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Please read the important information below before continuing to our website

The Lyxor ETFs on this website may be restricted for certain individuals or in certain countries pursuant to the national regulations applicable to those individuals or countries. It is therefore your responsibility to ensure that you are authorised to invest in the Lyxor ETFs on this website. 

 

If you are an investor in the United Kingdom, please go to www.lyxoretf.co.uk  

If you are an investor in the Netherlands, please go to www.lyxoretf.nl  

If you are an investor in Italy, please go to www.lyxoretf.it  

If you are an investor in Spain, please go to www.lyxoretf.es  

If you are an investor in Austria, please go to www.lyxoretf.at  

If you are an investor in Germany, please go to www.lyxoretf.de   

If you are an investor in Singapore, please go to www.lyxoretf.com.sg  

If you are an investor in Switzerland, please go to www.lyxoretf.ch  

If you are an investor in Belgium, please go to www.lyxoretf.be  

If you are an investor in Poland, please go to www.lyxoretf.pl 

If you are an investor in Norway, please go to www.lyxoretf.no

If you are an investor in Denmark, please go to www.lyxoretf.dk

If you are an investor in Luxembourg, please go to www.lyxoretf.lu

If you are an investor in Sweden, please go to www.lyxoretf.se

If you are an investor in Finland, please go to www.lyxoretf.fi

 

 

The Lyxor ETFs on this website are undertakings for collective investment in transferable securities (UCITS) (i) domiciled in France and approved by the Autorité des Marchés Financiers (AMF) or, (ii) domiciled in Luxembourg, approved by the Commission de Surveillance du Secteur Financier (CSSF) and authorised to market their units or shares in the French Republic in accordance with the notification procedure under Article 93 of Directive 2009/65/EC. Investors should note that the prospectuses of certain Lyxor ETFs under Luxembourg law that have been notified in accordance with this procedure are only available on the website in English. A French translation of these prospectuses can be obtained upon request by sending a letter to Lyxor International Asset Management (“Lyxor”) – 17 Cours Valmy, 92987 Paris La Défense, France.

 

The information on this website is not intended for persons or entities that are resident, located or registered in jurisdictions that are not authorised to distribute Lyxor ETFs. As a result, the information on this website does not constitute an offer or solicitation to buy or sell units or shares in these ETFs by anyone in any jurisdiction:

 

(a)   in which such an offer or solicitation is unauthorised;

(b)   in which Lyxor is not qualified to make such an offer or solicitation; or 

(c)   in which it is unlawful to make such an offer or solicitation.

 

In particular, the Lyxor ETFs on this website are not and will not be registered under the United States Securities Act of 1933, as amended. As such, they may not be offered or sold within the United States of America, except in specific cases where transactions are exempt from registration under the Securities Act. The ETFs listed on this website may not be sold to US citizens or transferred to the United States by any other means, unless this transaction is not subject to any specific registration under US law. 

 

Any person from a jurisdiction to which the above-mentioned restrictions apply should inform themselves of and observe these restrictions.

 

This website is intended for commercial purposes and is not regulatory in nature. Although the information provided has been drawn up on the basis of sources considered to be reliable, there is no guarantee that it is accurate, complete or relevant. Some of the information on this website is provided on the basis of market data collected at a specific time and may therefore vary over time. Lyxor advises investors to read the risk factors section of the prospectus and the key investor information document carefully. These documents can be found on the website.

 

The net asset value (“NAV”) of Lyxor ETFs may at any time be subject to considerable price fluctuations, which in some cases may lead to the loss of all of the capital invested. Investors should note that some ETFs may be sensitive to fluctuations in the exchange rate between their reference currency and that of the underlying index, as well as of the components of the underlying index.

 

Before investing in a Lyxor ETF, you should carry out your own risk analysis of the product from a legal, tax and accounting perspective, rather than basing your decision solely on the information provided. If necessary, you should consult your own advisers or any other qualified professional. 

 

Subject to compliance with the legal obligations by which they are bound, Lyxor or any entity within the same group shall not be held liable for any financial or other consequences of an investment in the product. 

 

 

By clicking on institutional or individual above, I confirm that I have read and understood the information provided herein, and that I am resident or registered in Belgium.

