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Please read the important information below before continuing to our website

Please read the important information below before continuing to our website.  

By clicking on your client type to enter the website, you are confirming that you have read and understood the important information that is contained below, and you accept the terms of the Privacy and Cookies policy.

THIS WEBSITE IS AIMED AT PROFESSIONAL CLIENTS IN NORWAY

This website is published by Lyxor International Asset Management (LIAM), a French asset management company approved by the AMF (17 place de la Bourse 75082 Paris Cedex 02) under the UCITS (2009/65/EC) and AIFM (2011/31/EU) directives.

The website is hosted by on Microsoft Azure servers.

This website is subject to French and Norwegian law.

 

A professional client is a client that is either a per se professional client or an elective professional client (Note article 4 (1) 12 of Mifid )

Marketing Restrictions and Implications

 

Lyxor UCITS compliant Exchange Traded Funds (Lyxor UCITS ETFs) referred to on this website are open ended mutual investment funds (i) established under the French law and approved by the Autorité des Marchés Financiers (the French Financial Markets Authority), or (ii) established under the Luxembourg law and approved by the Commission de Surveillance du Secteur Financier (the Luxembourg Financial Supervisory Committee). Most, , of the protections provided by the Danish regulatory system generally and for funds authorised in Denmark do not apply to these exchange traded funds (ETFs).

 

This website is exclusively intended for persons who are not "US persons", as such term is defined in Regulation S or the US Securities Act 1933, as amended, and who are not physically present in the US. This website does not constitute an offer or an invitation to purchase any securities in the United States or in any other jurisdiction in which such offer or invitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. Potential users of this website are requested to inform themselves about and to observe any such restrictions.

 

Index Replication Process

 

Lyxor UCITS ETFs follow both physical and synthetic index replication process.

 

However, most Lyxor UCITS ETFs follow synthetic replication process. This consists of entering into a derivative transaction (a ‘Performance Swap’, as defined below) with a counterparty that provides complete and effective exposure to its benchmark index. Lyxor has adopted this methodology in order to minimise tracking error, optimise transaction costs and reduce operational risks.

 

A Performance Swap is a contractual agreement which is negotiated over-the-counter (OTC) between two parties: the Lyxor UCITS ETF and its counterparty. From a risk perspective, each Performance Swap ranks equally with other senior unsecured obligations of the counterparty, such as common bonds (i.e., same rights to payments). In the Performance Swap, the counterparty of the Lyxor UCITS ETF commits to pay the Lyxor UCITS ETF a variable return based on a pre-determined benchmark index, instead of a fixed stream of income (as in bonds). At the same time, the counterparty will receive from the Lyxor UCITS ETF the performance and any related revenues generated by the basket's assets (excluding the value of the Performance Swap) held by the Lyxor UCITS ETF. Information provided on individual ETFs includes data on the basket relating to the ETF and the percentage value of the basket represented by each asset. The information is relevant to the closing values on the date given. 

 

Investment Risks

 

The Lyxor UCITS ETFs described on this website are not suitable for everyone. Investors' capital is at risk. Investors should not deal in this product unless they understand, having obtained independent professional advice where necessary, its nature, terms and conditions, and the extent of their exposure to risk. The value of the product can go down as well as up and can be subject to volatility due to factors such as price changes in the underlying instrument and interest rates. If a fund is quoted in a different currency to the index, currency risks exist.

 

Prior to any investment in any Lyxor UCITS ETF, you should make your own appraisal of the risks from a financial, legal and tax perspective, without relying exclusively on the information provided by us. We recommend that you consult your own independent professional advisors (including legal, tax, financial or accounting advisors, as appropriate).

 

Specific Risks

 

·         Capital at Risk. ETFs are tracking instruments: Their risk profile is similar to a direct investment in the Benchmark Index. Investors’ capital is fully at risk and investors may not get back the amount originally invested. Investments are not covered by the provisions of the Financial Services Compensation Scheme (“FSCS”), or any similar scheme.

·         Counterparty Risk. Investors may be exposed to risks resulting from the use of an OTC Swap with Societe Generale. Physical ETFs may have Counterparty Risk resulting from the use of a Securities Lending Programme.

