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  2. 2. We recommend that investors read carefully the “risk factors” section of the Fund’s prospectus and the relevant Key Investor Information Document*. Any investment in these Funds involves certain risks, the main risks are as follows: » CAPITAL AT RISK: ETFs are tracking instruments: Their risk profile is similar to a direct investment in the Underlying Index. Investors’ capital is fully at risk and investors may not get back the amount originally invested. » REPLICATION RISK: The fund objectives might not be reached due to unexpected events on the underlying markets which will impact the index calculation and the efficient fund replication. » COUNTERPARTY RISK: Investors are exposed to risks resulting from the use of an OTC Swap with Societe Generale. In-line with UCITS guidelines, the exposure to Societe Generale cannot exceed 10% of the total fund assets. » UNDERLYING RISK: The Underlying Index of a Lyxor ETF may be complex and volatile. When investing in commodities, the Underlying Index is calculated with reference to commodity futures contracts exposing the investor to a liquidity risk linked to costs such as 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. » CURRENCY RISK: ETFs may be exposed to currency risk if the ETF is denominated in a currency different to that of the Underlying Index they are tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns. » LIQIUIDITY RISK: Liquidity is provided by registered market-makers on the respective stock exchange where the ETF is listed, including Societe Generale. On-exchange liquidity may be limited as a result of a suspension in the underlying market represented by the Underlying 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. Trading prices will only be available in normal market conditions. For more information regarding trading, please see the ‘Secondary Market’ section on page 31. *The documentation (prospectus and Key Investor Information Documents) of the Funds are available upon request to Lyxor AM or on the website www.sglistedproducts.co.uk. The prospectus of Lyxor Index Fund is only available in English. GENERAL RISKS OF LYXOR ETF P.2|
  3. 3. P. 3 WHAT IS AN EXCHANGE TRADED FUND? SIMPLE, DIVERSIFIED AND TRANSPARENT TRADING 3 Exchange Traded Funds (ETFs) are open-ended investment funds that track the performance of a diversified index containing at least 5 different assets. REGULATED MARKET ACCESS FLEXIBLE SIMPLE TRANSPARENT Access a whole market sector, region, theme, commodity basket or fixed income strategy in a single fund ACCESS REGULATED FLEXIBLE SIMPLE TRANSPARENT Highly regulated according to the European regulatory framework of the UCITS IV Directive Trade on exchange with live pricing throughout market hours and the flexibility to trade in or out just like a share The aim of an ETF is simply to track a Benchmark Index as cost effectively and precisely as possible. Complete transparency over costs, risks, performance and fund holdings
  4. 4. 4 THE RAPID RISE OF ETF INVESTING MORE THAN USD 2 TRILLION UNDER MANAGEMENT GLOBALLY Source: ETFGI. Past performance is not a reliable indicator of future returns 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 0 500 1,000 1,500 2,000 2,500 2005 2006 2007 2008 2009 2010 2011 2012 Jul-13 Assets(US$Bn) #ETPs/ETFs AUM ETP AUM ETF #ETFs #ETPs
  5. 5. » ETFs are used by all types of investor; from large institutions to individual retail clients » As a passive tracking investment, the objective is simply to achieve the market return » Creates a simple risk / reward profile; if the Index moves 5%, the ETF aims to move 5% too » Covers the whole risk spectrum from Government Bonds to individual Emerging Markets » Used for either capital growth (Capitalising ETFs), or income (Distributing ETFs) *As of May, 2012 USING ETFS IN A PORTFOLIO SUITABLE FOR ANY KIND OF INVESTOR 5 » Build an efficient, low cost core portfolio to capture long term growth » Invest tactically to take advantage of shorter trends or opportunities
  6. 6. » Advisers can diversify a portfolio to control risk and improve the potential for positive returns » The idea is simple; by including different types of assets, regions or sectors in a portfolio you are spreading risk and creating greater stability: » As bonds fall equities and commodities may rise » As Financial and IT stocks cool off, Utilities and other defensive stocks may benefit » The right mix depends on investment horizon, risk profile, age and invariably, portfolio size *As of May, 2012 ETFS FOR DIVERSIFICATION SIMPLE. LOW COST EXPOSURE 6 Advisers can demonstrate real value by tailoring a portfolio to the precise needs of an investor
  8. 8. » With Active funds you buy the manager, with ETFs you buy the Index » Take the well known FTSE 100 Index; » 100 largest stocks listed on the LSE by market capitalisation » Top 10 stocks are responsible for 43% of the performance » Mainly Financials, Consumer Staples and Energy companies » You typically have a choice of Indices – e.g US stockmarkets: » Know what the Index does with dividends; most ETFs track Total Return Indices which re-invest dividends. Price Return Indices don’t » Check for currency risk; if the Index currency is different to the ETF currency, the ETF performance is affected by changes in the exchange rate between the two currencies *Source Lyxor Asset Management. As of June, 2013. Past performance is not a reliable indicator of future returns KNOW YOUR INDEX EACH INDEX HAS ITS OWN METHODOLOGY, STYLE AND BIASES 8 Number of stocks* Weight of top 10 stocks* Top 2 sectors* 12 month performance* MSCI USA 602 17.34% IT / Finacials 19.53% DJIA 30 54.18% Industrial / Technology 18.01% S&P 500 500 18.12% Technology / Health care 19.49% Source Bloomberg, August, 2013.
