# ANNUAL MANAGEMENT REPORT at 12/31/2021
- Homegrown managers: these executives started their career in the company they manage today. In most cases, they have more than 10 years’ experience in the company in a management position in an international context.
- Rescuers: they were given authority during a crisis. These managers are the heads of a pool of companies in turnaround situations.
- Empire builders: genuine niche developers, they have the ability to identify one or more long-term growth opportunities.
- Family heirs: they have a family link with the Builder and take on the operational management of the company. They often start out with a poor image which is not always justified. They are often supported in their initiatives by an experienced manager.

The assessment method for executives is based on the analysis of their professional experience, their managerial profile and through regular direct contact. The portfolio managers assess the executives using 5 criteria that measure their intrinsic qualities as well as their ability to deliver a growth surplus over time. These criteria are based on two concepts: “developer” and “manager”.
The list of developer and manager criteria assessed is as follows:
| Qualities of the Developer | Qualities of the Manager |
| --- | --- |
| Business skills/experience and contact network/knowledge of the competitive environment | Charisma/ability to surround him/herself with the right people/track record |
| Ability to deliver/margin culture |
| Control of growth | Participation in capital/convergence of interests |

The Manager score is the third component in the final score for each stock in the Fund.
Since the Fund is eligible for the PEA (taxed for French investors), it complies with the investment ratio of 75% in equities from the European Union or a State of the European Economic Area and holds a maximum of 10% in UCIs. The Fund’s minimum exposure to equity markets of eurozone countries comes to 60% of its net assets, in line with ruling 2011-19 from the French financial markets authority (Autorité des marchés financiers, AMF).
The Fund’s maximum exposure to UCIs and debt securities, public or private, is 25% of assets.
The portfolio may be exposed to equities denominated in a currency other than the euro up to a limit of 40% of net assets and in a currency of a non-member state of the European Union up to a limit of 25% of net assets. In any case, exposure to currency risk will be hedged so that it never exceeds 10% of the portfolio’s net assets.
- Equities:To ensure the Fund is eligible for the PEA, it invests up to 75% of its net assets in equities and equivalent securities issued by issuers in the European Union or issuers that have theirThe Fund may invest in all bond categories, and in particular:
- borrowings issued or guaranteed by an OECD member state, by local authorities of a European Union member state or one that is party to the agreement on the European Economic Area, or by a public international organization to which one or more European Union member states or states party to the agreement on the European Economic Area belong, or securities issued by CADES (the French social security debt repayment fund);
- mortgage bonds;
- public sector or semi-public sector borrowing;
- private sector borrowing.

In the event that an issuer’s rating is downgraded to below BBB-, the position will be sold off.
- Shares or units of other UCITS or investment funds:The UCITS may hold up to 10% of its assets in French UCITS, European UCITS in accordance with directive 2009/65/EC and AIFs authorized for marketing purposes in France.

Investments in equity UCIs will be made in UCIs that invest in securities of listed companies of all market capitalizations, primarily in countries of the European Union. These are UCIs classified as:
- Equity;
- Hybrid (according to the ECB classification);
- Bonds and other debt securities denominated in euros;
- Money market and/or money market with short-term variable net value.

| UCITS under French law* | X |
| --- | --- |
| UCITS under European law* | X |
| Retail investment fund under French law* | X |
| Professional investment funds under French law in compliance with the common law governing cash borrowings (not over 10%), counterparty risk, overall risk (not over 100%) and limiting at 100% the re-use of collateral* |  |
| AIFs under European law or investment funds under foreign law that are the subject of a bilateral agreement between the AMF and the fund’s oversight authority and if information exchange arrangements have been set up reporting the management of assets on behalf of third parties* |  |
| Collective investments under French law or AIFs under European law or investment funds under foreign law meeting the conditions set out in Article R 214-13 of the French Monetary and Financial Code* |  |
| Investment funds under European or foreign law meeting the criteria set out in the French Financial Markets Authority’s General Regulation (Article 412-2-2 of the AMF General Regulation) |  |
| Feeder UCITS or AIF |  |
| Funds of funds (UCITS or AIF) under French or European law holding more than 10% in UCIs | - |
| Professional investment funds that do not meet the common law criteria above |  |
| Professional specialized investment funds |  |
| Private equity funds (including FCPR venture capital funds, FCPI innovation funds, FIP local investment funds); and professional capital investment funds |  |
| OPCI real estate mutual funds, OPPCI professional real estate mutual funds, and similar structures under equivalent foreign law |  |
| Alternative funds of funds |  |

* These UCITS/AIFs/Funds may not themselves hold more than 10% of their assets in UCITS/AIFs/Funds.
The portfolio manager will use these UCIs to meet occasional investment needs for which they do not have sufficient expertise and competence (sector or specific geographical area, interest rate products, etc.). These UCITS will be selected based on their performance track record and their rating.
The UCIs and funds held by the Fund may be managed by Dorval Asset Management or one of the management companies in Groupe BPCE, in which case, there may be a fully recognized disparity between the ESG/SRI approaches taken.
- Financial derivative instruments:Based on the managers’ expectations of the direction of the markets, the Fund may usefutures or options only traded on organized or regulated markets in order to:
- Hedge or expose the portfolio to equity risk, without seeking overexposure,
- Hedge the portfolio against currency risk.

