France), data at 29/08/2018 EDMOND DE ROTHSCHILD 22

23 EDMOND DE ROTHSCHILD EURO SUSTAINABLE GROWTH PERFORMANCE (CLASS I EUR) MSCI EMU (NR) EdR Euro Sustainable Growth I - EUR New investment process 01/06/ Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Risk indicators over 3Y Volatilité Ratio sharpe EdR Sustainable Growth (I) 10.9% 0.34 Benchmark 11.9% 0.21 Performance (Rolling periods) YTD 1Y 3Y 5Y Since 01/06/2015 Annualised since 01/06/2015* EdR Sustainable Growth (I) -4.9% -6.6% 10.4% 29.4% 6.2% 1.8% Benchmark -6.4% -9.2% 6.6% 28.5% 2.5% 0.7% Performance (Calendar periods) EdR Sustainable Growth (I) 16.7% 1.7% 12.4% 0.9% 18.9% Benchmark 12.5% 4.4% 9.8% 4.3% 23.1% Past performance and volatility is no guarantee of future performance and volatility which may change over time, and can be separately affected by fluctuating exchange rates. Performance data does not take into account the fees and charges received when issuing and redeeming units. Source: Edmond de Rothschild Asset Management Data at 31/10/2018 *New investment process (switch from best of with SRI screening approach to a totally integrated Socially Responsible approach) on 01/06/2015. Fund formerly known as EdR Euro SRI. **I share inception date: 30/06/2009 EDMOND DE ROTHSCHILD 23

24 INVESTMENT PROCESS In-house team SRI & external contributor Credit team IN-HOUSE ESG ANALYSIS PROCESS EXTERNAL CONTRIBUTOR Agreement with an external special to cover the whole universe IN-HOUSE PROCESS Multi-criteria scorecard based on an indepth analysis of qualitative & financial metrics ISSUERS ARE RANKED ACCORDING TO THEIR ESG RATING ISSUERS ARE RANKED FOLLOWING THE RESULTS OF OUR IN-HOUSE FUNDAMENTAL ANALYSIS 1ST SHORT LIST DEFINED THANKS TO THE FUNDAMENTAL ANALYSIS BESPOKE CAPABILITIES Possibility to incorporate bespoke bias such as ( Carbon emission, employment, energy transition..) PORTFOLIO CONSTRUCTION BASED ON THE COMBINATION OF ESG ANALYSIS AND FUNDAMENTAL QUALITY REPORT ESG report: comparison portfolio / benchmark, thematic bias, controversies The investment process described presents several internal limits decided by the portfolio management team. This reflects the current investment process that may change in the future. EDMOND DE ROTHSCHILD 24

25 EDMOND DE ROTHSCHILD EURO SUSTAINABLE CREDIT KEY POINTS Crossover portfolio Investment Grade core bucket / High Yield diversification bucket (max. 30%) Overall rating: Portfolio posting an average Investment Grade rating (min. BBB-) Best-in-universe approach Issuers comparison & selection of the best ranked ones, whatever the sector, the rating or the size Objective: both aim limit ESG (Environment, Social, Governance) related risks and favor most virtuous companies with high quality report Bond-picking: issuers which post resilient financial fundamentals which provide an long term SRI policy Interdisciplinary analysis of the companies Convictions based on a combination between ESG criteria and attractive risk premium. A synergy between 2 expertises: SRI team, which developed an in-house ESG analysis process Corporate bonds Team, which posts a proven track-record in stock picking (more than 20 years) ALEXIS FORET Co-Manager RAPHAEL CHEMLA Co-Manager JEAN-PHILIPPE DESMARTIN Head of the Responsible Investment team 90M Assets under management Inception date: 24/06/1982 New investment strategy: 31/08/ % in annualised returns since the new strategy was introduced (31/08/ I Share Class) 2 years Minimum recommended investment horizon 3/7 SRRI risk level Morningstar Sustainability Rating Past performance and volatility is no guarantee of future performance and volatility which may change over time, and can be separately affected by fluctuating exchange rates. Performance data does not take into account the fees and charges received when issuing and redeeming units. Source : Edmond de Rothschild Asset Management (France). Data as of 28/09/2018. Past performance is not a reliable indication of future returns and is not constant over time. Morningstar ratings 31/08/2018 in «EUR Corporate Bonds» category. Morningstar ratings are not market rankings and cannot be interpreted as recommendations to buy, sell or hold the shares or units of the above mentioned Fund. The references to market rankings or awards of these funds are not a reliable indicator of the future results of the Fund or of the Management Company EDMOND DE ROTHSCHILD 25

26 RISK CONTROL: MARKET RISK CREDIT MODIFIED DURATION Max 30% of HY issues (rating <BBB-) Modified duration between 0 to 8, expected between 3 and 6 GEOGRAPHY CURRENCY RISK Issuers of the OECD, European Union, European Economic Area or G20 Fund denominated in euro. Currency risk is hedged. Exposure to a currency other than the euro is limited to 10% of the AuM The investment process described in this document presents several internal limits decided by the portfolio management team. This reflects the current investment process that may change in the future. EDMOND DE ROTHSCHILD 26

27 CURRENT POSITIONING 30% % HY 19,7% 50% % Long Duration IG 18,7% 50% % Short Duration IG 19,8% 50% % CoCos 4,2% 50% % Hybride Corporates 4,9% 100% % PTF INVESTED 97,2% 8 MOD. DURATION 4,25 EDMOND DE ROTHSCHILD 27

