A different path to yield

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1 A different path to New ways to reach your destination This document is for the exclusive use of investors acting on their own account and categorised either as eligible counterparties or professional clients within the meaning of markets in financial instruments directive 2004/39/ce Insights September 2017

2 3 New ways Welcome to reach your destination Sometimes, the route you take is as important as your final destination Whether it s for the scenery, the exercise or the culture, getting off the beaten track to find what you re really looking for can be quite rewarding. And, because they are low-cost ETFs, you won't be paying your whole back in fees. Our range of alternatives - including listed infrastructure, property, and private equity companies provides a few new ways to get you what you need. s in different equity markets Treading a new path 4 European alternatives 6 US alternatives 8 US listed real estate European core infrastructure Global listed real estate European listed real estate US core infrastructure Global listed private equity Global equities 4.22% 4.06% 3.99% 3.82% 2.95% 2.90% 2.42% Global alternatives 10 Our product range 12 Knowing your risk 14 Lyxor International Asset Management ( LIAM ) or its employees may have or maintain business relationships with companies covered in its research reports. As a result, investors should be aware that LIAM and its employees may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Please see appendix at the end of this report for the analyst(s) certification(s), important disclosures and disclaimers. Alternatively, visit our global research disclosure website Source: Lyxor International Asset Management, Bloomberg, FTSE Russell, as at 30 July Past performance is not a reliable indicator of future results. Figures correspond to of the following indices: MSCI Daily TR Net World USD, FTSE USA Core Infrastructure Capped Net Tax, FTSE Developed Europe Core Infrastructure Capped Net Tax, FTSE EPRA/NAREIT Developed Net TRI USD, FTSE EPRA/NAREIT United States Net TRI USD, FTSE EPRA/NAREIT Developed Europe Net Return, Private Equity Total in USD.

3 5 Treading a new path Alternative paths to may be found in listed infrastructure, property and private equity companies. Where will your search take you? US If passed, Trump s large scale fiscal spending plans could prove beneficial for core US infrastructure companies. US core infrastructure = 2.95% US equities don t tend to pay high s. Look for opportunities in listed real estate companies and REITs. US listed real estate companies/reits = 4.22% 2.95% 4.22% Europe Global Listed international real estate stocks can play a key part in a globally-oriented income portfolio. Global listed real estate companies/reits = 3.99% Listed private equity firms open the doors to a traditionally illiquid asset class. Global listed private equity = 2.90% 3.99% 2.90% Europe s structural recovery could lift the construction sector and core infrastructure companies. European core infrastructure = 4.06% Real estate prices are moving north, and higher rates may lead to greater opportunities. European listed real estate companies/reits = 3.82% 4.06% 3.82% Source: Lyxor International Asset Management/Bloomberg, 30 July Past performance is not a reliable indicator of future results.

4 7 European alternatives Rising GDP growth, soaring consumer confidence and tighter labour markets show recovery in Europe is underway. The story is becoming structural. Listed infrastructure companies Building activity is accelerating. Public investment is heavily focused on infrastructure. Investing in listed infrastructure companies can help you build income and provide some protection from rising inflation The FTSE Developed Europe Core Infrastructure Capped Net Tax provides exposure to European companies which derive at least 65% of their revenue from core infrastructure activities in Transportation, Telecommunications and Energy The companies own, operate, manage or maintain a network, structure or facility, and are inved in the processing or moving of goods or services, not the goods or services themselves Utra-low borrowing costs are driving real estate prices north. The threat of higher rates could create long-term opportunities. can offer a higher-than-average, act as a natural inflation hedge and help diversify portfolios The FTSE EPRA/NAREIT Developed Europe Net Return comprises approximately 100 European real estate stocks and REITs The numbers that matter Listed infrastructure companies FTSE Developed Europe Core Infrastructure Capped Net Tax of stocks Top 3 sectors Top 3 countries 33 MSCI Europe 444 Industrials 42.6% Telecommunication 34.1% Consumer Discretionary 9.2% Financials 21.1% Consumer Staples 14.1% Industrials 13.2% Spain 25.5% UK 23.3% Italy 22.4% UK 24.7% France 15.8% Germany 14.6% 4.01% 8.4% 90.4% 11.1% 11.3% 3.39% 13.54% 62.31% 9.66% 15.41% Europe set to invest - EMU fixed capital formation (EU Commission forecast % GDP) Private Sector, lhs FTSE Developed Europe Core Infrastructure Capped Net Tax of stocks Top 3 sectors Top 3 countries 102 General Government, rhs Chart source: Lyxor Cross Asset Research. Data as at April Past performance is not a reliable indicator of future results. *Source: McKinsey, Bridging Global Infrastructure Gaps, June Real estate 89.5% Financials 9.6% Consumer Discretionary 0.7% Spain 25.5% UK 23.3% Italy 22.4% Global economies need to invest US$3.3 trillion in infrastructure annually between 2016 and 2030* 3.82% -0.95% 71.05% 11.96% 15.39% What is a REIT? A Real Estate Investment Trust, or REIT, is a company that owns or finances income-producing real estate. Unlike typical real estate companies (which focus on developing properties to resell them), REITs generally buy and develop properties to hold them in their own investment portfolios. REITs aim to provide a regular income, a diversified portfolio of underlying properties and a link to the capital values of the portfolio holdings. A shareholder earns a share of the income, without actually having to go out and buy or finance a property. MSCI Europe 444 Financials 21.1% Consumer Staples 14.1% Industrials 13.2% UK 24.7% France 15.8% Germany 14.6% 3.39% 13.54% 62.31% 9.66% 15.41% Why Lyxor for European alternatives? Unique #1 The only European exposure to core infrastructure High ing Dividend s ranging from 3.8% to 4%* 7yrs Accomplished Lengthy track record for our FTSE EPRA/NAREIT Europe ETF *Source: FTSE Russell, as at 30 June Past performance is not a reliable indicator of future results

