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June 2013 Global Gold & Precious Slide 2 2 Table of Contents Commodities AM in a few words Too late to sell Gold bullion: back to basics Gold mines vs. Gold bullion Global Gold and Precious Investment process Portfolio snapshots Performance Fund management team Fund terms Take-Away Contacts Slide 3 3 Commodities AM in a few words Fully independent French Asset Management company Approved by AMF* under N GP97016 Specialist of thematic equity funds: Gold & Precious Metals Energy & Natural Resources Active management style, with direct allocation to listed stocks globally, which relies on the portfolio managers' industry sector expertise 12-year track-record, with first-class French industry awards Attractive product offer that meets investment needs of institutional investors, private banking/IFAs clientele and third party asset managers acting as allocators for multi- management funds or for individual discretionary mandates. * Autorit des Marchs Financiers / French supervisory body Slide 4 4 Too late to Sell Be Fearful When Others Are Greedy and Greedy When Others Are Fearful Source : Wall Street Journal, Financial Times Slide 5 5 Too late to Sell Be Fearful When Others Are Greedy and Greedy When Others Are Fearful Source: Bloomberg Slide 6 6 Too late to Sell Be Fearful When Others Are Greedy and Greedy When Others Are Fearful Source: Bloomberg Slide 7 7 Gold bullion: back to basics Fewer Gold Discoveries and a Flat Production Source: Metals Economics Group, Strategies for Gold Reserves Replacement 2012 Represents 189 gold deposits discovered since 1990, each with at least 1M oz. gold in reserves, or combination of reserves, resources and past production of 2 M oz. gold Slide 8 8 Gold bullion: back to basics Significant Gold drill results announced With no improvement in sight Source: Metals Economics Group, Strategies for Gold Reserves Replacement 2012 Slide 9 9 Gold bullion: back to basics Pipeline activity index falling, validated by companies cutting their exploration budgets Based on slower activity on the fields Source: Metals Economics Group, Strategies for Gold Reserves Replacement 2012 Slide 10 10 Longer Time from Discoveries to Production Gold bullion: back to basics Source: Metals Economics Group Minesearch Database & Estimates, Company Reports Slide 11 11 Lower Average Grade and Higher Costs Gold bullion: back to basics Source: NRH Research 2012 Ranking Gold Mines & Deposits 2012 All in costs @ USD 1 285* * GOS Matrix Average gold grade of undeveloped deposits of over 1M ounces is 0.66 g/t Slide 12 12 Gold bullion: back to basics While Demand remains elevated Source: World Gold Council * Q1 2013 annualized (assumes 700 tonnes in ETFs outflows, or 25% of total holdings) Slide 13 13 Gold bullion: back to basics Central Banks are Net Buyers Source: World Gold Council * Q1 2013 annualized (109 tonnes purchased in Q1 2013) Slide 14 14 Gold bullion: back to basics Confront short term ETFs investment selloff headwinds mainly from IAs Source : World Gold Council, BofA Merril Lynch Global Commodity Research Slide 15 15 Gold bullion: back to basics And extreme non commercial short positions (Futures only) Source: Bloomberg, US Commodity Futures Trading Commission Slide 16 16 Gold bullion: back to basics Structural macro issues intact... The playground consisting of: 1.Competitive devaluations 2.Low real interest rates and 3.Money supply (decelerating rate of growth presently) remains very supportive of a sustainable growth in the price of gold. Any reacceleration of the money supply will stress the depth of the uptrend. Source : US Federal Reserve Slide 17 17 Gold mines vs. Physical gold FACTS: Since 2000, gold mining companies outperformed gold bullion 44% of the time (6/13,5). After 2 years of outperformance (2009 2010), gold mining companies underperformed gold in 2011, 2012 and YTD. MUCH WORSE: they delivered negative absolute returns in 2011 and 2012 while gold progressed at a double digit pace AND they demonstrated an erosion of their excess return in uptrend markets since 2006. Slide 18 18 Gold mines vs. Physical gold Annual Performance (net, in USD, as of 04/30/13) Slide 19 19 Gold mines vs. Physical gold YES, Gold mining companies are undervalued on a relative and absolute basis on many criterias: Gold index / Gold bullion Historical profitability levels (operating margins, net margins) NAV multiples US$ value of an ounce in the ground Mkt K / oz produced Slide 20 20 Gold Mines are undervalued on a historical basis (20 year horizon) Gold mines vs. Physical gold Source: Bloomberg Slide 21 21 Gold Mines are undervalued on a historical basis (20 year horizon) Gold mines vs. Physical gold Source: Bloomberg Slide 22 22 Producers vs Juniors/Explorers Uptrend vs. downtrend markets Gold mines vs. Physical gold Producer Index GDM (NYSE Arca Gold Miners Index) Explorer Index MVGDXJ (Mkt Vector Junior Gold Miners Index) Source: Bloomberg Slide 23 23 Juniors are close to technical capitulation levels Gold mines vs. Physical gold Producer Index GDM (NYSE Arca Gold