| Type of instruments used | MARKET TYPE | RISK TYPE | OPERATION TYPE |
| --- | --- | --- | --- |
| Admission to regulated markets | Organized markets | Over-the-counter markets | Equities | Interest rates | Exchange rates | Credit | Other risk(s) | Hedging | Exposure | Arbitrage | Other strategy (ies) |
| Futures on |
| Equities | X | X |  | X |  |  |  |  | X | X |  |  |
| Interest rates | X | X |  |  | X |  |  |  | X | X |  |  |
| Exchange rates | X | X |  |  |  | X |  |  | X | X |  |  |
| Indices | X | X |  | X | X | X |  |  | X | X |  |  |
| Options on |
| Equities | X | X |  | X |  |  |  |  | X | X |  |  |
| Interest rates | X | X |  |  | X |  |  |  | X | X |  |  |
| Exchange rates | X | X |  |  |  | X |  |  | X | X |  |  |
| Indices | X | X |  | X | X | X |  |  | X | X |  |  |
| Swaps |
| Equities |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest rates |  |  |  |  |  |  |  |  |  |  |  |  |
| Exchange rates |  |  |  |  |  |  |  |  |  |  |  |  |
| Indices |  |  |  |  |  |  |  |  |  |  |  |  |
| Forward foreign exchange |
| Currency(ies) |  |  |  |  |  |  |  |  |  |  |  |  |
| Credit derivatives |
| Credit Default Swap (CDS) |  |  |  |  |  |  |  |  |  |  |  |  |
| First-To-Default |  |  |  |  |  |  |  |  |  |  |  |  |
| First-Loss Credit Default Swap |  |  |  |  |  |  |  |  |  |  |  |  |

| Type of instruments used | TYPE OF RISKS	OPERATION TYPE |
| --- | --- |
| Equities | Interest rates | Exchange rates | Credit | Other risks | Hedging | Exposure | Arbitrage | Other strategy(ies) |
| Warrants on |
| Equities |  |  |  |  |  |  |  |  |  |
| Interest rates |  |  |  |  |  |  |  |  |  |
| Exchange rates |  |  |  |  |  |  |  |  |  |
| Indices |  |  |  |  |  |  |  |  |  |
| Subscription warrants |
| Equities | X |  |  |  |  | X | X |  |  |
| Interest rates |  |  |  |  |  |  |  |  |  |
| Equity linked |  |  |  |  |  |  |  |  |  |
| Convertible bonds |
| Exchangeable bonds |  |  |  |  |  |  |  |  |  |
| Convertible bonds | X | X | X | X | X | X | X |  |  |
| Contingent convertible bonds | X | X | X | X | X | X | X |  |  |
| Callable interest rate products |  |  |  |  |  |  |  |  |  |
| Puttable interest rate products |  |  |  |  |  |  |  |  |  |
| Structured EMTN / MTNs |
| Structured MTNs |  |  |  |  |  |  |  |  |  |
| Structured EMTNs |  |  |  |  |  |  |  |  |  |
| Credit-Linked Notes (CLN) |  |  |  |  |  |  |  |  |  |
| Other (to be specified) |  |  |  |  |  |  |  |  |  |

- Deposits:The Fund may use deposits subject to a limit of 20% of its assets with the same credit institution to ensure liquidity to Fund unitholders and to take advantage of market opportunities.
- Cash borrowing:Cash borrowings may not represent more than 10% of the assets and serve, occasionally, to ensure liquidity for holders wishing to redeem their units without penalizing the overall management of assets.
- Temporary purchases and sales of securities: None.
- Contracts providing financial guarantees:Your money will be mainly invested in financial instruments selected by the Management Company. The Mutual Investment Fund’s risk profile is compatible with an investment horizon of more than five years. These instruments will be subject to the trends and fluctuations of the equity markets of the eurozone. The risks to which unitholders are exposed through the Mutual Investment Fund are primarily as follows:


## Discretionary management risk:
Discretionary management is based on anticipating trends in the financial markets.
The Fund's performance will depend on the companies selected and the asset allocation defined by the Management Company. There is a risk that the Management Company may not select the best-performing companies.

## Capital risk:
The portfolio is managed on a discretionary basis, and does not benefit from any guarantee or protection for the capital invested. A capital loss occurs when a unit is sold at a price that is lower than its purchase price.

## Equity risk:
The Fund’s net asset value may vary upward or downward given that a large proportion of the portfolio is invested in equity markets. Due to its management strategy, the Fund is exposed in particular to small- and mid-cap companies which, as a result of their specific characteristics, may have a liquidity risk due to the potentially illiquid nature of their market and fall further than large- caps in periods of stress.

## Risk related to capitalization size:
Due to its management strategy, the Fund is exposed in particular to one or several equity markets involving small- and mid-cap companies. The volume of these securities listed on the stock-market is low, so market fluctuations are therefore more pronounced than with large-capitalization companies. The Fund's net asset value may therefore be impacted.

## Currency risk:
Exchange rate risk is related to exposure, via investments and by trades in futures and options, in a currency other than that of the Fund’s valuation. Currency fluctuations with respect to the euro may have a positive or negative effect on the Fund’s net asset value.

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