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European financial stocks had a positive month, bouncing back from the March negative performance. April started with solid Q1 results in IB equities for Barclays and UBS, and in UK retail banking for Lloyds and RBS. Q1 results at the end of April show globally publications in line with consensus on Net Interest Margin, Revenues and Costs and a strong improvement on risks leading to globally higher profit before tax higher than the consensus. On the monetary policy front, the hopes for changes in the EBC rate policy is clearly fading and turning negative for banks with a strong gearing on Eurozone rates such as Commerzbank (Long), Caixa Bank (Long). The ECB no action mood seem to have contaminated CEE central banks, which have now mostly suspended their expected rate increase actions. We believe this is a significant change to our thesis on Erste Bank (Long). April 30, 2018 Over a 5-year horizon, Axiom Equity seeks to outperform the Stoxx Europe 600 banks index. The fund is permanently exposed to equities, with at least 75% of total assets invested in the European Union financial sector. Net Asset Value: Positions: 68 Investment ratio: 100% Unit BC (USD): 935,20 Unit Z (EUR): 1018,19 Monthly comment Net asset values Annual performances - Unit C 2014 Unit C (EUR): 952,87 Unit R (EUR): 973,31 Accounting data Investment objective 16 515 549,55 € Evolution since inception Performances - Unit C 1 month 3 months 6 months YTD 1 year On the restructuring front, although the German pressure on NPL clan up remains quite high, IFRS9 came as relief mostly for Italian banks. The transition offers banks the opportunity to take a provisioning hit directly to equity, bypassing the P&L. However this loss is then phased into regulatory capital ratios, with only 5% being taken in 2018. We see this as a key game changer for Italian NPL and especially Banco BPM (Short). During the month, US announced severe sanction against Russia especially focused on Rusal, which affected significantly Sberbank (Long). Although we believe the bank has compelling metrics the political uncertainty turned this positon into special situation, which we exited. Major positive contributors this month have been HSBC (Long), BNP Paribas (Long) and Intesa Sanpaolo (Long). Major negative contributors were Sberbank (Long), Banco BPM (Short) and Credito Valtellinese (Long). Axiom Equity ends April with a performance of +0.62%. 2015 2,43% -10,06% 2016 -4,01% 2017 12,71% 0,62% -9,60% -5,37% -4,40% -0,42% Statistics Volatility 1y 14,17% Sharpe Ratio 1y -0,03 Beta 1y 1,02 6 7 Risk and yield level: Low High 1 2 3 4 5 AXIOM Equity Axiom Equity 300 550 800 1 050 1 300 1 550 David Benamou Jérôme Legras Adrian Paturle Gildas Surry Paul Gagey

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Page 1: AXIOM Equity - Home | AXIOMaxiom-ai.com/web/data/rapports/ENG/Axiom-Equity-Monthly-Report-UK.pdfAXIOM Equity Low High Risk and yield level: ... 600 banks index. ... laurent.surjon@axiom-ai.com

European financial stocks had a positive month, bouncing back from the March

negative performance.

April started with solid Q1 results in IB equities for Barclays and UBS, and in UK retail

banking for Lloyds and RBS. Q1 results at the end of April show globally publications in

line with consensus on Net Interest Margin, Revenues and Costs and a strong

improvement on risks leading to globally higher profit before tax higher than the

consensus.

On the monetary policy front, the hopes for changes in the EBC rate policy is clearly

fading and turning negative for banks with a strong gearing on Eurozone rates such as

Commerzbank (Long), Caixa Bank (Long). The ECB no action mood seem to have

contaminated CEE central banks, which have now mostly suspended their expected

rate increase actions. We believe this is a significant change to our thesis on Erste

Bank (Long).

April 30, 2018

Over a 5-year horizon, Axiom Equity seeks to outperform the Stoxx Europe

600 banks index.

The fund is permanently exposed to equities, with at least 75% of total assets

invested in the European Union financial sector.

Net Asset Value:

Positions: 68

Investment ratio: 100%

Unit BC (USD): 935,20 Unit Z (EUR): 1018,19

Monthly comment

Net asset values

Annual performances - Unit C

2014

Unit C (EUR): 952,87 Unit R (EUR): 973,31

Accounting dataInvestment objective

16 515 549,55 €

Evolution since inception Performances - Unit C

1 month 3 months 6 months YTD 1 year

On the restructuring front, although the German pressure on NPL clan up remains

quite high, IFRS9 came as relief mostly for Italian banks. The transition offers banks

the opportunity to take a provisioning hit directly to equity, bypassing the P&L.

However this loss is then phased into regulatory capital ratios, with only 5% being

taken in 2018. We see this as a key game changer for Italian NPL and especially

Banco BPM (Short).

