perspectives 01.2010 en

macro analysis2010: A changing world

asset allocation Allocation 2010: a new era or a new downturn?

products FocusSome investment ideas for 2010

perspectives 2010 forecast

www.am.natixis.com

Cover picture: © dubassy / Shutterstock

Macroeconomic Analysis

Asset Allocation

Market Data

Product Focus

News

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NAtixis Asset MANAgeMeNtLimited Liability CompanyShare Capital 50 434 604,76 €RCS Number 329 450 738 ParisRegulated by AMF under n°GP 90-009Registered Office: 21 quai d’Austerlitz75 634 Paris, Cedex 13 - Tel. +33 1 78 40 80 00

www.am.natixis.com

NAtixis MultiMANAgerSubsidiary of Natixis Asset ManagementA French simplified joint-stock companyShare Capital of 7 536 452 euros - RCS Number 438 284 192 ParisRegulated by AMF under n°GP 01-054Registered Office: 21 quai d’Austerlitz75 634 Paris, Cedex 13 - Tel. +33 1 78 40 32 00

www.multimanager.natixis.com

Publishing Director: F. LenoirEditorial Committee: T. Benoist, S. de Quelen, Ph. Le Mée, R. Monclar, F. Nicolas, Ch. Point, M-L. Rouy, J-P. Snel, B. Thiery, Ph. WaechterCoordination - Writing: N. ClémotHead of design: F. DupertuysContributors: L. Faure, M. Louvrier

The funds mentioned in this material are not registered or authorized in all jurisdictions and may not be available to all investors in a jurisdiction. Natixis International Funds (Lux) I is organized as an investment company with variable capital under the laws of the Grand-Duchy of Luxembourg and is authorized by the financial regulator (the CSSF) as a UCITS. Natixis Global Associates S.A. is the management company of the Fund. The provision of this material does not constitute an offer of services, nor an offer or recommendation to purchase or sell shares in any financial instrument. Investors should consider the investment objectives, risks and expenses of any investment carefully before investing. In the case of a fund, these can be found in the fund’s prospectus or offering memorandum, which should be read carefully before investing. If you would like further information about any of the funds, including charges, expenses and risk considerations, contact the sender of this document or your financial advisor for a free prospectus, simplified prospectus, copy of the Articles of Incorporation, the semi and annual reports, and/ or other materials and translations that are relevant to your jurisdiction. Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time. Performance data shown represents past performance and is not a guarantee of future results. More recent performance may be lower or higher. Principal value and returns fluctuate over time (including as a result of currency fluctuations) so that shares, when redeemed, will be worth more or less than their original cost. Performance shown is net of all fund expenses, but does not include the effect of sales charges or correspondent bank charges, and assumes reinvestment of distributions. If such charges were included, returns would have been lower. The analyses, opinions, and certain of the investment themes and processes referenced herein represent the views of the author(s) referenced 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.

In certain cases, this material is provided by one of the Natixis Global Associates entities listed below, each of which is a subsidiary of Natixis Global Asset Management, the holding company of a diverse

line-up of specialised investment management and distribution entities worldwide, each of which conduct any regulated activities only in and from the jurisdictions in which they are licensed or authorized. Their services and the products they manage are not available to all investors in all jurisdictions. Although Natixis Global Associates believes that the information provided in this material to be reliable, it does not guarantee the accuracy, adequacy, or completeness of such information. • In the UK: This material is provided by Natixis Global Associates UK Limited which is authorised and regulated by the UK Financial Services Authority (register no. 190258). This material is intended to be communicated to and/or directed at persons (1) in the United Kingdom, and should not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell securities in any other jurisdiction than the United Kingdom; and (2) who are authorised under the Financial Services and Markets Act 2000; or are high net worth businesses with called up share capital or net assets of at least £5 million or in the case of a trust assets of at least £10 million; or any other person to whom the material may otherwise lawfully be distributed in accordance with the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 or the (Promotion of Collective Investment Schemes) (Exemption) Order 2001 (the "Intended Recipients"). To the extent that this material is issued by Natixis Global Associates UK Limited, the fund, services or opinions referred to in this material are only available to the Intended Recipients and this material must not be relied nor acted upon by any other persons. Registered Address: Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA. • In the E.U. (outside of Germany, Austria, Italy and the UK): This material is provided to the investment service provider or other Professional Client or Qualified Investor who has requested it by Natixis Global Associates S.A. or its branch office in France, Natixis Global Associates International. Natixis Global Associates 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 115843. Registered office of Natixis Global Associates S.A.: 2-8 Avenue Charles de Gaulle, L-1653 Luxembourg, Grand Duchy of Luxembourg. Registered

office of Natixis Global Associates International (n.509 471 173 RCS Paris): 21 quai d'Austerlitz, 75013 Paris.• In Germany and Austria: This material is intended to be communicated to and/or directed at persons in Germany and Austria by Natixis Global Associates Germany GmbH, a tied agent of Natixis Global Associates UK Limited. In the case the fund(s) referenced within this material is/are not registered in Germany or Austria, this material is intended to be communicated to and/or directed at persons who are (a) lawfully authorized to receive this material under the provisions of § 2 (11) paragraph of the German Investment Act or (b) Qualified Investors as defined in Article 1 (1) 5a of the Austrian Capital Market Act (“Intended Recipients”). To the extent that this material is issued by Natixis Global Associates Germany GmbH, the fund, services or opinions referred to in this material are only available to the Intended Recipients and this material must not be relied or acted upon by any other person. Registered office of Natixis Global Associates Germany GmbH (Frankfurt am Main HRB 45540): Im Trutz Frankfurt 55, Westend Carrée, 7. Floor, Frankfurt am Main 60322, Germany. • In Italy: This material is provided to the investment service provider or other Professional Client or Qualified Investor who has requested it by Natixis Global Associates Italia SGR, S.p.A., an investment management company (“Societa’ di Gestione del Risparmio”) registered and regulated by the Bank of Italy (registration no. 119, code no. 15143.1). Registered office: Via San Clemente, 1 - 20122, Milan, Italy.• In Switzerland: This material is provided to Qualified Investors by Natixis Global Associates Switzerland Sàrl. Registered office: place de la Fusterie 12, 1204 Genève.• In the DIFC: This material is provided in and from the DIFC financial district by Natixis Global Associates Middle East, a branch of Natixis Global Associates UK Limited, which is regulated by the DFSA. Related financial products or services are only available to persons who have sufficient financial experience and understanding to participate in financial markets within the DIFC, and qualify as Professional Clients as defined by the DFSA. Registered office: PO Box. 118257, 5th

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this material has been prepared by Natixis Asset Management, a subsidiary of Natixis global Asset Management. Natixis Asset Management is a French asset manager authorized by the Autorité des Marchés Financiers (Code 1200009, Agreement No. gP90009) and licensed to provide investment management services in the eu.

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ContactsProspectus and sales documents required for subscription are available on demand:

n Natixis Global Associates (Operations): [email protected] or CACEIS Luxembourg (Prime Transfer Agent): [email protected] (352) 47 67 70 78n or Natixis Asset Management (Clients servicing): [email protected]

1January 2010www.am.natixis.com

philippe zaouatiHead of Business Development

As we begin the year, I would like to send you our good wishes for 2010, from all the teams at Natixis Asset Management.This January issue is devoted to the macroeconomic outlook and forecasts for the 2010 allocation strategies, with analysis by Philippe Waechter, Chief Economist and Franck Nicolas, Head of Global Asset Allocation and ALM.

According to Philippe Waechter, the global economy was in a something of a strange and original situation as 2009 drew to a close. Emerging countries seem to have already absorbed the shocks arising from the economic crisis, while developed countries

are encountering greater difficulties in managing its consequences. In Philippe Waechter’s view, the interaction between developed and emerging countries will be a key factor in 2010. In his Macroeconomic Analysis, he also reminds us that the pick-up in activity since spring 2009 owes much to the massive support injected by central banks and governments, which rules out a sudden change or an immediate withdrawal of accommodative economic policies.Franck Nicolas also sees a somewhat chaotic activity profile ahead, which will make portfolio construction more difficult in 2010. In his Asset Allocation, he looks at trends for 2010: "new era or a new downturn?". He sets out the most plausible scenarios for the year according to Natixis Asset Management, while noting the points on which to be vigilant.

Although the economy is beginning to recover, this has yet to filter through to the markets in a stable and consistent way. Against this backdrop, Natixis Asset Management offers you, in its Products Focus section, a selection of bond and equity market funds that aim to adapt to particular market configurations.This issue also includes a summary of Natixis Asset Management’s international offer [pages 6 to 8].

Lastly, in the wake of the Copenhagen Summit, a special issue of Perspectives dedicated to the Climate Change expertise developed by Natixis Asset Management is attached to this January edition. You can also find all the latest Climate Change expertise news on the dedicated website:www.am.natixis.com/climatechange/eng

Enjoy reading it,

editorial

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2 January 2010 www.am.natixis.com

n The difficulties of developed countriesThe macroeconomic situation of developed countries is now becoming clear.Firms are adjusting to the new environment, particularly as regards employment. They are finding room for maneuver and scope to satisfy demand where it arises. Households are opting for prudence and tightening their belts in light of the sluggish labor market.The pick-up in activity that has occurred since spring 2009 owes much to the massive support injected by central banks and governments. The virtuous dynamic between firms and households has yet to be restored. The withdrawal of accommodative economic policies will therefore be complex to implement as these have been fuelling the demand that has benefited firms. This situation will continue in 2010 but could change if the industrialized countries find a way of tapping into emerging countries’ growth. Germany has already managed this.

n Relationship between developed and emerging countriesInteraction between developed and emerging countries will be a key factor in 2010.Emerging countries have been able to return to high activity levels despite the recession that continues to affect developed countries.This situation translates into greater autonomy and the development of commercial and financial links between emerging countries. Given their domestic difficulties following the crisis, the industrialized countries will be keen to harness the growth of emerging countries in a more direct way. This will be all the more pressing as there has not so far been a similar recovery in the United States or in Europe. The situation of SMEs has improved far less than that of other firms - a fragility (along with potentially significant losses) reflected in the numbers of SMEs that have closed. Within this mixed picture there is a factor of uncertainty.

2010: a changing world

Macro Analysis

As 2009 draws to a close, the global economy is in a something of a strange and original situation.

Many emerging countries have already absorbed the sharp shock that affected the entire world at the end of 2008. The pace of activity in these countries has now equaled or exceeded the level reached before the crisis. This is the case of China, as well as South Korea and Brazil.Developed countries are still a long way off achieving this. For these countries, a recovery took place in spring 2009. However, activity levels at the end of the third quarter were between 3% and 8% below the highest point of the first half of 2008.For the United States and Europe, this state of affairs has led to a significant drop in employment. To shore up their margins, firms have shed workers to match levels of activity, pushing up an already very high unemployment rate even further.

