Lof europe high conviction 30092012

© All rights reserved. Lombard Odier Investment Managers.

LO Funds - Europe High Conviction

Invest in leading european companies through an innovative approach

Equities – Europe October, 2012

Lombard Odier Investment Managers.

Team

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MARC BATAILLON, HARVARD MBA, FUND MANAGER - LONDONBUSINESS EXPERIENCE2010 – to date Lombard Odier, Fund Manager of LOF Europe High Conviction and LOF 1798 Europe Equity Long/Short2003 – 2010 Selectium, founder and CEO - Paris 2002 – 2003 LBO France - Paris1999 – 2001 Transactive Solutions, founder and partner – Boston1996 – 1999 International Data Group, French subsidiary CEO - Paris

CYRIL MARQUAIRE, SFAF, CIIA, PORTFOLIO MANAGER – LONDON

BUSINESS EXPERIENCE2010 – to date Lombard Odier, Portfolio Manager of LOF Europe High Conviction and LOF 1798 Europe Equity Long/Short2004 – 2010 Selectium, buy-side analyst- Paris 2000 – 2004 Crédit Lyonnais Securities, sell-side analyst – Lyon1998 – 2000 Accenture, consultant - Paris

PETER DIONISIO, MBA, PORTFOLIO MANAGER – LONDONBUSINESS EXPERIENCE2011 – to date Lombard Odier, Portfolio Manager of LOF Europe High Conviction and LOF 1798 Europe Equity Long/Short2008 – 2010 Merian Capital, partner and buy-side senior analyst - London2005 – 2008 Morgan Stanley, sell-side analyst - London2004 – 2005 MF Global, sell-side analyst – London1999 – 2004 Merrill Lynch, sell-side analyst - London

JULIEN DE BOURNET, INSEAD MBA, ANALYST - LONDONBUSINESS EXPERIENCE2011 – to date Lombard Odier, Analyst for LOF Europe High Conviction and LOF 1798 Europe Equity Long/Short2010 Jabre Capital, financial analyst - Geneva2006 - 2008 IBM Global Business Services, consultant - Paris2003 – 2006 Bouygues Telecom, project manager - Paris

ARNAUD MALLET, CHIEF OPERATING OFFICER - LONDONBUSINESS EXPERIENCE2010 – to date Lombard Odier, Operations Specialist for LOF Europe High Conviction and LOF 1798 Europe Equity Long/Short2003 - 2010 Fincapital, head of execution and operations - Paris2002 - 2003 Agon Alternative, risk arbitrage analyst - Paris1997 – 2002 Wyser-Pratte & Co, risk arbitrage analyst & trading - New York


Performance since change of management team

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LOF EUROPE HIGH CONVICTION - FUND PERFORMANCE SINCE 15.11.2010*

Past performance is not a guarantee of future results* Div idend accumulated priv ate client share class, net performance in EUR** MSCI Europe ND

30.09.2012

70

80

90

100

110

120

130

140

LOF Europe High Conviction Benchmark**+23.69%

+5.23%


Key investment beliefs

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Europe’s sheer market size makes it an attractive regionfor investing in equities

Avoids businesses whose future development are unpredictable(e.g., banks) and/or balance sheet are difficult to penetrate (e.g. insurance)

Europe is home to some best-in-class operatorswith worldwide leadership positions (Nestlé, SAP, LVMH…)

Structuredinvestment strategy through a tiered portfolio construction focused on performing through any cycle

Does not invest in any investment revolving around the price of an underlying commodity (oil, oil & services, metal & mining)

1 2 3 4 5Stringent risk control is key: 12 risk factors and exposures monitored continuously

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The case for European Equities Investment approach Investment process Performance & fund data Appendix

Contents

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The case for European Equities

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Why Europe?

A large market whose sheer size makes it an unavoidable area when investing in equities

An investable universe with heterogeneous dynamics, thus offering many opportunities to pick stocks and beat the index.

Europe is home to some best-in-class operators with worldwide leadership positions.

