- Press Release -

Paris, September 29th, 2016

Lyxor strengthens its innovative fixed income range with the launch of the multi-manager Evolution fund

Lyxor Asset Management (“Lyxor”) announces the launch of the Lyxor Evolution Fixed Income fund (“Evolution”), the first alternative multi-manager fixed income fund with daily liquidity in a UCITS format. Evolution enables investors to harness new performance drivers in order to generate returns in a near zero interest rate universe.

In this context of historically low interest rates, investors are faced with an “asymmetric” risk between the very low returns generated by fixed income and the risk of a rise in interest rates. Investors hence need to consider new approaches in order to capture yields that can still be generated in the current fixed income market environment.

While traditional fixed income levers, based notably on a long-only approach, are running out of steam, Evolution provides a response that is innovative both in its design and structure. Evolution’s innovative design provides investors with access to a wide range of bespoke alternative strategies, all involving exclusively fixed income, credit and forex underlyings, and managed by the industry’s leading players (see appendix for full details):

 Fixed income strategies  Long- strategies, which are naturally less directional than long-only strategies and offer low correlation to long-only benchmarks  Trend-following strategies

This combination of strategies offers investors exposure to a mix of diversified and new performance drivers – credit, carry, liquidity, volatility, momentum, and duration – thereby providing them with a solution tailored to the asymmetric risk universe which they face. Designed as an alternative UCITS with daily liquidity, Evolution also has an innovative structure as it gives investors access to five different strategies via a single investment, thereby providing them with a simple and cost-efficient solution.

The Evolution fund strengthens Lyxor’s range of fixed income and credit funds, whose have grown rapidly in recent years and now stand at €20 billion*. Lyxor has developed a range of innovative investment solutions including passive, active and alternative management approaches, based on its own investment strategies or relying on its recognised fund selection expertise. These solutions, which cover the full spectrum of liquidity and the entire yield curve, are

PRESS RELATIONS LYXOR ASSET MANAGEMENT LYXOR ASSET MANAGEMENT Simplified Private Limited Company with share capital of € 161 106 300 Nathalie Boschat – Head of Communications Tel: +33 1 42 13 84 84 Nanterre Trade Register No. 418 862 215 [email protected] APE No.: 652E

Registered Office: 17 cours Valmy 92987 Paris La Défense Cedex

1/4 intended to offer investors new sources of return tailored to their risk profile (cash management solutions using a new collateral management approach, access to “niche” underlyings via financial and corporate credit and French SME debt, diversifying alternative strategies) and their regulatory constraints (management of bank liquidity cushions).

Lyxor Evolution fund was launched in August with USD 100 million of capital. Assets under management currently stand at USD 180 million.

The Fund, which is now passported into 10 countries, is available on Lyxor’s Alternative UCITS Platform in USD, EUR , GBP, JPY, CHF, HKD and SGD. Evolution is one of the ten funds on Lyxor’s fast-growing $2.4bn Alternative UCITS platform*, illustrating investors’ growing appetite for liquid and transparent investment vehicles in today’s complex and volatile financial markets environment.

*as of end of August 2016, source: Lyxor

Media Contact:

Lyxor Asset Management Mehdi Aliouat, Media Relations Tel.: +33 1 58 98 17 09 E-Mail : [email protected]

Notes to editors:

Lyxor Asset Management Group - www.lyxor.com

Lyxor Asset Management Group ("the Lyxor group"), wholly-owned directly or indirectly by Societe Generale and composed notably of two subsidiaries(1)(2), is a European asset management specialist, an expert in all investment styles, active, passive or alternative. From ETFs to multi-management, with €114.5 billion* under management and advisory, Lyxor group creates innovative investment solutions to meet the long-term challenges of managing savings. Thanks to its experts and its engineering tradition and research, Lyxor group provides a recognised combination of performance and rigorous risk management.

(1) Lyxor Asset Management S.A.S. is approved by the «Autorité des marchés financiers» (French regulator) under the agreement # GP98019. (2) Lyxor International Asset Management S.A.S. is approved by the «Autorité des marchés financiers» (French regulator) under the agreement # GP04024.

