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Lyxor Asset Management is now offering the first Exchange Traded Funds in Germany based on the Japanese TOPIX share index and the Reuters/Jefferies CRB Total Return commodities index. "By doing so we continue to increase our product range in the German market and give both institutional and private investors the opportunity to diversify their portfolios even more broadly", says Thomas Meyer zu Drewer, head of Lyxor ETF in Germany. The two funds are listed on Deutsche Börse’s XTF segment as of 9 August.
The new Lyxor ETFs offer unique benefits for investors. The Lyxor ETF Japan (TOPIX) allows investors to invest simply and efficiently in the Japanese stock market. The fund represents the TOPIX which is a composite index of all Japanese common stocks listed on the First Section of Tokyo Stock Exchange (TSE). At present, the TOPIX comprises nearly 1,700 stocks. The base for the index is the aggregate market value of its component stocks. In comparison to other Japanese share indexes, TOPIX offers a broader spectrum and is therefore a reliable indicator for developments on the Japanese stock market.
Taizo Nishimuro, President & CEO of the Tokyo Stock Exchange (TSE), says: "The TSE is pleased with the listing of an Exchange Traded Fund based on the TOPIX on the leading ETF market in Europe, Deutsche Börse’s XTF segment. This facilitates access for both European and German investors to invest in the Japanese stock market. We are convinced that this listing will further increase the capital flow between Germany and Japan."
“Deutsche Börse is Europe’s leading ETF market. In the second quarter of 2006 alone, 16 new ETFs were introduced”, said Reto Francioni, CEO Deutsche Börse. “The listing of the two new Lyxor ETFs further increases our product portfolio of listed index funds, and investors benefit from the high liquidity in the XTF segment.”
The Lyxor ETF Japan (TOPIX) is a particularly good example of the benefits offered by Exchange Traded Funds: with just one transaction, it is possible to invest in nearly 1,700 individual stocks at extremely low cost. As the value of each Lyxor ETF is recalculated continuously during trading hours and shares can be traded like stocks on the stock exchange, investors can react immediately to current market events and hence actively utilize their own strengths.
Just as the TOPIX is used by institutional investors as a benchmark index for the performance of the Japanese economy, the Reuters/Jefferies CRB Total Return Index is regarded as the benchmark for the commodities sector. While the commodities index represented the investment universe with equal weighting in the past, it has undergone a revision a year ago so that component weightings now take into account the relative significance and liquidity of the various commodities markets. The CRB Index covers the entire commodities universe and consists of 19 different commodities, ranging from aluminum to sugar. Heating oil and gasoline currently have the greatest weight with a share of 33 percent. Softs (soft commodites) account for 20 percent of the index. The rest is made up by industrial metals (13 percent), grains (13 percent), precious metals (7 percent), livestock (7 percent) and natural gas (6 percent). The CRB Index is one of the oldest and best-known commodities indexes in the world. For a long time it was largely closed to private investors. With the Lyxor ETF Commodities CRB, Lyxor Asset Management is the first issuer on the German market to give investors access to this commodities index in the form of special assets in legal terms.
The main features of the new Lyxor ETFs:
Name: Lyxor ETF Japan (TOPIX)
Benchmark index: TOPIX
First listing: 09.08.06
WKN: A0ESMK
ISIN: FR0010245514
Currency: Euro
Dividend: Annual
Management fees: 0.50 %
Name: Lyxor ETF Commodities CRB
Benchmark index: Reuters/ Jefferies CRB
First listing: 09.08.06
WKN: A0JC8F
ISIN: FR0010270033
Currency: Euro
Dividend: -
Management fees: 0.35 %
Deutsche Börse’s XTF Segment:
The XTF segment of Deutsche Börse is the leading market place for exchange-traded funds in Europe. A total of 138 index funds are now listed in the segment, with 61 new products added since the beginning of 2006. Deutsche Börse’s XTF segment accounts for approximately 50 percent of the entire trading volume in ETFs across Europe.
Lyxor AM manages EUR 55 billion. A wholly-owned subsidiary of Société Générale, belonging to the Corporate and Investment Banking arm of the group, the asset management company specializes in three businesses:
Structured Alternative Investments (EUR 23.3 billion). A specialist in risk-management and hedge fund manager selection, Lyxor AM has investments in several hundred hedge funds across all strategies, in addition to its Managed Account Platform offering independent valuation and weekly liquidity.
Structured Funds (EUR 16.8 billion). Lyxor AM benefits from the expertise and innovation of the Equity Derivatives department of Société Générale Corporate and Investment Banking, to offer adapted investment solutions to fit investors' risk profile and return objectives.
Index Tracking (EUR 14.7 billion). The company ranks number one in the European ETF industry with a 23.6% market share as at end of December 2005.
Lyxor AM credentials: “Asset Manager of the Year” (AsiaRisk 2004), "Best Investment Platform" (Hedge Funds Review 2005) and "Best Managed Account Platform" (Albourne Partners Ltd. 2004).
Tokyo Stock Exchange, Inc. (TSE) is one of the leading global exchanges and the largest securities market in the Asia-Pacific region. TSE is best known for its EUR 3.4 trillion equities market capitalization, and it also boasts the strongest market for Japanese securities derivatives such as TOPIX futures and TOPIX options. Beyond its dynamic market, TSE is home to the development and publishing of Japan’s most comprehensive family of indices. TOPIX (Tokyo Stock Price Index), the principal index consisting of all Japanese common stocks listed on the TSE First Section, is widely used as a benchmark for the Japanese stock market.
