18.05.2008

1. Our analysis of the European Equity market: A bear market relief on theback of multiple capital increases announced by European banks as well asstabilization of the US dollar. This is welcome but the first quarter resultsshow signs of margin pressures that will probably give some new marketopportunities.

2. The Fund Performance:

As of : 04.30.08 April In 2008 Since Inception
(01.15.01)
Cominvest Fund Eur. Value Equity (P Share) 2,53% –14,21% 3,49%
MSCI Value Europe (Total Return) 7,45% –10,91% 20,93%
DJ Stoxx 600 (Price) 5,60% –11,33% –9,24%
DJ Stoxx 600 (Total Return) 6,25% –10,27% 8,49%

Source Cominvest – Performance of P Share (including fees)

Best contributors are stemming from the oil sector: Statoil (+22%), Repsol(+17.5%) Shell (+18.4%) but unfortunately we are underweighted in this sectorversus benchmark. The other good performers are to be found in the bankingsector with good contribution of Erste Bank (+16.2%), Banco Espirito Santo andUnicredito. In addition, the strong figures of International Power have beenpositive to the stock price. Rolls Royce benefited from the end of the dollarweakness. Unfortunately, some bad newsflow affected ProSieben which plummeted27.2%. Irish Life performed also poorly, contrary to last month, but in linewith banks looking for fresh capital. Lastly some of our French stocks did notdo well this month. Michelin made a profit warning, Investors reaction towardsFrance Telecom’s potential bid on TeliaSonera was negative and Carrefour hasbeen under pressure.

Cumulated performance of Cominvest Fund European Value Equity Fund (P Share)versus the DJ Stoxx 600 (Price Index)

(See the graph below)

3. Recent Moves: In April we decided to take profit on Repsol to increaseour exposure to Statoil and BASF. Our conviction on BASF is strong. We trimmedour exposure to pharmaceuticals that rebounded from their very low level (Astra,Glaxo) to purchase Rhodia, the French specialty chemical company. We areexpecting a bounce on this badly beaten stock.

Our strongest ideas
Holdings Portfolio Weightings
Statoil 4.50%
Intesa SanPaolo 4.30%
Telefonica 4.20%
Saint-Gobain 4.10%
France Telecom 3.70%
Total 3.70%
Linde 3.50%
Carrefour 3.50%
BASF 3.20%
Swiss Re 3.10%