# ANNUAL MANAGEMENT REPORT at 12/31/2021
We note that Dorval Asset Management has also taken out an “Article 83” policy (French
supplementary pension scheme) for its staff to save for their retirement.

## Individual variable remuneration
The individual variable remuneration component is flexible and is based on an annual performance review conducted by Dorval Asset Management’s management. This review is designed to assess the achievement of qualitative and quantitative goals set at the start of each year, incorporating potential adjustments to take on board all types of risk – both short-term and long-term.
Within the limits of the overall variable remuneration budget, individual variable remuneration is awarded in a discretionary and objective-based manner as part of the annual compensation review, on the basis of an assessment of individual performances and the way in which these performances were achieved. The variable remuneration awarded to employees is affected in the event of inadequate risk and compliance management, or breaches of regulations and internal procedures during the year in question.
Identified staff are subject to specific requirements in relation to risk and compliance rules. Failure to comply with these obligations may result in a partial reduction or elimination of the allocation of individual variable remuneration.
Additionally, in the event that a major sustainability risk materializes – i.e. occurrence of an event or condition in the environmental, social or governance area that would have a material and lasting negative impact on the value of the funds/products managed and previously identified in our non-financial analysis using the Drivers5 model – the amount allocated for overall individual variable compensation may be reduced or even cancelled, together with any deferred instalments of variable compensation previously awarded and in the process of vesting.
In view of the conditions for calculating the variable remuneration budget and indexation principles, the variable remuneration budget and indexation of deferred amounts will automatically decrease in the event of a loss or significant deterioration in results.
There is no contractual guarantee for variable remuneration, except for variable remuneration awarded for a first year of service in connection with a recruitment in some cases.
“Golden parachute” type schemes are prohibited in work contracts. Payments relating to the early termination of an employment contract are determined in accordance with legal provisions (statutory and contractual remuneration) and the performance of the beneficiary, his/her business line and the Management Company as a whole over the long term and are designed so as not to reward failure.
5 Drivers: Dorval Responsible InVestment, EnviRonmental and Sustainable – inhouse non-financial scoring methodology
With this in mind, the company’s board of directors approved an employee shareholding program and the principle of this initiative, and agreed on the principle of a free share allocation plan in October 2017.
Key employees may be eligible for the allocation of free shares and/or share ownership, with acquisition subject to conditions of performance, attendance and the absence of unusual behavior that may have an impact on the level of risk for Dorval Asset Management and/or the products it manages. This program aligns key staff’s and investors’ interests, and is covered by application of the UCITS V and AIFM directives.
Additionally, a deferred remuneration program has been included in our remuneration policies.
Beyond a certain variable remuneration threshold, this program involves investing part of the variable remuneration in a basket of products managed by Dorval Asset Management. This is outlined in an inhouse procedure.
This program is also subject to conditions of attendance and the absence of unusual behavior that may have an impact on the level of risk at Dorval Asset Management and/or the products it manages.
Dorval Asset Management guarantees an appropriate balance between the fixed and variable components of total remuneration, and ensures that the fixed salary represents a sufficiently high proportion of total remuneration to allow the operation of a fully flexible policy on variable remuneration components, including the possibility to pay no variable remuneration component. All individual situations where variable compensation equates to more than 100% of the fixed salary and that can be attributed to market practices and/or an exceptional level of responsibility, performance and behavior are listed by the Human Resources department as part of the yearly compensation review.
In accordance with regulation, specific identified staff categories at Dorval Asset Management consist of staff groups, including senior management, risk-takers, control functions and any

Translation (ENFR, 2021-12-31):
# RAPPORT DE GESTION ANNUEL au 31/12/2021
à la fois par la moindre dangerosité du variant Omicron par rapport au Delta et par le discours de
la Fed quant à l’inflation. En Europe la BCE a poursuivi sa politique monétaire accommodante.
En cohérence avec notre scénario de poursuite du boom économique en 2022, nous maintenons une opinion raisonnablement positive sur les actions à échéance fin d’année. Le rallye montre des signes de maturité, ce qui justifie une exposition modérée en absolu, mais la classe d’actifs reste attractive par rapport aux obligations. Nous identifions l’inflation comme principal scénario de risque et resterons vigilants quant à la réponse des banques centrales en termes de politique monétaire.
En 2021, Dorval Convictions (part I) enregistre une performance de +12,8% contre une hausse de
+11,1% pour son indice de référence (50% Euro Stoxx 50 NR et 50% Eonia capitalisé). Le taux d’exposition aux actions a été principalement dynamique au cours de l’année. Celui-ci a évolué dans une fourchette de 52% à 100% en fonction de la rapidité de la hausse des marchés financiers, des nouvelles sur l’évolution sanitaire (variants Delta et Omicron), de l’avancée des vaccinations et des tensions inflationnistes.
Portés par les campagnes de vaccinations et la reprise économique, les marchés financiers ont fortement progressé au cours des cinq premiers mois de l’année. Le taux d’exposition offensif et le biais plus cyclique du portefeuille ont principalement contribué à la bonne performance relative de Dorval Convictions au cours de la période. A partir de juin, dans un contexte d’inquiétudes liées au variant Delta et d’une possibilité de reconfinement mais aussi de craintes d’inflation dues aux goulets d’étranglement, les investisseurs ont procédé à une forte rotation sectorielle en faveur des grandes valeurs de croissance et à des prises de bénéfices sur les valeurs cycliques (industrielles, financières). Dans ce contexte, le taux d’exposition avait été réduit en prenant des bénéfices sur nos valeurs liées à la reprise de la consommation.
Au cours du second semestre, les marchés sont restés bien orientés, soutenus par les bonnes publications des résultats, des politiques monétaires toujours accommodantes et la dynamique des vaccinations en Europe. En novembre, l’apparition du variant Omicron a dans un premier temps fait brutalement baisser les marchés mais la moindre dangerosité de celui-ci et le taux élevé des vaccinations ont permis d’éviter un arrêt de l’activité.
La croissance mondiale va rester soutenue au cours des prochains mois et les entreprises devraient afficher de bons résultats 2021. Dans ce contexte, le taux d’exposition aux actions est resté proche de 100% en fin d’année. L’évolution de l’inflation et des politiques monétaires seront les principaux indicateurs à surveiller début 2022.