If you want emerging market exposure, Europe is a great way to invest in emerging market growth with Western-style management and shareholder friendliness.

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CORE EUROPEAN MARKETS* USA CHINA

14 countries 1 country / 50 states 1 country / 22 provinces

380 million people 307 million people 1’338 million people

USD 15 trillion in GDP USD 15 trillion in GDP USD 7 trillion in GDP

• *Population: Germany (82), France (64), UK (61), Italy (58), Spain (40), Netherlands (17), Portugal (11), Belgium (10), Sweden (9), Switzerland (8), Denmark (6), Finland (5), Norway (5), Ireland (4)


Investment approach

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Overview

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INVESTMENT UNIVERSE Western European Equities excluding financials, oils, metal & mining

OBJECTIVE The portfolio is managed to beat the MSCI Europe index over the long term and not to track the index over the short term

INVESTMENT APPROACH High conviction and research-intensive approach targeting mispricings coupled with catalysts Diversified and uncorrelated approach to investment opportunities

– The book is built in 3 distinct categories so as to aggregate positions that will not correlate strongly with one another: High-quality companies Corporate event candidates High growth companies

Does not invest in sectors difficult to analyze thoroughly ( e.g. banks, insurance, metal & mining, energy)

KEY PORTFOLIO CHARACTERISTICS

Concentrated long-only portfolio of 30-40 stocks Stringent risk control: 12 risk and exposure factors monitored continuously at stock and portfolio

levels using internally developed tools Positions equally-weighted, if possible, using liquidity as alternative criterion if we cannot


SECTORS AND COUNTRIES COMPANIES PORTFOLIO

What don’t we do?

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Stocks listed outside of the European Economic Area (EEA)+Switzerland

Business models that are difficult to analyze and whose future developments are unpredictable(e.g. Banks)

Businesses whose balance sheets and accounting rules are difficult to penetrate (e.g Insurance)

Any fundamental case requiring a view of the future oil price (e.g. Oil & Oil services)

Any fundamental case revolving around the price of an underlying commodity (e.g. Metals & Mining)

Companies in the midst of a significant transformational turnaround in operations

Companies in financial distressand/or massively leveraged equity plays

Value traps when identifiable and/or very illiquid securities

Momentum trades crowded with fast money investors (if identifiable)

Significant/prevailing government intervention in corporate governance, units sold or pricing

High concentration in any given name

Long exposure to the market through index-replicating instruments

Hidden geographic risks(e.g., disproportionate exposure to EM or North American sales)

Hidden Beta risks (e.g., disproportionate exposure to leveraged balance sheets)


Investment process

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Investable universe

Largely acyclical companies Demonstrated pricing power vis-a-vis a well

diversified customer base A dominant regional or worldwide

competitive position A significant competitive moat (brands,

customer switching costs, scale, patents…) A highly profitable and/or cash generative

business model Examples: Nestle, Dignity, Diageo, SAP,

Fresenius Medical Care

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1 2 3High Quality Companies0–100% of total assets

Corporate Event Opportunities0 – 50% of total assets

High Growth Companies0 – 50% of total assets

Investable universec. 60-70 stocks



Take-over, creeping take-over or squeeze-out candidates

Exceptional dividend and or break-up investment cases

Fundamental risk is mitigated to some extent by the possibility/probability of an event

Businesses range across the cyclical spectrum

Examples: Chloride, Swedish Match, SSL, Betwin, SeLoger

Companies with above-average revenue growth (absolute or sector-relative)

Main focus on structural growth (vs. cyclical growth)

Sources of growth: (i) geographic exposure, (ii) sector dynamics, (iii) company-specific attributes

Examples: H&M, Synthes, Qiagen, SGS, Millicom

Target asset allocation and portfolio composition represent a portfolio construction goal. It is not representative of actual, complete nor accurate past, present or future portfolio holdings. The use of specific companies does not represent investment advice, they are used purely as examples to assist in the explanation of the investment process and they may or may not be held in portfolios.