  9. 9. ALTERNATIVES TO MARKET CAP WEIGHTED INDICES SMART BETA TECHNOLOGIES Fundamental indices Risk based indices Seeking to enhance returns Seeking to control risk - RAFI 2005 - “Sell-side” analyst 2007 indices by banks - Fixed income: GDP 2009 weighted indices - Fixed inc. indices 2011 by issuer scoring - Quality stock indices 2012 - Equal Weighting 2003 - Minimum Volatility 2008 - Most diversified / 2006 Max Sharpe ratio 2009 - Equal Risk Contribution 2010 - Risk-weighted 2011 Smart beta ALPHA DIVERSIFICATION 9
  10. 10. »9 quality factors considered to select determine Quality score based on: ›Profitability ›Balance sheet strength ›Operating efficiency EXAMPLE: SG GLOBAL QUALITY INCOME STRATEGY SELECTING ROBUST HIGH YIELDING COMPANIES 10 › Stocks with Quality score > 7 are selected » Selection of the 40% best scoring stocks in respect to balance sheet › Based on Distance-to-Default measure Step 1: Step 2: Step 3: » Designed by Andrew Lapthorne, SG Research » Universe: non-financial companies with free float of at least US $3 billion »Selection of Stocks with High Dividend Yields »Adjusted Dividend yield greater than the highest of 4%, 125% x market- cap weighted dividend yield of the universe » Realised dividend since inception (15 May 2012): 4.6% 68 ‘High Quality’ stocks that pay above average dividend
  13. 13. PHYSICAL OR SYNTHETIC WHAT’S THE DIFFERENCE ANYWAY? The difference between Physical and Synthetic replication is not as great as many might say » Both start with a portfolio of physical assets, which is owned by the fund in a segregated account » This means that regardless of what happens to the issuer of the fund, the assets can be sold in order to re-pay investors in both cases » Where the two types differ is in the role and composition of these physical assets; » one uses the physical assets for performance (Physical), » The other for security (Synthetic) » The best way to track an index is a function of risk and reward 13
  14. 14. E.G. EUROPEAN GOVERNMENT BONDS European government bonds are high quality securities with good liquidity and offer limited opportunity to enhance performance. For this reason, we believe that the interests of investors are better served by using a “Physical Only” method. PURE PHYSICAL REPLICATION WHEN SIMPLICITY IS KEY Physical Funds purchase the stocks of the Benchmark Index in order to create the performance of the fund » As such, assets must be the same, or very similar to that of the Benchmark Index that they track » This means that they work well for large, liquid markets where the component stocks or bonds can be easily purchased and traded » The ETF provider makes no attempt to optimise the fund’s performance or tracking » As a result, the investor receives the “passed-through” performance of the fund’s underlying assets, minus a deduction for fund expenses 14
  15. 15. E.G. EUROPEAN EQUITIES Optimisation can be implemented with equal effect through either Securities Lending or a Synthetic ETF structure. In the case of the Euro STOXX 50 index, the additional gains from optimising aspects such as dividend tax can be as much as 0.40%, twice the average TER PHYSICAL REPLICATION WITH SECURITIES LENDING WHEN PHYSICAL FUNDS NEED A BOOST Some Indices can’t be replicated by buying all the same stocks or bonds. Components may be too illiquid, or there may simply be too many of them » Instead Physical Fund managers are forced to operate a sampling strategy, where only the largest and most liquid securities are purchased » This can create Tracking Error as the ETF assets are not the same as the Benchmark Index » In order to improve performance, the fund manager can lend out the Fund’s assets to other financial institutions to gain additional revenue. This is called Securities Lending » The risk is that the institution borrowing the securities could default, in which case the securities could be lost, and the fund value would suffer » To mitigate this risk the ETF receives collateral as security 15
