# ANNUAL MANAGEMENT REPORT at 12/31/2021
compliance with regulation. It also includes an incentive mechanism to retain key staff via the potential allocation of free shares.
Dorval Asset Management’s Remuneration Policy applies to all staff and one of its fundamental
principles is the alignment of staff and investor interests:
- the policy is consistent and promotes sound and effective risk management, and does not encourage risk-taking which is inconsistent with the risk profiles, rules or instruments of incorporation of the products managed;
- the policy complies with the business strategy, objectives, values and interests of the Management Company and the products it manages, and investors in such products, and includes measures to avoid conflicts of interest.

Dorval Asset Management’s Remuneration Policy covers all aspects of compensation, including fixed salary and, where applicable, variable compensation4.
The fixed salary compensates staff for skills, professional experience and their degree of responsibility. It also factors in market conditions.
Variable remuneration is based on an assessment of the collective performance, which is measured both in terms of the Management Company’s performance and that of the products it manages, as well as individual performance. It factors in both quantitative and qualitative aspects, which can be assessed on an annual or multi-annual basis in order to manage the weighting of strictly financial or temporary performance.
The objective and transparent assessment of annual and multi-annual performance based on pre- defined objectives is a prerequisite for applying Dorval Asset Management’s Remuneration Policy, ensuring the fair and selective treatment of employees. This assessment is discussed by the employee and his/her manager during an individual performance review.
Each employee's contribution and performance are assessed on the basis of his/her position, assignments and level of responsibility at the Management Company. In this respect, the Remuneration Policy distinguishes between several categories of employee:
- Executives are assessed by reference to their contribution to the definition and implementation of the Management Company's strategy and their ability to develop the performances of its product and service ranges, as well as the risk-adjusted financial performance for their supervision scope. Performance is therefore assessed on the basis of the company’s key financial indicators (company’s pre-tax profit) as well as the quality of management and/or responsibility/contribution to cross-business projects.

4 In the overall document, individual variable remuneration, whether vesting and payment are immediate or deferred, equates to the idea of performance bonus.
risk-taking that may have an impact on Dorval Asset Management’s risk profile and/or that of
the products it manages.
Performances for portfolio management roles are thus assessed using a score derived from annual and multi-annual performances for funds and mandates. A collective and/or individual score is therefore calculated by Dorval Asset Management’s Compliance, Internal Control and Risk department for each portfolio management team, using a method that includes up to three components:
- Annual and multi-annual performances.
- Annual and multi-annual rankings as compared with collective management competitors.
- Compliance with annual and multi-annual risk/return ratio figures.

This collective and/or individual score is used as the basis for the quantitative component of portfolio managers’ individual variable remuneration, which is then rounded out by a qualitative component. Criteria used for the qualitative component are set on a yearly basis, and for example include contribution to increasing the reliability of an investment process, client satisfaction, inflows for funds managed, participation in a cross-business project, support for the development of new expertise, contribution to the development of business efficiency and any other aspects set out in relation to Dorval Asset Management’s strategic goals.
Specific criteria incorporating sustainability risks and sustainable investment goals – social, environmental and governance aspects – must be set for all portfolio management staff
- Variable remuneration for Compliance, Internal Control and Risk staff is set independently of the businesses whose operations they are tasked with reviewing and controlling.

Variable remuneration for staff in charge of Compliance, Internal Control and Risk is set by Dorval Asset Management’s senior management as part of the overall budget, and on the basis of staff’s achievement of objectives, as assessed by their line manager following an individual annual performance review. The variable remuneration system for Compliance, Internal Control and Risk staff is based on qualitative objectives – e.g. team or project management, development of team cohesion, reporting quality, compliance with regulatory, ethics and internal control standards – and is in no way directly related to the performances of staff controlled or profits from the business controlled.
The Remuneration Policy covers all aspects of remuneration. It distinguishes between fixed salary, based on an assessment of the skills required for the role, and variable remuneration, which is based on an assessment of certain defined individual and/or collective performance criteria.
It should be noted that variable collective remuneration is not covered by the AIFM and UCITS V directives as it is part of a general and non-discretionary policy and does not encourage risk- taking.
Compensation therefore consists of the following main items:
- Fixed salary;
- Collective and individual variable remuneration;
- Incentive measures to retain key staff.

