Focus on our Aggregate strategies range

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Focus on our Aggregate strategies range At Natixis Asset Management we are happy to announce that our Natixis Euro Aggregate fund has reached a threshold AUM of Euro 1 billion as of May 2017.

1 Focus on our Aggregate strategies range At Natixis Asset Management we are happy to announce that our Natixis Euro Aggregate fund has reached a threshold AUM of Euro 1 billion as of May In fact, in the context of very low interest rates and the search for yield we have recently seen an increasing interest in Aggregate strategies. Thanks to their risk return profile, Aggregate strategies can serve as an alternative to pure Government bonds or Credit funds bringing in additional diversification and various levers in terms of alpha sources. In order to celebrate the 1st billion milestone for our Euro Aggregate flagship fund but also because we believe that the current environment is particularly positive for such strategies, at Natixis Asset Management we would like touch base on our Aggregate fund range and investment solutions. As stated above, fixed income investors main challenges include: research for yield, flexibility, diversification, hedging a potential pick-up in inflation, facing a potential interest rates hikes and preserving capital just to name a few. This is especially true if we consider that: - It is very difficult to generate continuous alpha across the market cycle, and - Correlations between asset classes or geographies change across the economic cycle as shown below At the same time we distinguish four different phases during a market cycle namely: 1. Above-trend acceleration 2. Above-trend slowdown 3. Below-trend slowdown 4. Below-trend acceleration Document exclusively intended for professional clients 1

2 This breakdown of the market cycle is the first step analysis in terms of decision making and allocation process. Next, and once we have identified the relevant phase, we look at each underlying asset-class in terms of information ratio evolution (as shown in the table below). The information ratio trends that we have identified hereunder are the result of our in-house research and technical analysis of historical data. Above trend acceleration Above trend slow down Below trend acceleration Below trend acceleration Information Ratio Core asset classes Off-benchmark asset classes + Corporates EM, HY, Conv. Bonds - Securitized Inflation Linked + Supranationals Inflation Linked - Corporates Conv. Bonds + Corporates EM, HY - Treasuries Inflation Linked + Securitized - Corporates Convertible Bonds Source: Natixis AM. Data as of Based on this detailed and flexible allocation, we believe that multi asset class strategies such as the aggregate one, could exploit market asymmetries in order to create opportunities. The aggregate investment process uncovers value and allows creating alpha across the investment cycle. This is also true in periods of distressed markets when asset classes asymmetric returns require an active and flexible approach in fixed income. And, as shown by the chart hereunder the gap between best and worst performing asset classes widens the most in distressed markets and when leading indicators are bottoming. Source: Barclays, Bloomberg, Natixis AM. Data as of At Natixis Asset Management, our Aggregate fund range is designed to answer to the above challenges via: Document exclusively intended for professional clients 2

3 A thorough diversification across fixed income asset classes: essential across market cycles, especially in a fast-changing market environment. A «full cycle» investment solution allowing «switches» from one sub-asset to another, aiming to deliver strong and consistent risk-adjusted return. This is especially true for a global investment universe, even in a context of interest rate hikes or inflation pick up. And finally an active and flexible management which adds value and diversifies risk. In a context of still very low yields, investors appetite for returns remains strong: yield can be captured even in a low-growth and low interest rate environment via top-down allocations and security selection. Our Aggregate investment philosophy relies on four pillars: Valuation of each asset class is as much driven by fundamentals as by risk appetite and market technical Our answer in order to deliver consistent and repeatable alpha relies on conviction-driven strategies in terms of: global duration, active allocation and security selection Market prices do not always reflect intrinsic value For this reason, we combine active top-down and bottom-up approaches in order improve alpha generation Fixed income as an asset class is asymmetric and complex Investments rely on the experience and knowledge of specialized investment teams. Our aggregate strategy relies on the inputs of over 50 fixed income investment professionals across all fixed income sub-asset classes Off-benchmark securities can offer opportunities on returns and/or volatility The key element of this strategy is diversifications which can improve alpha generation and risk return profile. We seek to reach this also via off-benchmark positions/strategies such as: Inflation linked, High Yield or Convertibles. As aforementioned, the strategy is accessible across two open-ended funds giving respectively European or Global exposure. An overview of the two strategies is given below: 1. Our Euro Aggregate strategy: Strategy (gross) Benchmark Excess YTD (30/04/2017) -0.06% -0.47% +0.41% 1 year +1.17% +0.59% +0.58% 3 years +4.01% +3.50% +0.51% 5 years +5.84% +4.74% +1.10% Since inception* 5.90% 5.02% +0.88% Information ratio 0.48 Source: Natixis AM, Barclays Point tool Data as of * Strategy s inception Figures mentioned refer to previous years. Past performance does not guarantee future results. Document exclusively intended for professional clients 3

Source: Natixis AM, Barclays Point tool Data

2008. Figures mentioned refer to previous

Past performance does not guarantee future

The above guidelines can be modified without

4 Source: Natixis AM, Barclays Point tool Data as of * Strategy s inception Figures mentioned refer to previous years. Past performance does not guarantee future results. * As an indication. The above guidelines can be modified without notice. Source: Natixis AM. Data as of Document exclusively intended for professional clients 4

2. Our Global Aggregate strategy: Strategy Benchmark Excess YTD (11.05.

46% -0.38% Source: Natixis AM, Barclays Point tool Data as of 11.05.