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MICRO Active monitoring of pre-screened actionable

investable universes Tracking of earnings development, likely

guidance revisions, profit warnings, quarterly conference calls and company-specific news flow

Update of valuation models, adjustment to net debt and enterprise value calculations

Validation of investment cases through conference attendance, 1-on-1 meetings with management and customer, supplier or industry consultant interviews

Refinement of investment cases (quantitative and qualitative analysis) with simple business drivers to be monitored, price targets, upside & downside risks

Analysis of general economic backdrop (GDP growth, capital spending, inflation, interest rates…)

Analysis of general government and/or central bank intervention in the economy and of the obstacles to supply and demand meeting freely in any given sector

Tracking of money flows, market sentiment and market volatility

Tracking of a large number of macro indicatorswith potential microeconomic read-across– Association of American Railroads statistics– Port of Rotterdam volumes– British Retail Consortium l-f-l trends (UK)– Halifax house price index (UK)– Chambre des Notaires house prices (France)– ACEA auto sales (Europe)…

MACRO

How important is our macro view to our portfolio?

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Government intervention in 2008 - 2012 has made macro a required part of any stock-picking exercise Macro inputs are also a critical input to the portfolio construction process

Portfolio Allocation of capital to

the high-quality, event and growth tiers

Single names Directional exposure


Twelve risk factors that we monitor

Exposures– Gross exposure: 85-100%– Directional exposure: Euro and Beta-adjusted net exposures are capped at 100% of NAV– Single name exposure: max 7% – Sector exposure: max 25%– Country exposure: max 35% – Statistical diversification: if possible, investments are equally weighted with at least 25 names in the book

Fundamental risks– Exposure of underlying revenues to US-dollar geographies and in emerging markets– Exposure to balance sheet leverage (to track the fund’s risk to covenant breach – metric: net debt / EBITDA)– Exposure to equity leverage (to track hidden Beta risk – metric: net debt as a % of enterprise value)– Exposure to market capitalization (small-mid-large)

Trading risks– Reversion to the mean: single name exposure is managed to optimize the proportion of our funds in companies that have

outperformed and underperformed their local markets within the past 1, 3 and 6 months– Liquidity: exposure to positions with sub-optimal liquidity is shunned or actively managed

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Performance & fund data

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LO Funds – Europe High Conviction

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LOF EUROPE HIGH CONVICTION - FUND PERFORMANCE SINCE INCEPTION*

LOF EUROPE HIGH CONVICTION - FUND DATA & HISTORICAL PERFORMANCE*

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fund Bench**2012 3.45% 5.80% 1.86% 0.30% -3.28% 2.83% 5.02% 0.65% 0.83% 18.54% 12.32%2011 0.01% 0.96% -0.91% 3.50% 2.26% -2.18% 1.14% -4.90% -4.70% 5.70% -0.23% 0.80% 0.95% -8.09%2010 -2.20% -0.90% 9.18% -1.28% -6.97% -2.99% 6.64% -2.63% 2.97% 1.20% 0.63% 4.32% 7.09% 11.10%2009 -2.72% -8.15% 4.46% 12.98% 4.37% -3.12% 8.68% 5.96% 4.89% -6.10% 1.25% 6.89% 30.87% 31.59%2008 -12.82% 0.94% -7.34% 7.02% 1.97% -12.14% 2.44% 0.46% -13.48% -15.30% -0.95% -1.48% -42.47% -43.64%

Past performance is not a guarantee of future results 48.18% 39.69%* Div idend accumulated priv ate client share class, net performance in EUR** MSCI Europe ND since 30.06.2005, prev iously MSCI Europe and FT Europe*** Last three y ears, monthly basis

Since launchInception date

30.09.2012

30.09.2012

19.12.1997

Fund Size (mn): EUR 303 Equity Pos.: 36 Volatility***: 13.0% T.E.***: 6.8% Information Ratio***: 0.37 Sharpe Ratio***: 0.65