During the month, US announced severe sanction against Russia especially focused

on Rusal, which affected significantly Sberbank (Long). Although we believe the bank

has compelling metrics the political uncertainty turned this positon into special

situation, which we exited.

Major positive contributors this month have been HSBC (Long), BNP Paribas (Long)

and Intesa Sanpaolo (Long). Major negative contributors were Sberbank (Long),

Banco BPM (Short) and Credito Valtellinese (Long).

Axiom Equity ends April with a performance of +0.62%.

2015

2,43%-10,06%

2016

-4,01%

2017

12,71%

0,62% -9,60% -5,37% -4,40% -0,42%

Statistics

Volatility 1y 14,17%

Sharpe Ratio 1y -0,03

Beta 1y 1,02

6 7Risk and yield level:

Low High

1 2 3 4 5

AXIOM Equity

Axiom Equity

300

550

800

1 050

1 300

1 550

David BenamouJérôme LegrasAdrian PaturleGildas SurryPaul Gagey

Page 2: AXIOM Equity - Home | AXIOMaxiom-ai.com/web/data/rapports/ENG/Axiom-Equity-Monthly-Report-UK.pdfAXIOM Equity Low High Risk and yield level: ... 600 banks index. ... laurent.surjon@axiom-ai.com

Fund information

The figures refer to past performance, which may not be reliable indicator of future performances. The information is obtained from the accounting data for the fund and from datavenders (Bloomberg) for the

benchmark.

They have not been certified by the Auditor of the Mutual Funds Axiom Equity and are subject to changes. Because of their simplicity, this information is inevitably partial and incomplete and can not therefore have

any contractual value.

The Key Investor Information of the mutual fund is available upon request from Axiom Alternative Investments. The FCP is invested on the equity markets. Its value depends on the asset value of securities held within

the portfolio and may therefore be subject to large fluctuations upwards or downwards. This fund is approved by the AMF and the FINMA to be marketed in France and Switzerland.

Additional information for investors in and from Switzerland: The detailed prospectus, the documents entitled "Key investor information", the statutes, the annual and semi-annual reports are available free of charge

from the representative and paying agent for Switzerland, RBC Investor Services Bank SA, Esch-sur-Alzette, Zurich Branch, Badenerstrasse 567, PO Box 101, 8066 Zurich.

Portfolio Breakdown

By Country

Top 10 positions Net exposure by currency

Name Country % Assets

BNP PARIBAS FR 7,21%

UBS GROUP AG-REG CH 5,01%

HSBC HOLDINGS PLC GB 9,43%

BANCO SANTANDER SA ES 8,20%

COMMERZBANK AG DE 4,84%

INTESA SANPAOLO IT 4,82%

CAIXABANK S.A ES 4,89%

ERSTE GROUP BANK AG AT 4,87%

Unit C Unit R Unit BC Unit M Unit Z

ING GROEP NV NL 4,77%

CREDITO VALTELLINESE SPA IT 4,07%

Currency EUR EUR USD CHF EUR

Results allocation

ISIN Code FR0011689363 FR0011689389 FR0011689405 FR0011689397 FR0012034072

Capitalization

Legal form Mutual fund under French Law

AMF classification International equities

Inception date March 25, 2014 May 19, 2014 March 19, 2015 - November 27, 2015

20% above the benchmark NA

Subscription fees 2% maximum 10% maximum

Benchmark Stoxx Europe 600 Banks Net Return

Management fees 2% 2,5% 2% 2% 0,05%

Axiom Alternative Investments

39, Avenue Pierre 1er de Serbie 75008 ParisPhone: +33 1 44 69 43 90

[email protected]

Partners - Business Development

Valuation Daily

Settlement date D + 3

Registration countries France, Switzerland

Redemption fees 2% maximum 10% maximum

Phone: +33 1 56 88 14 21 Phone: +33 1 56 88 14 22

Institutional clients

Minimum subscription 1 unit 1 unit 1 unit

France - IFA distribution

Bertrand Wojciechowski

[email protected]: +33 6 79 11 31 33

Laurent Surjon Philippe Cazenave

[email protected] [email protected]

[email protected] [email protected] [email protected]: +33 1 84 17 88 79 Phone: +44 203 807 0862 Phone: +33 1 84 16 47 63

Christina Perri Pauline Vadot Mariya Peykova

Contacts

1 unit 1 unit

Performance fees

65,8%

12,5%

7,5%

6,7%

4,0%

2,6%

2,3%

-1,5%

EUR

GBP

NOK

SEK

PLN

DKK

CZK

CHF

21,4%

13,7% 13,5% 12,5%

7,5% 6,7% 6,0% 5,3%4,0% 3,0% 2,9% 2,6% 2,3%

0,2%

-0,2%-1,5%