The pick-up in activity will change the outlook and lead to new jobs being created in the first half of 2010, although the severity of the decline and the large numbers of job losses will mean that it will be some time before the unemployment rate falls to any great extent. This ongoing situation will engender considerable uncertainty for households. Given that asset prices (particularly for real estate) are still very low, such an environment is likely to bring about an increase in the savings rate.

philippe WaechterChief Economist of Natixis Asset Management


n Towards an improvement in 2010Activity will improve in 2010, but at a moderate pace that is way below what would be expected at the end of a recession. The combination of three crises - in finance, banking and the economy - has had a profound effect on behavior. All these shocks have had a long-term impact preventing a spontaneous return to the previous trend.

In the United States, the implementation of a new stimulus package that could be focused on employment in SMEs will provide reassurance on the strength and sustainability of the recovery.

In Europe, the situation varies between countries. A number of countries have a growth model that is no longer operating as it did before the crisis. Spain, Ireland, Greece and Portugal will have to identify new sources of growth to revitalize their economies, replacing the old model that is no longer effective. This will hinder rapid improvement in growth prospects for Europe as a whole. In addition, bond yield

volatility (particularly in Greece and Ireland) represents a source of uncertainty that will penalize the entire continent.

The fragile nature of the economies of the industrialized countries is reflected in an absence of pressure on production capacity and the labor market. As a result, the acceleration seen at the beginning of the year due to an unfavorable comparison of energy prices will not continue. The inflation rate is likely to move in tandem with oil prices. If oil prices stabilize, even at around USD 70-80 per barrel, the average inflation rate will remain very low over the year.

n Central bank policiesFor the central banks of the industrialized countries, the global situation suggests that key interest rates should remain very low. The monetary authorities regularly reiterate this message so as to stabilize investors’ expectations of the markets. The central bankers demonstrate their willingness to make commitments in order to avoid harming the recovery. This recurring

theme is perceived as rational and credible by financial market operators as inflation expectations are very low. Key interest rates should therefore remain relatively stable throughout 2010.

As for the emerging countries, the situation will be more complex because the economic cycle is already advanced and generating constraints, as indicated by the Bank of Australia(1), which raised its key interest rates three times in the fall of 2009 in order to adjust these to a level appropriate to the economic cycle. We cannot rule out other movements in 2010 in Brazil, South Korea or Argentina. The particular nature of the current cycle would then emerge immediately, since the emerging countries would adopt more aggressive strategies, more rapidly than the industrialized countries. This shift in the balance of power also reflects a changing world.

Written on 18/12/2009

GDP growth (base 100 in 2005)

95

100

105

110

115

120

2004 2005 2006 2007 2008 2009

BrazilSouth KoreaFranceUnited StatesEuro-zoneJapan

Period: 2004 - 3Q 2009

Source: Datastream - Natixis Asset Management calculations

(1) For more information: www.rba.gov.au


allocation 2010: a new era or a new downturn?

Asset Allocation

Portfolio construction promises to be particularly uncertain in 2010 as long as the opposing forces appear balanced, leaving a large number of possibilities open. The most plausible scenario for Natixis Asset Management is one where aggregates and markets continue to improve, leading to a year of transition, which would still be positive for high-risk assets. However, there are numerous pitfalls and if certain risks become reality, this could turn the scenario around.

Franck nicolasHead of Global Asset Allocation & ALM

n Crucial steps for 2010Company results: there are high expectations concerning an increase in turnover. Although company margins have been maintained through cost reduction, only an increase in profits through taking more orders and resuming sales would trigger an investment cycle that would reduce unemployment. Any disappointment over one or two additional quarters would spread doubt in the markets. Market confidence remains a decisive factor in sustaining the upward movement in equities and in any expansion in price/earnings ratios.

Monetary policy: we believe it would be premature to forecast any exit policies. Monetary policies should continue to deviate from the standard for quite some time, if only to avoid the risk of deflation and a renewed downturn in the system. However, any mistakes in this area (which would send a restrictive signal to the market) or a tightening in emerging countries (if inflation peaks) would be obviously harmful for interest-rate markets and for high-risk assets.

Public deficits: as it is clear that governments have no more margin for maneuver in reflating the economy at this stage of indebtedness, spreads in the least well-regarded government bonds are coming under pressure. This would argue for the construction of a euro debt. The market might want to test solidarity between governments of the euro zone. How far might they push this?

Commodities prices: if growth increases more than expected (a hypothesis that remains an alternative scenario for Natixis Asset Management), the price of energy would quickly move towards the highs of spring 2008. This would act as another constraint for both industrialized and emerging countries, corresponding to a form of imported inflation. Although this would only have a temporary effect on price acceleration, it could do lasting damage to competitiveness in relation to emerging countries, which are both consumers and producers.

The dollar: although the Greek debt crisis at the end of 2009 quickly gave the dollar some breathing space, it was speeding on its way towards testing 1.60 against the euro. Going beyond the very harmful effects that this would have for European exports, we

may wonder whether the United States might not, at some stage, be obliged to defend its currency at the expense of the recovery by raising interest rates (which remains the only possible way of defending the exchange rate).

n The 2010 reference portfolioIt is quite clear that many obstacles remain, even though they have not been comprehensively mentioned here. However, a less difficult road remains a possibility. The reference portfolio currently proposed by Natixis Asset Management is as follows:

• overexposure in equities: especially in the United States (if the dollar recovers in the second part of the year under the effect of a positive interest-rate differential if the Fed tightens) and in Asia and the emerging countries (because of their strong growth). However, our analysis is unfavorable to Europe, where the fundamentals will recover less quickly, and Japan still restrained by a strong yen. In equities, we recommend a defensive strategy, in companies capturing emerging demand by exporting know-how or technology.

• highly diversified under-exposure to interest rates: a gradual preference for short rates (the EONIA should move towards base rates), emerging-country bonds, credit and convertibles, to which we might add a small investment in indexed securities. All of this would be accompanied by a gradual withdrawal from fixed rates if the recovery takes place.

• changes of direction in currencies: it is clear to us that the yen is overvalued and the British pound is undervalued. The dollar should recover during the year.

• commodities: following Natixis Asset Management's thinking concerning inflation-indexed securities, the presence of commodities in the portfolio is the only way of providing real protection against inflationary escalation (which, however, remains hypothetical). Gold should lose a little of its shine over the year.

Written on 18/12/2009


Yield spreads with Germany have experienced two distinct phases. • First, there was a liquidity crisis on most of the euro-zone's

bond markets, and spreads with Germany widened sharply between October 2008 and March 2009.

• A period of normalization followed, with a reduction in pressures and the injection of liquidity by central banks.

This was not the case for Greece and Ireland, however, where the sustainability of the public finances came under intense scrutiny. Ireland subsequently modified its fiscal policy to tackle the problem of sustainability. Greece, whose bond yields were affected by the downgrade in its credit rating on 9 December, did not take similar action. The absence of a credible response to the rating agencies’ questions on its fiscal policy led to further widening of the yield spread with Germany. Greece will not leave the euro-zone, but its situation will represent a precedent for the resolution of problems arising in the euro-zone. As a result, pressures could continue to be in evidence.

The monthly Index

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100

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jan apr jul oct jan apr jul oct

FranceGreeceIrelandSpain

Source: Natixis Asset Management

Value 1 year 2009 CAC 40 3 936.33 22.32 % 22.32 %CAC Mid 100 6 094.31 37.81 % 37.81 %IT CAC 20 3 369.72 15.76 % 15.76 %SBF 120 2 859.47 23.73 % 23.73 %SBF 250 2 789.32 23.90 % 23.90 %

Value 1 year 2009 MSCI Europe 88.28 27.15 % 27.15 %Euro Stoxx 50 2 964.96 20.95 % 20.95 %DAX 5 957.43 23.85 % 23.85 %Footsie 5 412.88 22.07 % 22.07 %

Value 1 year 2009 Dow Jones 10 428.05 18.82 % 18.82 %S&P 500 1 115.10 23.45 % 23.45 %Nasdaq 2 269.15 43.89 % 43.89 %Brent Crude Future 77.93 70.94 % 70.94 %

Value 1 year 2009 Nikkeï 10 546.44 19.04 % 19.04 %Hong Kong 21 872.50 52.02 % 52.02 %Singapore 2 897.62 64.49 % 64.49 %Shanghaï 252.41 127.56 % 127.56 %

Value 1 year 2009 MSCI World 1 168.47 26.98 % 26.98 %

Rate 1 year 2009Eonia 0.410 % -1.942 -1.942Euribor 3 months 0.700 % -2.192 -2.192Euribor 6 months 0.994 % -1.977 -1.977Euribor 1 year 1.248 % -1.801 -1.801Fed Funds 0.050 % -0.040 -0.040

Rate 1 year 2009 5 years French Treasury Bond 2.479 % -0.254 -0.2545 years USTN 2.686 % 1.134 1.13410 years French Treasury Bond 3.593 % 0.179 0.17910 years USTN 3.833 % 1.619 1.61930 years French Treasury Bond 4.260 % 0.535 0.53530 years USTN 4.630 % 1.962 1.962

Value 1 year 2009 Euro/Dollar 1.435 3.22 % 3.22 %Euro/Yen (100) 133.568 6.00 % 6.00 %Euro/Sterling 0.889 -8.11 % -8.11 %Dollar/Yen 93.095 2.70 % 2.70 %

Money Market

Fixed income

Currencies

France

Europe

United-States

Asia

World

Les taux d'intérêt en zone euro

Market DataAs of 31/12/2009

*Greece Rating downgraded from A- to BBB+ by Fitch Ratings on December 8, 2009.

Ten-year bond yields in 2008/2009 - Spread with Germany


These 7 sub funds of the Natixis International Funds (Lux) I SICAV reflect the key expertise of Natixis Asset Management

I, A EUR LU0161120547I, D EUR LU0391146155R, A EUR LU0161121271R, D EUR LU0390502184

H-I, A USD LU0390502267H-I, D USD LU0390502341I, A EUR LU0255251166I, D EUR LU0255251596R, A EUR LU0255251679R, D EUR LU0255251752


• Investment universe: Mainly Euro denominated government or private issuers rated Investment / Diversifying fixed income assets

• Benchmark: Barclays Capital Euro Aggregate• Minimum recommended investment period: 3 years

• Investment universe: International inflation-linked bonds • Benchmark: Barclays World Government Inflation linked all

maturities Index hedged in euro• Minimum recommended investment period: 2 years• Risk Indicator: Target tracking-error ex ante of 2%(maximum)

• Investment universe: Mainly Euro-denominated investment grade debt securities issued by OECD as well as cash, money market instruments or other securities

• Benchmark: Barclays Euro Aggregate Corporate Index• Minimum recommended investment period: 3 years

Isabelle Delannée-Méric

Sophie Potard

Christine Barbier

Benefit from a broad range of fixed income investment opportunities

Get the most out of diversification in inflation-indexed bonds in a global universe

Benefiting from the SRI expertise of Natixis Asset Management through a socially responsible portfolio of

investment grade corporate bonds

Natixis Euro Aggregate Plus Fund

Natixis Global Inflation Fund

Natixis Impact Euro Corporate Bond Fund

See the full prospectus which is the only legally binding document. See the Legal Information on page 2 for important information about the funds.