0

50

100

150

200

250

LOF Europe High Conviction Benchmark**


Portfolio composition

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LOF Europe High Conviction

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LOF EUROPE HIGH CONVICTION - PRODUCT DETAILSInception Date 19.12.97 (change of brief and management team on 15.11.2010)Legal Structure SICAV - UCITS CompliantCustodian Bank CACEIS Bank LuxembourgCentral Administration CACEIS Bank LuxembourgInvestment Terms Class I Class P

Management fee 0.75% 0.75%Distribution fee - 0.75%Performance fee 15% (rel. HWM) 15% (rel. HWM)Liquidity Daily DailySubs. & redemp. deadline T-1, 15:00 CET T-1, 15:00 CETSubs. & redemp. payment date T+3 T+3Redemption penalties - -Minimum investment CHF 1'000'000 (or equivalent) EUR 3'000 (or equivalent)Reference currency EUR EUR

ISIN Accumulating Distributing Accumulating DistributingEUR share class LU0210001326 LU0049412769 LU0049505935


Appendix

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Selectium Opportunities Fund Limited – Track record

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The data presented herein relate to Selectium Opportunities Fund Limited (the "Fund"), and was audited by PWC. The fund was an exempted company with limited liability incorporated in the Cayman Islands on 24 August 2005 with the objective to achieve capital appreciation primarily through focused long-only investments in the equities of European companies in the small-, mid- and large-cap segments. The fund was administrated by HSBC Securities. The Fund began voluntary liquidation in August 2009. The Fund was NOT part of the Lombard Odier Group.

FUND CUMULATIVE / MONTHLY RETURNS OVER INVESTMENT PERIOD (OCT 05 TO JUN 09)

SELECTIUM OPPORTUNITIES MSCI EUROPE

Return ITD 34.1% -26.5%Ann. performance 8.5% -8.3%Number of up months 69% 53%Number of down months 31% 47%Maximum monthly gain 5.4% 12.0%Maximum monthly loss -8.0% -13.6%Correlation to MSCI Europe 0.50

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTDSELECTIUM MSCI EUROPE

2005 -1.25% 0.33% 2.56% 1.61% 4.21%

2006 5.31% 4.33% 5.41% 3.50% -2.68% -2.95% -1.28% 2.81% 1.91% 2.28% 1.79% 2.88% 25.42% 15.94%

2007 4.38% 0.56% 2.87% 1.96% 2.65% -0.61% -1.56% -2.56% -0.46% 3.32% -2.69% -0.54% 7.24% 3.34%

2008 -7.95% 0.40% -0.98% 0.34% 1.37% 1.23% -2.27% 4.38% -2.44% 1.42% 0.20% 0.16% -4.55% -40.93%

2009 0.21% 0.04% 1.41% 0.21% -0.06% 0.95% 2.78% -0.40%

FUND KEY STATISTICS OVER INVESTMENT PERIOD (OCT 05 TO JUN 09)