·         Currency Risk. ETFs may be exposed to currency risk if the ETF or Benchmark Index holdings are denominated in a currency different to that of the Benchmark Index they are tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns.

·         Replication Risk. ETFs are designed to replicate the performance of the Benchmark Index. Unexpected events relating to the constituents of the Benchmark Index may impact the Index provider’s ability to calculate the Benchmark Index, which may affect the ETF’s ability to replicate the Benchmark Index efficiently. This may create Tracking Error in the ETF.

·         Underlying Risk. The Benchmark Index of a Lyxor ETF may be complex and volatile. When investing in commodities, the Benchmark Index is calculated with reference to commodity futures contracts which can expose investors to risks related to the cost of carry and transportation. ETFs exposed to Emerging Markets carry a greater risk of potential loss than investment in Developed Markets as they are exposed to a wide range of unpredictable Emerging Market risks.

·         Liquidity Risk. On-exchange liquidity may be limited as a result of a suspension in the underlying market represented by the Benchmark Index tracked by the ETF; a failure in the systems of one of the relevant stock exchanges, Societe Generale or other Market Maker systems; or an abnormal trading situation or event. 

 

The securities can be neither offered in nor transferred to the United States.

 

Tax

 

Any statement in relation to tax, where made, is generic and non-exhaustive and is based on our understanding of the laws and practice in force as of the date of this document and is subject to any changes in law and practice and the interpretation and application thereof, which changes could be made with retroactive effect. Any such statement must not be construed as tax advice and must not be relied upon. The tax treatment of investments will, inter alia, depend on an individual’s circumstances. Investors must consult with an appropriate professional tax adviser to ascertain for themselves the taxation consequences of acquiring, holding and/or disposing of any investments mentioned on this website. 

Further information on the risk factors are available in the [Risk Warning – link to risk page] section of the website.

 

Any fund prospectus and supplements are available at www.lyxoretf.dk. Information given about the past performance of the funds is no guarantee of future performance. No investment decision should be taken without reading the fund prospectus and any fund supplement of the fund concerned.

 

Although the content of the website is based upon information that LIAM consider reliable or comes from sources that LIAM consider reliable, LIAM have not verified such information. Lyxor make no representation or warranty as to the accuracy, completeness or adequacy of any information.  Any reproduction, disclosure or dissemination of the materials available on the website is prohibited.

 

Cookies

This website uses cookies to make the website work or improve your user experience. Cookies are small text files that are saved on your computer or device, which are used for several purposes such as detecting preferences and improving site navigation. By continuing to use this website you consent for cookies to be used. For more details, including how to amend your preferences, please read our [Cookies Policy] link to privacy & cookie page.

By clicking on your client type to enter the website, you shall be deemed to have represented to us that you are not a U.S. person and that you are not located in the United States of America, its territories and possessions, and any State of the United States of America and that you are authorised to receive the information to and on this website.

August, 2015

 

 

 

I CONFIRM THAT I HAVE READ AND UNDERSTOOD THE IMPORTANT INFORMATION THAT IS CONTAINED ABOVE AND ACCEPT THE TERMS OF THE PRIVACY AND COOKIES POLICY.

08 Jul 2020

Lyxor enhances Climate ETF ecosystem with Paris- Aligned range

Lyxor today announces the launch of the first EU Paris-Aligned ETFs - the latest addition to its ground-breaking ecosystem of EU climate benchmark ETFs. These ETFs are designed to meet and exceed the EU Paris-Aligned benchmarks’ minimum requirements and will be adjusted according to the final characteristics set out in the EU delegated acts later this year if appropriate. Their investment objectives are aligned with the IPCC’s1  most ambitious scenario based on the 2015 Paris Agreement goals - limiting global warming to 1.5°C “with no or limited overshoot” above pre-industrial levels. 