Overwiew of our international Product rangesub funds of the natixis international F unds (lux) i sicaV managed by natixis am


I, A EUR LU0147917792I, A USD LU0095830922I, D USD LU0095831060R, A EUR LU0147918923R, A USD LU0084288595R, D USD LU0084288678

I, C EUR LU0095828512I, D EUR LU0095828785R, C EUR LU0066549592R, D EUR LU0066549832



• Investment universe: Emerging Europe Equities• Benchmark: None (MSCI Emerging Europe Index: indicative only)• Minimum recommended investment period: 5 years• Risk Indicator: Target tracking-error ex ante between

6 and 10

• Investment universe: European Small and Mid Equities• Benchmark: None (MSCI Europe Small Caps NDR: indicative only)• Minimum recommended investment period: 5 years• Risk Indicator: Target tracking-error ex ante between 4 and 7

(indicative)

• Investment universe: Eurozone Equities• Benchmark: None (MSCI EMU NDR: indicative only)• Minimum recommended investment period: 5 years

• Investment universe: European equities• Benchmark: None (MSCI Europe: indicative only)• Minimum recommended investment period: 3 years

Matthieu Belondrade François Théret

Thierry Cuypers

Olivier Lefèvre

Christine Lebreton

Get the most out of the growth in the emerging European zone as part of a conviction management strategy

Benefiting from the potential of European Small & Midcaps within the scope of a

conviction-based strategy

Tapping the potential of Eurozone value equities within the scope of a conviction-based strategy

Active and responsible investing to maximise SRI value added

Natixis Europe Smaller Companies Fund

Natixis Euro Value Fund

Natixis Impact Europe Equities Fund

See the full prospectus which is the only legally binding document. See the Legal Information on page 2 for important information about the funds.

Natixis Emerging Europe Fund


Overwiew of our international Product rangenatixis asset management's funds offer a range of expertise and innovation

28 complementary funds covering all asset classes. This quarterly reviewed list of funds aims to highlight Natixis Asset Management's most innovative products and its wide range of expertise.

Alte

rn.

Natixis Constellation European Event IC, $: LU0161071237 IC, €: LU0161073951

Abso

lute

re

turn Natixis Absolute Quant Bond 18 M I: FR0010232348 R: FR0010249219

Natixis Absolute Swap Arbitrage IC: FR0010654921 RC: FR0010657924

Bala

n-ce

d Natixis Absolute Multistratégies IC: FR0010688812

Mo

ney

Mar

ket

Natixis Cash Première C: FR0010157834

Natixis Cash A1P1 C: FR0010322438

Natixis Impact Cash C: FR0010008003

Natixis Cash Eonia I: FR0010298943 R: FR0007084926

Natixis Tréso Euribor 3 Mois FR0000293714

Natixis Tréso Plus 3 Mois FR0007075122

Natixis Dollar Reserve FR0007003348

These funds are authorized for sale in France and possibly in other country(ies) where their sale is not contrary to local legislation. Please refer to legal information of this material.

Asset class Fund name Share and ISIN code

Fixe

d in

com

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Natixis Souverains Euro 1-3 I: FR0010208421

Natixis Souverains Euro 3-5 FR0010036400



Natixis Souverains Euro RC: FR0000003196

Natixis Inflation Euro I: FR0007475413 R: FR0010170944

Natixis Obli Opportunités 12 Mois I : FR0010796391 R : FR0007493226

Natixis Crédit Euro I: FR0010171108 R: FR0010690966

Natixis Convertibles Euro I: FR0010658963 R: FR0010660142

Natixis Convertibles Europe C: FR0010171678

eq

uiti

es

Natixis Actions Europe Dividende IC: FR0010582478 RC: FR0010573782

Natixis Impact Life Quality C: FR0010410274 E: FR0010458539

Natixis Actions Europe Convictions C: FR0010346429

Natixis Actions US Value I: FR0010256412 R: FR0010236893

Natixis Actions US Growth I: FR0010256404 R: FR0010236877

Sonic Monde I: FR0010555797 RC: FR0000993446

Natixis Actions Global Emergents I: FR0010711051 R: FR0010706960


Products Focus

(2) Rated by the rating agencies:- for securities of the money-market type: between A1+ and A2 according to S&P or between P1 and P2 according to Moody's;- for securities of the bond type: between one and three years: from AAA to BBB according to S&P or from Aaa to Baa2 according to Moody’s and between three and five years: from AAA

to A- and from Aaa to A3 respectively;- for supranational or OECD government securities in excess of five years: from AAA to AA or from Aaa to Aa2.

(1) Sécuripremière FCP is exclusively invested in securities denominated in euros and issued or guaranteed by the member states of the European Community or the other states coming within the European Economic Area.

some investment ideas for 2010

n Sécuripremière FCP (I, C share: FR0000401622)A bond approach for boosting your short-term investments in 2010

n Natixis Absolute Strategic Bond (I, C share: FR0010008250)An opportunistic approach in all bond asset classes to take advantage of market configurations over 2010

Faced with an economic environment that is on the road to recovery, but where financial markets still look rather shaky, Natixis Asset Management presents a selection of funds aiming to adapt to the specific market configurations of the beginning of 2010, both in bond markets and equity markets.

To cope with a market configuration that lacks a defined trend and is not clearly predictable, absolute performance funds, such as Natixis Absolute strategic Bond and sécuripremière FCP offer flexible strategies in bonds and money-market assets.

While the recovery looks like being uneven according to geographical zones and business sectors, it is also advisable to take an interest in zones driven by growth opportunities, as in the emerging markets, through funds such as Natixis Actions global emergents, or to concentrate on management strategies that favor the rigorous selection of sectors and securities with high potential in the developed economies, as implemented in Natixis Actions us Value, a Value equity fund.

In 2008, faced with the risk of a systemic crisis in the financial system, the central banks aggressively cut rates and implemented a very flexible monetary policy resulting in significant issues of liquidity in the market. This caused an unprecedented drop in yields in money-market investments, reflected in an EONIA at historically low levels.

At the beginning of 2010, while the recovery is emerging and the risk of a Japanese-style scenario appears unlikely, investors are again looking for performance in their short-term investments, while retaining a prudent approach. The Sécuripremière FCP offers an interesting compromise in this respect, over a recommended minimum investment period of from

3 to 6 months. It offers an opportunistic approach over the short part of the bond curve, with the objective of outperforming the EONIA, while limiting the risk of a decline in liquid value over a monthly timeframe.

Composed of quality sovereign debt(1), Sécuripremière FCP is based on dynamic and non-benchmarked management, which looks to leverage opportunities offered in the bond markets. Sécuripremière FCP is based on three main performance tactics:• directional management of sensitivity (according to expectations for

changes to interest rates, the management team adjusts the sensitivity within a restricted range between -0.5 and 1);

• relative weighting between the markets of the euro zone;• dynamic allocation over the yield curve (the management team performs

allocation with the aim of benefiting from strategies covering distortion of the yield curve and the cost of carry).

The recovery that appears to be getting underway, coupled with expectations for a return to normal monetary policy, support an increased rates scenario for 2010. However, the exact configuration of the recovery remains uncertain. Strategies aiming to benefit from the increase in the EONIA, while protecting against higher interest rates, should therefore be the focus over 2010.

To take advantage of this context, the Natixis Absolute Strategic Bond management team is implementing an opportunistic strategy based on dual allocation, together with strategies implemented in bond asset sub-classes:• an opportunistic allocation between money-market(2) and

bond assets(2), mainly denominated in euros (the bonds in this compartment are subject to active management based on various sources of added value: active management of duration, dynamic

allocation over the yield curve and the selection of countries and securities);

• allocation among bond assets (government bonds, bonds issued by agencies supranational organizations(2), government-guaranteed bonds(2) and credit securities rated at least BBB (OECD, convertibles, inflation indexed and currencies)).

• strategies implemented within asset classes (beyond the opportunistic dual allocation between money-market and bond assets, then within classes of bond assets, the management team also implements various strategies in the sub-classes of assets).

Jean-Luc Attal, portfolio manager

Olivier Vietti, portfolio manager


(3) Exchange Traded Funds: funds that aim to replicate an index, also known as trackers.

n Natixis Actions US Value (I, C share in euro (hedged): FR0010796409)A Value fund with the emphasis on the in-depth monitoring of companies over the long term, for a return to the us equity markets in 2010

(4) The management of Natixis Actions US Value is delegated to Metropolitan West Capital Management, LLC, an independent asset manager specialised in the management of "Value" equities in the United States (More information: www.mwcm.com).

The US economy was highly impacted by the recession in 2008. The combination of three crises (financial, banking and economic) profoundly affected the behavior of households and companies. To restore their margins, companies downsized their workforces, causing a marked drop in employment. The resumption in US business activity in 2010 will therefore take place at a moderate rate, very much below what should be seen when a recession ends. It nevertheless offers attractive opportunities in the US equity markets because of a probable implementation of a new support plan that could be focused on employment in small and medium-sized companies.

In this context, the focus will be on high-quality companies, based on a detailed analysis of their fundamentals and prospects: this is what the Natixis Actions US Value fund offers. In order to benefit from the expertise of a specialised asset manager in this asset class, Natixis Asset Management has entrusted Metropolitan West Capital Management(4) with the management of Natixis Actions US Value.

The portfolios managers of Natixis Actions US Value use conviction-based management covering the rigorous selection of companies, resulting in a concentrated portfolio averaging 35 to 45 assets. The management team looks for high-quality securities with a healthy financial situation and a competitive position that is strong or constantly improving. The intrinsic value of these companies is analyzed to determine whether it is higher than their market value. Then the management team identifies factors within these companies that could increase the share price (productivity gains, the launch of innovative products, change of managers, etc.).

n Natixis Actions Global Emergents (I,C share in euro: FR0010711051)Active management focused on country allocation in the dynamic universe of emerging equities

At the end of 2009, the dynamics of the global economy were characterized by greater autonomy in the emerging countries in relation to developed countries, and by financial and trading

links being set up between these emerging countries.

In fact, while several of them, have already absorbed the violent shock that affected the whole world at the end of 2008, the level of activity in the developed countries in the third quarter 2009 remained below the high point seen at the beginning of 2008.

Invested in emerging equities essentially represented in the index MSCI Emerging Markets NDR in euro, Natixis Actions Global Emergents is well-placed to capture the emerging countries' growth potential.

