Launch Of First Structured Funds Listed On Euronext - SGAM ETF: The First Leveraged And Cushioned Funds Indexed On The CAC 40 And Quoted Continuously

Today sees the launch of the first-ever structured funds to be quoted continuously on Euronext. These pioneering products are designed by SG AM Alternative Investments, a global player in alternative asset management and a specialist in structuring high value-added products. They will be listed in Paris on the new Structured Funds compartment of Euronext's NextTrack segment.

Unveiled today by SG AM Alternative Investments, the first two funds in the SGAM ETF range will provide investors with actively managed exposure to the CAC 40 index and, depending on their profile, either partial capital protection or leverage. The funds are managed using the "portfolio insurance" or "cushion" method¹. They combine the benefits of a structured investment with the transparency of continuously exchange-traded funds.

• The first fund has built-in portfolio insurance. For a limited risk, investors obtain partial capital protection, revised annually on the basis of 80% of the previous year's net asset value², while capturing some or all of the performance of the CAC 40 index.
• The second provides leverage. Replicating up to 200% of the gains or losses on the CAC 40, it is intended for active, experienced investors seeking to boost their portfolio performance by taking on more risk without using derivatives.

Listed in the Structured Funds compartment of NextTrack, the new funds meet the same requirements as all other NextTrack products:

• transparent: index exposure is known at all times, and the indicative net asset value is calculated and disseminated continuously
• flexible: funds can be bought and sold as easily as shares
• liquid: two market makers provide continuous liquidity throughout the trading session
• secure: a trading range with upper and lower limits ensures that trades remain close to fair prices

Philippe Brosse, Chief Executive of SG AM Alternative Investments, says: "With this groundbreaking launch, SG AM Alternative Investments has once again demonstrated its ability to structure high value-added products while harnessing the outperformance potential of active asset management. This expertise reflects the strength of a global player in alternative investment. Through the SGAM ETF range of active exchange-traded funds, SG AM Alternative Investments aims to play a key role in the market for innovative ETFs, supported by the SG Asset Management group at international level. We plan to quickly expand the range to include other leading European indices".

According to Marianne Demarchi, Director of Business Development, Strategy and Products for Euronext, "Four years after Euronext inaugurated NextTrack, the segment specialised in trackers, we now quote 68 trackers with 55 underlyings. Encouraged by this achievement, Euronext is pleased to be opening a new NextTrack compartment specialised in Structured Funds, which will host the first structured funds launched here today by SG AM Alternative Investments. Opening this new compartment is a logical step for Euronext: the market in exchange-traded structured funds has grown sharply in recent years, and the products meet the needs of issuers and investors for transparency and tradability".

¹The portfolio insurance method consists in regularly and automatically adjusting the relative proportions of risky and non-risky assets in a portfolio (i.e. assets exposed to an index, and money market instruments) to provide partial or total protection for the invested capital.

²In 2005, the net asset value used as a reference for calculating the protection feature is the starting net asset value.