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This new ETF offers investors access to the Indian market through one single investment tool traded on SGX. More importantly, it will be the first ETF denominated in Singapore dollars that tracks the performance of a foreign market. It further features a highly competitive all-in-one total expense ratio of 0.85%.
“A core strength of Lyxor AM is its ability to offer highly competitive ETFs with low total expense ratios (TERs), high liquidity and some of the lowest tracking errors. We aim to capitalise on our strength in the global ETF marketplace to add to the comprehensive product range in the Singapore market, and to meet the demands of investors in Singapore by launching the first cross-listed ETF denominated in Singapore dollars. The launch of Lyxor ETF India Nifty, the eighth Lyxor ETF1 to be listed in Singapore, signifies our commitment to developing a comprehensive range of investment tools to help investors achieve their goals,” said Mr Joseph Ho, Managing Director, who heads up the Lyxor ETF Platform in Asia.
Mr Chew Sutat, Executive Vice President and Head of Development, SGX, said, “We are pleased to work with Lyxor to launch Asia’s first India ETF on the Nifty index. Denominated in Singapore dollars, this ETF provides investors with easy and affordable access to the booming Indian stock market. The introduction of Lyxor ETF India Nifty also complements the CNX Nifty Futures and adds to our suite of diversified regional products, offering investors unparalleled access to the Asian markets.”
The S&P CNX NIFTY Index (“Nifty”) is a weighted-average index tracking a portfolio of the 50 largest and most liquid Indian stocks listed on the National Stock Exchange of India (“NSE”). Nifty is a well diversified stock index accounting for 21 sectors of the Indian economy and it grew by 39.8% in 2006 and 54.8% in 2007.
India is one of the fastest growing major economies in the world. . The country has experienced rapid industrialisation in recent years and its economy has grown at an annual rate of 8.9% (estimate)2 in 2007. The IMF further projects India’s economy to grow by 8.4% in 2008. It is one of the most attractive locations for business and investments due to a huge manpower base, diversified natural resources and strong macro-economic fundamentals.
Lyxor AM was the first manager to offer an ETF tracking the performance of the Indian economy in Europe. It is now providing investors in Singapore with a means of easy access to the Indian market with the listing of the Lyxor ETF India Nifty on SGX. The Lyxor ETF India Nifty aims to replicate as closely as possible, before expenses, the performance of the underlying index. Through this Lyxor ETF, investors can participate in the performance of some of the largest India corporations through a single vehicle traded in real-time on SGX. The Lyxor ETF India Nifty will compliment the Nifty futures trading in Singapore.
Lyxor ETF is investment made easy as it provides investors with the combined benefits of diversification, transparency, intra-day liquidity and cost efficiency. Investors can buy and sell Lyxor ETF on SGX through brokers or Internet brokerage accounts at any time throughout the trading day like normal company shares.
Details of the Lyxor ETF India (S&P CNX NIFTY) are as follows:
| Date of Listing | 28 March 2008 |
| Benchmark | S&P CNX NIFTY Index |
| Trading Name | Lyxor India Nifty 10 |
| Trading Currency | SGD |
| Trading Board Lot | 10 units |
| SGX Code: | FC6 |
Performance of the S&P CNX NIFTY Index (“Nifty”)
| Yearly Performances 2008YTD -14.91% 2007 54.77% 2006 39.83% 2005 37.71% |
Allocation by sectors
| Industrial Goods & Services | 12.24% |
| Chemicals | 11.87% |
| Oil & Gas | 11.74% |
| Banks | 10.77% |
| Telecommunications | 10.57% |
| Utilities | 10.35% |
| Technology | 9.48% |
| Basic Resources | 9.20% |
| Personal & Household Goods | 4.17% |
| Financial Services | 2.63% |
| Health Care | 2.54% |
| Automobiles & Parts | 2.10% |
| Construction & Materials | 1.98% |
| Media | 0.35% |
Top Holdings
| 1 | Reliance Industries Limited (Chemicals) | 11.87% |
| 2 | Oil & Natural Gas Corp Ltd (Oil & Gas) | 7.21% |
| 3 | Ntpc Limited (Utilities) | 5.52% |
| 4 | Bharti Airtel Limited (Telecommunications) | 5.20% |
| 5 | State Bank Of India (Banks) | 4.42% |
| 6 | Icici Bank Ltd (Banks) | 4.01% |
| 7 | Reliance Communication Ltd (Telecommunications) | 3.93% |
| 8 | Bharat Heavy Electricals (Industrial Good & Services) | 3.71% |
| 9 | Steel Authority Of India (Basic Resources) | 3.48% |
| 10 | Larsen & Toubro Limited (Industrial Good & Services) | 3.41% |
| 11 | Infosys Technologies Ltd (Technology) | 2.93% |
| 12 | Tata Consultancy Svs Ltd (Technology) | 2.85% |
| 13 | Housing Development Finance (Financial Services) | 2.63% |
| 14 | Reliance Petroleum Ltd (Oil & Gas) | 3.62% |
| 15 | Itc Ltd (Personal & Household Goods) | 2.53% |
Notes:
Société Générale
Société Générale is one of the largest financial services groups in the euro-zone. The Group employs 151,000 people worldwide in three key businesses:
- Retail Banking & Financial Services: Société Générale serves 27 million individual customers worldwide.