  16. 16. SYNTHETIC REPLICATION WHEN PRECISION IS KEY Due to the way that performance is delivered, Synthetic ETFs can offer precise tracking against even the most illiquid or hard to track Index » This time the role of the physical assets is purely to act as security to the ETF » The performance is instead provided by a financial instrument called a Performance Swap (Swap) » A Swap is a contractual agreement negotiated over-the-counter (OTC) between two parties: » The Swap Counterparty who commits to pay the precise daily performance of the Benchmark Index, including any dividends to the ETF » The ETF provider who pays the Swap Counterparty a fee for the Swap, and the performance of the physical assets it holds, including any dividends » The Swap can introduce Counterparty Risk to the issuer of the Swap » Importantly, exposure to the Swap Counterparty cannot exceed 10% of the fund’s Net Asset Value E.G. EMERGING MARKETS Where the stocks are particularly illiquid, or hard to trade, physical replication can be hard to achieve. The best way to gain exposure to these indices without suffering significant Tracking Error is to use a Performance Swap. 16
  17. 17. 17 Sources: Bloomberg and Lyxor, May 2013. Past performance is not a reliable indicator of future returns The benefit of investing in Emerging Markets with Synthetics SYNTHETIC REPLICATION AN EXAMPLE OF EMERGING MARKETS -2.00% -1.50% -1.00% -0.50% 0.00% 0.50% May 12 Aug 12 Nov 12 Feb 13 May 13 LYXOR vs NDUEEGF CREDIT SUISSE vs NDUEEGF ISHARES vs NDUEEGF DB X vs NDUEEGF UBS vs NDUEEGF ETFs TE Volatility LYXOR ETF 0.05% CS ETF 0.96% iShares 1.11% DB X-Trackers 0.08% UBS 0.04% THE PERFORMANCE OF 5 ETFS VS THE MSCI EMERGING MARKETS
  18. 18. 18 PHYSICAL SWAP SECURITIES LENDING PHYSICAL PHYSICAL ONLY + + LYXOR'S HISTORICAL ETF OFFERING Lyxor ETF Euro MTS Lyxor ETF Euro MTS Highest Rated Previously Dec 2012 H1 2013 Lyxor ETF Euro STOXX 50 (DR) Lyxor ETF Euro STOXX 300 (DR) Lyxor ETF MSCI Europe (DR) Our objective: to use the replication method which offers the most appropriate risk- return profile for the underlying index A PRAGMATIC APPROACH TO RISK AND RETURN IN ORDER TO DEFINE THE APPROPRIATE REPLICATION METHOD FOR EACH INDEX Lyxor chooses the ETF replication model that optimizes investment performance against the index for an acceptable level of risk
  20. 20. THE TOTAL EXPENSE RATIO IS JUST ONE ELEMENT 20 THE MANY LAYERS OF ETF OPTIMISATION The ability of an ETF to precisely replicate its Index is a function of many parts
  21. 21. 21 * the bid-ask spread is the daily average for a given volume of spreads between bid and ask prices in orderbooks for each of the markets on which it is listed. Performance gap Tracking Error bid-ask spread- 1.65 x - TRACKING ERROR How does the ETF behave compared with its benchmark? TRACKING DIFFERENCE How does the ETF perform compared with its benchmark? BID-ASK SPREAD What is the cost of buying and selling the ETF? 38.50 / 38.51 THE ETF EFFICIENCY INDICATIOR A MORE COMPREHENSIVE ASSESMENT The most efficient ETF is the one that lowers the overall cost of ownership » The Lyxor ETF Indicator was created by Lyxor research to enable investors to better compare ETFs » The ETF Indicator takes into account the 3 major factors affecting an ETFs true performance
  22. 22. LYXOR ETF - BEST PERFORMANCE ON THE MAIN EQUITY INDICES IN 2013 Sources: Bloomberg and Lyxor. Past performance is not a reliable indicator of furture returns According to the ETF Indicator, Lyxor ranks number one on seven of the 10 main equity indices between May 31st 2012 and May 31st 2013 The performance of each ETF was determined by the difference in the Net Asset Value (NAV) between May 31st, 2012, and May 31st, 2013 with dividends reinvested. Rankings are based on peer group analysis. One peer group was created for each benchmark index. Each peer group includes the 5 largest ETF share classes from the Top 20 ETF providers as defined by ETFGI, an independent research and consultancy firm. The 5 largest ETF share classes were defined according to the average daily Assets under Management observed between May 31st, 2012 and May 31st, 2013. The performance of each ETF was determined by the change in Net Asset Value (NAV) from the NAV of May 31st, 2012 and the NAV of May 31st, 2013 with dividends reinvested. The observed performances were net of management fees. For those indices not denominated in EUR, Lyxor has converted the currency value of each index into Euro using the Bloomberg index codes and the WM Reuters Forex Rate. 22