27 Jun 2019

3 reasons why passive is becoming the #1 choice for ESG

Question: if you want to invest sustainably, should you go with an active manager or an index fund?

The answer depends on who you ask.

You might hear that active managers are best-placed to implement sustainable strategies – such as environmental, social and governance (ESG) – because they can make considered and conscious decisions to buy or sell companies, based on their behaviours.

Or you might be told that index funds can achieve the same results (or better) in a rules-based way for a fraction of the cost.

It’s become increasingly important to get an answer to this question. Sustainable investing is in the process of going mainstream – inflows into ESG ETFs alone grew by 45% in 2018, and by another 50% by the middle of June this year.1

As the money invested in sustainable strategies rises, the stakes get higher, and the more investors need to understand which approach works best for their goals. They’re faced with a choice, on which could rest the makeup of their portfolios, and indeed their contribution to a sustainable future for the planet.

In this article, we outline three factors that we believe support an index-based approach for ESG investors in 2019 and beyond.

1. Better data means ESG indices match key sustainability goals 

There are very few ESG investment objectives that can’t be achieved using the right indices built with the right data. One major biproduct of the trillions’ worth of money that’s flowed into passive funds over the past decades is the increased investment by index providers into the quality, innovation and breadth of their range.

Take indexing giant MSCI for instance. The company employs 185+ dedicated ESG analysts, provides ESG ratings for over 6,500 companies, and runs over 1,000 equity and fixed income ESG indices. With MSCI’s 40 years of experience collecting, cleaning and standardising ESG data, even active managers rely on their data to create sustainable strategies.2

Thanks to these improvements in data quality, indices available today reflect all sorts of ESG policies: from negative-screening or exclusions, to implementation of specific values, selection based on global ESG ratings or carbon ratings, and alignment with the UN’s ‘Sustainable Development Goals’ (SDGs). All these varied objectives can be codified in indices.

Some ESG benchmarks can be used as portfolio cores, and can easily substitute traditional market-capitalisation weighted indices, with limited tracking error. Others are more values-oriented or based on sustainability themes, and are therefore used as diversifiers, whenever implementing those convictions justifies a higher tracking error.

Overall, better indices mean better ways to invest sustainably in a consistent, targeted, rules-based way – an important consideration for ESG investors looking to make lasting positive change.

2. Passive makes ESG investing scalable

One other aspect of sustainable investing is a focus on ‘impact’, which means assessing an investment’s social or environmental effect alongside its financial return.

The concept of impact investing is often associated with private and community investing, achieved through private loans and private equity. Yet while active funds are well-placed to invest in private debt and equity, the same principles that support investing in private assets – intentionality, additionality, measurability – are also found in publicly listed assets.

Not only that: the liquidity of these listed assets – and of ETFs invested in them – brings scale and scalability, which are missing from private investing. It enables larger amounts of capital to get to work, and this adds up to private impact, especially when indices are designed for specific sustainable goals.

Examples from Lyxor include indices that invest in alignment with those of UN SDGs, including climate action, water, clean and affordable energy and gender equality, or that invest in companies with a rising ESG trend – and not only the best-rated ones, as we believe it is more impactful to reward companies actively making changes.

3. Passive managers can have an active voice

One concern among investors assessing active and passive strategies for sustainable investing is shareholder engagement: how can a passive investor hold portfolio companies to account?

Some passive managers, including Lyxor, have tackled this by setting up voting policies like an active manager. These policies and voting records are public, as we are accountable to our fund holders. Lyxor’s shareholder engagement policy also involves a direct dialogue with companies to communicate expectations, for example with respect to governance.

Lyxor votes when we retain over 0.1% ownership in a company, and last year we voted negatively for 22% of the resolutions in general meetings we participated in, which is slightly above industry average. From an AuM perspective, we voted on €13.8bn of equity positions in 2018.3

Therefore, it is possible to exert influence and encourage positive behaviour through passive investing – if that investment is with an ‘active’ passive manager.

It all boils down to choice

The combination of better data on ESG, the scalability of index-based ESG investing, and increased engagement of passive managers with the companies they hold means investors can comfortably look to passive ESG strategies to make a difference in their portfolios.

But whether you favour an active or passive approach, one thing is clear. The change in mindset of investors – particularly those of the “millennial” generation who can be as old as 38 – and indeed, the change in their day to day practices such as purchasing decisions based on the sustainability profile of their preferred brands, means that ESG investing is here to stay.

