Better thinking. Together. ® Institutional Investor Insights Natixis Global Asset Management Study of U.S. Institutional Investors

European Debt Crisis Seen as a Major Source of Market Volatility Over Next Two Years 68% of investors say contagion from the European debt crisis will be the one of the top three sources of market volatility over the next two years, followed by uneven global economic recovery (47%) and political or regulatory gridlock on sovereign debt issues (37%). (Percentage of respondents that cumulatively rank each as their first, second or third greatest concern.) 2 Q. What do you believe will be the most significant sources of market volatility over the next two years?

Most Investors Have Changed Their Risk Management Approach Over the Past Five Years and are More Confident as a Result Nearly three in four U.S. institutional investors (74%) report that their institution has changed its risk management approach compared to the approach it took five years ago. 3 No Yes Q. Has your institution changed its risk management approach compared to the approach it was taking five years ago? A similar number (73%) say they are more confident in their risk management approach now compared to five years ago. No Yes Q. Compared to five years ago, do you feel more or less confident that your risk management approach today is the right one for today’s volatile markets?

Investors are Satisfied with the Performance of Their Alternative Investments Nearly nine in 10 (88%) U.S. institutional investors are satisfied with the performance of their alternative investment holdings, including 18% who are “extremely” satisfied. Only a small minority (12%) have been disappointed with the performance of their holdings. 4 Extremely Pleased Pleased Disappointed Q. Over the time period reported in the previous question, how pleased were you with the performance of those investments?

Investors Would Maintain or Increase Their Investments in Alternatives If they had to do it all over again, nearly all U.S. institutional investors would either maintain (64%) or increase (29%) their current allocations to alternative assets. 5 Q. If you had to do it all over again, how would you have changed your allocation to alternatives? Increased Stay the same Decreased

Limiting Market Volatility is One of the Top Investment Priorities Over the Next 12 Months 38% of U.S. institutional investors said one of their top investment goals over the next 12 months was to use strategies that limit exposure to market volatility. (Percentage of respondents that cumulatively rank each as their first, second or third greatest priority.) 6 Q. Over the next 12 months, will your institution…?

Study of Institutional Investors: Background Natixis Global Asset Management (NGAM) commissioned a study of 482 institutional investors from around the world, including 151 from the United States. The institutional investors came from 13 nations. In addition to the U.S., they were based in the United Kingdom as well as leading economies in continental Europe, Asia and the Middle East. The survey respondents manage/oversee corporate pensions; public/government pensions; sovereign wealth funds; insurance reserves/liabilities; endowments/foundations; and/or funds of funds. The survey, conducted in June-July 2012, focused on the institutional investors’ views about market volatility and risk, as well as the steps they are taking to cope with abrupt swings in their portfolios. The study reflects proprietary research conducted through the NGAM Durable Portfolio Construction Research Center, which generates research on asset allocation, risk management and other issues