DIVA SYNERGY UCITS FUND - Bernheim, Dreyfus & Co.

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2. Pre-Event Merger Arbitrage – Anticipated Deals Examples of potential investments based on current M&A themes Investment Theme Potential Targets Increasing exposure to emerging markets Baby Oil being acquired by emerging players Big Pharma facing patent expiration and looking to plug their pipeline holes Underexploited iconic brands 4
Structure of Portfolio Market Volatility Investment Strategy The investment strategy revolves around two pillars: Announced Merger Arbitrage (announced deals) and Pre-Event Merger Arbitrage (anticipated deals) Portfolio Structure 1. Announced Merger Arbitrage • Announced M&A Deals 2. Pre-Event Merger Arbitrage • Identify potential M&A targets • To achieve the target return and volatility, the allocation between the two strategies is adjusted depending on the economic cycle and market conditions • 40 to 50 stocks listed in Western Europe and North America • Market fluctuations systematically covered (Market-Neutral) Portfolio Allocation • The structure of the portfolio and the allocation between the two strategies Pre-Event Merger Arbitrage and Announced Merger Arbitrage depends mainly on the level of volatility in the market. Higher market volatility results in higher risks which gives larger spreads and therefore makes the Announced Merger Arbitrage strategy more profitable than the Pre-Event Merger Arbitrage . • As illustrated below there is a clear correlation between the structure of our portfolio and the market volatility. At the end of 2008 when volatility – in terms of the VIX (1) index – was above 40 more than 90% of the portfolio (managed by the same team, applying the same strategy) was invested in the Merger Arbitrage strategy. Historical Portfolio Allocation - (managed by the same team, applying the same strategy) Pre-Event Driven Portfolio Merger Arbitrage Portfolio VIX 100% 80% 60% 40% 20% 0% Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 60 50 40 30 20 10 0 (1) An indicator of U.S. financial markets volatility. The index is calculated by averaging the volatilities on put and call options on the S&P500. 5
Page 1 and 2: DIVA SYNERGY UCITS FUND An Event-Dr
Page 3 and 4: Table of Contents Introduction to D
Page 5 and 6: Overview of Diva Synergy UCITS Diva
Page 7: 2. Pre-Event Merger Arbitrage - Ant
Page 11 and 12: Risk Management Risk Management Too
Page 13 and 14: Diva Synergy (Ucits) Risk Profile T
Page 15 and 16: M&A Market in 2011 Positive market
Page 17 and 18: Pre Event Driven Portfolio - Case S
Page 19 and 20: Portfolio Managers (as at June 1 st

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