Element Global Opportunities Equity Fund

February 2011

The Element Global Opportunities Equity Fund has a mandate to go anywhere in pursuit of attractive investment opportunities using a bottom-up investment approach. The Fund will have at least 70% of its assets invested in the international equity markets. The Fund uses the MSCI World as a benchmark, but does not seek to mimic or track this index in any way, which may lead both country and sectorial allocation to differ considerably from the benchmark.

Fund Details
Net Asset Value (): Assets Under Management (): Launch date: Portfolio Managers: 100.48 25200 14-January-2011 Filipe Alves da Silva Afonso Janurio

Investment Highlights
The Fund underperformed its benchmark by 1.72% in February, due to a high cash position (26%) and underperformances from MRV Engenharia, IBM and Microsoft. In February the Fund increased its positions in IBM and Telefnica, and added La Seda de Barcelona, a restructuring play that we think has a very attractive risk-return profile. During the implementation phase, the fund is using MSCI World Index ETFs (which include Emerging Markets) to maintain an exposure to equity markets of at least 70%. Our objective is to have the fund 100% invested within the next 2 to 3 months, and to wind down the ETF positions in the following 6 months.

Investment Guidelines
Maximum Long Exposure: Minimum Long Exposure: Market Exposure Hedging2 : 130% 70% Fund may use options on single name equities or equity indexes to hedge downside risk Hedged on a best effort basis

Currency Hedging:

Weekly Performance Chart

104

102

100

98

96

14-Jan

21-Jan

28-Jan

31-Jan

4-Feb

11-Feb

18-Feb

25-Feb

28-Feb

Monthly Performance
Jan 2011 -1,11% Feb 1,61% Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 0,48%

Element Global Opportunities Equity Fund

Allocation by Sector
Cash Utilities Telecommunication Services 2,3% 6,8% 4,6% 26,7%
Cash Others Brazil China Netherlands Italy Sweden Spain Switzerland Germany Australia France Canada United Kingdom Japan United States

Allocation by Country
26,7%
13,3% 3,6% 3,1% 0,7% 0,7% 0,7% 6,1% 1,8% 1,9% 2,0% 2,2% 2,7% 5,0% 5,1% 24,5%

Materials
Health Care Consumer Staples Consumer Discretionary Energy Industrials

5,0%
5,3% 5,6% 6,0% 9,8% 13,9%

Information Technology
Financials

13,7% 0% 5% 10% 15% 20% 25% 30%

0%

5%

10%

15%

20%

25%

30%

Top 10 Positions
i Sha res MSCI Al l Country ETF i Sha res MSCI Worl d ETF IBM Tel efoni ca MRV Engenha ri a Mi cros ft Corpora ti on Cni ns ure La Seda de Ba rcel ona

Weight
36,6% 19,1% 4,5% 4,2% 2,8% 2,8% 2,2% 1,0%
100%
80,2%

Currency Exposure

80%

60%

40%

20%

14,8%
2,2%

2,8%
BRL

Total

73,3%

0% EUR USD CNY

Glossary
Bottom-up Investing A bottom-up strategy overlooks broad sector and economic conditions and instead focuses on selecting a stock based on the individual attributes of a company. Advocates of the bottom-up approach simply seek strong companies with good prospects, regardless of industry or macroeconomic factors. Net Asset Value The total value of a companys assets less the total value of its liabilities is its net asset value (NAV). For valuation purposes it is common to divide net assets by the number of shares in issue to give the net assets per share, also known as the price per share. Long Exposure Percentage of the Funds assets that are invested in equity markets and that benefit from the appreciation of equity markets. Currency Hedging Transaction implemented to protect the Funds foreign currency positions (non-Euro) from an unwanted move in exchange rates. Top 10 Positions Top holdings are those securities in which the latest percentage of the Funds total assets are invested. They do not include hedging derivatives. A full list of holdings, including derivatives, is available upon request
E L E M E N T C A P I T A L

Contacts
For more informations please contact Afonso Janurio or Filipe Alves da Silva directly or send an email to element.cap@gmail.com

LONDON

GENEVA

Disclamer: Past performance is not indicative of future performance. Reference in this document to specific securities should not be construed as a
recommendation to buy or sell these securities.