  23. 23. MAXIMISING PERFORMANCE 23 NO DETAIL IS TOO SMALL 1. Maintain low Tracking Difference by keeping the Total Expense Ratio to a minimum. 2. Optimise fund Management take advantage of exchange rates, bank funding and dividends. 3. Minimise the cost of trading Create a highly liquid trading process on both the primary and secondary market. 4. Maintain low Tracking Error Employ the most suitable replication technique for each Index.
  25. 25. RISK MANAGEMENT Transparency Fund or collateral assets Counterparty Risk RISK MANAGEMENT ROBUST MANAGEMENT PRINCIPLES 25
  26. 26. WHO HOLDS THE ASSETS? IN A SEGREGATED ACCOUNT FOR USE BY THE ETF ONLY 26 • Shares are purchased and held by the fund • They appear in the fund's balance sheet.
  27. 27. QUALITY IN ALL SITUATIONS ENSURING QUALITY ASSETS FOR SYNTHETIC ETFS One of the great advantages of Synthetic replication is that the physical assets that the fund buys have no impact on the performance of the fund, and as such, they can be quite different to that of the Benchmark Index » This time the role of the physical assets is purely to act as security to the ETF » For investors this means that they can gain exposure to remote and hard to access markets without actually having to buy those illiquid stocks » This not only helps to eradicate Tracking Error, but it also means that the physical assets owned by the ETF can be more liquid, and better diversified than those of the index it is tracking 27
  28. 28. CONTROLLING COUNTERPARTY RISK MANAGING SECURITIES LENDING ACTIVITIES Assets held as collateral against Securities lending activities are subject to strict minimum quality standards and held in a segregated account » Counterparty Risk can be controlled by capping the amount lent out to 70% of fund holdings » Daily monitoring ensures collateral continues to comply with minimum value and quality requirement » Eligible borrowers are vetted by the Risk Divisions of both Societe Generale and Lyxor » In compliance with the recent guidelines from the European Securities and Markets Association, all profits generated from Lyxor’s Securities Lending programmes are re-invested into the fund 28
  29. 29. Mark-to-marketvalueofswapsasa percentageofthefund'sNAV* 29 -5.00% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 12/30/11 1/30/12 2/29/12 3/31/12 4/30/12 5/31/12 6/30/12 7/31/12 8/31/12 9/30/12 10/31/12 11/30/12 12/31/12 Negative counterparty risk! 0% Source: Lyxor, July 2013. *As a weighted average of assets under management CONTROLLING COUNTERPARTY RISK MANAGING SWAP EXPOSURES IN SYNTHETIC ETFS » Counterparty Risk only exists when the Swap is positive – i.e. the Index outperforms the ETF assets » In an effort to remove Counterparty Risk, Lyxor re- sets the Swap every day » When the Benchmark Index out performs the physical assets, the Swap Counterparty pays the ETF » Lyxor uses this payment to buy more physical assets in order to maintain a value of more than 100% of the ETF Net Asset Value » When the ETF assets outperform the Benchmark Index, assets are sold to pay the Swap Counterparty » This way any debt between the two parties is paid each day and the Counterparty Risk is removed The risk with a Synthetic ETF is that the Issuer of the Swap defaults and is unable to pay the performance of the Benchmark Index to the fund Average Swap level across all Lyxor ETFs is -1.44%*
  30. 30. 30 DAILY PUBLICATION OF ALL RELEVANT INFORMATION EXAMPLE: DETAIL ON FUND HOLDINGS Counterparty / Counterparty Risk Level Fund Holdings » To maintain absolute transparency, Lyxor publishes the swap counterparty, the counterparty risk level, and the physical fund holdings for all synthetic Lyxor ETFs on the website each day. » This means that investors can easily determine what the fund is invested in, who the Swap Counterparty is and what the current exposure to the Counterparty is. » This information is available on www.sglistedproducts.co.uk on the respective product detail page