Important information

Selectium Opportunties Fund Ltd - Important informationThe data presented herein relate to Selectium Opportunities Fund Limited (the "Fund"), an exempted company with limitedliability incorporated in the Cayman Islands on 24 August 2005 with the objective to achieve capital appreciation primarilythrough focused long-only investments in the equities of European companies in the small-, mid- and large-cap segments.The Fund began voluntary liquidation in August 2009. The Fund was NOT part of the Lombard Odier Group.The figures presented herein are the result of calculations based on data collected by Marc Bataillon during his mandateas director of the Fund as from inception of the Fund until its commercial closure. The information and analysis containedherein are based on sources believed to be reliable. However, no entity of the Lombard Odier Group guarantees thetimeliness, accuracy, or completeness of the information contained in this document, nor does it accept any liability for anyloss or damage resulting from its use. These data are not directly comparable to the past or future performance of anyLombard Odier fund.Past performance is not a guarantee of future results. Where the fund is denominated in a currency other than aninvestor's base currency, changes in the rate of exchange may have an adverse effect on price and income. Theperformance data does take account the commissions and costs incurred on the issue and redemption of shares/units.Performance shown net of fees and expenses from the beginning of the reference period reflects the performance of the Bclass (1.5% management fee, 20% performance fee); all performance figures reflect the reinvestment of interest anddividends; monthly performance figures were calculated by the Fund's administrator, HSBC Securities, and annual resultswere audited by PricewaterhouseCoopers.Any indices cited herein are provided only as examples of general market performance. No index is directly comparable tothe past or future performance of a fund. It should not be assumed that the Fund has invested in any specific securitiesthat comprise any index, nor should it be understood to mean that there is a correlation between the Fund’s returns andany index returns.This document does not contain personalized recommendations or advice and is not intended to substitute anyprofessional advice on investment in financial products. Before entering into any transaction, an investor should considercarefully the suitability of a transaction to his/her particular circumstances and, where necessary, obtain independentprofessional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences.Important informationThis document is issued by Lombard Odier Asset Management (Europe) Limited (hereinafter LOAM). LOAM is a privatelimited company incorporated in England and Wales with registered number 07099556, having its registered office atQueensberry House, 3 Old Burlington Street, London, United Kingdom, W1S 3AB. LOAM is authorised and regulated bythe Financial Services Authority (the "FSA") and is entered on the FSA register with registration number 515393. LOAM ispart of the Lombard Odier Investment Managers Holding SA group (hereinafter LOIM).LO Funds (hereinafter the “Fund”) is a Luxembourg investment company with variable capital (SICAV). The Fund isauthorised and regulated by the Luxembourg Supervisory Authority of the Financial Sector (CSSF) as a UCITS within themeaning of EU Directive 85/611/EC, as amended. The management company of the Fund is Lombard Odier Funds(Europe) S.A. (hereinafter the “Management Company”), a Luxembourg based public limited company (SA), having itsregistered office at 5, Allée Scheffer, L-2520 Luxembourg, authorized and regulated by the CSSF as a Management