Miners Index) Explorer Index MVGDXJ (Mkt Vector Junior Gold Miners Index) Source: Bloomberg Slide 24 24 So are the Seniors Gold mines vs. Physical gold Producer Index GDM (NYSE Arca Gold Miners Index) Explorer Index MVGDXJ (Mkt Vector Junior Gold Miners Index) Source: Bloomberg Slide 25 25 Gold mines vs. Physical gold Gold mining companies have been penalized for not being able to deliver the expected historical leverage resulting from a higher gold price. Despite a historical high profitability (19% of net margins in Q1 2013), the latter have stagnated these last two years while gold price increased by 13% over the same period. THE REAL QUESTION: will gold mines regain their historical leverage? many fundamental elements demonstrate that the mining industry understood the message sent by the investment community and several managerial strategic decisions made in the last few months validate this point These decisions have a double objective: rationalize the operations and reduce the dilution that plagued the industry. Slide 26 26 Gold mines vs. Physical gold Many board of Directors made their top executives redundant: among other names, Kinross Gold, Barrick Gold Corp. Newmont Mining Corp. or dAgnico Eagle Mines Ltd., Centerra Gold Inc. or Great Basin Gold. Very recently, Allied Nevada Gold Corp. and Newcrest Mining Ltd. made similar announcements. The carnage in the junior space (index down 70% from its 2011 high) triggered a wave of strategic investments by senior and intermediate producers: this is the case of Agnico Eagle Mines Ltd. making investments in Sulliden Gold Corp., Probe Mines Ltd*, or Atac* Resources Ltd.* and Teck Resources Ltd. financing True Gold Mining Inc*. The focus is on cost controls: Barrick Gold Corp. reduced its overhead costs by $100 million and identified $500 million of further reductions to expenditures; Osisko Mining Corp. announced a decrease of $80 million in discretionary spending; Yamana Gold Inc. targeted a costs reduction of US$150 per oz in 2013. Iamgold Corp. initiated a program to reduce annual spending by $100 million. * 8% cumulative weight in the Global Gold and Precious fund Slide 27 27 Gold mines vs. Physical gold Heads-up announcements are made in respect to potential closures of marginal operations should gold prices deteriorate further: this is the case of Hochschild Mining PLC. Gold mines initiated share buyback programs: this is the case of Alamos Gold Inc. (which offered to purchase for cancellation up to 10% of the public float of its outstanding common shares) or Eldorado Gold Corp. (up to 5% of the public float). The impact of a lower gold price already impacted Q1 2013 marginal operations, with Elgin Mining Inc., Aurizon Mines Ltd., Lake Shore Gold Corp., Jaguar Mining Inc. or Gabriel Resources Ltd. releasing losses for the quarter. New phenomena in the precious metal industry, the involvement of activist shareholders: this is the case of the Clinton Group, Inc. which demanded changes to the strategy, operations and management at Stillwater Mining Company, mentioning a series of strategic missteps and bad acquisitions Slide 28 28 Global Gold & Precious The Fund objective is to provide investors with quality excess return in comparison to the FTSE Gold Mines Index composite. The Fund manager is responsible for the stock selection and focuses mainly on 'large cap' stocks listed on the North-American, Australian and South African stocks exchanges and which are engaged in the prospection, the extraction or the transformation of precious metals. A. Corbani is managing the fund since Jan, 1 2009 NAV Global Gold & Precious: 236.96 / FTSE Gold Mines (EUR) value: 169.72 Excess Return vs FTSE Gold Mines since Jan 1 2009 + 17.4% Annualized Volatility vs FTSE Gold Mines index since Jan 1 2009 29.3 vs 30.0 As of 05/29/13 Key facts Slide 29 29 Investment Process Portfolio Construction Stock Selection CORE Bucket 50 80 % SATELLITE Bucket 15 50 % ETF 0 - 10% CORE Stock selection within the FTSE Gold Mines Index components (or other producing mining companies within the sector) Selection criteria: Profitable undervalued companies Stock weighting is different from the Index SATELLITE Stock selection within the 2000 listed companies of the Gold and Precious Metal sector Selection criteria: Under-valued producing companies, undervalued assets, companies with high probabilities of above average discoveries, To optimize the portfolio allocation between "PRODUCERS" and "EXPLORATORS" Sources of Value Creation To identify and select high potential stocks in the Gold & Precious Metal sector Exposure to SENIOR PRODUCERS" Exposure to JUNIORS" Exposure to physical ETFs to benefit from upside and downside trends Pure Stock-Picking 20 years of industry experience for the portfolio manager About one hundred one-to-ones per year with company management Slide 30 30 Investment Process CORE Market Insights Network Sell Side Research Conferences / Seminars Fundamental analysis Operations geography / Regulation Characteristics of mines Financial ratios Management Meeting Over 100 visits/one on