17

Source: index providers (FTSE Russell, MSCI, Barclays Capital, JPMorgan).

31/12/2015 - 30/12/2016 NET CONTRIBUTION TO THE GLOBAL PERFORMANCE OF THE PORTFOLIO

PERFORMANCE SEEKING ASSETS 3.75%

Eurozone equities 1.15% Equities Europe + SRI Europe 0.11% ADECE Europe -0.06% ADECE World + SRI World 0.05% Equities North America 0.58% Equities Asia Pacific -0.01% Emerging Markets Equities (mutual funds) 0.49% High Yield bonds (mutual funds) 0.49% Emerging Market debt (mutual funds) 0.73%

NON-LISTED ASSETS 0.22%

Private Equity in euros 0.07% Private equity in dollars 0.08% Infrastructures 0.03% Real Estate 0.00% Private debt and equity balanced 0.02% Private debt 0.04%

LIABILITY HEDGING ASSETS 1.31%

Euro-denominated corporate bonds 0.68% Dollar-denominated corporate bonds 0.27% Matching Liability (French Government Bonds) 0.46% Cash -0.10%

ADMINISTRATIVE AND FINANCIAL CHARGES -0.08%

TOTAL 4,.7%

A SECURE, LIABILITY-BASED APPROACH THAT ENHANCES PERFORMANCE

The FRR must reconcile two investment objectives

The FRR s main objective is to be able to service its liabilities, which consist of annual payments to the CADES of EUR 2.1 billion until 2024, and any payments to the CNAV1 in respect of the CNIEG balance2, indexed to the FRR s perfor- mance. Under a relatively short liability-based investment model, the ability to comply with this objective can be assessed at any time on the

1 National pension fund (Caisse nationale d assurance vieillesse CNAV).

2 National electronic and gas industries fund (Caisse nationale des industries électroniques et gazières).

basis of the risk to the surplus. This is defined as the difference between the FRR s net assets and present value of liabilities3, and must be higher than 0. At 25 April 2024, when the FRR will no longer have any liabilities, the surplus will be equal to assets.

3 The present value is obtained using zero coupon interest rates of the French government bond yield curve.