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Lyxor Asset Management will tomorrow be launching four new Exchange Traded Funds on Euronext Paris, raising the number listed on NextTrack, the market segment dedicated to ETFs, to over 200, with nearly 150 indices represented as underlying indices.
New products
Lyxor AM will list four new Exchange Traded Funds in Paris on 12 June 2007, rounding out its product offering for emerging markets with three new building blocks allowing investors to design and manage asset allocation strategies:
- Based on regional indices
Lyxor ETF MSCI Emerging Markets (FR0010429068 – LEM) replicates the benchmark index for the world’s emerging markets as a whole, offering exposure to 27 countries with constantly expanding economies. Management fees for the fund are set at only 0.65% a year, the lowest on the market for comparable exposure.
Lyxor ETF MSCI EM Latin America (FR0010410266 – LTM) is based on an index covering Brazil, Mexico, Chile, Peru and Colombia.
- Based on country index
To provide the necessary scope for optimization of tactical allocations, Lyxor offers a broad range of ETFs tracking country indices. Its new product, Lyxor ETF South Africa (FTSE JSE TOP 40) (FR0010464446- AFS) rounds out a line-up already covering, Brazil, Russia, India, China, Turkey and Korea.
Lyxor’s fourth new fund, Lyxor ETF Leveraged DJ Euro Stoxx 50 (FR0010468983 – LVE), is its second leveraged-index product after Lyxor ETF LevDAX. It is based on the Leveraged DJ Euro Stoxx 50 index, calculated and published by Stoxx, which doubles rises and falls in the DJ Euro Stoxx 50, the benchmark for euro-zone equity markets. Designed for well-informed investors, the fund offers potential to double gains (less the cost of this leverage), but also carries the risk of doubling losses.
These new products confirm Euronext’s position as a pace-setter for ETFs, offering a diversified, innovative range of products from the leading European and international issuers. NextTrack now counts 201 listed funds, four times the number just two years ago, with total assets of more than EUR 60 billion, placing it first in the sector in Europe. The number of trades on NextTrack during the five months to the end of May 2007 showed a rise of 90% from the same period of 2006 and average daily trading value during the period was EUR 250 million, up 85% on a year.
This April, Euronext overhauled classifications on NextTrack, which as a result is now made up of four product categories: equity-market ETFs, commodity-market ETFs, strategy-index ETFs and active ETFs. The new classification is intended to preserve the legibility of the NextTrack offering and ensure easy access to information on individual products within an overall framework that matches the demands of portfolio structuring. This is in keeping with Euronext’s commitment to the continued development of this particularly robust segment.
Lyxor ETF range
With the new launches, Lyxor will offer a total of 84 ETFs, providing investors with an effective set of tools for their allocations to equities, bonds and commodities. The Lyxor range of ETFs leads the field in Europe with over EUR 20 billion under management and a 26%** share of the market. Its funds are listed on a total of nine exchanges in Europe and Asia.
Widely recognized in the international financial services industry, Lyxor won four prizes at the 2007 ”Global ETF Awards” in New York:
- the Most Innovative ETF Products in Europe
- the Most Recognized ETF Brand in Europe
- the Most Informative website in Europe
- the Most Assets Raised in Europe (for Lyxor ETF DJ Euro Stoxx 50)
* Less the cost of this leverage ** Source: Bloomberg at 31 May 2007