To achieve this objective over a recommended investment period of five years, the investment team employs a fundamental top-down approach based on an active country allocation managed within a precise risk budget calculated using a quantitative optimization tool (Black Litterman model). The investment team focuses on ETFs(3), which have the dual advantage of being liquid instruments and keeping transaction costs low.

The funds benefits from its investment universe focused on emerging countries for whose Natixis Asset Management’s 2010 outlooks are favourable; and from the synergies and experience of its investment team. The team comprises an economist specialized in emerging markets, a strategist and three allocation managers who are also members of the Emerging Market Allocation Committee, with an average of 13 years' experience.

For more information on these funds, see www.am.natixis.com (Our Products section)

Pierre Radot and Christoph Metz,

Catalina Llinas, product manager

portfolio managers


News

Products newsLaunch of Natixis Absolute MultistratégiesThe Natixis Absolute Multistratégies fund aims to achieve an annual performance that is 2% higher than capitalized Eonia for I shares (and 1.60 % for R shares) over a recommended investment period of two years. To that end, the investment team deploys a wide range of strategies, directional positions (long or short) and arbitrage positions. The fund's investment universe covers all asset classes (equities, bonds, currencies, commodity indices, etc.) and all geographic regions (Europe, United States, Japan, emerging markets).

The fund’s originality The investment process is based on two “engines” of performance: one of which is fundamental(1), while the other is quantitative(2). These engines are independently managed, and their distribution is evenly balanced within the portfolio. In each “pocket”, the managers identify investment opportunities on the basis of quantitative, fundamental or technical analysis signals. These strategies are calibrated according to their contribution to global risk and are monitored daily. The maximum drawdown is below 5%, with a probability of 95%(4).

(1) The manager bases his investment decisions on various types of analysis, which can be combined or used separately: macroeconomic analysis, technical analysis, flows and psychology, valuation of markets and momentum. The manager’s decision-making is discretionary.

(2) An internally developed tool is used to detect the main market trends in a systematic way.

Further information: www.am.natixis.com/climatechange/eng

For further information, consult the website dedicated to the Third Party Distribution: www.expertises.am.natixis.com (only available in French)

For more information: the fund’s fact sheets can be found at www.am.natixis.com

Meeting with our institutional investorsNatixis Asset Management attended the 4th Rencontres de la Gestion Institutionnelle [meeting on institutional management] organized by the french magazine L’Agefi on December 3. Philippe Zaouati, Head of Business Development, took part in the round table: “How much more SRI in institutional portfolios?” centered around three key themes: the integration of ESG criteria into traditional management and the conversion of UCITS into SRI funds; the objectives pursued by institutional clients in allocating a portion of their portfolio to SRI or applying a general SRI filter to their entire portfolio; and lastly, the issue of the choice of methodology in constructing SRI funds/allocations.

A pioneer in Socially Responsible Investment with more than 25 years experience, Natixis Asset Management is one of the French leaders in SRI in term of AUM. Natixis Asset Management’s offer in this field is one of the most comprehensive on the market, covering all asset classes and the main SRI expertise. Natixis Asset Management is now offering its expertise in the area of Climate Change, with an investment strategy that takes into account the main challenges of climate change.

Third Party Distribution: NAM’s Tour de FranceIn the last quarter of 2009, the NAM’s Third Party Distribution sales team along with experts from Dorval Finance* welcomed their clients to eight workshops that took place in the main French cities: Paris, Nice, Marseille, Toulouse, Bordeaux,

Lyon, Lille and Nantes.

Some 400 IFA attended the workshops, which offered a range of presentations on the services and products of Dorval Finance and of Natixis Asset Management, which also markets a funds selection of the various asset management companies affiliated to Natixis Global Asset Management to this client segment.

A third series of roadshows will take place in the second quarter of 2010, kicking off in Lyon on 23 March.

*Dorval Finance is an independent asset manager. Natixis AM has acquired 25% of Dorval Finance's capital on 12/09/2008 through a partnership on the Independent Financial Advisors market.

Philippe Waechter, Chief Economist of NAM, Louis Bert, CEO of Dorval Finance, Stefan de Quelen, Head of Third Party Distribution’s Sales team of NAM

TURNING CLIMATE CHANGE CHALLENGES INTO INVESTMENT OPPORTUNITIES

Firmly at the forefront of responsible investment, Natixis Asset Management is launching an equity fund focusing on the issue of climate change: impact Funds climate change

• A Climate Change Scientific Committee, bringing together distinguished experts from various fields, ranging from climatology and geology to economics, whose aim is to provide insight on the consequences of climate change to our investment management teams

• A 360-degree approach to global warming through a worldwide and multi-theme investment universe

• Active management of a portfolio of companies contributing to the fight against climate change or exploring ways to adapt to its consequences, so as to combine responsibility with the pursuit of performance*

* Non-contractual commitment. Impact Funds-Climate Change is a sub-fund of the Luxembourg SICAV Impact Funds authorised by the AMF for sale in France. It does not guarantee capital or performance. Potential subscribers must be in possession of a copy of the fund’s simplified prospectus before making any

subscription. This is available from Natixis Asset Management or at www.am.natixis.com/climatechange/eng

Natixis Asset Management - Regulated by AMF under n° GP 90-009 - RCS Number 329 450 738 Paris - France21, quai d’Austerlitz - 75634 Paris Cedex 13 -Tel : +33 1 78 40 80 00 - www.am.natixis.com

expert of Natixis Global Asset Managementwww.am.natixis.com/climatechange/eng

ACT NOW.IMPACT FUNDS CLIMATE CHANGE

A closer look The economic and financial issues

expertise The Climate Change Scientific Committee

essentiAls Investment opportunities

responsiBleinvestment IMPACT FUNDS CLIMATE CHANGE

perspectives special issue

Climate ChangeNAtiXis Asset MANAGeMeNt's

coMMitMeNt

www.am.natixis.com/climatechange/eng

For Professional Clients Only For Professional Clients OnlyCover picture: Real-estate project « The Cor Building « designed by Oppenheim office - finalization 2011 - Miami - United States

A closer look The economic and financial issues

Expertise The Climate Change Scientific Committee

Essentials Investment opportunities

Responsible Investment Impact Funds Climate Change

Focus They have chosen responsible management

NAtIxIs AssEt MANAgEMENtLimited Liability CompanyShare Capital 50 434 604,76 €RCS Number 329 450 738 ParisRegulated by AMF under n°GP 90-009Registered Office: 21 quai d’Austerlitz75 634 Paris, Cedex 13 - Tel. +33 1 78 40 80 00

www.am.natixis.com

Publishing Director: F. LenoirSpecial Editorial Committee: C. Basselier, M. Gravier, C. Joly, S. Senellart, Ph. Waechter, P. ZaouatiCoordination - Writing: N. ClémotHead of design: F. DupertuysContributors: A. Boisaubert, P. Galopin, J. Rivalière, M-L Rouy, N. Tihdaini

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4 What are the economic consequences of climate change?5 What financial issues are associated with climate change?6 What role may be played by fund managers? 7 How will investment in equities evolve?

Climate Change and investment strategie

3For Professional Clients Only For Professional Clients Only www.am.natixis.com/climatechange/eng SPECIAL ISSUE

Formerly studied and discussed only by scientists, the issue of climate change and its impact on the planet is now explored by all political and economic actors.

As a leading asset management company and a pioneer in responsible investment in France with 25 years experience, Natixis Asset Management firmly believes that understanding the financial consequences of climate change is essential to meeting its commitments to its clients over the long term. This focus is fully in keeping with our ambition to combine responsibility with a performance oriented strategy. How does climate change affect economic growth and the financial sector? How can these challenges be addressed in the context of a long-term investment strategy? These are the kinds of questions that need pertinent and thoughtfully considered answers.

The subject of climate change and its consequences is vast and complex. In order to enlighten the our teams on the challenges of climate change, its impacts and the solutions proposed, we have been working with Carlos Joly, an expert widely recognized for his efforts to promote responsible investment. We launched the Climate Change Scientific Committee, bringing together highly regarded experts within the scientific community: seven experts from various scientific fields (climatologists, geologists, economists, etc.).

Today, our strong convictions have led us to create Impact Funds Climate Change, a fund focused in the area of climate change, drawing upon Natixis Asset Management’s expertise in equity investment.

Pascal Voisin, CEO, Natixis Asset Management

EditorialClimate Change Natixis Asset Management remainscommitted to responsible investment

4 www.am.natixis.com/climatechange/eng For Professional Clients Only For Professional Clients OnlySPECIAL ISSUE For Professional Clients Only For Professional Clients Only

n Fundamental aspects The concept of climate change provides a new point of reference for climate phenome-na around the world. Today’s climate condi-tions will no longer hold sway 50, 100 or 200 years from now. A benchmark assumption limits the planet’s average temperature rise to 2°C each year, compared to the pre-industrial period.Currently, this temperature gap is 0.8°C and grows by about 0.2°C each decade. Cros-sing the threshold of 2°C will have serious and irreversible repercussions for the planet as a whole. Global warming, due to the accumulation of greenhouse gases (GHG) in the atmosphere, is the result of man’s actions. Although such emissions are generated in greatest intensity in certain local areas, the impact of carbon dioxide production is global. In addition, this accumulation will become more pronounced over time and will affect populations in 10, 20, 50, 100 years or more. This dual dimension, both global and long-lasting, calls for resolute political decisions.

n Economic challengesGHG accumulation has far-reaching conse-quences for climate conditions (rise in tem-perature, melting of glaciers, flooding, etc.). If nothing is done, these profound changes will have dramatic consequences for global economic growth. Some types of production will be directly affected, such as agriculture, fishing, energy and even tourism.More generally, all industry sectors will under-go changes in their conditions for production. For instance, the construction industry will need to develop solutions to ensure comfort for users while lowering energy consumption. The insurance sector will also be affected by the rise in catastrophic climate-related events. The impact of global warming will not be the same in all world regions, thus entailing signi-ficant migratory movements and these will also increase due to rises in temperature.

Some consequences will then become more adverse, such as biodiversity, affected by temperature but also by the acidification of seawater. Once these factors are incorpora-ted within global economic growth models, a long-lasting and sizable decline in worldwide gross domestic production may be foreseen.

n Incentives designed to meet objectivesAccording to the Stern report*, extreme cli-mate change can be avoided. By taking strong and early action, the rise in tempe-rature could be kept below 2°C, thus redu-cing GHG emissions by at least 50 percent and perhaps by as much as 85 percent from 2000 levels. The Stern report estimates a cost between 1 and 2 percent of global gross domestic product per year if we act immedia-tely, suggesting that any delay in taking such action would greatly increase the necessary outlay. This clearly represents a change in the reference model.Reductions in GHG emissions would be achieved through the application of bold stra-tegies which, by targeting energy efficiency improvements, would foster the development of business opportunities from new techno-logies. Climate change mitigation policies are an integral part of economic stimulus plans unveiled around the world, from the United States to China, but also in France. Various incentives will be used to encourage both businesses and consumers to adopt more eco-efficient practices. In France, the taxe carbone aims to reduce energy consumption and prompt users to shift their energy sources away from those that emit carbon dioxide. The carbon market needs clear operating rules: a cap on GHG emis-sions, emission rights trading, and a single worldwide price per metric ton of carbon dioxide equivalent. Such rules will inflect be-havior and bring about lasting reductions in GHG emissions. We will all need to embrace this challenge.

