What is Risk Premia / Alternative Beta? — A premium generated for taking a certain type of risk. — Persistent source of return that can be accessed systematically, also referred to as a Risk Premium or Alternative Beta. — Some risk premia represent simple exposure to the excess return of an asset class, such as the Equity Risk Premium or the Credit Risk Premium - these are the "traditional" risk premia. — Others represent systematic investment in assets with certain characteristics, or trading of related instruments to capture relative value: — Equity investment strategies such as Value, Quality and Momentum — Implied/realized volatility strategies - Also present beyond the equity space, in strategies such as FX carry and Rates term structure carry — Most well-known risk premia have been analyzed extensively in academic and practitioner literature. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0054923 CONFIDENTIAL SDNY_GM_00201107 EFTA01364390