- Global Investment Management & Services: Société Générale is one of the largest banks in the euro-zone in terms of assets under custody (EUR 2 583 billion, Dec. 2007) and under management (EUR 434,6 billion, Dec. 2007).
- Corporate & Investment Banking: Société Générale ranks among the leading banks worldwide in euro capital markets, derivatives and structured finance.
Lyxor Asset Management (“Lyxor AM”)
Created in 1998, Lyxor AM currently manages EUR 73.9 billion. A wholly-owned subsidiary of Société Générale Group, belonging to the Corporate and Investment Banking arm of the group, the asset management company specializes in three businesses.
- Alternative Investments (EUR 26.5 billion). Lyxor AM offers a broad range of hedge funds, funds of hedge funds and absolute return funds, adhering to high risk-management standards and rigorous hedge fund manager selection guidelines. Lyxor AM gained its prominence with its hedge fund platform. This platform includes more than 190 hedge funds covering all principal strategies and represents a diversified investment universe benefiting from a high level of transparency, security and liquidity.
- Structured Management (EUR 20.5 billion). Lyxor AM offers investment solutions to its customers adapted to their risk profiles and return objectives. These solutions integrate the innovations of the Group into this domain, world number 1 as regards structured products on equity.
- Index Tracking (EUR 26.9 billion). Lyxor AM offers one of the most diversified and liquid range of ETF (Exchange Traded Funds). The company is one of the top players of the European ETF industry. Lyxor ETFs are listed in Europe and Asia and reflect Equity, Bond and Commodity markets. www.lyxoretf.com. www.lyxor.com
Singapore Exchange Limited ("SGX")
SGX was inaugurated on 1 December 1999, following the merger of two established and well-respected financial institutions - the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX). SGX is Asia-Pacific's first demutualised and integrated securities and derivatives exchange and is listed on its own bourse. The exchange's stock is a component of benchmark indices such as the MSCI Singapore's Free Index and the Straits Times Index (STI).
SGX aims to offer a highly trusted, comprehensive and efficient securities and derivatives marketplace for raising capital, risk transfer, trading, clearing and settlement. SGX facilitates the trading and clearing of commodity futures and over-the-counter (OTC) derivatives such as forward freight agreements and oil swaps. Through strategic alliances and partnerships with other exchanges around the world, SGX is firmly positioned as an Asian Gateway.
For more information, please visit SGX website: www.sgx.com
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1 Lyxor AM currently offers seven ETFs on SGX. They are: Lyxor ETF Japan (TOPIX®), Lyxor ETF China Enterprise (HSCEI), Lyxor ETF MSCI Korea, Lyxor ETF MSCI AC Asia-Pacific ex-Japan, Lyxor ETF Hong Kong HSI, Lyxor ETF MSCI Taiwan, Lyxor ETF Commodities CRB (Reuters/Jefferies CRB Index).
2 Source: IMF, GDP Constant Price
