Element Global Opportunities Equity Portfolio

August 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: 90.28 44500 14-January-2011 Filipe Alves da Silva Afonso Janurio

Investment Highlights
US debt was downgraded by S&P from AAA to AA+ with one of the main reasons being the political circus that surrounded the debt ceiling debate that we talked about last month. On the European side, the ECB started buying Italian and Spanish debt to keep their yields artificially low. There is an increasing concern regarding the balance sheets of European Banks, mainly regarding their holdings of European periphery sovereign debt and their funding sources (this is the main reason why we dont have any direct positions in a bank these days you never know what is under the hood!). This combined with bad macro statistics and a fear of a double dip recession sent markets on a rollercoaster ride, with American and European markets falling by -5.7% and -16.1%, respectively, in August. During the month we increased some of our existing positions (BMW and Fidelity China Special Situations) and took on 2 new positions: - Teva Phamaceuticals is a hybrid company, combining both generics and proprietary pharmaceuticals. The stock is trading below 8 times earnings, has a healthy balance sheet, enjoys massive economies of scale and has vertically integrated operations that create some of the highest profit margins and returns on capital in the industry. - Energold Drilling is an operator in the niche market of man-portable drilling rigs that service the mining industry. Companies that seek its services want an environmental friendly way of drilling in difficult to access terrain. The company has a dominant and competitive position in this rapidly growing market and possesses a sustainable cost advantage that we think will pave the road to its long term growth. The portfolio recorded a loss of -7.23% for the month, underperforming its benchmark by -0.25%.

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

106 103 100 97 94 91 88 85 82

MSCI World Local

Portfolio

14-Jan

11-Feb

11-Mar

8-Apr

6-May

3-Jun

30-Jun

22-Jul

18-Aug

Monthly Performance
Jan 2011 -1.11% Feb 1.61% Mar -2.05% Apr 3.30% May -1.25% Jun -1.72% Jul -1.37% Aug -7.23% Sep Oct Nov Dec YTD -9.72%

Element Global Opportunities Equity Portfolio

Allocation by Sector
Cash Utilities Telecommunication Services Materials Health Care Consumer Staples 5,5% 20,9% 6,0% 0,7%
Cash Others Brazil China Netherlands Italy Sweden Spain Switzerland Germany Australia France Canada United Kingdom Japan United States
0% 0,7%

Allocation by Country
6,9%

2,0%
6,5% 6,9% 7,8%

2,4%
8,4% 0,8% 0,7% 0,8% 9,0% 2,0% 6,0% 1,9% 2,6% 4,9% 5,3% 4,4% 43,1% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Consumer Discretionary
Energy Industrials Information Technology Financials 0% 5% 10% 13,6% 15% 20%

6,2%
23,8%

25%

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

Weight
44.5% 6.6% 5.8% 5.4% 3.8% 3.8% 3.5% 3.3%
100%
80% 60% 40%
92,2%

Currency Exposure

20% 0%
-20%
-4,9%

8,4%

Total

3.0% 2.7% 82.5%

2,4%

1,9%

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.

Element Global Opportunities Equity Portfolio

Complete List of Holdings

Name
iShares MSCI World ETF Hedged Fidelity China Special Situations Microsoft Corporation IBM BMW Telefonica GAP Inc Amadeus IT Holdings Apple Inc iShares DJ Stoxx 600 ETF Teva Pharmaceuticals MRV Engenharia iShares MSCI World ETF OPAP Jakks Pacific Cninsure iShares MSCI All Country ETF Monument Mining La Seda de Barcelona IMAX Corporation Energold Drilling

Weight
44.5% 6.6% 5.8% 5.4% 3.8% 3.8% 3.5% 3.3% 3.0% 2.7% 2.6% 2.4% 2.0% 1.7% 1.7% 1.7% 1.4% 1.2% 1.0% 0.8% 0.2%