What are the economic consequences of climate change?

A closer look

The issue of climate change raises concerns about the potential consequences, while prompting careful consideration of current practices and possible adaptations in behavior. There is an urgent need today to set new standards in order to triumph over the more pessimistic assumptions as to the future of the planet.

philippe WAechterChief Economist of Natixis Asset Management

* The Stern Review on the Economics of Climate Change is a report dealing with the impact of global warming on the world economy, commissioned by the British government and produced by a team of experts under the leadership of economist Nicholas Stern in 2006.

“If nothing is done, these profound changes will have dramatic consequences for global economic growth.”

Climate Change and investment strategy

For Professional Clients Only For Professional Clients Only 5For Professional Clients Only For Professional Clients Only www.am.natixis.com/climatechange/eng SPECIAL ISSUE

n A major challenge Experts estimate that atmospheric CO2(e)* concentrations must be limited to 500 ppm** in order to ensure that global average tempe-ratures do not increase more than 2°C. But this threshold may be crossed as early as 2040 if GHG emissions are not reduced by at least 50 percent below 2000 levels.The shape of the challenge is thus clear: not only must governments set goals for GHG emission reduction but they must also decide upon the necessary measures to achieve these goals. In addition, agreements must be reached in relation to emissions caps, with commitments by developing countries poten-tially to be conditioned on the achievement of benchmarks by industrialized countries.

n Specific solutions under considerationOne solution might involve requiring indus-trialized countries to immediately reduce their emissions by 5% per year, while developing countries would not be required to begin meeting this goal until 2025. This would allow them to continue their industrialization.There is also the question of the terms and conditions for the trading of “pollution rights”. This involves setting a price per metric ton of CO2 equivalent (probably about $30) and organizing the necessary transfers of capital and technologies to developing countries.

n Adjustments in investment strategy Even though the Copenhagen summit did not result in immediate solutions, investors would be well advised to act now by taking

into account the impact of climate change in their current investment strategies. Today, increasing exposure to companies making efforts to reduce their CO2 emissions or in-vesting in alternative energy sources is not enough. In order to invest successfully, a glo-bal and long-term approach must be favored that combines two dimensions:

• the geographical dimension, allowing for differences in behavior between indus-trialized and developing countries. Euro-peans generally allocate a very small portion of their portfolios to developing countries, al-though these countries already generate 30% of worldwide gross national product and will soon reap huge transfers of resources with, for example, the sale of pollution rights;

• the multi-sectoral dimension including all industries that stand to benefit from the consequences of this major change. Alter-native forms of energy and solutions to im-prove energy efficiency for production, trans-portation, “green” buildings, and distribution management will all be among the immediate beneficiaries of the immense sums devoted to GHG emission reduction.

But industries compelled to adapt to the consequences of natural catastrophes will also be likely recipients. For example, construction companies will certainly bene-fit (reinforcement of jetties and bridges, wi-dening of canals, etc.) as will the insurance industry (coverage against extreme weather events, development of warning systems, awareness campaigns, etc.). Finally, govern-ments will be encouraging measures contri-buting to the sustainable management of natural resources (forests, soil, water, etc.), which will involve, in particular, companies active in water service management. World-wide in scope, affecting all industries, and for many years to come, the issue of climate change meets all the criteria to be conside-red as an investment theme in its own right.

What financial issues are associated with climate change?Climate change and its impacts involve financial and economic as well as environmental repercussions. Investors must therefore begin considering today the consequences of climate change in the context of their long-term investment strategies, but also in relation to short- or medium-term asset allocation.

* C02(e) = emissions of C02 or equivalent. ** ppm (parts per million): number of CO2 molecules per million molecules of outside air.

cArlos JolyPresident of the Climate

Change Scientific Committee, Natixis Asset Management

“One solution might involve requiring

industrialized countries to immediately reduce their emissions by 5%

per year.”

It must therefore be included in decision-making processes for portfolio asset al-location as well as in the selection of se-curities, since this approach is a source of potential return for investments in the me-dium and long term.


At a moment in history when people around the world are becoming increasingly aware that the time is ripe for answers and actions and no longer merely observation, it is com-pletely understandable that as asset mana-gement experts we must ask ourselves what we can concretely do to facilitate the search for solutions, to move funds into research, into strategic industry sectors, to support the most worthy and innovative companies over the long term.At the same time, confronted with a set of issues that largely exceed the confines of the financial universe, we might legitimately ponder whether asset management is in fact

very removed from the subject at hand and perhaps poorly equipped to contribute to cli-mate change solutions.Is it not too early for the impact of climate change to be felt in financial markets, which as we know often deal in much shorter hori-zons? As asset managers, we are convinced that we have a key role to play, a duty to anticipate and to act responsibly. We have every intention of fulfilling this role above all by respecting the firm beliefs of investors, and sometimes by remaining a step ahead and offering guidance.How may this new role be characterized?In order to be effective, comprehensive and viable over the long term, it seems to us that this approach must be based upon three simple ideas, which we can summarize in three watchwords: responsibility, humility and expertise.

n ResponsibilityFirst and foremost, our new role means that we must act responsibly. The portfolios we manage, the investment funds that we build to focus on sustainable development must be tools in the service of the search for solu-tions to global warming. Under no circums-tances may we cynically feed upon the im-balances occasioned by climate change, or worse still, intensify them. We need to build a respectful and sustainable approach, in keeping with the larger concept of res-ponsible investment.

n Humility Next, we must approach climate change questions with great humility. The pheno-mena at work are too vast, too complex and knowledge of them is evolving too rapidly for us to attempt to address them without the assistance of recognized experts in the field. Similarly, regulatory responses and government initiatives, both on the domestic stage and in the global arena, are powerful catalysts that it is essential to understand. But they bring into play shifting geopolitical balances, which are often difficult to grasp.

It is for this reason that we have decided to form our own Climate Change Scienti-fic Committee to guide us in the choice of our investment themes, to shed light on the latest scientific findings, to help us unders-tand geopolitical forces at work, and finally to identify, together with our managers, the most relevant and promising solutions. This Scientific Committee consists of climatolo-gists and economists, experts from acade-mic area, NGOs and companies in France and beyond.

We have high hopes for the interesting ex-changes of ideas between these experts and our portfolios managers.

n Expertise We are also convinced that our asset mana-gement expertise will help us to effectively read these phenomena, as will our in-depth knowledge of companies and industry sec-tors and our proven methodologies in the area of both financial and extra-financial analysis. We have entered the active phase of this challenge and it is now up to the bu-siness world and its companies to provide solutions. We feel we are well placed to de-termine which of these will not only be the best from a technical standpoint, but also the most economically feasible. In fact, it is the combination of these two aspects that will guarantee the long-term success of these solutions.

From this moment forward, it is our exper-tise as responsible asset management ex-perts, enhanced by the new perspectives afforded by the contributions of the experts constituting our Climate Change Scientific Committee, that we wish to offer to our in-vestor clients.

philippe zAouAtiHead of Business Development, Natixis Asset Management

“We must approach climate change questions with great humility.”

What role may be played by fund managers?

We are all familiar with the findings: our planet’s climate is changing at a pace that goes beyond our predictions of just a few years ago and this global warming will not only significantly affect the eco-system in which we live, but without question our way of life itself, our economic model, and our rate of growth, or at the very least our growth trajectory.

Climate Change and investment strategyA closer look


n Between risk and opportunity, the conditions for economic change There are two opposing forces for the stock markets: from the long-term perspective, cli-mate change destroys value and adversely af-fects risky assets, while in the short to medium term, economic and political powers as well as public opinion are taking steps to contain cli-mate change phenomena. Governments have their role to play in influencing behavior.

They fight the causes of global warming through regulation and encourage the search for solutions, in particular through stimulus plans. Whether or not we believe that the battle against global warming can be won, it is well under way. Its impetus creates the conditions for a change that may be utilized in the context of an active management approach.

n On the lookout for climate change inefficiencies In this context, investing in the shares of com-panies developing solutions for climate change seems not only to be a positive approach, but an economically rational one as well. This instinctive appreciation is confirmed by the analysis of valuations: apart from several ob-vious sectors and participants (wind power, renewable energy sources, etc.), the market is not yet reacting positively to companies ad-dressing the issue of climate change through their business activities.Nevertheless, these companies enjoy a com-petitive advantage that should only increase over the long term.Apart from the economic aspect, this market inefficiency has a deeper cause: climate change is complex and non-linear, which means that arriving at an understanding of its conse-quences is difficult to achieve for most market participants. Consequently, in order to better grasp the significance of this change, outside assistance must be sought from experts able to fully comprehend this issue in its scientific, technological and regulatory aspects. This type of assistance is a key for an active and forward-looking investment approach, able to identify and take advantage of inefficiencies in all affected sectors and regions.

n A new frame of referenceThe three main strategies in response to cli-mate change are therefore divided into themes corresponding to specific industry sectors and stocks. • The first strategy is tied to the fight against greenhouse gas emissions: favo-ring cleaner energy sources and improving energy efficiency. By way of example, FPL Group is a US provider of electricity-related services, 40% of whose production gene-rates little or no emissions. What’s more, the company is vertically integrated and seeks to limit peaks in consumption, with innovations both in terms of technology and in its relations with its customers.Efficiency in the cycle for the generation and distribution of electricity is also an area of major importance, to which a number of companies, such as ABB, are devoting considerable ef-forts. It is estimated that a 5% improvement in the efficiency of the energy sector in the United States would have a similar impact, in terms of emissions, to the disappearance of several billion automobiles.• The second strategy deals with the consequences of global warming, adapting to a warmer climate. One example is the need to build more resilient infrastructures, which is a key element of stimulus plans.Building materials may provide essential so-lutions to these issues provided the practices involved are sustainable, such as those em-ployed by the Korean steelmaker Posco. • The third strategy relates to solutions for the sustainable management of natural resources: water, pollution control (packa-ging and waste), but also forests and agri-cultural lands. In this area, the Norwegian fertilizer supplier Yara is providing a response to the food production challenges of desertifi-cation by seeking a more controlled effect on the environment compared to other methods for increasing agricultural yields.Today, solutions to climate change are being explored across the planet. This worldwide movement is creating the conditions for an investment theme combining the potential for long-term returns with responsible investment. Climate change therefore offers major invest-ment opportunities that may be included within long-term investment plans.

how will investment in equities evolve?Climate change now takes center stage in both the political and economic realms. Its consequences will increase in severity over the coming years and will no longer escape the attention of the stock markets.

mAurice GrAvierHead of Products and Innovation

within the Equities management Department, Natixis Asset Management

“Today, solutions to climate change are being

explored across the planet.”


