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Page 1 of 4 | Morningstar Research Report

Alken European Opportunities R

Morningstar Category Benchmark MSCI Europe NR USD

16.0

Morningstar Analyst Rating™

Growth of 10,000 (EUR)

14.0

Fund

12.0

Benchmark Category

10.0

Thomas Lancereau, CFA Morningstar Analyst

8.0

Executive Summary

People: Walewski has long experience in management. He is backed by a solid, experienced team.

2007

2008

2004

2005

2006

-

-

-

-

&

(

*

&

(

-

-

-

-

10.67

-47.63

41.19

17.34

-11.93

-

-

-

-

7.98

-3.98

9.59

6.25

-3.85

8.71 +/- Benchmark

-

-

-

-

9.28

-4.34

12.08

5.72

-0.93

7.54 +/- Category

-

-

-

-

2

57

39

15

62

Parent: Overall, the practices of Alken AM are favorable to the interests of investors.

Morningstar Opinion

Process: The opportunistic approach often favors undervalued companies that are ignored by the market.

25 Oct 2011 | For investors prepared to take on its risks, this fund is a high-quality option, in our opinion.

Performance: The fund has had good results, although with risk that is higher than the average for the category. Price: Management costs are reasonable, but the performance fee is poorly structured.

Role in Portfolio: Diversification. The portfolio has a bias in favor of mid-caps.

Morningstar Style Box™: Ownership Zone Giant Large Mid Small Micro Deep Val Core Val Blend

Experienced manager Nicolas Walewski is in charge of this fund. He founded the firm Alken AM in 2005. In a relatively short time he has surrounded himself with a reasonably sized team (one other manager and five analysts) with above-average experience and qualifications. As its name indicates, the fund follows an opportunistic style that allows the manager to invest according to his strongest convictions without being constrained by an index, a predetermined style bias, or market-cap size. However, over the course of his experience Walewski has developed a precise idea of the companies that he wants to invest in. Generally, he is interested in businesses where all or certain assets are undervalued by the market, forgotten stocks, or companies with sources of profit growth that have not been discovered. Morningstar® Category Manager's Benchmark Inception Date 12 Month Yield %

Europe Large-Cap Blend Equity 100% STOXX Europe 600 NR EUR 03/01/2006 0.00

2009

2010

2011

YTD Performance 31/03/12

2003

& Cat Perf Quartile 16.58 Total Return

2 Percentile Rank

He can indeed seem contrarian in his investment choices, and as of the end of July 2011 the portfolio had a decidedly pro-cyclical positioning. It is overweight in consumer discretionary, technology, and financials. Believing that some stocks were too harshly punished over the summer and therefore do not reflect their medium-term fundamentals, the manager is sticking with his convictions. We like this determination and note that it has often served investors well over the long term. Despite underperformance for the year to date through September, the fund is still ranked in the top quartile over five years. Investors should be aware they will need to be patient and keep in mind that this type of management is inherently more risky. Indeed, the fund is more volatile than the category average, and it has historically demonstrated a significant bias in favor of mid-caps. Our opinion on the fund's prospects remains unaltered, but it would be even better if the performance fee were better structured. ISIN Domicile Legal Status/UCITS Currency Total Net Assets

LU0235308482 Luxembourg SICAV EUR EUR 1920.32 Mil

Core Grth High Grth

Centroid = weighted average of stock holdings Zone = 75% of fund's stock holdings (As of 31/01/12)

Copyright © 2012 Morningstar. All Rights Reserved. The information, data and opinions expressed (“Information”) and contained herein: (1) are proprietary to Morningstar and/or its content providers and are not intended to represent investment advice or recommendation to buy or sell any security; (2) may not be copied or distributed without express license to do so; and (3) are not warranted to be accurate, complete or timely. Morningstar reserve its rights to charge for access to these Ratings and/or Rating report. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this Rating, Rating Report or Information contained therein.