  31. 31. SECONDARY MARKET  Lyxor Investors can buy or sell an ETF at any time in the Secondary Market prior to the Exercise Date on any regular LSE trading day from 8.15am to 4.30pm. The value of the ETF will vary on an intraday basis.  Liquidity is provided by registered market-makers on the respective stock exchange where the ETF is listed, including Societe Generale. On-exchange liquidity may be limited as a result of a suspension in the underlying market represented by the Underlying 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.  Cases in which there is no guarantee that liquidity will be available on the secondary market, and therefore normal market conditions may not prevail, include where: The Underlying Asset level is suspended or not tradable; There is a failure in the LSE, Societe Generale or other market maker systems; Abnormal trading conditions e.g. sudden and sharp volatility increase or lack of liquidity in the underlying. This means that an investor may find it difficult or impossible in certain circumstances to sell the ETF or may be offered a price less than they paid for it 31
  32. 32. STEP 5: LEARN MORE 32
  34. 34. ABOUT LYXOR AM 34
  35. 35. Lyxor Asset Management was established in 1998 »Headquartered in Paris and regulated by the French Financial Authority (AMF) »Wholly-owned subsidiary of Societe Generale »A pioneer in selected areas of expertise »Consistently recognized by the industry and peers for quality and innovation UNIQUE POSITIONING, DYNAMIC GROWTH LYXOR ASSET MANAGEMENT IS PRESENT AROUND THE GLOBE 35 AMERICAS New York Lyxor Asset Management Inc.* ASIA PACIFIC Tokyo | Shanghai | Hong Kong Lyxor AM Japan Co. Ltd. Fortune SG Fund Management Co. EUROPE, MIDDLE EAST, AFRICA Paris | Amsterdam | Luxembourg | Dublin | Frankfurt | London | Madrid Lyxor Asset Management S.A. | Lyxor International Asset Management S.A. Lyxor Asset Management Ireland Ltd. | Lyxor Asset Management Luxembourg S.A Investment & Research Team | Business & Sales Presence Business & Sales Presence 600Professionals Covering all Major Markets More than +30%annualized growth AUM 2000-2011 € 74.8 billion of AUM (1) 1) Figures as of September 30, 2012. * Lyxor AM Inc. is a US registered advisory subsidiary. **These assets corresponds to Lyxor’s participation in 49% of the capital of Fortune SG Fund Management Co., Ltd. (“Fortune SG”). Fortune SG is a joint venture between Baosteel Group, and Lyxor Fortune SG manages portfolios mainly invested in China equity, bond and money markets for Chinese investors. ETF 39% Structured Investments 31% Alternative Investments 22% Multi-Asset Investments 6% Chinese JV** 2% € 22,9 Bn € 22,9 Bn € 29,2 Bn € 4,1 Bn € 2,1 Bn
  36. 36. » Expert in ETFs since 2001, standing amongst the most experienced ETF providers » Among the top 6 players in the world and top 3 in Europe (in terms of Assets Under Management)* » Access to over 90 Lyxor ETF listed on the London Stock Exchange in GBp, EUR and USD » Access to a wide range of Underlying Assets, regions, sectors and investment themes » Built on SG Investment Banking’s strengths, operating on best execution principles » A constant pioneer in the ETF space, for example with first ETFs on » Individual BRIC countries » Asian and global sectors » Dividends » Roll-optimised volatility *Source Lyxor Asset Management. As of May, 2013 KEY FACTS ABOUT LYXOR ETF ONE OF THE MOST EXPERIENCED ETF PROVIDERS WITH EUR 31 BLN* ASSETS UNDER MANAGEMENT 36 Core Developed Equity ETFs Fixed Income ETFs Money Market ETFs Sector & Style ETFs Commodity ETFs Alternative ETFs Emerging Market ETFs
