Performance Environnement share A - European stocks

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ISIN Code: FR0010086520

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Simplified Prospectus : Performance Environnement

Monthly management report : July 2010

Disclaim : This English translation is for the convenience of English-speaking readers. However, only the French text has any legal value. Consequently, the translation may not be relied upon to sustain any legal claim, nor should it be used as the basis of any legal opinion. Euronext Paris SA expressly disclaims all liability for any inaccuracy herein.

Background

The consequences of global warming are now undeniable, whether at the level of pollution, climate change, or growing water shortages.

In light of these worrying developments governments have had to react at both national and international levels.
The Kyoto Protocol came into force on 16 February 2005 and requires most developed countries (with the exception of the United States which has not ratified the protocol at the Federal level) to reduce significantly their greenhouse gas emissions.

Europe has applied the equivalent of the protocol to member countries of the EU through: “Environment 2010, our future, our choice”, (the 6th European ‘Programme Communautaire’).

The objectives of the program are clearly defined: to warn of the dangers of climate change, to protect the natural environment including its flora and fauna, to deal with problems relating to environment and health, to conserve natural resources, and to manage waste.

Companies positioned in this market therefore have significant growth potential.

The environmental arena offers a very varied selection of stocks both in terms of company specialisation (water treatment, waste treatment, renewable energy) and in terms of geographical spread, since it is an international concern.

For more information on the environment, click here: Related Articles

Objectives

• Maximum protection of the capital invested

• To outperform European equities in the medium to long term by selecting the best stock related strictly to environmental protection

Management strategy

Investing in 3 main sectors:

• Water treatment
• Waste treatment
• Renewable energy

A methodical stock selection process

When selecting stocks for the portfolio, our management team will systematically:

• Analyse regulations for each geographical area (European diversification)

• Determine the sub-sectors of the environment concerned by these regulations

• Draw up an exhaustive list of the market players in that sector (for instance, through contact with the economic mission in Poland)

• Validate business plans by meeting managers of the selected companies regularly (On average, our team meets 10 to 20 companies per week throughout Europe)

• Select stock

• Take into account the characteristics of each country and its economic development in the different sectors of the environment. Stages of development in a sector often vary significantly from one country to another. Potential high growth stock is therefore readily identifiable.

Risk Management

In order to limit the risks inherent in medium capitalisation stocks, Performance Environnement comprises about 100 holdings. The main positions will not exceed 5% of holdings in the long term. The low volatility rate of the fund is the result of this wide diversification.

Awards: In 2006, Performance Environnement won the Palme de La Vie Financière in the Best Funds category of European stocks.

Advantages and disadvantages

Advantage: Investment in the environmental sector offers, by its very nature, high visibility in the medium to long term.

Disadvantages: The mutual Fund Performance Environnement remains likely to be subject to uncertainties of the financial markets.