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Page 2 of 4 | Morningstar Research Report

Alken European Opportunities R

Manager Manager Start Date Average Tenure Avg Yrs Experience Longest Tenure

Nicolas Walewski 03/01/06 6.30 18 6.30

Other Funds Managed Alken Small Cap Europe, Alken Capital One, Alken Absolute Return Europe Number of Analysts

5

No Holdings (Range) Expd Track Error Expd Turnover Sector Constraints Regional Constraints Tactical Use of Cash Hedging Policy Manager's Benchmark

Nicolas Walewski has accumulated 18 years of investment experience. He started his career in 1993 at Crédit Lyonnais. From 1999 to 2005 he worked as a manager at Banque Syz where, heading up the Oyster European Opportunities fund, his annualized outperformance exceeded 8 percentage points. He founded Alken Asset Management in Dec 2005 and has surrounded himself with a solid team composed of five analysts and a manager (Marc Festa), taken from the ranks of the analyst team. They are organized according to sector responsibilities and have average experience of eight years. While it's not the most experienced or most extensive European stock team that we cover, we find that the size of the team is reasonable and we think it is

Parent

Management Company Alken Asset Management LLP Total Assets Under Mgt Total Assets in Strategy

People

EUR 3.2 Bil EUR 1.8 Bil

60-80 None 70% None None No Unhedged 100% STOXX Europe 600 NR EUR

Alken AM is a small London-based management firm founded in Dec 2005 by Nicolas Walewski. He holds the majority of the equity, and some employees are also partners. The size of the firm is a risk factor, but its investment culture is solid. Achieving good results for long-term investors largely prevails over seeking shortterm profitability. Indeed, Walewski did not hesitate to close the Alken European Opportunities fund in 2007 when its size reached EUR 3 billion and, in his opinion, valuations were not very promising. He then strengthened his research teams. The fund has reopened, but Walewski is still closely monitoring liquidity and looking out for the interests of existing investors. Communications from the firm are a strong point, better than the practices generally

Process: Investment Approach The fund is managed opportunistically, with no predetermined style bias. Generally the manager is interested in businesses where all or certain assets are undervalued by the market, forgotten stocks, or companies with sources of profit growth that have not been discovered. Whatever the investment thesis may be, the manager prefers businesses where he believes the management is credible and capable of realizing the company’s high profitability potential. Walewski tries to avoid market excesses and may indeed appear to be contrarian in his investment choices. This means that the

Morningstar Category Benchmark MSCI Europe NR USD

qualified for this type of mandate. Walewski is also in charge of a small-cap fund and alternative funds. His workload is substantial, so we applaud the appointment of Marc Festa to the role of backup manager. We also favorably note that Walewski, like most of the team members, is personally invested in Alken funds. We think this is a good way for the team members to demonstrate their commitment alongside investors.

present in the industry, and the monthly management reports provide the detailed characteristics of the portfolio and explain management decisions in an interesting, intelligible manner. Remuneration for the teams takes performance over one- and three-year periods into account, enabling the interests of the firm to be aligned with those of long-term investors. We believe Alken AM's performance fees are poorly structured, however. This is an area where the firm could improve its treatment of investors.

fund may be left behind if the market experiences a sustained speculative bubble. The fund invests in all capitalizations (rarely below EUR 1 billion, however), and portfolio construction relies primarily on stock-picking. This results in sector positioning that differs markedly from the index and the category average. However, the manager remains aware of the macroeconomic and market environment, especially to control the overall risk of the portfolio. The portfolio is well diversified, with about 60 to 80 positions, and the manager tends to increase the number of holdings when he considers the environment more risky.

Copyright © 2012 Morningstar. All Rights Reserved. The information, data and opinions expressed (“Information”) and contained herein: (1) are proprietary to Morningstar and/or its content providers and are not intended to represent investment advice or recommendation to buy or sell any security; (2) may not be copied or distributed without express license to do so; and (3) are not warranted to be accurate, complete or timely. Morningstar reserve its rights to charge for access to these Ratings and/or Rating report. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this Rating, Rating Report or Information contained therein.