In the same way that ETFs caused an unquestionable shift in the investment landscape, we’re delighted to see a similar shift towards better, greener portfolios. And fortunately, choices abound for investors seeking to reflect their personal values into their investments.

Explore our range if you’re ready to Embrace ESG

1Source: Lyxor International Asset Management, as at 17/06/2019.
2Source: MSCI ESG Research as of November 2018. Includes full time employees and allocated staff performing non-investment advisory tasks.
3Source: Lyxor International Asset Management, as of 31/12/2018.

Risk Warning​

This document is for the exclusive use of investors acting on their own account and categorised either as “Eligible Counterparties” or “Professional Clients” within the meaning of Markets in Financial Instruments Directive 2014/65/EU. These products comply with the UCITS Directive (2009/65/EC). Société Générale and Lyxor International Asset Management (LIAM) recommend that investors read carefully the “investment risks” section of the product’s documentation (prospectus and KIID). The prospectus and KIID are available free of charge on www.lyxoretf.com, and upon request to client-services-etf@lyxor.com.

Except for the United-Kingdom, where this communication is issued in the UK by Lyxor Asset Management UK LLP, which is authorized and regulated by the Financial Conduct Authority in the UK under Registration Number 435658, this communication is issued by Lyxor International Asset Management (LIAM), a French management company authorized by the Autorité des marchés financiers and placed under the regulations of the UCITS (2014/91/EU) and AIFM (2011/61/EU) Directives. Société Générale is a French credit institution (bank) authorised by the Autorité de contrôle prudentiel et de résolution (the French Prudential Control Authority).

The products mentioned are the object of market-making contracts, the purpose of which is to ensure the liquidity of the products on the London Stock Exchange, assuming normal market conditions and normally functioning computer systems. Units of a specific UCITS ETF managed by an asset manager and purchased on the secondary market cannot usually be sold directly back to the asset manager itself. Investors must buy and sell units on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units and may receive less than the current net asset value when selling them. Updated composition of the product’s investment portfolio is available on www.lyxoretf.com. In addition, the indicative net asset value is published on the Reuters and Bloomberg pages of the product, and might also be mentioned on the websites of the stock exchanges where the product is listed.

Prior to investing in the product, investors should seek independent financial, tax, accounting and legal advice. It is each investor’s responsibility to ascertain that it is authorised to subscribe, or invest into this product. This document is of a commercial nature and not of a regulatory nature. This material is of a commercial nature and not a regulatory nature. This document does not constitute an offer, or an invitation to make an offer, from Société Générale, Lyxor Asset Management (together with its affiliates, Lyxor AM) or any of their respective subsidiaries to purchase or sell the product referred to herein.

Research disclaimer

Lyxor International Asset Management (“LIAM”) or its employees may have or maintain business relationships with companies covered in its research reports. As a result, investors should be aware that LIAM and its employees may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Please see appendix at the end of this report for the analyst(s) certification(s), important disclosures and disclaimers. Alternatively, visit our global research disclosure website www.lyxoretf.com/compliance.

Conflicts of interest 

This research contains the views, opinions and recommendations of Lyxor International Asset Management (“LIAM”) Cross Asset and ETF research analysts and/or strategists. To the extent that this research contains trade ideas based on macro views of economic market conditions or relative value, it may differ from the fundamental Cross Asset and ETF Research opinions and recommendations contained in Cross Asset and ETF Research sector or company research reports and from the views and opinions of other departments of LIAM and its affiliates. Lyxor Cross Asset and ETF research analysts and/or strategists routinely consult with LIAM sales and portfolio management personnel regarding market information including, but not limited to, pricing, spread levels and trading activity of ETFs tracking equity, fixed income and commodity indices. Trading desks may trade, or have traded, as principal on the basis of the research analyst(s) views and reports. Lyxor has mandatory research policies and procedures that are reasonably designed to (i) ensure that purported facts in research reports are based on reliable information and (ii) to prevent improper selective or tiered dissemination of research reports. In addition, research analysts receive compensation based, in part, on the quality and accuracy of their analysis, client feedback, competitive factors and LIAM’s total revenues including revenues from management fees and investment advisory fees and distribution fees.

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