5 9 US alternatives Talk of Trump s fiscal push was everywhere at the start of the year, yet its passage has been problematic. Should it eventually live up to expectations, real assets could be in for a boost. Listed infrastructure companies Trump plans to invest $1 trillion in US infrastructure. That s great news for the companies operating in the sector and investors looking to allocate to them. ETFs tracking listed infrastructure companies benefit from diversification, enhanced liquidity and low fees The FTSE USA Core Infrastructure Capped Net Tax provides exposure to US companies which derive at least 65% of their revenue from core infrastructure activities in Transportation, Telecommunications and Energy These core companies tend to be more defensive than broader infrastructure sectors The numbers that matter Listed infrastructure companies FTSE Developed Europe Core Infrastructure Capped Net Tax What are you actually holding in the Core USA Infrastructure index? Category Breakdown of stocks 64 MSCI USA 634 Top 3 sectors Utilities 50% Industrials 21.9% Financials 14.3% Information Technology 22.9% Financials 16.0% Healthcare 14.2% Energy 60% Transportation 24% Telecomms 16% Chart source: Lyxor International Asset Management, FTSE Russell. Data as at 30 June 2017 ICB Subsector Breakdown Trad electricity 35% Railroads 23% Speciality REITS 16% Multiutilities 10% Pipelines 10% Gas distribution 3% Water 2% Transport service 1% Telecomms equiment 2.95% 12.7% 65.8% 10.4% 9.9% 1.96% 15.31% 92.77% 7.90% 12.05% Why core infrastructure works best The FTSE Core Infrastructure indices are focused purely on companies that own, operate, manage or maintain a particular network, structure or facility, and derive at least 65% of their revenue from infrastructure. Their main benefits are: Higher than average s Built-in inflation-linking Stabler revenues and cash flows Less sensitivity to short-term economic cycles Rate hikes may not, on the face of it, be good for REITs. They could however signal a stronger economy and property markets could be long-term beneficiaries. REITS investors may enjoy capital appreciation, generate aboveaverage income, and protect themselves against inflation. ETFs offer liquid and low cost access to s linked to a traditionally illiquid and expensive asset class The FTSE EPRA/NAREIT United States Net TRI USD comprises approximately 130 US real estate stocks and REITs FTSE EPRA/NAREIT United States Net TRI USD of stocks Top 3 sectors 135 MSCI USA 634 Real estate 54.8% Financials 44.3% Consumer Discretionary 0.7% Information Technology 22.9% Financials 16.0% Healthcare 14.2% Why Lyxor for US alternatives? 4.22% -7.20% 44.71% 13.89% 14.46% 1.96% 15.31% 92.77% 7.90% 12.05% #1 7yrs Unique The only US exposure to core infrastructure High ing Dividend s ranging from c. 3% to 4.2%* Accomplished Lengthy track record for FTSE EPRA / NAREIT United States ETF *Source: FTSE Russell, as at 30 June Past performance is not a reliable indicator of future results.

