Element Global Opportunities Equity Portfolio

June 2011

The Element Global Opportunities Equity Portfolio has the mandate to go anywhere in pursuit of attractive investment opportunities, using a bottom-up investment approach. Being equity focused, the portfolio has at least 70% of its assets invested in international equity markets. The portfolio uses as benchmark the MSCI World (Local) but it does not seek to mimic or track this index in any way, which may lead both geographic and sectorial allocation differences.

Fund Details
Net Asset Value : Portfolio Assets (): Launch date: Portfolio Managers: 98.66 47100 14-January-2011 Filipe Alves da Silva Afonso Janurio

Investment Highlights
By mid-month things were getting ugly in Greece. There was a 2 day general strike and people were rioting on the streets of Athens: the Greek parliament had to approve more austerity measures in order to get more aid money and avoid an imminent default. This binary hypothesis, together with the US debt ceiling political fight, upset equity markets, leading to 7 straight weeks of negative returns. In the end the Greeks opted to face the problem head on and default was averted, at least for now. Equity markets quickly made back most of what they had lost. We took advantage of the weakness in equity markets to take a position in Apple, a stock that we have been meaning to add to our portfolio for some time. The tech juggernaut is growing its results at an impressive rate, 57%/yr for the last 5 years, and the future looks bright, with new products on the pipeline and hungry costumers anxiously awaiting for it. When we bought the stock it was trading at around 15x last twelve month earnings. During the month we increased the exposure to China via the Fidelity China Special Situations Fund. The two reasons we chose a fund and not an ETF are: Firstly it is managed by Anthony Bolton, one of the best equity managers of our generation, that will surely add more value than an ETF; Secondly, the fund focuses on sectors where the growth is, Chinese consumption and services, as opposed to infrastructure, commodity and exporting sectors. In June the portfolio performed in line with its benchmark (-1.73% ).

Investment Guidelines
Max. Long Exposure: Min. Long Exposure: Equity Hedging: 130% 70% Fund may use options on single name equities or equity indices to hedge downside risk Hedged on a best effort basis

Currency Hedging:

Weekly Performance Chart

106 104

102
100 98 96

MSCI World Local

Portfolio

94

Monthly Performance
Jan 2011 -1.11% Feb 1.61% Mar -2.05% Apr 3.30% May -1.25% Jun -1.72% Jul Aug Sep Oct Nov Dec YTD -1.34%

Element Global Opportunities Equity Portfolio

Allocation by Sector
Cash Utilities -0,5% 2,7% 7,3% 7,7% 6,1% 6,6% 15,5% 7,8% 8,0% 22,9% 15,8% -5% 0% 5% 10% 15% 20% 25%
Cash Others Brazil China Netherlands Italy Sweden Spain Switzerland Germany Australia France Canada United Kingdom Japan United States -10% -0,5%

Allocation by Country
3,8% 2,3% 4,9% 1,3% 1,1% 1,3% 9,7% 3,0% 3,3% 2,3% 3,8% 5,5% 7,8% 5,1% 45,3% 0% 10% 20% 30% 40% 50%

Telecommunication Services
Materials Health Care Consumer Staples

Consumer Discretionary
Energy Industrials Information Technology

Financials

Top 10 Positions
i Sha res MSCI Worl d ETF Hedged i Sha res DJ Stoxx 600 ETF Mi cros oft Corpora ti on IBM i Sha res MSCI Al l Country ETF i Sha res MSCI Worl d ETF Tel efoni ca GAP Inc Ama deus IT Hol di ngs Fi del i ty Chi na Speci a l Si tua ti ons

Weight
46.1% 8.8% 5.3% 5.0% 4.9% 4.8% 4.1% 3.6%
100% 80%
60%
93,6%

Currency Exposure

40% 20%
4,8%
2,2% 2,4%

Total

3.2% 2.6% 88.4%

0%
-3,1%

-20%

EUR

USD

CNY

BRL

CAD

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

LONDON

GENEVA

Disclaimer: 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.