Performance Vitae - Euro Zone stocks

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Past performances should not be seen as a guide to future performances.

ISIN Code : FR0010219808

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Simplified Prospectus : Performance Vitae

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

Ageing population: a major concern

The world’s population is getting older… In 2001, the older population accounted for more than 16% of the world population (source: Institute National de la Statistique et des Etudes).
This figure will continue to rise in the coming years mainly as a result of the growth of the Chinese population.
This increase results in various social and economic problems in terms of medical care cost (dependency management) and renewal of the current working population.
For the last 20 years, the cost of healthcare has risen at a higher rate than national income (GDP) in most OECD countries.

Despite this rising cost of health care, the US has chosen to disregard the long term economic consequences of an ageing population and deal instead with more “urgent issues”.

New private market players in Europe and the emerging countries are already planning to take up the issue.

The ageing population theme offers a wide and diversified choice of stocks both in terms of company specialisation and their countries of origin.

For more information on the ageing population click here: Related Articles

Objectives

• Maximum protection of the capital invested

• Achieve mid to long term capital appreciation that outperforms the European equities markets, benefiting from the dynamics of the European stocks directly impacted by the ageing population

Management strategy

Investing in 3 main sectors:

• Biotechnology related sectors

• Sectors related to dependency (management of temporary or permanent dependency)

• Medical and paramedical equipment, medical implants

Non-cyclic European companies

These companies are called non-cyclic as their development depends less on economic growth than on demographic factors.
They offer both high visibility and growth potential (often as a result of repeat turnover).

Risk Management

In order to limit the risks of high volatility, Performance Vitae is comprised of around 100 investments.
The main positions will not exceed 5% of assets in the long term. The low volatility rate of the fund is the result of this wide diversification.

Advantages and disadvantages

Advantage: This fund presents a defensive aspect linked to its position in acyclical activities presenting high level of volatility (healthcare/ageing of the population, etc.).

Disadvantage: Owing to its defensive profile, there is a risk of under-performance in times of high increases in markets, compensated by less volatility.