6 11 Global alternatives Recent economic prints in the eurozone and Japan are flashing green. The underlying trend remains strong in the US. Economic recovery may finally be going global. Could it be time to broaden your horizons? REITs can provide a long-term inflation hedge, as growing inflation can lead to higher property values and rising rents Listed private equity firms Tracking a global index of the top listed private equity companies can offer the upside of diversified private equity performance combined with daily liquidity. The numbers that matter FTSE EPRA/NAREIT Developed Net TRI USD of stocks 335 MSCI World 1,654 Top 3 sectors Real estate 70.2% Financials 28.9% Consumer Discretionary 0.6% Financials 19.1% Information Technology 15.9% Consumer Discretionary 12.4% Top 3 countries US 53.2% Japan 10.3% Hong Kong 7.8% US 57.1% Japan 8.7% UK 6.9% 3.99% -2.84% 41.14% 10.03% 10.87% 2.43% 16.12% 73.32% 6.92 % 10.73% Listed private equity firms The FTSE EPRA/NAREIT Developed Net TRI USD comprises approximately 330 real estate stocks and REITs from around the developed world The Private Equity Total Return index (PRIVEXD) tracks the performance of the 25 largest and most liquid global private equity stocks of stocks Top 3 sectors Top 3 countries The index is diversified across firms inved in a number of activities, including leveraged buy-outs, venture capital and growth capital Private Equity Total Return index in USD MSCI World 1, Financials 100% Financials 19.1% Information Technology 15.9% Consumer Discretionary 12.4% Sweden 24.9% Canada 19.3% Japan 17% US 57.1% Japan 8.7% UK 6.9% 2.90% 29.93% % 8.94% 14.00% 2.43% 16.12% 73.32% 6.92 % 10.73% The Private Equity index has outperformed MSCI World over 5 years by 45.8%* July 2012 July 2013 July 2014 July 2015 July 2016 July 2017 Why listed private equity with the PRIVEXD index? Unlike traditional unlisted private equity, PRIVEXD provides transparent exposure to private equity firms with no entry / exit constraints and no minimum investment amounts. Its main benefits are: Access to a representative benchmark of the entire publicly listed private equity universe More income than the MSCI World* Intraday liquidity and full transparency Potential outperformance over the long term * Source: Lyxor International Asset Management/Bloomberg, 30 July Past performance is not a reliable indicator of future results. Indices used in comparison are the MSCI Daily TR Net World USD and the Private Equity Total in USD. MSCI Daily TR Net World *Source: Lyxor International Asset Management, Bloomberg. Data period from 31/07/2012 to 31/07/2017. Past performance is not a reliable indicator of future results. Why Lyxor for Global alternatives? #1 Low cost 240 The first and cheapest ETF tracking global 220 listed private equity* 200 Private Equity Total Return High ing Dividend s ranging from c. 2.9% to 4%* 7yrs Accomplished Over 7 years track record for FTSE EPRA / NAREIT Global ETF *Source: Lyxor International Asset Management, Bloomberg, FTSE Russell, as at 31/07/2017. First and lowest cost listed private equity ETF is in relation to the European ETF market. Past performance is not a reliable indicator of future results

7 Product Snapshot ETF Name ISIN Main Ticker TER (bp) Income treatment Trading currency currency Benchmark ticker Europe Lyxor FTSE Developed Europe Core Infrastructure Capped UCITS ETF LU MAKE FP MAKE LN 50 Distributing EUR GBP EUR FDECICN Lyxor FTSE EPRA/NAREIT Developed Europe UCITS ETF FR MEH FP 40 Distributing EUR EUR NEPRA US Lyxor FTSE USA Core Infrastructure Capped UCITS ETF Lyxor FTSE EPRA/NAREIT United States UCITS ETF Global LU BUIL FP BILD LN BUIL LN 50 Distributing EUR USD GBP USD FUCICN FR MUA FP 40 Distributing EUR USD TRNUSU Venture further Lyxor FTSE EPRA/NAREIT Global Developed UCITS ETF FR MWO FP MWO LD 45 Distributing EUR GBP USD TRNGLU Lyxor PRIVEX UCITS ETF FR PVX FP 70 Distributing EUR USD PRIVEXD for Discover 25 ways to capture income With rate rises and tapering top of mind, income seekers could be in for a bumpy ride. We ve gone further than most to find the world s best equity and fixed income opportunities. Come and explore our range if you want to avoid the turbulence. Follow our lead. The original pioneers. lyxoretf.co.uk *Source: Lyxor International Asset Management, as at 31/07/2017 This communication is for professional clients only. This document is for the exclusive use of investors acting on their own account and categorised either as Eligible Counterparties or Professional Clients within the meaning of Markets In Financial Instruments Directive 2004/39/EC. These products comply with the UCITS Directive (2009/65/EC). Lyxor International Asset Management (Lyxor ETF) recommends that investors read carefully the investment risks section of the product s documentation (prospectus and KIID). The prospectus and KIID in English are available free of charge on and upon request to client-services-etf@lyxor.com. Lyxor International Asset Management (Lyxor AM), société par actions simplifiée having its registered office at Tours Société Générale, 17 cours Valmy, Puteaux (France), RCS Nanterre, is authorized and regulated by the Autorité des Marchés Financiers (AMF) under the UCITS Directive and the AIFM Directive (2011/31/EU). Lyxor ETF is represented in the UK by Lyxor Asset Management UK LLP, which is authorised and regulated by the Financial Conduct Authority in the UK under Registration