one per year 2 000 companies Stock picking Global Gold and Precious 40-50 stocks Eligible universe 80 / 90 companies, monitored daily Slide 31 31 Portfolio Snapshots Core Satellite breakdown (% of AuM) Index Out of the Index breakdown (% of AuM) Portfolio breakdowns (as of 05/29/13) Slide 32 32 Portfolio Snapshots Breakdown by Major Sector (% of AuM) Breakdown by Type of production (% of AuM) Breakdown by geography (% of AuM) Portfolio breakdowns (as of 05/29/13) Slide 33 33 Portfolio Snapshots Market Cap (as of 05/29/13) Median: 675 M USD Slide 34 34 Performance Evolution of the Fund NAV (net, in EUR, as of 05/29/13) Change of portfolio manager Slide 35 35 Performance Evolution of the Fund NAV since Jan,1 st 2009 (net, in EUR, as of 05/29/13) Slide 36 36 Performance Managers Tenure Snapshot (Yearly performance, net, in EUR) Up Markets Down Markets Proven ability to capture excess performance in Up Markets and to lower specific risk in Down Markets Slide 37 37 Annualized statistics (net, in EUR, as of 05/29/13) Performance Slide 38 38 Fund Management Alain Corbani - Chief Executive Officer Lead portfolio manager of Global Gold & Precious and Global Energy & Natural Resources EXPERIENCE - 20 years in the Sell-Side business, notably within Dominion Securities then RBC Capital Markets, a leading Canadian Investment bank - Founding partner of Green Oak Alain developed strong knowledge and expertise in North- American equity investing and in the commodities sector. BACKGROUND -MBA in Management International - George Washington University, Washington DC, USA - Bachelor of Science in Management International - IPESUP Paris France Nicolas Paccioni Co-Portfolio manager of Global Gold & Precious and Global Energy & Natural Resources EXPERIENCE - 5 years of experience in the financial industry After working for Cortal Bourse as a security operator, Nicolas joins Commodities AM in 2007 as a financial analyst on commodities. He is appointed portfolio manager of Global Gold & Precious in 2009. BACKGROUND - Inseec Paris Slide 39 39 Fund Terms Global Gold and Precious ISIN code: AMF Category: Minimum recommended holding period: Legal structure: Distribution policy: Base currency: Inception date: Initial NAV: Currency risk hedging: Performance Index: Bloomberg ticker : Others sources: Valuation frequency: Sales charge: Management fees: Performance fees: Custodian: Fund Administrator: Statutory Auditor: FR0007047527 Global Equity 5 years French "FCP" Capitalisation Euro 07/21/2000 100 EUR Optional FTSE Gold Mines Index (en euro) GLGOLPR FP Morningstar, Europerformance Daily 4 % (max) 2 % (max) 15 % of the performance above the FTSE Gold Mines Index RBC DEXIA INVESTOR SERVICES SOCIETE GENERALE SECURITIES SERVICES DELOITTE & Associs Asset under management as of 05/29/13: 12.1 M EUR Slide 40 40 Take Away Global Gold & Precious Positive gold sector fundamentals still in place to achieve superior return despite short term strategic headwinds. We will NOT pick the bottom BUT the risk reward theme for holding gold mines lies strongly on the latter due to structural improvements at the corporate level The fund has reached its optimum exposure to the junior sector with a 49% allocation Active management style that benefits from the high-skilled portfolio manager ability to select stocks within the production and exploration sub-sectors 22 years of industry experience for the portfolio manager 12-year track-record, with first-class French industry awards +2,58% of outperformance per year vs. FTSE Gold Mines Index (period: 07/21/00 05/29/13) WITH similar volatility Slide 41 41 Contacts Nicolas Paccioni Co-Portfolio manager of Global Gold & Precious and Global Energy and Natural Resources Portfolio manager of Global Euro Middle Cap Tel: +33 1 44 95 09 93 Email: npaccioni@commodities-am.comnpaccioni@commodities-am.com Alain Corbani Chief Executive Officer, Portfolio manager of Global Gold & Precious and Global Energy and Natural Resources Tel: +33 1 44 95 09 88 Email: acorbani@commodities-am.comacorbani@commodities-am.com Commodities Asset Management 11 rue de Thran 75008 Paris - France Facsimile: 01 44 95 09 87 Internet: www.commodities-am.com Mathilde de Cheffontaines Head of Administration Tel: +33 1 44 95 09 86 Email: mdecheffontaines@commodities-am.com mdecheffontaines@commodities-am.com Slide 42 42 Disclaimer This presentation is strictly for information purposes only. This document does not constitute an offer or commitment, a solicitation of an offer or commitment, or any advice or recommendation, to conclude any transaction (whether on the indicative terms shown or otherwise). Before entering into any transaction, you should ensure that you fully understand the potential risks and rewards of that transaction and that you independently determine that the transaction is appropriate for you given your objectives, experience, financial and operational resources and other relevant circumstances. The prospectus of the Fund is available upon request or at www.commodities-am.com Past performance is not necessarily indicative of future results.