A retail client is a client who is not a professional client, as defined under the Luxembourg law of 5 April 1993
on the financial sector, as amended. This will normally be individuals and small businesses.
A professional client is one of the following:
– an entity required to be authorised or regulated to operate in the financial markets. The following list includes all authorised entities carrying out the characteristic activities of the entities mentioned, whether authorised by an EEA State or a third country and whether or not authorised by reference to a directive:
– in relation to MiFID or equivalent third country business, a large undertaking, meeting two of the following size requirements on a company basis:
The above definition is only an extract and is not exhaustive. For further details please refer to the Luxembourg law of 5 April 1993 on the financial sector, as amended.
Marketing Restrictions and Implications
Lyxor ETFs referred on this website are UCITS compliant open ended mutual investment funds either established under French or Luxembourg law and approved by the Autorité des Marchés Financiers (the French Financial Markets Authority) or the Commission de Surveillance du Secteur Financier (the Luxembourg Financial Markets Authority). The funds available on the retail section of the website are all authorized for public commercialization in Luxembourg. Certain of the French funds available on the professional section of the website are not recognised under articles 59 and following of the law of 17 December 2010 concerning undertakings for collective investment (the "Law") and the promotion of such funds to the public and the distribution of this website in Luxembourg are accordingly restricted by law. Investors should note that holdings in this product will not be covered by the provisions of the Association pour la Garantie des Dépôts Luxembourg, nor by any similar scheme in France or in any other relevant jurisdiction.
This website is exclusively intended for persons who are not "US persons", as such term is defined in Regulation S of 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.
Synthetic Index Replication
All Lyxor ETFs follow the synthetic index replication process. This consists of entering into a derivative transaction (a ‘Performance Swap’, which is 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 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 ETF commits to pay the Lyxor 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 ETF the performance and any related revenues generated by the Basket's assets (excluding the value of the Performance Swap) held by the Lyxor 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 products described within this website are not suitable for everyone. Investors' capital is at risk. Investors should not deal in this product unless they understand its nature 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 this product, 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.
Specific Risks
Counterparty risk:
Through Lyxor ETFs, investors are exposed to counterparty risks resulting from the use of an OTC (Over-the-Counter) Swap with Société Générale. In-line with UCITS guidelines, the exposure to the Swap Counterparty, Société Générale, cannot exceed 10% of the total fund assets. It is recommended that potential investors study the Prospectus before investing.
As of 9th December 2011, Société Générale was rated by S&P Ltd Long Term rating A+ and by Moodys Invest Service Long Term debt rating A1. Companies are rated by S+P Ltd from AAA (Most Secure/Best) to D (Most Risky/Worst), and are rated by Moodys Investor Services from Aaa (Highest quality) to C (Lowest rated).
Liquidity risk:
Société Générale is not the only market-maker for Lyxor ETFs. Société Générale and any other market makers supporting Lyxor ETFs on exchange must follow the requirements and guidelines of the stock exchange where the ETF is admitted for trading. On-exchange liquidity may be limited as a result of a suspension in the underlying market represented by the index tracked by the ETF; a failure in the stock exchange, Société Générale or other market-maker systems; or an abnormal trading situation or event.
The securities can be neither offered nor transferred in the United States.
Further information on the risk factors are available in the Risk Warning section of the website.
The Prospectus of the funds are available at www.lyxoretf.lu. Information given about the past performance of the funds is no guarantee of future performance. No investment decision should be taken without reading the Prospectus of the fund concerned.
Although information contained on the website are from sources believed to be reliable, Société Générale makes no representation or warranty regarding the accuracy of any information. Any reproduction, disclosure or dissemination of these materials is prohibited. This site is maintained by Société Générale, (Tours Société Générale, 17 cours Valmy 92987 Paris La Défense).
PLEASE REFER TO THE INVESTOR TYPE DESCRIPTION ABOVE AND PLEASE ENSURE YOU HAVE READ AND UNDERSTOOD THE INFORMATION PROVIDED IN THE REST OF THIS DISCLAIMER BEFORE YOU CLICK SUBMIT AND ACKNOWLEDGE THAT YOU ARE A RETAIL CLIENT OR A PROFESSIONAL INVESTOR.
I confirm that I am a retail client who has experience of exchange traded funds and a clear understanding of the risks associated with these investments. I agree to appraise the risks involved in the investment as set out on this website and that I will seek independent advice before investing in any products on this website as necessary.
I confirm that I am a professional investor.