1. Enlighten the members of Natixis Asset Management's Executive Committee and portfolio managers on climate change and its consequences Its members summarize research that has taken place on climate change throughout the world and assist Natixis Asset Management's teams in analyzing the consequences of climate change for the various business sectors, countries and regions. They identify technological developments that may contribute to reducing greenhouse gas emissions and help in adapting to the inevitable consequences of climate change.

2. To give opinions on the appropriateness of the securities in which the portfolio is investedIts members assess the appropriateness of investment choices in relation to the previously-mentioned subjects. They warn Natixis Asset Management's Executive Committee and portfolio managers of any securities that diverge from the investment philosophy. Nevertheless, the investment decisions remain the sole responsibility of the management team.

3. To provide informationThe members write "position papers" on controversial subjects (nuclear power, bio-fuels, etc.,) and contribute to reporting research work by speaking at meetings of the Scientific Committee or at specific events.

the climAte chAnGe scientific committee: recognized experts

So as to better understand the challenges of climate change and proposed solutions, Natixis Asset Management has created its own Climate Change Scientific Committee, bringing together recognized experts. Headed by Carlos Joly, co-chair of the Expert Group that drafted the United Nations’ Principles for Responsible Investment, this Climate Change Committee meets twice a year.

Natixis Asset Management’s Climate Change scientific Committee has three main objectives:

(1) Carlos Joly, Chairman of the Climate Change Scientific Committee, is a specialist in Socially Responsible Investment. Co-founder of the UNEP-FI, he co-chaired the working group that wrote the United Nations' Principles for Responsible Investment.(PRI) de l’ONU.


The first meeting of the Climate Change Scientific Committee took place last 24 November, and gathered the committee's seven experts under the chairmanship of Carlos Joly(1) during a whole day where the emphasis was placed on discussion. By way of introduction, Pascal Voisin, Chief Executive Officer

of Natixis Asset Management, thanked the members of the Scientific Committee for having agreed to join Natixis Asset Management in this initiative, together with the clients and first investors in the fund for their support.Four experts internal to Natixis Asset Management took part in the dis-cussions: Suzanne Senellart and Clotilde Basselier, portfolio managers of the "Impact Funds Climate Change" fund, Maurice Gravier, Products and Innovation Director within Equity Management, Philippe Zaouati, Head of Business Development and Dominique Sabassier, Deputy CEO and Chief Investment Officer.

The members of the Scientific Committee, who were heavily in-volved in the discussions, took a particularly pragmatic attitude, reaffirming their intention to act as effective providers of information to Natixis Asset Management's teams concerning their respective areas of expertise: waste, natural disasters, control of energy, hou-sing and construction, forestry and agroforestry, etc.

Details of the discussions held at the first meeting of the Scientific Committee will be released in the first issue of its Newsletter, which will be accessible online in the Publications section of Natixis Asset Management’s Climate Change Web site www.am.natixis.com/climatechange/eng

the 1st Climate Change committee

Carlos Joly, President of the Committee

Clotilde Basselier et Suzanne Senellart, portfolio managers of Impact Funds Climate Change

Expertise


complementary areas of expertise

Certification, shipping Miklos Konkoly-Thege, currently member of the boards of director of

several shipping companies and of the certification company Moody International.

He is a specialist in the shipping industry and certification, both on a sector level

and with regard to financial and risk control aspects.

Chairman of the Climate Change Scientific CommitteeCarlos Joly, Chairman of the Climate Change Scientific Committee. Co-founder and Chairman of UNEP-FI. He co-chaired the Experts Group which drew up the UN PRI ( Principles for Responsible Investment). He was the founder and CEO of MiljøInvest AS, which developed a range of SRI funds and Senior Vice-President of Storebrand, where he launched the Storebrand Environment Fund.

Waste, natural disastersYves Le Bars is currently Chairman of GRET (Groupe de Recherche et d’Echanges Technologiques, the most important secular NGO for international solidarity) and is completing a term of office as Vice-Chairman of the French Association for the Prevention of Natural Disasters. His areas of expertise cover the relationships between research, innovation and society, and in particular the issues associated with sustainable development.

Energy efficiencyPierre Radanne, is Chairman of

the 4D association (4D: Dossiers et Débats pour le Développement

Durable) and a founder of the company “Futur Facteur 4”, which combines

activities of consulting, research, training and communication on energy

management, combating climate change and sustainable development.

He has served as Chairman of the ADEME (the French Environment and

Energy Management Agency) from 1998 to 2003.

Green buildingBlaise Desbordes, is Director of Sustainable Development in the “Finance, Strategy and Sustainable Development Department” of Caisse des Dépôts et Consignations. Specialized in public and corporate sustainable development policies, he takes part in several market working groups, particularly within the UNEP-FI.

Adaptation to climate changeRichard Klein, researcher at the Stockholm Environment Institute, where he co-ordinates research on climate policies across seven research centers. He has specialized for over 15 years in the methodological aspects of climate risk, vulnerability assessment and climate adaptation processes in society. He is now concentrating on the integration of climate issues in development policy.

Socio-economic impact of climate change

Stéphane Hallegatte, researcher in environmental economics and climate science

at the Ecole Nationale de la Météorologie, Météo-France and the CIRED (International

Centre for Research on the Environment and Development) He also participated in the IPCC

(Intergovernmental Panel on Climate Change, in 2007.

Forestry and agroforestryAnne Gouyon, founding partner of Becitizen

and expert in forestry and agroforestry. She was a founder and director of Idé-Force, a

consulting firm specializing in assessing the socioeconomic and environmental impact

of rural development and plantation culture projects. The firm’s clients include various international institutions NGOs and private

companies.

* UNEP-FI, United Nations Environment Programme-Finance Initiative.


Reducing greenhouse gas emissions

360-deGree ApproAchfrom investment theme analysis to investment opportunities

Essentials

Climate change is a global issue and therefore demands a global response. Natixis Asset Management’s approach to this problem is built on three main pillars: > Reducing greenhouse gas emissions> Adapting to the consequences of climate change> Better management of natural resources

These three macro-themes are themselves broken down into 10 sub-themes, so as to address the issue of global warming with the greatest possible accuracy.

CHALLENGEDeveloping the least polluting public transport systems and en-couraging innovative and sustainable solutions for individual transportation

INVESTMENT OPPORTUNITIESThe fight against CO2 emissions in the transport sector, suppor-ted by increasingly stringent regulations and ambitious stimulus plans, has given rise to numerous investment opportunities.

Rail transportThis sector benefits from a bright long-term outlook: rising urbanization of developing countries and worldwide fight against global war-ming • rolling stock manufacturers, railway infrastructure builders and steel producers • companies producing rail signaling equipment • suppliers of systems and services for the rail industry • rail transport operators. Automobile transport

Sources of energy efficiency improvements in the automobile sector are many, deriving from existing technologies (combustion engines) or new technologies (electric engines): • automobile manufacturers, leaders in the production of hybrid or electric vehicles • battery ma-nufacturers (lithium-ion technology) • auto parts manufacturers • tire makers (“green tires”) • raw material suppliers and producers of lower-weight materials.

CHALLENGEReducing the energy consumption of buil-dings, by refurbishing aging facilities in de-veloping countries.Assisting in the urbanization of developing countries with eco-efficient constructions.

According to the World Business Council for Sustainable Development (WBCSD), the world market for “green” buildings amounts to $950–1,000 billion.** Two main catalysts will drive growth in sectors associated with eco-efficient construction: regulatory changes and the stimulus plans imple-

mented by governments in response to the financial crisis. This area has a potential impact on many industries: • insulation solutions • clean technologies for construction materials • use of alternative

forms of energy.

n Energy efficiency of buildings

* Source: “Le marché du BTP en Chine,” published by Ubifrance in 2008.** Source: “Energy Efficiency in Buildings,” report issued by the World Business Council for Sustainable Development (WBCSD), April 2007.

n Energy efficiency of transport systems

INVESTMENT OPPORTUNITIESIn the industrialized countries, lowering the energy consumption of existing buildings is the surest way to cut greenhouse gas emissions. In the developing countries, currently experiencing a phase of accelerated urbanization, the key is to adopt eco-efficient buil-ding solutions at the outset.This is the case in China, for example, where nearly 2 billion square meters of building space will be added each year until 2020*.



CHALLENGEImproving energy savings by power plants and electric transmis-sion grids to optimize energy production and distribution, thus reducing greenhouse gas emissions.

INVESTMENT OPPORTUNITIESModernization of electrical installations involves the entire energy value chain: from production to distribution and including trans-mission and low- or high-voltage equipment provided to users.

Companies offering innovative energy production infrastructures: • combined-cycle turbines • hydraulic turbines meeting the new effi-ciency standards • CO2 capture and storage technologies, etc. Manufacturers of modern power plant equipment allowing for increased production capacity, efficiency and security. Companies offering eco-efficient energy transmission infrastructures: • very high, high and medium voltage electricity transmission lines

incorporating the development of clean energies • innovative technologies allowing for reductions in energy loss during transmission • innova-tive technologies for managing consumption at peaks in production. Electrical equipment manufacturers: • low-voltage equipment for buildings: programmable room thermostats, energy management sys-

tems, automatic switches, time-delay lighting, light level threshold controls, home automation, etc. • medium or high voltage for large-scale energy distribution in cities or for industrial customers: high-voltage cables, electricity transmission and distribution grids, etc.

n Modernization of electrical installations

CHALLENGEFavoring the least polluting fossil fuels and developing alternative forms of energy to reduce greenhouse gas emissions.

INVESTMENT OPPORTUNITIESThe shift to less polluting energy sources, such as natural gas or alternative forms of energy, gives access to a broad spectrum of investment opportunities.

Business activities related to the development of natural gas: public utilities distributing electricity and gas, natural gas suppliers, shippers specializing in the maritime transport of liquefied natural gas. Companies producing alternative energies or offering innovative technologies in this area: • nuclear energy (sustainable production of nuclear

energy, extraction of uranium ore, etc.) • wind power • solar energy (photovoltaics, thermal collectors, etc.) • water energy (waves, kinetic energy, tidal energy, ocean thermal energy conversion, etc.) • geoexchange (heat exchange between the ground and buildings) • biomass (biogas, wood, new generation biofuels, etc.).

n Alternative forms of energy


CHALLENGEReinforcing existing infrastructures in industrialized countries and adapting new constructions in developing countries to the conse-quences of climate change.

INVESTMENT OPPORTUNITIESThe financial crisis presents a unique opportunity for the infrastruc-ture industry, a major beneficiary of the stimulus plans adopted by several leading nations. Investment opportunities may be found across the entire value chain of the construction and infrastructure industry.