Data excluding first week of fund creation from 22.06.2015

Past performance does not guarantee future results.

5 2. Our Global Aggregate strategy: Strategy Benchmark Excess YTD ( ) 1.97% 0.96% +1.01% 1 an 1.62% 1.12% +0.50% Since launch* 6.08% 6.46% -0.38% Source: Natixis AM, Barclays Point tool Data as of * Strategy s Inception Data excluding first week of fund creation from to Figures mentioned refer to previous years. Past performance does not guarantee future results. Source: Natixis AM, Barclays Point tool Data as of Past performance does not guarantee future results. * As an indication. The above guidelines can be modified without notice. Source: Natixis AM. Data as of Document exclusively intended for professional clients 5

3. Investment team Within Natixis AM s Interest Rates department headed by Olivier de Larouzière, the Aggregate team is headed by Michaël Soued and composed of 4 senior portfolio managers, with an

trader assistant at La Compagnie Financière Edmond de Rothschild and was then appointed as a derivatives account manager for Fimat/Sogenal in Luxembourg.

6 3. Investment team Within Natixis AM s Interest Rates department headed by Olivier de Larouzière, the Aggregate team is headed by Michaël Soued and composed of 4 senior portfolio managers, with an average of 20 year of experience and an average of 12 years within Natixis AM: Source, Natixis AM May 2017 Michael Soued, Head of Aggregate Michael Soued began his career in 1993 as a currency option trader assistant at La Compagnie Financière Edmond de Rothschild and was then appointed as a derivatives account manager for Fimat/Sogenal in Luxembourg. He then joined Louis Dreyfus Finance as a fixed income arbitragist and ECU/DEM market-maker during two years. He then worked for SSgA initially as a bond portfolio manager before taking in charge of active euro strategies for the group and has been involved in several cross border projects. From 2009 and 2013, he was responsible for Euro aggregate activity of Oddo AM managing a brand of credit, aggregate and sovereign funds (benchmarked and total return). In 2013, Michael joined Natixis AM as Head of Aggregate. Michaël Soued holds a Master s Degree in Capital Markets & Corporate Finance from the University of Paris IX - Dauphine. Document exclusively intended for professional clients 6

Daniel Briand, Portfolio Manager Daniel Briand began his career in 1988 as a Money Market Portfolio Manager at the Caisse des Dépôts et Consignations Group.

In 2011, he joined the Currency and Global emerging markets team to manage absolute return global bonds funds.

Daniel Briand holds a Master s Degree in Economics and a Diploma of Advanced Studies in Banking & International Trading from the University of Bordeaux.

7 Daniel Briand, Portfolio Manager Daniel Briand began his career in 1988 as a Money Market Portfolio Manager at the Caisse des Dépôts et Consignations Group. He joined CDC Trésor (Group Caisse des Dépôts et Consignations) in 1989 as a money market and bond portfolio manager. In 1998, he joined IXIS Asset Management as bond portfolio manager. In 2011, he joined the Currency and Global emerging markets team to manage absolute return global bonds funds. In July 2012, Daniel joined the Aggregate team to manage absolute return multi-strategies portfolios. Daniel Briand holds a Master s Degree in Economics and a Diploma of Advanced Studies in Banking & International Trading from the University of Bordeaux. Armel Mombouli, Portfolio Manager Armel Mombouli began his career in 1998 at Retraites Unies as an assistant on treasury management. In 2000, Armel joined Natixis Asset Management as an assistant portfolio manager for global and emerging fixed income portfolios. In 2005, he became portfolio manager within the Euro Bond team, with a specialization in managing absolute return multi-strategies. In 2011, he joined the Currency and Global emerging markets team to manage global bonds funds. In 2012, Armel joined the Aggregate team to manage absolute return multi-strategies portfolios. Armel Mombouli holds a Master s Degree in Banking and Finance from the University of Paris X Nanterre. Agathe Foussard, Portfolio Manager Agathe Foussard began her career within Natixis Asset Management in 2006 as a financial engineer within the Quantitative Research & Analysis team of the Fixed Income Investment Division. She was mainly involved in the interest rate engineering activities, focusing on risk and skill measures for investment processes and on quantitative funds improvement. She joined the Aggregate team as portfolio manager in October Agathe Foussard holds a Master s Degree in statistics and financial engineering from the University of Paris IX - Dauphine. She is also a CFA charterholder Document exclusively intended for professional clients 7