8 Knowing your risk It is important for potential investors to evaluate the risks described below and in the fund prospectus on our website Capital at risk ETFs are tracking instruments: Their risk profile is similar to a direct investment in the Underlying index. Investors capital is fully at risk and investors may not get back the amount originally invested. Replication risk The fund objectives might not be reached due to unexpected events on the underlying markets which will impact the index calculation and the efficient fund replication. Counterparty risk Investors are exposed to risks resulting from the use of an OTC swap with Société Générale. In-line with UCITs guidelines, the exposure to Société Générale cannot exceed 10% of the total fund assets. Physically replicated ETFs may have counterparty risk resulting from the use of a securities lending programme. Concentration risk Smart Beta ETFs select stocks or bonds for their portfolio from the original benchmark index. Where selection rules are extensive it can lead to a more concentrated portfolio where risk is spread over fewer stocks than the original benchmark. Underlying risk The Underlying index of a Lyxor ETF may be complex and atile. When investing in commodities, the Underlying index is calculated with reference to commodity futures contracts exposing the investor to a liquidity risk linked to costs such as cost of carry and transportation. ETFs exposed to Emerging Markets carry a greater risk of potential loss than investment in Developed Markets as they are exposed to a wide range of unpredictable Emerging Market risks. Currency risk ETFs may be exposed to currency risk if the ETF is denominated in a currency different to that of the Underlying index they are tracking. This means that exchange rate fluctuations could have a negative or positive effect on s. Liquidity risk Liquidity is provided by registered market-makers on the respective stock exchange where the ETF is listed, including Société Générale. On exchange, liquidity may be limited as a result of a suspension in the underlying market represented by the Underlying index tracked by the ETF; a failure in the systems of one of the relevant stock exchanges, or other market-maker systems; or an abnormal trading situation or event. Important information This communication is exclusively directed and available to Institutional Investors as defined by the 2004/39/EC Directive on markets in financial instruments acting for their own account and categorised as eligible counterparties or professional clients. This communication is not directed at retail clients. This document is issued in the UK by Lyxor Asset Management UK LLP, which is authorized and regulated by the Financial Conduct Authority in the UK under Registration Some of the funds described in this brochure are investment companies with Variable Capital (SICAV) incorporated under Luxembourg Law, listed on the official list of Undertakings for Collective Investment, authorised under Part I of the Luxembourg Law of 17th December 2010 (the 2010 Law ) on Undertakings for Collective Investment in accordance with provisions of the Directive 2009/65/EC (the 2009 Directive ) and subject to the supervision of the Commission de Surveillance du Secteur Financier (CSSF). These funds are sub-funds of either Multi Units Luxembourg or Lyxor Fund and have been approved by the CSSF. Alternatively, some of the funds described in this document are sub-funds of Multi Units France a French SICAV incorporated under the French Law and approved by the French Autorité des marchés financiers. Each fund complies with the UCITS Directive (2009/65/CE), and has been approved by the French Autorité des marchés financiers. Société Générale and Lyxor AM recommend that investors read carefully the risk factors section of the product s prospectus and Key Investor Information Document (KIID). The prospectus and the KIID are available in French on the website of the AMF ( The prospectus in English and the KIID in the relevant local language (for all the countries referred to, in this document as a country in which a public offer of the product is authorised) are available free of charge on lyxoretf.com or upon request to client-services-etf@lyxor.com The products are the object of market-making contracts, the purpose of which is to ensure the liquidity of the products on NYSE Euronext Paris, Deutsche Boerse (Xetra) and the London Stock Exchange, assuming normal market conditions and normally functioning computer systems. Units of a specific UCITS ETF managed by an asset manager and purchased on the secondary market cannot usually be sold directly back to the asset manager itself. Investors must buy and sell units on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units and may receive less than the current net asset value when selling them. Updated composition of the product s investment portfolio is available on www. lyxoretf.com. In addition, the indicative net asset value is published on the Reuters and Bloomberg pages of the product, and might also be mentioned on the