  37. 37. NEW FUND LAUNCHES LYXOR STRENGTHENS OUR CAPABILITIES IN EMERGING MARKETS Name Structure ISIN Shareclass Currency ETF Currency Lyxor ETF Eastern Europe (CECE NTR EUR) C-EUR FCP FR0010204073 EUR USD Lyxor ETF Japan (TOPIX) D-EUR FCP FR0010245514 EUR USD Lyxor ETF MSCI AC Asia Pacific ex-Japan C-USD FCP FR0010581439 USD USD/GBX Lyxor ETF MSCI Korea C-USD FCP FR0010581447 USD USD/GBX Lyxor ETF MSCI Malaysia USD FCP FR0010589069 USD USD/GBX Lyxor ETF MSCI Taiwan C-USD FCP FR0010444794 USD USD/GBX Lyxor ETF NASDAQ-100 D-USD FCP FR0010446930 USD USD/GBX Lyxor ETF RUSSELL 2000 C-USD FCP FR0011119254 USD USD/GBX Lyxor ETF South Africa (FTSE JSE Top 40) C-EUR FCP FR0010464446 EUR USD Lyxor ETF Turkey (DJ Turkey Titans 20) EUR FCP FR0010326256 EUR USD/GBX Lyxor ETF EURO STOXX 50 (DR) C-EUR INDEX FUND LU0908501215 EUR GBX Lyxor ETF MSCI Europe (DR) C-EUR INDEX FUND LU0908500753 EUR GBX Lyxor ETF MSCI ACWI C-USD MUF FR0011093418 USD USD/GBX Lyxor ETF MSCI Indonesia C-USD MUF FR0011070374 USD USD/GBX Lyxor ETF Thailand (SET50 Net TR) C-USD MUF FR0011070440 USD USD/GBX Lyxor ETF MSCI World Risk Weighted C-USD MUL LU0776637893 USD USD/GBX Lyxor ETF Dow Jones Industrial Average D-EUR FCP FR0007056841 EUR USD » Lyxor is the number one provider of single country Emerging Market ETFs by AUM with USD 3.7bn* » Now these funds are available to UK investors with GBP listings on the London Stock Exchange 37 *Source Lyxor Asset Management
  38. 38. THANK YOU 38
  39. 39. IMPORTANT INFORMATION This seminar is intended for educational purposes only and as such is not a solicitation or recommendation to make an investment based on the contents of this presentation. Investors should be aware that investments can fall as well as rise and if there is any doubt over the suitability of a particular investment then you should seek independent advice. This document is issued in the U.K. by the London Branch of Societe Generale. Societe Generale is a French credit institution (bank) authorised by the Autorité de Contrôle Prudentiel (the French Prudential Control Authority) and the Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available from us on request. Although information contained herein is from sources believed to be reliable, Societe Generale makes no representation or warranty regarding the accuracy of any information. Any reproduction, disclosure or dissemination of these materials is prohibited. Lyxor and Lyxor ETF are names used by Societe Generale to promote the products of Lyxor Asset Management.Lyxor ETFs referred to in this document are open-ended mutual investment funds established under French Law and approved by the Autorité des Marchés Financiers (the French Financial Markets Authority). The products described within this document are not suitable for everyone. Investors’ capital is at risk. Investors should not deal in these product unless they understand their nature and the extent of their exposure to risk. The value of the products can go down as well as up and can be subject to volatility due to factors such as Level changes in the underlying instrument and interest rates. Prior to any investment in these products, investors should make their own appraisal of the risks from a financial, legal and tax perspective, without relying exclusively on the information provided by us, both in this document and the Pricing Supplement of the product available on the website www.sglistedproducts.co.uk. We recommend that investors consult their own independent professional advisors. Investors should note that holdings in these products will not be covered by the provisions of the Financial Services Compensation Scheme, nor by any similar scheme. The securities can be neither offered in nor transferred to the United States. The tax statement is only a general guide. The tax treatment of investments will depend on an individual’s circumstances. If investors are in any doubt as to their tax position, they must consult with an appropriate professional tax adviser. This statement of the UK tax treatment of the product 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 the interpretation and application thereof, which changes could be made with retroactive effect. For more information: see the Terms and Conditions available on our website www.sglistedproducts.co.uk 39