Lyxor switches Government Bond range to physical replication

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Lyxor Asset Management has announced that the rest of its Government Bond ETF range will switch to the direct replication model known as “physical” replication.

These funds will be managed as purely physical replication ETFs, without the use of sampling techniques, in order to produce the highest possible correlation with the index performance.

The management process will exclude any securities lending transactions which do not generate enough additional return for investors to justify the associated counterparty risk.

Lyxor would like to emphasise that whatever the replication model used to track the index, all its ETFs must meet the strictest quality benchmarks in terms of transparency, efficiency and liquidity.

Arnaud Llinas, global head of ETFs and indexing at Lyxor, comments: “Our strategy is to offer our clients the most efficient ETFs by selecting the most appropriate replication method for each index. We consider our bond index product offering to be much improved by this method of direct replication.”

In basing its strategy on the performance and quality of its funds, Lyxor ETF has experienced AUM growth of 25% over the last two years, reaching £30.5bn at the end of October, making Lyxor the number three ETF provider in Europe, and number six globally.

The funds passported in the UK being transitioned to physical replication are:

  • Lyxor Ucits ETF EUROMTS INFLATION LINKED INVESTMENT GRADE
  • Lyxor Ucits  ETF IBOXX $ TREASURIES 1-3Y
  • Lyxor Ucits  ETF IBOXX $ TREASURIES 10Y+
  • Lyxor Ucits  ETF IBOXX $ TREASURIES 5-7Y
  • Lyxor Ucits  ETF IBOXX £ GILTS
  • Lyxor Ucits  ETF IBOXX £ GILT INFLATION-LINKED
  • Lyxor Ucits  ETF BONO 10Y – MTS SPAIN GOVERNMENT BOND – C-EUR
  • Lyxor Ucits  ETF MTS 1-3y SPAIN GOVERNMENT BOND – C-EUR
  • Lyxor Ucits  ETF BTP 10Y – MTS ITALY GOVERNMENT BOND – C-EUR

 

Madrid

InvestmentEurope is delighted to announce the Fund Selector Bond Focus to be held on 12 February in Madrid

Click here for further details: http:// http://www.investmenteurope.net/events/

 

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