The 5 new ETFs will further complement Lyxor AM’s existing Asia- and commodities-focused ETF range. They are:
- Lyxor ETF MSCI Asia APEX 50
- Lyxor ETF MSCI Thailand
- Lyxor ETF MSCI Malaysia
- Lyxor ETF MSCI India
- Lyxor ETF Commodities CRB Non-Energy (Reuters/Jefferies CRB Non-Energy Index)
Lyxor ETF MSCI Asia APEX 50 will be the first ETF in Asia to track the recently launched MSCI Asia APEX 50 Index, which comprises 50 of the largest and most liquid securities in Asia excluding Japan. The MSCI Asia APEX 50 Index, the first tradable index offered by MSCI Barra, serves as a tradable proxy to the broader MSCI AC Asia ex-Japan Index, a benchmark index widely followed by investors in Asia. The new ETF will charge a total expense ratio (TER) of 0.50% p.a. and is expected to complement the MSCI Asia APEX 50 index futures – the first pan-Asian contract listed in the region – already trading on SGX.
Lyxor ETF MSCI Thailand and Lyxor ETF MSCI Malaysia, two ETFs focusing on the emerging markets in Asia, will make their debut in the region for the first time. The introduction of both ETFs will add depth and breadth to an already impressive line-up of Asia-focused Lyxor ETFs listed on SGX, allowing investors to zero in on specific market performances from resource-rich Thailand and Malaysia. The total expense ratio (TER) charged by each of the two ETFs above will be 0.65% p.a.
Lyxor ETF MSCI India will be the second Lyxor ETF focusing on the fast-growing Indian market, after the Lyxor ETF Nifty India launched on SGX in May 2008. It is listed on the back of strong demand for another India-based equity ETF, following the strong growth and active trading of the Lyxor ETF Nifty India since its launch. The new Lyxor ETF MSCI India, which charges a highly competitive all-in-one TER of 0.85% p.a., will offer local and regional investors an economical alternative to gain broad Indian exposure through the MSCI India Index.
Finally, Lyxor ETF Commodities CRB Non Energy will augment the popular Lyxor ETF Commodities CRB which started trading on SGX in January 2008. The latest commodity ETF to be listed in Singapore, it will provide investors with diversified exposure to a portfolio of non-energy related commodities including metals, agricultural and soft commodities. Its benchmark index, the Reuters/Jefferies CRB Non Energy Index, is designed to provide timely and accurate representation of a long-only, diversified investment in 15 non-energy related commodities through a transparent calculation methodology. This commodity ETF will charge a highly competitive annual management fee of 0.35% and a transaction cost of 0.35% p.a.
Commenting on the new launches, Mr Joseph Ho, Managing Director & Head of Exchange Traded Funds, Asia Pacific, Société Générale, remarked, "The power of ETFs lie in the diversity and number of products on offer, making them convenient and cost-effective investment tools for customising portfolios and investment strategies. It is in this regard that Lyxor AM will continue working with SGX to add products to our ETF platform.”
“We are pleased to once again work with Lyxor to launch five new ETFs at one go. With these new listings, we now cover most of the major Asian markets, augmenting our position as the Asian Gateway for market access to the region. This is also part of our holistic approach to cater to private and institutional investors both in the derivatives and cash markets. We do this by offering them complementary products with cross-trading opportunities, such as ETFs and futures contracts on the Straits Times, MSCI Asia APEX 50, MSCI Taiwan and CNX Nifty indices,” said Mr Andrew Ler, Senior Vice President & Head of Private Investors at SGX.
With the launch of these new ETFs, SGX has 24 ETFs covering mainly Asian equity markets such as Singapore, India, Greater China, ASEAN, Korea and Japan and also on commodities, e.g. gold.
Lyxor ETFs are passively-managed index tracking funds combining the liquidity benefits of exchange-listed securities and the diversification advantages of traditional mutual funds, providing valuable portfolio building blocks.
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 more than 30 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 2 733 billion, June 2008) and under management (EUR 381.4 billion, June 2008).
- Corporate & Investment Banking: Société Générale ranks among the leading banks worldwide in euro capital markets, derivatives and structured finance.
Société Générale is included in 3 socially-responsible investment indexes: FTSE, ASPI and Ethibel.
www.socgen.com
Lyxor Asset Management (Lyxor AM)
Created in 1998, Lyxor AM currently manages EUR 70.3 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 23.7 billion). Lyxor 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 170 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 19.4 billion). Lyxor 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 (EUR27.2 billion). Lyxor 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
Singapore Exchange Limited
Singapore Exchange (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
Disclaimers:
Full description of each Lyxor ETF is set out in the respective Prospectus issued by Lyxor International Asset Management (“Lyxor AM”), the responsible person for the Lyxor ETF in Singapore. Prospectuses are available from the Singapore representative, RBC Dexia Trust Services Singapore Limited (Registration Number 199504677Z). This advertisement is for general information only and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person. Potential investors should read the Prospectus and consider carefully, and may seek advice from a financial adviser, whether the Lyxor ETF is suitable for him, before investing.
Each Lyxor ETF seeks to track the performance of a particular benchmark index, by purchasing a basket of international stocks which may not contain any constituents of the index; and subject to a 10% limit of the Lyxor ETF’s assets, may enter into certain swap agreements to exchange the Lyxor ETF’s exposure to the basket of stocks (or other financial instruments which are assets of the Lyxor ETF) with that of the benchmark index. Please refer to the relevant Prospectus for details on the investment objective, focus and approach of, and the risks of investing in, the relevant Lyxor ETF, including amongst others, the counterparty risk and risk of the swap agreements.
The information herein is provided by Société Générale, the Singapore marketing representative of the Lyxor ETF. Reference to Lyxor AM is a reference to the company solely in its capacity as manager of the Lyxor ETF. Lyxor AM carries on fund management work outside Singapore and neither carries on business nor offers any services in Singapore.
Investors should note that information and performance of the respective indices should not be used or construed as the information or a proxy, prediction, forecast or projection of the performance or future performance of the Lyxor ETF. The value of Units and income accruing to the Units, if any, may rise or fall. Units may be redeemed with Lyxor AM under certain specified conditions and the listing of Units does not guarantee a liquid market for the Units. Past performance of the manager or Lyxor ETF is not necessarily indicative of its future performance.
The products described herein are UCIT compliant mutual funds and are subject to various legal or regulatory restrictions in Europe.
Société Générale (“SG”), Lyxor Asset Management and Lyxor International Asset Management assume no fiduciary responsibility or liability for any consequences financial or otherwise arising from the subscription or acquisition of any instrument described in this document. Investors should make their own appraisal of the risks and should consult to the extent necessary their own legal, financial, tax, accounting and other professional advisors in this respect prior to any subscription or acquisition.
Information including the Reuters/Jefferies CRB Index and related indices and sub-indices (collectively the "RJ/CRB") and materials relating thereto, is the property of Thomson Reuters PLC or its affiliates ("Thomson Reuters") and/or Jefferies Financial Products, LLC or its affiliates ("Jefferies"). It may not be used to create, offer, trade, market or promote any financial products without the express written consent of Jefferies and Thomson Reuters. Please refer to the prospectus for detailed disclaimer on the Index.
The MSCI indexes are the exclusive property of MSCI Inc. ("MSCI"). MSCI and the MSCI index names are service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes by Lyxor International Asset Management. The financial securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such financial securities. The Prospectus contains a more detailed description of the limited relationship MSCI has with Lyxor International Asset Management and any related financial securities. No purchaser, seller or holder of this
product, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this product without first contacting MSCI to determine whether MSCI's permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI.
