We#Protect,#You#Perform

Active Asset Allocation

MARS 2015

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ClientsOur clients are based in Europe and the US. We mainly advise pension funds, asset managers, institutional investors, family offices and private banks. Despite their own specific issues, our clients all show the desire to improve the risk management of their investments.

Who we are ?Active Asset Allocation is an independent company was created by a team of actuaries and financial engineers that provide unbiased asset allocation advices.

Reconciliation of security and performance comes with a perfect control of risk

MissionActive Asset Allocation puts in practice a responsible approach to preserve the financial resources managed for the long term, such as pensions of future generations. We believe that risk management should be at the heart of the investment process.

SolutionsOur unique asset allocation methodology combines a blend of risk management techniques : diversification, hedging and portfolio insurance. We enable our clients to manage their investments’ downside risk in the most efficient way.Our solutions are fully customized to integrate all clients’ objectives and constraints. We do not use any forecasts of expected returns for the asset classes; instead we test our models on a large number of simulated market scenarios in a stochastic environment.

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We advise on the asset allocation, investors keep the control of their investments.

Diagnostic

Asset Allocation Design

Implementation

Research & Development

- We take into account your objectives and constraints- We identify the asset classes you would like to invest in

- We design a customized model- We crash test the model in a stochastic environment (Thousands of scenarios)

- We define a monthly optimal asset allocation- We monitor your portfolio and the level of risk on a daily basis

- We upgrade on an on-going basis our in house models, and you will benefit from our innovations

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Definition of your level of risk

Customized asset allocation model

Monthly report

On-going improvement

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Risk Channeling Analysis

Crash Testing Design

Dynamic Performance Locking

Research & Innovation

Your needs are at the heart of our process

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Our strengthsIndependence'Active Asset Al location is an independent company, we provide unbiased advices. We do not promote funds. You choose the assets you wish to invest in and we help you to make the most of them.

No'bets'on'futureOur allocation recommendations are not guided by market sentiment but are determined accordingly with the investor capacity to take risk at a certain period of t ime. (Risk budgeting)

Academic'researchBy applying state-of-the-art academic research into the investment world, Active Asset Allocation brings financial engineering to the service of investors. 35% of our resources are directed to research, development and innovation.

A complete control of your risk by using our customized model that takes into account both your internal and regulatory constraints

A pre-defined decision framework enabling to optimize your asset allocations whatever market conditions including the most stressed

A Enhanced long term performances

A Reconcile your long-term objectives with short-term constraints

SerenityOur allocation model controls and limits the maximal downside risk to a pre-defined level.Our achievements and the fidelity of our clients confirm our expertise.

Our added value

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Investments issues Solution objectives

Funds and mandatesPerformance and

withdraws DARMEnhance performance by controlling downside risk

Foundations et Endowments

Cash flows stability

DARM Enhance performance by controlling downside risk

DB Pension Funds Fund’s solvency DALM Fully funded situation

DC Pension Funds Capital loss DARM Manage the downside risk (Maximum drawdown)

Targets Date Funds Fund’s solvency DARM Horizon

Manage the downside risk (Maximum drawdown)

General Insurance Funds

Continous Yields decrease

DALM Enhance performance by controlling downside risk

Life insurance(UC)

Capital loss at maturity

DARM Horizon

Enhance performance by controlling downside risk

DARM (Dynamic Asset and Risk Management)Enhances performance by providing downside protection

DALM (Dynamic Asset and Liability Management)Delivers an optimal solution to reach a fully funded situation

DARM HorizonOffers an innovative solution for life cycle investing

Your issues - Our solutions

Customized solutions

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DARM (Dynamic Asset and Risk Management) is our asset allocation solution that enables an asymmetric management of the portfolio returns: by dynamically controlling negative returns, DARM helps limit losses without restricting performance.

Exemple'of'DARM'on'mul01assets

Allows'mul0ple'asset'classes'(unlike'CPPI)

Protec0on'of'a'progressive'level'of'wealth

Reduc0on'of'the'risk'to'be'fully'invested'in'cash

Management'of'different'protec0on'types

Value'of'th

e'diffe

rent'assets,'normalise

d'to'100

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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Eonia Oblig. Gouv. Euro Crédit Euro Corp Euro MSCI World MSCI EMGSCI DJAIG EPRA

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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MSCI World Final DARM Floor Benchmark (50% Cash 50%MSCI World)

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Zoom on... The DARM

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Disclaimer ©'2015,'Ac0ve'Asset'Alloca0on.'All'rights'reserved.'

This'document'has'been'prepared'by'Ac0ve'Asset'Alloca0on,'as'thoroughly'as'possible'and'with'extreme'cau0on.'Informa0on,'descrip0ve'analyses'or'sta0s0cs'contained'herein'have'been'obtained'from'sources'believed'to'be'reliable,'but'not'guaranteed'and'they'do'not'engage'the'responsibility'of'Ac0ve'Asset'Alloca0on.'This'material'has'been'distributed'for'informa0onal'purposes'and'for'the'recipients’'use'only.'It'should' not' be' considered' as' investment' advice' or' a' recommenda0on' of' any' par0cular' security,' strategy' or' investment' product.' This'communica0on'is'directed'at'professional'clients'who'are'deemed'both'knowledgeable'and'experienced'in'maQers'rela0ng'to'investments.'Ac0ve'Asset'Alloca0on'shall'not'be'held'responsible'either'for'any'direct'or'indirect'damage'incurred'as'a'result'of'the'use'of'informa0on'provided'in'this'document.'No'part'of'this'material'may'be'reproduced'in'any'form,'without'express'wriQen'permission'from'Ac0ve'Asset'Alloca0on.'

Ac0ve'Asset'Alloca0on'is'registered'in'France'under'No'B000183'with'ACIFTE,'an'associa0on'regulated'by'the'French'Authority'of'Financial'Markets'(AMF).'The'firm'is'also'registered'with'ORIAS,'under'No'13000765.'

CONTACT'US'

+33'(0)4'93'18'02'97'corporate@ac0ve1asset1alloca0on.com'

www.ac0ve1asset1alloca0on.com

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