Company within the meaning of EU Directive 85/611/EC, as amended.Neither this document nor any part of it shall form the basis of, or be relied on in connection with, any contract to purchaseor subscription for the Fund’s shares. Any such acquisition may only be made on the basis of the official documents of theFund each in their final form. The articles of association, the prospectus, the simplified prospectus, the subscription formand the most recent annual and semi-annual reports are the only official offering documents of the Fund’s shares (the“Offering Documents”). They are available on http//:funds.lombardodier.com or can be requested free of charge at theregistered office of the Fund or of the Management Company or from the local appointed distributors of the Fund asmentioned hereafter. Local information and local representatives Austria. Representative: Erste Bank derösterreichischen Sparkassen AG, Graben 21, A-1010 Wien - France. Offering Documents of the Fund(s) can be found atCACEIS Bank, place Valhubert 1-3, F-75013 Paris -Germany. Representative: DekaBank Deutsche Girozentrale, MainzerLandstraße 16, D-60325 Frankfurt am Main - Liechtenstein. Representative: Verwaltungs- und Privat-BankAktiengesellschaft, Aeulestrasse 6, LI-9490 Vaduz - Netherlands. The Fund has been registered with the NetherlandsAuthority for the Financial Markets under the Act on the Financial Supervision. Representative: Lombard Odier DarierHentsch & Cie (Nederland) N.V., Weteringschans 109, 1017 SB Amsterdam (telephone: +31 20 522 0 522) - Switzerland.Representative: Lombard Odier Funds (Switzerland) SA, 6 av. des Morgines, 1213 Petit-Lancy; Paying agent: LombardOdier Darier Hentsch & Cie, 11 rue de la Corraterie, CH-1204 Geneva. NOTICE TO RESIDENTS OF THE UNITEDKINGDOM. The Fund is a collective investment scheme for the purposes of the United Kingdom's Financial Services andMarkets Act 2000 ("FSMA"). It is not an authorised unit trust scheme, an authorised open-ended investment company or arecognised scheme for the purposes of s238 FSMA. The communication of this document or any invitation or inducementin the United Kingdom to participate in the Fund or its shares is accordingly restricted by law. This document has not beenapproved by an authorised person (as defined in FSMA) for the purposes of s21(2)(b) FSMA. Most if not all of theprotections provided by the United Kingdom regulatory structure will not apply to an investment in the Fund. Investors maynot have the right to complain directly to the United Kingdom Financial Ombudsman Service and may not be protected bythe Financial Services Compensation Scheme in the United Kingdom.This document may only be communicated or caused to be communicated in the UK to: (1) persons authorised to carry ona regulated activity ("Authorised Persons") under FSMA; (2) persons otherwise having professional experience in mattersrelating to investments and qualifying as Investment Professionals under Article 19 of the Financial Services and MarketsAct 2000 (Financial Promotion) Order 2005, as amended (the "Order"); (3) persons qualifying as High Net Worth Personsunder Article 49 of the Order; or (4) to any other person to whom this document may otherwise lawfully be communicatedor caused to be communicated ("Relevant Persons"). No approved prospectus relating to the matters in this documenthas been made available to the public in the UK and, accordingly, shares in the Fund may not be, and will not be, offeredin the UK except in circumstances which will not result in there being an offer to the public in the UK within the meaning ofFSMA. This document may only be communicated or caused to be communicated in the UK by authorised persons to: (1)persons qualifying as Investment Professionals under Article 14 of the Financial Services and Markets Act 2000(Promotion of Collective Investment Schemes) (Exemptions) Order 2001; (2) persons qualifying as High Net WorthPersons under Article 22 of that Order; (3) persons described in and in circumstances permitted by Chapter 4.12 of theConduct Of Business Rules of the UK Financial Services Authority; or (4) any other person to whom this document mayotherwise lawfully be communicated or caused to be communicated ("Relevant Persons"). Neither this document nor theshares in the Fund are or will be available to categories of persons in the UK other than Relevant Persons and no onefalling outside such categories is entitled to rely on, and they must not act on, any information in this document. Thecommunication of this document to any person in the UK other than Relevant Persons is unauthorised and maycontravene FSMA. Any person who is in any doubt about the investment to which this document relates should consult anAuthorised Person specialising in advising on investments of this kind.

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LOIM disclaimer & Legal Notice