Such a scenario requires these portfolios to achieve an absolute decarbonisation trajectory of 7% year-on-year. The underlying indices also achieve an immediate carbon intensity reduction of 50%, instantly aligning them with the widespread objective of a 50% reduction in emissions by 2030, which is a major milestone on the path towards a net zero world in 2050. In order to do this, these ETFs have become the first anywhere in the world to integrate the greenhouse gas emissions of the entire value chain of any given company. They are also the only ETFs which take the physical risk to business activity deriving from extreme climate events into account2.

Tracking S&P Paris-Aligned Climate indices, these four ETFs (on Eurozone, European, US and Global equities) are deeply anchored in voluntary international recommendation frameworks for assessing climate-related risks and opportunities. In particular, they adhere transparently to the Task Force for Climate-related Financial Disclosure (TCFD)3 model for assessing climate-related risks and opportunities and a science-based framework using data and models recommended by the Science Based Targets Initiative4.

These ETFs exclude companies active in the fields of coal, and above certain thresholds of oil, natural gas, and carbon intensive electricity production. They also avoid companies harming the EU’s environmental objectives, and those involved in controversial weapons, tobacco or violating societal norms. Then, by using S&P’s climate data specialist Trucost’s Transition Pathway Model, which relies on forward-looking data to analyse and forecast issuers’ future greenhouse gas emissions, these ETFs aim to follow a clear and predictable decarbonisation trajectory by reallocating capital to those companies which are the most ambitious contributors to emission reductions for a 1.5°C global warming scenario. This ambitious, “organic” approach to portfolio decarbonisation is made possible by incorporating significant amounts of data from multiple sources and applying a clear data hierarchy. Trucost is a leading company in assessing risks related to climate change, natural resource constraints, and broader environmental, social, and governance factors5.

‎Earlier this year, Lyxor became the world’s first ETF provider to launch an ecosystem of ETFs designed to mitigate climate change. It did so by listing a range of ETFs that met the requirements for EU Climate Transition benchmarks, setting explicit targets to curb the rise in temperatures under the new benchmark regulation. 

Arnaud Llinas, Head of Lyxor ETF & Indexing, commented: “EU climate benchmarks are just one of the ways Europe is taking the lead on climate. At Lyxor, we believe in the power of indices and ETFs to build on data and shift capital at scale towards a climate neutral economy. With this latest enhancement to our climate ETF ecosystem, we are helping investors take their decarbonisation ambitions to the next level as well as adopting an even greener approach through fossil fuel exclusions”.

Reid Steadman, Global Head of ESG Indices at S&P Dow Jones Indices, said: “We are very pleased that Lyxor has selected our S&P Paris-aligned climate indices as the underlying benchmarks for its new exchange-traded funds. We’re proud to offer innovative and transparent indices in Europe and globally that help our clients navigate the transition to a low carbon economy, and capture both financial risks and opportunities.”

The Lyxor S&P Eurozone Paris-Aligned Climate (EU PAB) (DR) UCITS ETF has been listed today on Euronext and will be listed later in July on Xetra. The Lyxor S&P 500 Paris-Aligned Climate (EU PAB) (DR) UCITS ETF will be listed on Xetra and LSE in July. The Lyxor S&P Global Developed Paris-Aligned Climate (EU PAB) (DR) UCITS ETF will be listed on LSE and Xetra in September. The Lyxor S&P Europe Paris-Aligned Climate (EU PAB) (DR) UCITS ETF will be listed on Xetra in September. All of these ETFs are listed with a Total Expense Ratio of 0.20%6.


Find out more about our ecosystem of Climate ETFs.

1  IPCC SR15 Report: https://www.ipcc.ch/sr15/
2 These two further objectives taken into account are the Physical Risk reduction and the Scope 3 emissions integration.
3 The FSB Task Force on Climate-related Financial Disclosures (TCFD) develops consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders: https://www.fsb-tcfd.org/  
4 In collaboration between CDP, the united Nations Global Compact (UNGC), World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), and one of the We Mean Business Coalition commitments, the Science Based Targets Initiative champions science-based target setting as a powerful way of boosting companies’ competitive advantage in the transition to the low-carbon economy.
5 https://www.trucost.com/
6 Source : Lyxor International Asset Management. TER correct as at 02/07/2020.