Mining companies producing raw materials Steel makers Steel waste recycling companies Manufacturers of construction materials Building, public works and civil engineering companies Compa-

nies specializing in certification and compliance with standards. Our analysis also includes the geographical dimension, taking into ac-count the structural growth of infrastructures in developing countries (particularly rail networks and eco-efficient buildings)..

n Changes in consumer behavior

CHALLENGEAdapting coverage for natural disasters resulting from climate change. Developing risk prevention and offering new products.

INVESTMENT OPPORTUNITIESWith the rising frequency and growing severity of natural catas-trophes, insurers and reinsurers will be major players in the mana-gement of losses related to climate change.

Reinsurers benefit from new opportunities: • growing demand for coverage against natural catastrophes, especially in the industrialized countries, given the heightened concentration of wealth in selected regions • growth in coverage needs for developing countries, traditionally unde-rinsured, where reinsurers will be invited to participate in public-private partnerships. Reinsurers have two approaches to contend with the rising cost of natural catastrophes: rate increases and preventive actions. New products, connected with the emergence of new risks, will also come on the scene: : • weather derivatives: offered to farmers as pro-

tection against crop losses (torrential rain storms, hail storms) • specific products, such as covers tailored to the new business activities associated with climate change. For example, a wind farm in India where the insurer may go so far as to indemnify its client against the loss of CO2 certificates due to technical problems.

CHALLENGEFavoring industries meeting the new needs of consumer-citizens as a result of climate change. Encouraging populations to incorporate the concept of sustainability in their consumer habits and way of life.

INVESTMENT OPPORTUNITIESResponsible consumption is progressively gaining ground as an es-sential aspect of consumer behavior. The outlook is bright in this area: solutions that ensure greater respect for people and the pla-net enjoy growth rates significantly higher than that of their refe-rence market.

Various types of businesses are emerging that allow consumers to reduce their environmental impact: • Suppliers of products and ser-vices facilitating communication without the need for transportation or the printing of documents • Online platforms for purchasing products and services • Manufacturers of mass-market products tailored to the new needs of consumer-citizens: health, beauty and household products, organic foods and food products, etc. • Ecological transport • Tour operators and travel agencies specializing in sustainable tourism.

n Impact of climate change on the insurance industry and risk management

n Adaptation of infrastructures

Adapting to the consequences of climate change

Climate Change and investment strategyEssentials


Better management of natural resources

Producers of mineral fertilizers: • production of raw materials—nitrogen, potassium or phosphate—and of mineral fertilizers • develop-ment of new NPK ratings best suited to each type of crop • training programs administered to farmers to encourage a more controlled use of fertilizers Manufacturers of agricultural equipment: tractors, containers, innovative irrigation systems Food refrigeration, storage and transportation companies seeking to limit food loss between the producer and the consumer Companies holding forest assets: these assets might undergo significant revaluation in the event that forests are recognized as carbon credits in post-Kyoto legislation. Forest asset owners employing responsible practices will be favored (felling, new plantings, preservation of older trees). These players may belong to the pulp and paper sector or be active in wood-related industries.

n soil management

Water treatment and distribution: • wastewater disinfection, filtration and purification • production of soft water through purification and desalinization • industrial sub-contracting: producers of water-control equipment such as sluice gates, pumps and membranes technologies reducing soft water consumption: • household consumption: water savers, solar water heaters • infrastructure alteration

and refurbishment. The World Water Council (WWC) has estimated these investments at $180 billion annually over the next 25 years, up from $75 billion currently being invested • agriculture: new irrigation systems, water sanitation.

n Water management

Collection: companies active in selective waste collection sorting: companies manufacturing equipment used to sort waste while raising awareness among users and simplifying collection processes Processing : • companies specializing in eco-efficient waste management • compost companies converting waste into fertilizer for crops • innovative processing plants transforming waste into electricity Recycling: • specialized recycling processes that regenerate obsolete products and equipment back into raw materials as well as reuse, the re-employ-ment of products or materials in their original form or in new applications • companies active in the recycling of complex products (waste covered by the European WEEE* Directive, petrochemicals) • eco-design in the waste value chain • companies producing new generation packaging.

CHALLENGELimiting, reusing and recycling waste to control pollution.

INVESTMENT OPPORTUNITIESIn 2008, the worldwide market for waste processing amounted to €300 billion.

Investment opportunities arise at various stages of the waste management life cycle and not only in relation to processing. The main industry participants are active across the entire value chain: collection, sorting, processing, recycling and incineration.

CHALLENGEAdopting agricultural best practices able to meet growing food needs, while pre-serving the environment and the world’s forests.

CHALLENGERethinking our production and ways of using water in consideration of climate change.

INVESTMENT OPPORTUNITIESSustainable soil management must satisfy two key objectives: maximizing agricultural yields (amidst steadily diminishing cultivable land resources and a continued rise in the demand for food) while protecting the environment. This area presents many investment opportunities, most-ly situated upstream of the food production value chain: from the production of foodstuffs to their delivery to the final consumer.

INVESTMENT OPPORTUNITIESWater management is a universal affair, involving both public actors and private indivi-duals, households and companies. For this reason, this area presents numerous invest-ment opportunities.

n Pollution control

* WEEE: Waste Electrical and Electronic Equipment


Impact Funds Climate Change

3 quEstIoNs for...

Why a fund focusing on climate change?The threats posed by global warming are real and perceptible, the entire world economy is already beginning to feel the impact.Accordingly, our premise is that, over the long term, companies whose businesses contribute to mitigating the effects of climate change or provide means of adapting to these developments will obtain a competitive advantage in the years to come over companies not having fully recognized the potential consequences of global warming. This situation is a source of opportunities and creates value. We therefore decided that it merited consideration in the context of a specific investment strategy.Furthermore, the decision to launch a fund integrating the concept of sustainable development also serves to reaffirm Natixis Asset Management’s long-standing commitment to responsible investment, thus expanding its range of offerings in this area. Impact Funds Climate Change therefore provides a solution for investors who wish to combine long-term returns with a responsible investment approach.

What is the fund management’s approach?Our philosophy is based above all on our aim to address climate change in a comprehensive fashion. It is not a single-theme focus, but is conceived as 360-degree management. This means that we broaden our investment universe to encompass all industries related to the issue of climate change, and not only those usually targeted in this area (renewable energies, water treatment, waste management and recycling, etc.). This also allows us to concentrate on this area without any geographic constraints and, in particular, to capture the potential of emerging market companies. Our approach therefore seeks at all times to be wide-ranging. The investment universe is defined and structured through ten sub-themes grouped under three macro-themes: reducing greenhouse gas emissions, adapting to the inevitable consequences of climate change and better management of natural resources. There is no predefined allocation, with the breakdown between the three macro-themes resulting primarily from our stock-picking.

How do you go about refining your selection of stocks?We narrow down our stock selection by using various filters (quantitative, qualitative and financial) that we apply to a universe of about 350 stocks. We are therefore able to identify the best profiles in relation to climate change and from a financial standpoint. We then pass this group of preselected stocks through a “worst offender” exclusion filter, thus eliminating companies whose social and ecological practices run counter to our fundamental precepts in the area of responsible investment. The final portfolio consists of stocks reflecting our strongest convictions and is actively managed.

Reconciling climate change with a performance oriented strategy

Active management combined with a scientific approach

A worldwide, multi-theme and multi-sectoral investment universe

Responsible investing Climate Change and investment strategy

Clotilde Basselier and Suzanne Senellart, co-portfolio managers of Impact Funds Climate Change


“Our philosophy is based above all on our aim to address climate change in a comprehensive fashion.”

The main risks associated with Impact Funds - Climate Change lie in the risk of capital loss (there is no guarantee that the invested capital will be returned to the investor in full, and the net asset value could significantly diverge - increasingly or decreasingly - compared to the subscription value) and in the risk implied by its exposure to the equity market. The fund also involves risks regarding its exposure to emerging markets, an exchange rate risk, a portfolio risk concentration and a risk due to its potential investment in small and mid capitalization companies. The extensive approach applied on a sector and geographic level will nevertheless ensure that the investments are well diversified. Besides, the portfolio is submitted to the independent review of middle office and risk control teams.

THE MAIN RISKS

FUND FEATURES


I/A share I/A share H-I/A share R/A share R/A share H-R/A share

Management company Natixis Global Associates

Delegated financial manager Natixis Asset Management

Legal form Sub-fund of the IMPACT FUNDS, an investment company with variable share capital organized under the laws of the Grand-Duchy of Luxembourg and authorized by the financial regulator (the CSSF) as a UCITS

UCITS compliant Yes

Date of CSSF approval 29 September 2009

Inception date 5 October 2009

Accounting currency EUR USD EUR EUR USD EUR

ISIN /Allocation income

LU0448199371 / Capitalisation






TER* 1.25 % 1.25 % 1.25 % 2 % 2 % 2 %

Maximum subscription fee 4 %

Maximum redemption fee None

Performance fee including taxes None

Minimum initial /Subsequent subscription

€ 50,000 / 1 share

$ 50,000 / 1 share

€ 50,000 / 1 share

None None None

Initial Net Asset Value € 10,000 $ 10,000 € 10,000 € 100 $ 100 € 100

Net asset value calculation Every working day in Luxembourg and France

Cut-off time D 12.00 noon (Luxembourg time)

* Total Expense Ratio.



They haven chosen responsible investment

Bruno Goré, CEO

“As insurers, the effects of climate change concern us directly.GCE Assurances is working with reinsurers to develop models of

climate and ecological phenomena that will allow us to achieve the most accurate understanding possible, so that they may be included in our multi-risk homeowner’s insurance policies.We appreciate the opportunity for diversification provided by Impact Funds Climate Change*, namely a multi-sectoral and worldwide investment universe facilitating a wide-ranging approach to the challenges of climate change. We also concur with the observation that the markets have not fully anticipated and assimilated this phenomenon. Lastly, we welcome Natixis Asset Management’s establishment of a Scientific Committee, in order to provide the necessary expert guidance in this complex area.”

François Werner, CEO

“Le Fonds de Garantie provides a portion of its funding through investment in financial assets. Impact Funds Climate Change* quickly attracted our interest for several reasons. First of all, the market for renewable energies and new environmental technologies is an emerging market destined to be the focus of considerable investment in the years to come. In addition, the diversification of assets offered by this fund translates into a broader and less volatile investment approach compared to other financial products.Finally, due to our activities in the indemnification of victims, we are sensitive to the issues faced

by humankind and its future. For us, it is therefore of primordial importance that our financial activity is in keeping with a sustainable development approach.”

Nicolas Demont, CEO andCharles Bouffier, Deputy CEO

“Impact Funds Climate Change* is entirely consistent with Egamo’s vision, that of asset management based on mutualistic values. Indeed, we find that the approach proposed by

the fund connects admirably with our own desire to merge human and financial values within a long-term perspective.The selection of companies with strong growth potential in a worldwide and multi-theme universe is also in keeping with our objective of building efficient portfolios for our clients. Finally, Natixis Asset Management’s decision to surround itself with experts so as to shed light on the consequences of climate change seemed pertinent to us, exactly the approach necessitated by this complex issue.”