websites of the stock exchanges where the product is listed. Prior to investing in the product, investors should seek independent financial, tax, accounting and legal advice. It is each investor s responsibility to ascertain that it is authorised to subscribe, or invest into this product. This document together with the prospectus and/or more generally any information or documents with respect to or in connection with the Fund does not constitute an offer for sale or solicitation of an offer for sale in any jurisdiction (i) in which such offer or solicitation is not authorized, (ii) in which the person making such offer or solicitation is not qualified to do so, or (iii) to any person to whom it is unlawful to make such offer or solicitation. In addition, the shares are not registered under the U.S Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States (including its territories or possessions) or to or for the benefit of a U.S Person (being a United State Person within the meaning of Regulation S under the Securities Act of 1933 of the United States, as amended, and/or any person not included in the definition of Non-United States Person within the meaning of Section 4.7 (a) (1) (iv) of the rules of the U.S. Commodity Futures Trading Commission). No U.S federal or state securities commission has reviewed or approved this document and more generally any documents with respect to or in connection with the fund. Any representation to the contrary is a criminal offence. This document is of a commercial nature and not of a regulatory nature. This document does not constitute an offer, or an invitation to make an offer, from Société Générale, Lyxor Asset Management (together with its affiliates, Lyxor AM) or any of their respective subsidiaries to purchase or sell the product referred to herein. These funds include a risk of capital loss. The redemption value of this fund may be less than the amount initially invested. The value of this fund can go down as well as up and the upon the investment will therefore necessarily be variable. In a worst case scenario, investors could sustain the loss of their entire investment. This document is confidential and may be neither communicated to any third party (with the exception of external advisors on the condition that they themselves respect this confidentiality undertaking) nor copied in whole or in part, without the prior written consent of Lyxor AM or Société Générale. The obtaining of the tax advantages or treatments defined in this document (as the case may be) depends on each investor s particular tax status, the jurisdiction from which it invests as well as applicable laws. This tax treatment can be modified at any time. We recommend to investors who wish to obtain further information on their tax status that they seek assistance from their tax advisor. The attention of the investor is drawn to the fact that the net asset value stated in this document (as the case may be) cannot be used as a basis for subscriptions and/or redemptions. The market information displayed in this document is based on data at a given moment and may change from time to time. Authorizations: Lyxor International Asset Management (Lyxor AM) is a French management company authorized by the Autorité des marchés financiers and placed under the regulations of the UCITS (2009/65/EC) and AIFM (2011/61/EU) Directives. Société Générale is a French credit institution (bank) authorised by the Autorité de contrôle prudentiel et de résolution (the French Prudential Control Authority. CONFLICTS OF INTEREST This research contains the views, opinions and recommendations of Lyxor International Asset Management ( LIAM ) Cross Asset and ETF research analysts and/or strategists. To the extent that this research contains trade ideas based on macro views of economic market conditions or relative value, it may differ from the fundamental Cross Asset and ETF Research opinions and recommendations contained in Cross Asset and ETF Research sector or company research reports and from the views and opinions of other departments of LIAM and its affiliates. Lyxor Cross Asset and ETF research analysts and/or strategists routinely consult with LIAM sales and portfolio management personnel regarding market information including, but not limited to, pricing, spread levels and trading activity of ETFs tracking equity, fixed income and commodity indices. Trading desks may trade, or have traded, as principal on the basis of the research analyst(s) views and reports. Lyxor has mandatory research policies and procedures that are reasonably designed to (i) ensure that purported facts in research reports are based on reliable information and (ii) to prevent improper selective or tiered dissemination of research reports. In addition, research analysts receive compensation based, in part, on the quality and accuracy of their analysis, client feedback, competitive factors and LIAM s total revenues including revenues from management fees and investment advisory fees and distribution fees.

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