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Page 3 of 4 | Morningstar Research Report | All Portfolio data as of 31/01/12

Alken European Opportunities R

Rel Cat

9.78

0.86

0.71 1.34 3.96 2.05

0.80 0.94 1.03 0.62

Fund 7.88 -7.96 -3.89 -19.86 1.15

Rel Cat 0.99 1.05 0.08 1.09 -0.11

Growth Measures Long-Term Earnings Historical Earnings Sales Cash Flow Book Value Average Market Cap

EUR 6458.89 Mil

Morningstar Holdings Based Style Map

Portfolio Positioning As of the end of July 2011 the portfolio was suitably diversified with around 66 positions. Compared with other funds in the category, it displays a bias toward mid-caps (the fund's average capitalization was EUR 6.7 billion compared with EUR 19.1 billion for the category). This feature is quite prevalent in the fund, as Walewski historically has identified numerous opportunities with market caps less than EUR 10 billion. Portfolio construction relies mainly on securities selection and the manager does not make a priori sector bets; however, as of the end of July, the portfolio was clearly pro-cyclical with marked overweight in consumer discretionary and financial services. The exposure to the automotive subsector is notable: The team favored subcontractors Asset Allocation

25

50

Bonds

0.00

0.00

0.00

Cash

0.00

6.41

-6.41

Other

0.18

0.00

0.18

Sector Delta Fund Category

75 100

Sen

0

net %

0.00 106.23

e

Mid

106.23

siv fen

Large

long % short %

Stocks

De

Giant

% Assets

(Valeo, Faurecia, Continental) over automakers (Daimler, Peugeot) for valuation reasons. However, Volkswagen remains in the portfolio. Furthermore, the fund had greater exposure to technology than the category (2.87 times, as of the end of July), both in software (Software AG, Temenos) and in hard drives (Seagate Technology, Western Digital). Indeed, Walewski has diversified 10% of the portfolio into US securities, not hedged for foreign exchange risk. On the other hand, the fund had little exposure to defensive sectors and held no health-care stocks.

ve

Fund

MSCI Europe NR USD

siti

Value Measures Price/Prospective Earnings Price/Sales Price/Book Price/Cash Flow Dividend Yield

Morningstar Category Benchmark

Cyclical

Small Micro

Top Holdings Deep Val Core Val Blend

Core Grth High Grth

Centroid = weighted average of stock holdings Zone = 75% of fund's stock holdings (As of 31/01/12)

Top 5 Regions

Eurozone United Kingdom United States Europe - ex Euro Australasia Top 5 Countries

Germany United Kingdom France United States Spain

% Equity

57.29 21.96 11.84 7.93 0.99 % Equity

24.39 21.96 15.04 11.84 11.11

Market Maturity

% Equity

Developed Country Emerging Markets Not Classified

100.00 0.00 0.00

% Assets 31-01-12

Seagate Technology PLC

7.78

Volkswagen AG

7.69

Wolseley PLC

5.43

Repsol YPF SA

4.84

Wirecard AG

4.67

Valeo SA

4.43

British American Tobacco PLC

3.97

Software AG

3.67

Continental AG

3.65

Clariant AG

3.59

UniCredit SpA Post Raggruppamento

3.59

Resolution Ltd.

3.19

Lancashire Holdings Ltd.

2.83

Amadeus IT Holding SA

2.45

UBS AG

2.36

Reynolds American Inc

2.25

Ryanair Holdings PLC

2.21

Neopost

2.18

Industria De Diseno Textil SA

2.10

Kabel Deutschland AG

1.97

Total Equity/Bond Holdings

56/0

Assets in Top 10 Holdings %

49.73

Sector Weightings

% Equity

Rel Cat

44.08

1.20

6.27

0.68

t Consumer Cyclical

19.50

1.74

y Financial Services

18.31

1.14

0

0

48.39

1.34

5.49

1.05

q Cyclical

r Basic Materials

u Real Estate w Sensitive

i Communication Services o Energy

4.58

0.41

p Industrials

20.53

1.57

a Technology

17.78

2.76

e Defensive

7.53

0.28

s Consumer Defensive

5.85

0.48

d Healthcare f Utilities

Copyright © 2012 Morningstar. All Rights Reserved. The information, data and opinions expressed (“Information”) and contained herein: (1) are proprietary to Morningstar and/or its content providers and are not intended to represent investment advice or recommendation to buy or sell any security; (2) may not be copied or distributed without express license to do so; and (3) are not warranted to be accurate, complete or timely. Morningstar reserve its rights to charge for access to these Ratings and/or Rating report. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this Rating, Rating Report or Information contained therein.