* Impact Funds Climate Change is a sub-fund of Natixis International Funds (Lux) I which is organized as an investment company with variable capital under the laws of the Grand-Duchy

of Luxembourg and is authorized by the financial regulator (the CSSF) as a UCITS.

Focus

French key players explain their motivation for investing in Impact Funds Climate Change…



They haven chosen responsible investment Why did you choose to be one of the initial investors in Impact Funds Climate Change?

Patrick Viallanex, Vice Chairman of the Executive Board, AGICAM: "Because investing in this fund is directly in line with the overall strategy of our company. It is therefore as much a strategic investment choice as it is the manifestation, from a practical viewpoint, of AGICAM’s status as a responsible corporate citizen in the field of financial management.

Philippe Dutertre, Chairman of the Executive Board, AGICAM: Our investment in Impact Funds Climate Change* developed by Natixis Asset Management was motivated by three main convictions that may be summarized as follows:

The authenticity of the approach employed by Natixis Asset Management and the involvement of its executive management team, reflected in particular by the publication of the book Investir Responsable by Philippe Zaouati, Head of Business Development at Natixis Asset Management, a work we greatly enjoyed reading, as it confirms our own strong convictions.

The need to act now by radically altering our behavior and habits so as to avoid the catastrophes related to climate change. As Jacques Chirac poignantly declared at the Third World Summit on Sustainable Development in September 2002: ‘Our house is burning down and our attention is focused elsewhere.’ In the face of this emergency, we need to transform ‘Yes we can!’ into ‘Yes we must!’

The resoluteness and seriousness of the proposal made by Natixis Asset Management with Impact Funds Climate Change, as evidenced by the mobilization of resources, both internal (Natixis Asset Management’s own teams with whom we had the opportunity to discuss the related issues at length) and external (with the firm’s Climate Change Scientific Committee). The stature and achievements of this committee’s members were a particularly strong selling point in our decision.

The investment approach employed for Impact Funds Climate Change is deliberately all-encompassing. What about its investment universe attracted you in particular?

Patrick Viallanex: Everything about it, actually! For example, we have long been interested in the question of the environment but we had not previously prioritized this area in our actions. We had only focused about 10% of our investments on environment-related sectors, which represents a relatively low proportion. Nevertheless, over the years our expertise has developed and as a result of our analyses and discussions we have realized that the environment has become an essential driver.The issue of climate change embraced by Impact Funds Climate Change, and in particular the three macro-themes selected to effectively cover its investment universe, mainly involves us indirectly, but has deep repercussions for many professions that constitute the foundation of our business.This prompted us to devote particular attention to this fund.

Philippe Dutertre : Investing in this fund allows us to be consistent with our goal of responsible investment. Our management is open to the talents we recruit directly, but of course it is just as open to the talents of others, whether they are French or foreign experts.We invest in a number of open funds, in particular equity funds, and exchanging with other

management companies is a source of alpha that we can characterize as cultural and informational. For us, value is created through dialogue, and this is exemplified by the relationship we have built with Natixis Asset Management.

Finally, we can sum up our approach in a single phrase:‘Have you seen the Little Mermaid in Copenhagen? I think we are all pursuing the same goal—to make her smile!’

Philippe Dutertre, Chairman of the Executive Board, AGICAM

* Impact Funds Climate Change is a sub-fund of Natixis International Funds (Lux) I which is organized as an investment company with variable capital under the laws of the Grand-

Duchy of Luxembourg and is authorized by the financial regulator (the CSSF) as a UCITS.

Patrick Viallanex, Vice Chairman of the Executive Board, AGICAM

The funds mentioned in this material are not registered or authorized in all jurisdictions and may not be available to all investors in a jurisdiction. Natixis International Funds (Lux) I is organized as an investment company with variable capital under the laws of the Grand-Duchy of Luxembourg and is authorized by the financial regulator (the CSSF) as a UCITS. Natixis Global Associates S.A. is the management company of the Fund. The provision of this material does not constitute an offer of services, nor an offer or recommendation to purchase or sell shares in any financial instrument. Investors should consider the investment objectives, risks and expenses of any investment carefully before investing. In the case of a fund, these can be found in the fund’s prospectus or offering memorandum, which should be read carefully before investing. If you would like further information about any of the funds, including charges, expenses and risk considerations, contact the sender of this document or your financial advisor for a free prospectus, simplified prospectus, copy of the Articles of Incorporation, the semi and annual reports, and/ or other materials and translations that are relevant to your jurisdiction. Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time. Performance data shown represents past performance and is not a guarantee of future results. More recent performance may be lower or higher. Principal value and returns fluctuate over time (including as a result of currency fluctuations) so that shares, when redeemed, will be worth more or less than their original cost. Performance shown is net of all fund expenses, but does not include the effect of sales charges or correspondent bank charges, and assumes reinvestment of distributions. If such charges were included, returns would have been lower. The analyses, opinions, and certain of the investment themes and processes referenced herein represent the views of the author(s) referenced 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.

In certain cases, this material is provided by one of the Natixis Global Associates entities listed below , each of which is a subsidiary of Natixis Global Asset Management, the holding company of a diverse line-up of specialised investment management and distribution entities worldwide, each of which conduct any regulated activities only in and from the jurisdictions in which they are licensed or authorized. Their services and the products they manage are not available to all investors in all jurisdictions. Although Natixis Global Associates believes that the information provided in this material to be reliable, it does not guarantee the accuracy, adequacy, or completeness of such information.

• In the UK: This material is provided by Natixis Global Associates UK Limited which is authorised and regulated by the UK Financial Services Authority (register no. 190258). This material is intended to be communicated to and/or directed at persons (1) in the United Kingdom, and should not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell securities in any other jurisdiction than the United Kingdom; and (2) who are authorised under the Financial Services and Markets Act 2000; or are high net worth businesses with called up share capital or net assets of at least £5 million or in the case of a trust assets of at least £10 million; or any other person to whom the material may otherwise lawfully be distributed in accordance with the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 or the (Promotion of Collective Investment Schemes) (Exemption) Order 2001 (the "Intended Recipients"). To the extent that this material is issued by Natixis Global

Associates UK Limited, the fund, services or opinions referred to in this material are only available to the Intended Recipients and this material must not be relied nor acted upon by any other persons. Registered Address: Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA.

• In the E.U. (outside of Germany, Austria, Italy and the UK): This material is provided to the investment service provider or other Professional Client or Qualified Investor who has requested it by Natixis Global Associates S.A. or its branch office in France, Natixis Global Associates International. Natixis Global Associates 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 115843. Registered office of Natixis Global Associates S.A.: 2-8 Avenue Charles de Gaulle, L-1653 Luxembourg, Grand Duchy of Luxembourg. Registered office of Natixis Global Associates International (n.509 471 173 RCS Paris): 21 quai d'Austerlitz, 75013 Paris.

• In Germany and Austria: This material is intended to be communicated to and/or directed at persons in Germany and Austria by Natixis Global Associates Germany GmbH, a tied agent of Natixis Global Associates UK Limited. In the case the fund(s) referenced within this material is/are not registered in Germany or Austria, this material is intended to be communicated to and/or directed at persons who are (a) lawfully authorized to receive this material under the provisions of § 2 (11) paragraph of the German Investment Act or (b) Qualified Investors as defined in Article 1 (1) 5a of the Austrian Capital Market Act (“Intended Recipients”). To the extent that this material is issued by Natixis Global Associates Germany GmbH, the fund, services or opinions referred to in this material are only available to the Intended Recipients and this material must not be relied or acted upon by any other person. Registered office of Natixis Global Associates Germany GmbH (Frankfurt am Main HRB 45540): Im Trutz Frankfurt 55, Westend Carrée, 7. Floor, Frankfurt am Main 60322, Germany.

• In Italy: This material is provided to the investment service provider or other Professional Client or Qualified Investor who has requested it by Natixis Global Associates Italia SGR, S.p.A., an investment management company (“Societa’ di Gestione del Risparmio”) registered and regulated by the Bank of Italy (registration no. 119, code no. 15143.1). Registered office: Via San Clemente, 1 - 20122, Milan, Italy.

• In Switzerland: This material is provided to Qualified Investors by Natixis Global Associates Switzerland Sàrl. Registered office: place de la Fusterie 12, 1204 Genève.

• In the DIFC: This material is provided in and from the DIFC financial district by Natixis Global Associates Middle East, a branch of Natixis Global Associates UK Limited, which is regulated by the DFSA. Related financial products or services are only available to persons who have sufficient financial experience and understanding to participate in financial markets within the DIFC, and qualify as Professional Clients as defined by the DFSA. Registered office: PO Box. 118257, 5th Floor, Building 8, Gate Village, DIFC, Dubai, United Arab Emirates.

This material has been prepared by Natixis Asset Management, a subsidiary of Natixis Global Asset Management. Natixis Asset Management is a French asset manager authorized by the Autorité des Marchés Financiers (Code 1200009, Agreement No. GP90009) and licensed to provide investment management services in the EU.

LEGAL INFORMATION

Contacts

Prospectus and sales documents required for subscription are available on demand:

n Natixis Global Associates (Operations): [email protected] or CACEIS Luxembourg (Prime Transfer Agent): [email protected] (352) 47 67 70 78n or Natixis Asset Management (Clients servicing): [email protected]

TURNING CLIMATE CHANGE CHALLENGES INTO INVESTMENT OPPORTUNITIES

Firmly at the forefront of responsible investment, Natixis Asset Management is launching an equity fund focusing on the issue of climate change: impact funds climate change

• A Climate Change Scientific Committee, bringing together distinguished experts from various fields, ranging from climatology and geology to economics, whose aim is to provide insight on the consequences of climate change to our investment management teams

• A 360-degree approach to global warming through a worldwide and multi-theme investment universe

• Active management of a portfolio of companies contributing to the fight against climate change or exploring ways to adapt to its consequences, so as to combine responsibility with the pursuit of performance*

* Non-contractual commitment. Impact Funds-Climate Change is a sub-fund of the Luxembourg SICAV Impact Funds authorised by the AMF for sale in France. It does not guarantee capital or performance. Potential subscribers must be in possession of a copy of the fund’s simplified prospectus before making any

subscription. This is available from Natixis Asset Management or at www.am.natixis.com/climatechange/eng

Natixis Asset Management - Regulated by AMF under n° GP 90-009 - RCS Number 329 450 738 Paris - France21, quai d’Austerlitz - 75634 Paris Cedex 13 -Tel : +33 1 78 40 80 00 - www.am.natixis.com

expert of Natixis Global Asset Managementwww.am.natixis.com/climatechange/eng

ACT NOW.IMPACT FUNDS CLIMATE CHANGE

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