GLOSSARY

The distribution of investment funds inresponse to short-term expectations of market opportunity or threat.

A bespoke fund tailored to specific risk/return profiles that integrates the constraints faced by each individual investor or distributor from the outset. It thus enables investors to define a customised return profile adapted to their individual earnings objectives and risk profile.

A bilateral financial contract in which one party (the total return payer) makes floating payments to the other party (the total return receiver) equal to the total return on a specified asset or index (including interest or dividend payments and net price appreciation) in exchange for amounts that generally equal the total return payer’s cost of holding the specified asset on its balance sheet. Price appreciation or depreciation may be calculated and exchanged at maturity or on an interim basis. A total(rate of ) return swap is a form of credit derivative, but is distinct from a credit default swap in that floating payments are based on the total economic performance of a specified asset and are not contingent upon the occurrence of a credit event.

ETF Exchanges Traded Funds (ETFs) are simple and effective tools. In a single Stock Exchange transaction, they mirror the exact performance of your equity or bond benchmark index. They provide instant exposure to a basket of securities through a single investment tool, which is quoted continuously during local trading hours and therefore easily accessible to small or large size investors.

Investors will gain management efficiency by reducing the time and the cost spent on maintenance of core benchmarked exposure.

A dual objectiveLyxor ETF ETFs are passively managed index funds that combine the characteristics of a listed security (simplicity, liquidity, continuous quotation, etc.) with those of a traditional fund to offer two major advantages :

• A simple and transparent instrument that tracks the performance of a basket of securities representative of a benchmark index,
• An efficient, easy tool to manage the equity or the bond portion of your assets, which can be traded at any time under optimal price conditions.

Refers to the difference between the performance of a portfolio of stocks or fund and abroad-based index with which they are being compared.

For Lyxor, transparency is a top priority - and the vital corollary of innovation.
Advanced monitoring tools give Lyxor a clear picture of the risks borne by investors. This, in turn, gives investors access to detailed reporting as well as complete transparency with regard to asset management processes and decisions.

The TURQUOISE fund (EUR), a feeder fund of the TURQUOISE MASTER fund, enables investors to achieve medium to long-term asset growth by exposing themselves to alternative management strategies within the scope of controlled volatility.

The TURQUOISE master fund is managed according to a solid management process that combines both “top-down” (allocation by strategy) and “bottom-up” (selection of funds) approaches.

The master fund benefits from the expertise of Société Générale in its capacity as investment fund advisor.