8 Legal information This document is intended for professional clients. It may not be used for any purpose other than that for which it was intended and may not be reproduced, disseminated or disclosed to third parties, whether in part or in whole, without prior written consent from Natixis Asset Management. No information contained in this document may be interpreted as being contractual in any way. This document has been produced purely for informational purposes. The analyses and opinions referenced herein represent the subjective views of the author(s) as referenced, are as of the date shown and are subject to change without prior notice. There can be no assurance that developments will transpire as may be forecasted in this material. Natixis Asset Management reserves the right to modify the information presented in this document at any time without notice. Natixis Asset Management will not be held liable for any decision taken or not taken on the basis of the information in this document, nor for any use that a third party might make of the information. Figures mentioned refer to previous years. Past performance does not guarantee future results. Under Natixis Asset Management s social responsibility policy, and in accordance with the treaties signed by the French government, the funds directly managed by Natixis Asset Management do not invest in any company that manufactures sells or stocks anti-personnel mines and cluster bombs. This non-contractual document has been prepared by Natixis AM on May NATIXIS ASSET MANAGEMENT Registered Office: 21 quai d Austerlitz Paris Cedex 13 Tel Limited Liability Company, Share Capital 50,434, Regulated by AMF under n GP Company Trade Registration (RCS) Number Paris NGAM SA. Registered Office: 2, rue Jean Monnet, L-2180 Luxembourg, Grand Duchy of Luxembourg Luxembourg management company that is authorized by the Commission de Surveillance du Secteur Financier and is incorporated under Luxembourg laws Registered under n. B Document exclusively intended for professional clients 8

9 Additional notes This material has been provided for information purposes only to investment service providers or other Professional Clients, Qualified or Institutional Investors and, when required by local regulation, only at their written request. In the E.U. (outside of the UK): Provided by NGAM S.A. or one of its branch offices listed below. NGAM S.A. is a Luxembourg management company that is authorized by the Commission de Surveillance du Secteur Financier and is incorporated under Luxembourg laws and registered under n. B Registered office of NGAM S.A.: 2, rue Jean Monnet, L-2180 Luxembourg, Grand Duchy of Luxembourg. France: NGAM Distribution (n RCS Paris). Registered office: 21 quai d'austerlitz, Paris. Italy: NGAM S.A., Succursale Italiana (Bank of Italy Register of Italian Asset Management Companies no ). Registered office: Via Larga, , Milan, Italy. Germany: NGAM S.A., Zweigniederlassung Deutschland (Registration number: HRB 88541). 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In Taiwan: Provided by NGAM Securities Investment Consulting Co., Ltd., a Securities Investment Consulting Enterprise regulated by the Financial Supervisory Commission of the R.O.C. Registered address: 16F-1, No. 76, Section 2, Tun Hwa South Road, Taipei, Taiwan, Da-An District, 106 (Ruentex Financial Building I), R.O.C., license number 2012 FSC SICE No. 039, Tel In Singapore: Provided by NGAM Singapore (name registration no D) to distributors and institutional investors for informational purposes only. NGAM Singapore is a division of Natixis Asset Management Asia Limited (company registration no D). Registered address of NGAM Singapore: 10 Collyer Quay, #14-07/08 Ocean Financial Centre, Singapore In Hong Kong: Provided by NGAM Hong Kong Limited to institutional/ corporate professional investors only. In Australia: Provided by NGAM Australia Pty Limited (ABN ) (AFSL No ) and is intended for the general information of financial advisers and wholesale clients only. In New Zealand: This document is intended for the general information of New Zealand wholesale investors only and does not constitute financial advice. This is not a regulated offer for the purposes of the Financial Markets Conduct Act 2013 (FMCA) and is only available to New Zealand investors who have certified that they meet the requirements in the FMCA for wholesale investors. NGAM Australia Pty Limited is not a registered financial service provider in New Zealand. In Latin America: Provided by NGAM S.A. In Chile: Esta oferta privada se acoge a la Norma de Carácter General N 336 de la SVS de Chile. In Uruguay: Provided by NGAM Uruguay S.A., a duly registered investment advisor, authorised and supervised by the Central Bank of Uruguay. Registered office: WTC Luis Alberto de Herrera 1248, Torre 3, Piso 4, Oficina 474, Montevideo, Uruguay, CP The sale or offer of any units of a fund qualifies as a private placement pursuant to section 2 of Uruguayan law 18,627. 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The analyses, opinions, and certain of the investment themes and processes referenced herein represent the views of the portfolio manager(s) as of the date indicated. These, as well as the portfolio holdings and characteristics shown, are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material. Past performance information presented is not indicative of future performance. Although Natixis Global Asset Management believes the information provided in this material to be reliable, including that from third party sources, it does not guarantee the accuracy, adequacy, or completeness of such information. This material may not be distributed, published, or reproduced, in whole or in part. All amounts shown are expressed in USD unless otherwise indicated. Document exclusively intended for professional clients 9

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