* Including €13.6bn assets under advisory. Equivalent to $127.3bn in assets under management and advisory (including $15.3bn assets under advisory) at the end of June 2016

Appendix:

DETAILS OF LYXOR EVOLUTION FIXED INCOME

The multi-manager structure offers investors a dedicated selection of alternative strategies via a single investment. The initial portfolio, established as a Lyxor managed account, consists of five complementary strategies with day-to-day liquidity. Each strategy is specifically designed for this fund and functions as an individually manged sub-account (or “sub-fund”) of the main portfolio:

- A sovereign bond strategy managed by Goldman Sachs1, - A mortgage-backed securities strategy managed by PIMCO2, - A high yield strategy managed by Muzinich3, - An emerging markets debt strategy managed by Finisterre4, - A CTA trend-following strategy managed by Epsilon5,

1 Goldman Sachs Asset Management International, managing the Goldman Sachs Strategic Macro Bond strategy: The Goldman Sachs Strategic Macro Bond strategy aims to provide exposure beyond traditional asset classes by employing a number of macro focused investment strategies across the global fixed income and currency markets with the aim of generating long-term absolute returns. The management team seeks to form long-term views as well as identify short-term tactical opportunities in a number of macro-focused investment strategies including duration, country, currency, government & swaps. 2 PIMCO Europe Limited, managing the PIMCO Mortgage Strategy (MARS) strategy: The PIMCO MARS strategy is an absolute return-oriented Mortgage-Backed Securities (MBS) strategy fund focused on best ideas across Agency MBS relative value (long/short strategies), opportunistic mortgage credit and mortgage derivatives.

3 Muzinich & Co. Limited, managing the Muzinich Long Short Credit Yield strategy: The Muzinich L/S Credit Yield strategy seeks to deliver compelling risk‐adjusted returns using a long‐short credit strategy. It consists in a dynamic absolute return portfolio with an emphasis on high yield corporate bonds. It focuses on attractive relative value opportunities across the US and European corporate credit markets.

4 Finisterre Malta Limited, managing the Finisterre Emerging Markets Debts strategy: The investment objective of the Finisterre Emerging Markets Debts strategy is to generate medium to long term positive total returns from a combination of current income and capital appreciation by investing in global emerging market securities. Finisterre emerging markets strategies cover a variety of asset classes, including sovereign debt, local currency debt, corporate credit and foreign exchange. It will take long and synthetic short positions and use financial instruments

5 Lyxor Asset Management, managing the Epsilon Fixed Income & Currencies strategy: The Epsilon Fixed Income & Currencies strategy is a trend-following strategy focused on fixed income and currency markets. It aims at generating absolute returns over the medium to long term, with low correlation to traditional bond portfolios.

This Communication is for Professional Clients only in the UK.

Prior to investing in the product, investors should seek independent financial, tax, accounting and legal advice. The net asset value (“NAV”) of the product may at any time be subject to significant price movement, which may in certain cases lead to the loss of the entire amount invested. Income (if any) may fluctuate in accordance with market conditions and taxation arrangements. It is each investor’s responsibility to ascertain that it is authorised to subscribe, or invest into this product. 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 AM or any of their respective subsidiaries to purchase or sell the product referred to herein. This communication is for professional clients only and is not directed at retail clients.

Société Générale is a French credit institution (bank) authorised by the Autorité de contrôle prudentiel (the French Prudential Control Authority). Lyxor Asset Management (Ireland) Limited is authorised and regulated by the Central Bank of Ireland. Lyxor Asset Management (Lyxor AM) is a French investment management company authorized by the Autorité des marchés financiers and placed under the regulations of the UCITS Directive (2009/65/CE). This communication is issued in the UK by Lyxor Asset Management UK LLP, which is authorised and regulated by the Financial Conduct Authority in the UK under Registration Number 435658.

Important Notice

This press release does not constitute an offer of securities or a recommendation to enter into any transaction. Shares in the Fund may not be offered, sold or delivered directly or indirectly in the United States or to or for the account or benefit of any U.S. person and will not be registered under the Securities Act of 1933, as amended.