This document is issued by Lombard Odier Asset Management (Europe) Limited (hereinafter LOAM). LOAM is a privatelimited company incorporated in England and Wales with registered number 07099556, having its registered office atQueensberry House, 3 Old Burlington Street, London, United Kingdom, W1S 3AB. LOAM is authorised and regulated bythe Financial Services Authority (the "FSA") and is entered on the FSA register with registration number 515393. LOAM ispart of the Lombard Odier Investment Managers Holding SA group (hereinafter LOIM).LOIM is a trade name.The fund mentioned in this document (hereinafter the “Fund”) is a Luxembourg investment company with variable capital(SICAV). The Fund is authorised and regulated by the Luxembourg Supervisory Authority of the Financial Sector (CSSF)as a UCITS within the meaning of EU Directive 2009/65/EC, as amended. The management company of the Fund isLombard Odier Funds (Europe) S.A. (hereinafter the “Management Company”), a Luxembourg based public limitedcompany (SA), having its registered office at 5, Allée Scheffer, L-2520 Luxembourg, authorized and regulated by theCSSF as a Management Company within the meaning of EU Directive 2009/65/EC, as amended. The Fund is onlyregistered for public offering in certain jurisdictions. This document is not a recommendation to subscribe to and does notconstitute an offer to sell or a solicitation or an offer to buy the Fund’s shares nor shall there be any sale of the Fund’sshares in any jurisdiction in which such offer, solicitation or sale would be unlawful. Consequently, the offering of theFund’s shares may be restricted in certain jurisdictions. Prospective investors must inform themselves of, and observe,such restrictions, including legal, tax, foreign exchange or other restrictions in their relevant jurisdictions. Neither thisdocument nor any part of it shall form the basis of, or be relied on in connection with, any contract to purchase orsubscription for the Fund’s shares. Any such acquisition may only be made on the basis of the official documents of theFund each in their final form. The articles of association, the prospectus, the simplified prospectus, the subscription formand the most recent annual and semi-annual reports are the only official offering documents of the Fund’s shares (the“Offering Documents”). They are available on http//:funds.lombardodier.com or can be requested free of charge at theregistered office of the Fund or of the Management Company, from the distributors of the Fund or from the localrepresentatives as mentioned below.Austria. Supervisory Authority: Finanzmarktaufsicht (FMA), Representative: Erste Bank der österreichischen SparkassenAG, Graben 21, A-1010 Wien - Belgium. Supervisory Authority: Autorité des services et marchés financiers (FSMA),Representative: Fastnet Belgium S.A.,Avenue du Port 86C, b320, 1000 Brussels - France. Supervisory Authority: Autoritédes marchés financiers (AMF), Representative: CACEIS Bank, place Valhubert 1-3, F-75013 Paris - Germany.Supervisory Authority: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), Representative: DekaBank DeutscheGirozentrale, Mainzer Landstraße 16, D-60325 Frankfurt am Main - Italy. Supervisory Authority: Banca d’Italia (BOI),Paying Agents: Société Générale Securities Services S.p.A., Via Benigno Crespi, 19/A - MAC 2, 20159 Milano, StateStreet Bank S.p.A. Via Col Moschin 16, 20136 Milano, Banca Sella Holding S.p.A., Via Italia 2, 13900 Biella, AllfundsBank S.A., filiale italianaVia Santa Margherita 7, 20121 Milano, - Liechtenstein. Supervisory Authority: FinanzmarktaufsichtLiechtenstein ("FMA"), Representative: Verwaltungs- und Privat-Bank Aktiengesellschaft, Aeulestrasse 6, LI-9490 Vaduz -Netherlands. Supervisory Authority: Autoriteit Financiële Markten (AFM). Representative: Lombard Odier Darier Hentsch &Cie (Nederland) N.V., Weteringschans 109, 1017 SB Amsterdam (telephone: +31 20 522 0 522) - Spain. SupervisoryAuthority: Comisión Nacional del Mercado de Valores (CNMV). Representative: Allfunds Bank S.A. C/Nuria, 57 Madrid -Switzerland. Supervisory Authority: FINMA (Autorité fédérale de surveillance des marchés financiers), Representative:Lombard Odier Asset Management (Switzerland) SA, 6 av. des Morgines, 1213 Petit-Lancy; Paying agent: Lombard OdierDarier Hentsch & Cie, 11 rue de la Corraterie, CH-1204 Geneva. UK. Supervisory Authority: Financial Services Authority(FSA), Representative: Lombard Odier Asset Management (Europe) Limited, Queensberry House, 3 Old Burlington Street,London W1S3AB, which has approved this document for issuance in the UK to professional clients or eligiblecounterparties and is authorised and regulated by the Financial Services Authority.