28 ALLOCATION BY COUNTRY AS AT SEPTEMBER ,10% 12,40% 10,60% 6,40% 6,20% 6,10% 5% 3,20% 2,70% 2,40% 2,10% 2,10% 1,60% 2,80% 3,30% Source: Edmond de Rothschild Asset Management (France), data at 29/08/2018 EDMOND DE ROTHSCHILD 28

29 EDMOND DE ROTHSCHILD EURO SUSTAINABLE CREDIT PERFORMANCE (CLASS I EUR) SINCE STRATEGY CHANGE RETURNS SINCE THE NEW INVESTMENT PROCESS (31/08/2015) EdR Euro Sustainable Credit I - EUR 95 BarCap Euro-Aggregate Corporates (EUR) 90 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Risk indicators over 3Y Volatilité Ratio sharpe EdR Sustainable Credit (I) 2.6% 1.36 Benchmark 2.2% 1.08 Performance (Rolling periods) YTD 1Y 3Y 5Y Since 31/08/2015 Annualised since 31/08/2015* EdR Sustainable Credit (I) -1.5% -1.8% 9.9% 15.4% 6.2% 3.2% Benchmark -0.8% -1.3% 6.2% 14.4% 2.5% 2.2% Performance (Calendar periods) EdR Sustainable Credit (I) 4.7% 6.4% -0.8% 6.0% 3.1% Benchmark 2.4% 4.7% -0.4% 8.2% 2.4% Past performance and volatility is no guarantee of future performance and volatility which may change over time, and can be separately affected by fluctuating exchange rates. Performance data does not take into account the fees and charges received when issuing and redeeming units. Source: Edmond de Rothschild Asset Management Data at 31/10/2018 *New investment process (switch from best of with SRI screening approach to a totally integrated Socially Responsible approach) on 31/08/2015. EDMOND DE ROTHSCHILD 29

30 DISCLAIMER IMPORTANT LEGAL INFORMATION October This document is issued by Edmond de Rothschild Asset Management (Suisse). This document is non-binding and its content is exclusively designed for information purposes. Any reproduction, alteration, disclosure or dissemination of this material in whole or in part without prior written consent from the Edmond de Rothschild Group is strictly prohibited. The information provided in this document should not be considered as an offer, an inducement, or a solicitation to deal, by anyone in any jurisdiction where it would be unlawful or where the person providing it is not qualified to do so. It is not intended to constitute, and should not be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell or continue to hold any investment. EdRAM shall incur no liability for any investment decisions based on this document. This document has not been reviewed or approved by any regulator in any jurisdiction. The regulation concerning marketing conditions of UCITS and AIFs ("Funds" hereafter) varies from country to country. The Funds presented herein may not be registered and/or authorised in your country. You should seek advice from your professional advisor if you are in doubt as to whether any of the Funds mentioned might be suitable for your individual situation. This document is not intended for citizens or residents of the United States of America or "U.S. Persons" as defined by "Regulation S" under the U.S. Securities Act of No investment product presented herein is registered under the Securities Act of 1933 or any other United States regulation. Then, they cannot be offered or sold directly or indirectly in the United States of America, to or to the benefit of residents and citizens of the United States of America and to «U.S. Persons». The figures, comments, forward looking statements and elements provided in this document reflect the opinion of EdRAM on market trends based on economic data and information available as of today. They may no longer be relevant when investors read this document. In addition, EdRAM shall assume no liability for the quality or accuracy of information / economic data provided by third parties. Any investment involves specific risks. We recommend investors to ensure the suitability and/or appropriateness of any investment to its individual situation, using appropriate independent advice, where necessary. Furthermore, investors must read the key investor information document (KIID) and/or any other legal documentation requested by local regulation, that are provided before any subscription and available at under the Fund Center section, or upon request free of charge. Past performance and past volatility are not reliable indicators for future performance and future volatility. Performance may vary over time and be independently affected by, inter alia, changes in exchange rates. Performance data does not include commissions and costs incurred on subscriptions and redemptions of units or shares of the Funds. «Edmond de Rothschild Asset Management» or «EdRAM» refers to the Asset Management division of the Edmond de Rothschild Group. In addition, it is the commercial name of the asset management entities (including branches and subsidiaries) of the Edmond de Rothschild Group. Edmond de Rothschild funds presented in this documents are organized under the laws of France and have been approved for distribution in or from Switzerland to non-qualified investors by the Swiss Financial Market Supervisory Authority («FINMA»). The Prospectus, the annual and semi-annual reports, KIIDs, articles of association can be obtained, free of charge upon request, from the Representative or from the following website: REPRESENTATIVE AGENT AND DISTRIBUTOR IN SWITZERLAND Edmond de Rothschild Asset Management (Suisse) S.A., rue de l Arquebuse 8, Case postale Genève 11 PAYING AGENT IN SWITZERLAND Edmond de Rothschild (Suisse) S.A., rue de Hesse Geneva Copyright EDMOND DE ROTHSCHILD ASSET MANAGEMENT (SUISSE) All rights reserved. 30

31 EDMOND DE ROTHSCHILD, BOLD BUILDERS OF THE FUTURE.