LA PLATAFORMA DE GOBIERNO DE AMPLIA PARTICIPACIÓN

1. Name of the Sub-Fund

BBVA&PARTNERS EUROPEAN ABSOLUTE RETURN

2. Investment Objective and Policy

The Sub-Fund seeks long-term capital appreciation through the investment in transferable securities of worldwide issuers focusing on European issuers and denominated in any currency without any consideration as to industrial, sector or geographical diversification and in financial derivative instruments.

The transferable securities may consist of equities, fixed or floating rate bonds, convertible or zero coupon bonds. The financial derivatives may comprise exchange traded futures (on stock, equity indices, bonds and currencies) and equity linked swaps via the over-the-counter market.

In particular, the Sub-Fund may not invest in aggregate more than 10% of its assets in the units or shares of other UCITS or UCIs.

The Sub-Fund may use financial derivative instruments for investment and hedging purposes. The Sub- Fund may also, within the limits set forth in chapter "Techniques and Instruments relating to transferable securities and money market instruments", use techniques and instruments such as repurchase agreements and securities lending for efficient portfolio management.

3. Sub-Fund's Risk Profile

The attention of the investors is drawn to the chapter "Risk Factors" contained in the Prospectus.

The investments of the Sub-Fund are subject to normal market fluctuation and other risks inherent in investing in securities and there can be no assurance that capital appreciation or distribution payments would occur. The value of investments and income from them, and therefore the value of the shares of the Sub-Fund, can and do go down as well as up and an investor may not get back the amount he invests.

Specifically, due to the fact that the Sub-Fund will make extensive use of financial derivative instruments, the following risk factors are particularly relevant:

Because of the low margin deposits normally required in trading derivative instruments, a high degree of leverage is typical for trading in derivative instruments. As a result, a relatively small price movement in the underlying of a derivative contract may result in substantial losses to the assets of the Sub-Fund.

4. Global Exposure

The method used to calculate the global exposure in this Sub-Fund is the absolute VaR. The expected level of leverage is calculated following the sum of the notionals approach.

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The expected level of leverage is between 80%-120%of the Net Asset Value. Higher levels of leverage are however possible. The highest leverage level should be approximately 250%.

5. Profile of the Typical Investor

The Sub-Fund suits for investors seeking long term growth potential and absolute total return offered through investment in transferable securities of worldwide issuers, denominated in any currency and without any consideration as to industrial, sector or geographical diversification and through investment in financial derivative instruments.

6. Investment Manager

The Board has appointed BBVA ASSET MANAGEMENT S.A., S.G.I.I.C. as Investment Manager, to manage the Sub-Fund’s assets on a discretionary basis.

7. Reference Currency

The Reference Currency is the Euro.

8. Share Classes

Class A shares Minimum initial investment EUR 50,000

Minimum holding EUR 50,000

Subscription fee up to 3% of the applicable NAV

Redemption fee up to 4% of the applicable NAV

Global Fee 1.5%

Performance fee Please see point 9. hereafter

9. Performance Fee

The Investment Manager shall also receive a performance fee for the Sub-Fund.

The performance fee is calculated and accrued on each Valuation Day on the basis of the Net Asset Value, after deduction of all costs as well as of the Global Fee (but not the performance fee) adjusted in order to take into account all subscriptions during the period of calculation of the performance fee so as not to impact the calculation of the performance fee.

The performance fee shall be equal to 15% of the increase in the Net Asset Value per share multiplied by the number of shares in circulation and is also subject to an annual "high water mark" principle. Accordingly, no performance fee can be accrued or paid until the losses for such financial year (if any) are recovered.

The annual high water mark is defined as the greater of the two following values:

• the last Net Asset Value per share of the previous financial year (for the first financial year of the Company the initial subscription price shall be used);

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• the last Net Asset Value per share having given rise, during a quarter of the financial year in question, to payment of a performance fee.

If the Net Asset Value per share is lower than the high water mark, no performance fee shall accrue.

If redemptions are made on a date other than the date of payment of the performance fee, but where performance fees have been accrued, the portion of the accruals attributable to such redemptions shall be paid at the end of the relevant quarter.

The performance fee is payable within fifteen Business Days following the last day of each calendar quarter.

The first calculation period for the performance fee shall begin on the day following the close of the initial subscription period and shall terminate at the end of the first calendar quarter following the creation of the Sub-Fund. The subsequent calculation periods shall commence at the beginning of each calendar quarter and shall end on the last day of the relevant quarter.

At the start of each new financial year the value of the performance fee is reset to zero.

10. Frequency of Calculation of the Net Asset Value Each Valuation Day

11. Dividends

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III. BBVA DURBANA INTERNATIONAL FUND – BBVA AUGUSTUS NEUTRAL PLUS