NOTICE TO RESIDENTS OF THE UNITED KINGDOMThe Fund is a Recognised Scheme in the United Kingdom under the Financial Services & Markets Act 2000. Potentialinvestors in the United Kingdom are advised that none of the protections afforded by the United Kingdom regulatorysystem will apply to an investment in LO Funds and that compensation will not generally be available under the FinancialServices Compensation Scheme. This document does not itself constitute an offer to provide discretionary or non-discretionary investment management or advisory services, otherwise than pursuant to an agreement in compliance withapplicable laws, rules and regulations. Representative: Lombard Odier Asset Management (Europe) Limited, QueensberryHouse, 3 Old Burlington Street, London W1S3AB, which has approved this document for issuance in the UK toprofessional clients or eligible counterparties and is authorised and regulated by the Financial Services Authority. Aninvestment in the Fund is not suitable for all investors. Making an investment in a Fund is speculative. There can be noassurance that the Fund's investment objective will be achieved or that there will be a return on capital. Past or estimatedperformance is not necessarily indicative of future results and not assurance can be made that profits will be achieved orthat substantial losses will not be incurred. This document does not contain personalized recommendations or advice andis not intended to substitute any professional advice on investment in financial products. Before making an investment inthe Fund, an investor should read the entire Offering Documents, and in particular the risk factors pertaining to aninvestment in the Fund, consider carefully the suitability of such investment to his/her particular circumstances and, wherenecessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, andaccounting consequences. This document is the property of LOIM and is addressed to its recipient exclusively for theirpersonal use. It may not be reproduced (in whole or in part), transmitted, modified, or used for any other purpose withoutthe prior written permission of LOIM. It is not intended for distribution, publication, or use in any jurisdiction where suchdistribution, publication, or use would be unlawful. This document contains the opinions of LOIM, as at the date of issue.The information and analysis contained herein are based on sources believed to be reliable. However, LOIM does notguarantee the timeliness, accuracy, or completeness of the information contained in this document, nor does it accept anyliability for any loss or damage resulting from its use. All information and opinions as well as the prices indicated maychange without notice. The contents of this document are intended for persons who are sophisticated investmentprofessionals and who are either authorised or regulated to operate in the financial markets or persons who have beenvetted by LOIM as having the expertise, experience and knowledge of the investment matters set out in this documentand in respect of whom LOIM has received an assurance that they are capable of making their own investment decisionsand understanding the risks involved in making investments of the type included in this document or other persons thatLOIM has expressly confirmed as being appropriate recipients of this document. If you are not a person falling within theabove categories you are kindly asked to either return this document to LOIM or to destroy it and are expressly warnedthat you must not rely upon its contents or have regard to any of the matters set out in this document in relation toinvestment matters and must not transmit this document to any other person. Neither this document nor any copy thereofmay be sent, taken into, or distributed in the United States of America, any of its territories or possessions or areas subjectto its jurisdiction, or to or for the benefit of a United States Person. For this purpose, the term "United States Person" shallmean any citizen, national or resident of the United States of America, partnership organized or existing in any state,territory or possession of the United States of America, a corporation organized under the laws of the United States or ofany state, territory or possession thereof, or any estate or trust that is subject to United States Federal income taxregardless of the source of its income.

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LOIM disclaimer & Legal Notice

Past performance is not a guarantee of future results. Where the fund is denominated in a currency other than aninvestor's base currency, changes in the rate of exchange may have an adverse effect on price and income. Allperformance figures reflect the reinvestment of interest and dividends and do not take account the commissions and costsincurred on the issue and redemption of shares/units; performance figures are estimated and unaudited. Net performanceshows the performance net of fees and expenses for the relevant fund/share class over the reference period. Source ofthe figures: Unless otherwise stated, figures are prepared by LOIM. Any benchmarks/indices cited herein are provided forinformation purposes only. No benchmark/index is directly comparable to the investment objectives, strategy or universeof a fund. The performance of a benchmark shall not be indicative of past or future performance of any fund. It should notbe assumed that the relevant fund will invest in any specific securities that comprise any index, nor should it beunderstood to mean that there is a correlation between such fund’s returns and any index returns. The portfolioinformation provided in this document is for illustrative purposes only and does not purport to be recommendation of aninvestment in, or a comprehensive statement of all of the factors or considerations which may be relevant to an investmentin, the referenced securities. They illustrate the investment process undertaken by the manager in respect of a certaintype of investment, but may not be representative of the Fund's past or future portfolio of investments as a whole and itshould be understood that they will not of themselves be sufficient to give a clear and balanced view of the investmentprocess undertaken by the manager or of the composition of the investment portfolio of the Fund. As the case my be,further information regarding the calculation methodology and the contribution of each holding in the representativeaccount to the overall account’s performance can be obtained by the Fund or the Management Company.

© 2011 Lombard Odier Investment Managers – all rights reserved

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Lof europe high conviction 30092012

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