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important information below before continuing to our website.
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clicking on your client type to enter the
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THIS WEBSITE IS AIMED AT CLIENTS IN FINLAND WHO
QUALIFY AS PROFESSIONAL CLIENTS OR PROFESSIONAL INVESTORS
This
website is published by Lyxor International Asset Management (LIAM), a French
asset management company approved by the French Financial Markets Authority (Autorité des Marchés
Financiers, 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 on Microsoft Azure servers.
This website is subject to French and Finnish law.
A professional client
for the purposes of the MiFID (2004/39/EC) and the AIFMD (2011/31/EU) as
implemented in Finland 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:
·
an investment
firm, a credit institution, a fund management company, an alternative
investment fund manager, a depositary;
·
a stock
exchange, an options exchange, a clearing entity;
·
a central
securities depository;
·
an insurance
company, a pension insurance company, a pension fund;
·
an entity that
deals exclusively on own account in financial derivatives for the sole purpose
of hedging positions on derivatives markets or deals for the account of other
members of those markets or makes prices for them and is guaranteed by clearing
members of the same markets;
·
a business
entity dealing in commodities and/or commodity derivatives on own account;
·
any other
institutional investor;
-
a large undertaking, meeting two of the
following size requirements according to the financial statements of the last
preceding financial period:
·
balance sheet
total of at least EUR 20,000,000
·
net turnover of
at least EUR 40,000,000
·
own funds of at
least EUR 2,000,000
-
the State of
Finland, the State Treasury, the province of Åland, foreign national and
regional governments as well as foreign public bodies managing public debt;
-
the European
Central Bank, the Bank of Finland and similar foreign central banks as well as
the International Monetary Fund, the World Bank and similar international
associations and organisations;
-
institutional
investors that, as their main field of activity, invest in financial
instruments;
-
other clients
that have in writing requested to be treated as a professional client and,
after having received written information on the limited protection afforded to
professional clients confirmed in writing their understanding of the same,
provided that the investment firm has assessed that the client is capable of
making independent investment decisions and understands the related risks and,
furthermore, that the client meets at least two of the following criteria:
·
the client has
carried out transactions, in significant size, on the relevant market at an
average frequency of 10 per quarter over the previous four quarters;
·
the size of the
client’s financial instrument portfolio exceeds EUR 500,000;
·
the client
works or has worked in the financial sector for at least one year in a
professional position, which requires knowledge of the transactions or services
envisaged.
A professional investor for the purposes of the UCITS (2009/65/EC) as
implemented in Finland is one of the following:
-
an entity
required to be authorised or regulated to operate in the financial markets, as
defined above under ‘professional client’;
-
a large
undertaking, meeting the requirements set out above for professional clients
-
the State of
Finland, the State Treasury, the province of Åland, foreign national and
regional governments as well as foreign public bodies managing public debt;
-
the European
Central Bank, the Bank of Finland and similar foreign central banks as well as
the International Monetary Fund, the World Bank and similar international
associations and organisations;
-
institutional
investors that, as their main field of activity, invest in financial
instruments;
-
other investors
that have notified the fund management company, UCITS or its representative in
writing that they, on the basis of their expertise and experience in investing
activities, are professional investors, and meet at least two of the following
criteria:
·
the investor
has carried out transactions, in significant size, on the relevant market at an
average frequency of 10 per quarter over the previous four quarters;
·
the size of the
investor’s financial instrument portfolio exceeds EUR 500,000;
·
the investor
works or has worked in the financial sector for at least one year in a
professional position, which requires knowledge of the transactions or services
envisaged.
The above definitions are
only extracts and are as such not exhaustive. For further details please refer
to the Finnish Investment Services Act (747/2012) and the Finnish Investment
Funds Act (48/1999).
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
French law and approved by the Autorité des Marchés Financiers (the
French Financial Markets Authority), or (ii) established under Luxembourg law
and approved by the Commission de Surveillance du Secteur Financier (the
Luxembourg Financial Supervisory Committee). Most, if not all, of the
protections provided by the Finnish regulatory system generally and for
funds authorised in Finland do not apply to these exchange traded funds (ETFs).
In particular, investors should note that holdings in this product will not be
covered by the provisions of the Financial Services Compensation Scheme or by the
Finnish Investors’ Compensation Fund.
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”), the Finnish Investors’
Compensation Fund 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.fi. 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 makes 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
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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.
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you confirm that you qualify as a ‘professional client’ or ‘professional
investor’, as set out above and 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 otherwise authorised to receive the information to and
on this website.
I CONFIRM THAT I HAVE READ AND
UNDERSTOOD THE IMPORTANT INFORMATION THAT IS CONTAINED ABOVE AND ACCEPT THE
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