Dorval Asset Management shall maintain a level of fixed remuneration that sufficiently remunerates employees for their work.
Fixed remuneration remunerates the skills, professional experience and degree of responsibility expected in any given position.
The position of fixed remuneration is reviewed periodically to ensure that it is consistent with geographical and professional market practices.
Fixed salaries are reviewed once a year as part of the annual compensation review. Outside that period, only promotions, internal job moves or exceptional changes to individual circumstances may lead to a review.
Variable remuneration budgets are defined on the basis of Dorval Asset Management’s annual
results, as well as qualitative elements, such as the practices of competitor companies, general

## Collective variable remuneration
Dorval Asset Management’s collective variable remuneration consists of a profit-sharing scheme, together with a company savings plan (French plan d’épargne entreprise, PEE).
This collective variable remuneration has no incentive impact on risk management at Dorval Asset Management and/or the products it manages and does not fall within the scope of the AIFM or UCITS V directives.
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
5 Drivers: Dorval Responsible InVestment, EnviRonmental and Sustainable – inhouse non-financial scoring methodology

Translation (ENFR, 2021-12-31):
# RAPPORT DE GESTION ANNUEL au 31/12/2021
principes directeurs de l’OCDE et de l’Organisation des Nations Unies relatifs aux entreprises et aux droits de l’homme) et doit être conforme aux critères d’examen technique établis par la Commission européenne.
Le processus de sélection des investissements sous-jacents du Fonds ne s’appuie pas sur les critères de l’Union européenne fixé par le règlement Taxonomie en matière d’activités économiques durables sur le plan environnemental. Pour autant, la politique ESG de Dorval AM peut conduire dans le futur à ce que le Fonds détienne des investissements alignés sur ces critères et soient donc considérés comme « durables ».
Le principe consistant à « ne pas causer de préjudice important » tel que défini par le Règlement
(UE) 2020/852 ne s’applique pas aux investissements sous-jacents de ce produit financier.
Indicateur de référence : indice MSCI EMU Mid Cap net total return, calculé dividendes réinvestis (code Bloomberg : M7EMMC Index).
Profil de risque : Le fonds investit dans des instruments qui connaîtront les évolutions et aléas des marchés d’actions de la zone euro. Le profil de risque du fonds est adapté à un horizon d'investissement supérieur à 5 ans.
Actif net du fonds au 31/12/2021 : 48 903 712, 99€
| 30/06/2021 | Part R (FR0013247749) | Part I (FR0013247764) | Part N (FR0013299195) | Part Q (FR0013392347) |
| --- | --- | --- | --- | --- |
| VL | 97, 38€ | 1 019, 68€ | 95, 55€ | 130, 04€ |
| Nombre de parts | 21 195, 813 | 26 773, 399 | 11 601, 968 | 141 720, 5 |
| Actif net | 2 064 073, 60€ | 27 300 445, 75€ | 1 108 623, 87€ | 18 430 569, 77€ |

Valorisation : quotidienne - Date de création : 19/05/2017
grandes entreprises du vieux continent profitant déjà du fort niveau d’activité retrouvé en Asie et aux Etats-Unis.
Tous ces éléments ont plaidé pour un positionnement vers les actifs les plus à même de bénéficier de la réouverture des économies.
Sur le deuxième trimestre, les soutiens massifs et l’appétit pour le risque des investisseurs ont nettement renchéri les marchés des actions. Les valorisations élevées ont semblé cependant en phase avec le contexte général de reprise économique et de taux réels négatifs. Toutefois, après plus d’un an de forte reprise, les investisseurs ont arrêté d’être positivement surpris par la force de la reprise économique, celle-ci est en effet largement dans les cours. De plus, certains facteurs limitent l’activité, dont le variant Delta et les goulets d’étranglement. Mais au-delà de ces incertitudes de court terme, la foi dans la poursuite d’une dynamique fondamentalement positive devrait l’emporter. Celle-ci pourrait en effet se nourrir de la vaccination généralisée, du relâchement progressif des contraintes d’offre, de la situation financière exceptionnelle des ménages occidentaux et des plans publics d’investissement.
Dans ce contexte Dorval Asset Management a privilégié les thématiques de diffusion de la croissance (petites et moyennes valeurs, diversification sectorielle), les entreprises et filières qui s’inscrivent dans la dynamique du « plus et mieux » des programmes de relance verte, et les valeurs qui gardent un potentiel pour bénéficier d’un monde qui finirait par être débarrassé du Covid (tourisme, banques, etc.).
Sur le troisième trimestre, les marchés sont restés dans un premier temps bien orientés en raison des résultats encourageants sur le front des publications des entreprises supérieures aux attentes des analystes, de la poursuite des programmes de vaccination. Enfin le contexte de maintien des taux bas et l'annonce d'un resserrement très progressif de la politique monétaire des banques centrales ont constitué autant de facteurs de soutien du marché. Toutefois en septembre la combinaison d’un choc sur les prix de l’énergie, la crainte d’un défaut majeur dans l’immobilier chinois et d’une tension sur les taux d’intérêt ont ravivé les inquiétudes sur la croissance. Dans ce contexte, les investisseurs ont pris des bénéfices surtout sur les valeurs sensibles au cycle économique et les valeurs à croissance visible bien valorisées. Peu de secteurs ont ainsi été épargnés.
Sur le quatrième trimestre, ni les incertitudes liées au variant Omicron, ni le virage de la Fed sur l’aspect moins « transitoire » de l’inflation n’auront eu raison de la vigueur des marchés actions qui ont terminé l’année 2021 proches de nouveaux plus hauts. Les investisseurs ont été rassurés