0

0

1.67

0.54

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Page 4 of 4 | Morningstar Research Report | Performance data as of 31/03/12

Alken European Opportunities R

Trailing (EUR)

Total +/- +/- %Rnk Rtn % Bmark Cat in Cat

3 Mo 6 Mo 1 Yr 3 Yr Annualised 5 Yr Annualised 10 Yr Annualised

16.58 29.24 1.52 21.39 -2.06 -

8.71 11.74 3.00 3.93 1.94 -

7.54 12.35 4.61 5.73 2.70 -

2 1 17 6 12

3 Yr

Rel Cat

5 Yr

Rel Cat

MPT Stats R-Squared Beta Alpha

Volatility & Risk Adj Returns

84.77 0.95 87.22 0.96 1.16 1.20 1.11 1.14 1.38 -1.34 3.21 -4.01

3 Yr

Rel Cat

5 Yr

Rel Cat

Std Deviation 20.12 1.23 21.73 1.16 Mean 1.79 1.35 0.02 -0.09 Sharpe Ratio 1.02 1.10 -0.08 0.29 Information Ratio 0.48 -1.26 0.24 -1.33 Treynor Ratio 17.72 1.26 -3.79 0.53

Morningstar Category Benchmark MSCI Europe NR USD

Performance Analysis The fund has built a solid performance record since its launch in Jan 2006. As of the end of Sept 2011 it had outperformed the category average by 2.36 percentage points annualized over five years, putting it in the first quartile. Securities selection explains the fund’s success over the long term, particularly among mid-caps, where the manager has found numerous opportunities. The fund’s outperformance does not rely so much on the effects of size, however, as it has also exceeded the Morningstar Europe Mid-Cap Equity category average. These good results were obtained despite episodes of underperformance such as 2008 and the first nine months

of 2011. In these two cases, it was an overly aggressive portfolio positioning in relation to the macroeconomic context that led the fund to underperform. Willingly contrarian, Walewski believes nevertheless that the correction in certain positions (Software AG, Western Digital) during the summer of 2011 was exaggerated and he is sticking to his convictions over the medium term. On the other hand, he does not hesitate to sell certain positions when he believes he was mistaken, as was the case with Nokia or EDF, which were sold off in the second quarter.

Monthly Return  vs  Morningstar® Category (EUR)

Fund 8 6 4 2 0 -2 -4

2010

2011

Risk & Return The fund is riskier than average, so it pays to hold it with a long-term perspective. Its volatility over five years was 20.4% as of the end of Sept 2011, which is 1.12 times higher than the category average. The fund's maximum loss is also higher than the category average, as the manager does not use cash tactically. The portfolio's Risk Return Analysis

Fund

Category Peers

Category Average 3 Yr Return 60.00 40.00 20.00

2012

-6

heavy exposure to mid-caps explains these risk characteristics. In addition, the marked sector positioning that results from stock-picking can influence the fund's relative performance.

Morningstar Rating™ (Rel Cat)

Morningstar Return

Morningstar Risk

Morningstar Rating™

3 Year 5 Year Overall

High Abv avg Abv avg

High High High

QQQQ QQQ QQQ

0.00 -20.00

0.00

5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00

-40.00

3 Yr Standard Deviation

Price The fund's expenses are at an acceptable level, but the performance fee is not favorable for long-term investors as it is calculated every quarter and the high-water mark is reset to zero every year.

Max. Initial Sales Charge % Max. Annual Management Fee % Total Expense Ratio %

Copyright © 2012 Morningstar. All Rights Reserved. The information, data and opinions expressed (“Information”) and contained herein: (1) are proprietary to Morningstar and/or its content providers and are not intended to represent investment advice or recommendation to buy or sell any security; (2) may not be copied or distributed without express license to do so; and (3) are not warranted to be accurate, complete or timely. Morningstar reserve its rights to charge for access to these Ratings and/or Rating report. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this Rating, Rating Report or Information contained therein.

3.00 1.50 3.05

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Alken European Opportunities