Ride the wave - Lyxor ETF - Ride the Political Wave Brochure - FR...Which route will you take? *Source: Lyxor International Asset Management/Bloomberg. Data as at 15 June 2017. **Source:

Ride the waveEurozone Equity ETFs

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 2004/39/ce

Index InsightsJune 2017

A place of greater safety?

Our key calls 4

Broad European equities – still room to run 6

Single countries – evolving opportunities 10

Mid-caps – The next layer 12

Sectors – digging deeper 14

Product snapshot 16

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.

Lyxor ETF | Eurozone Equity ETFsLyxor ETF | Eurozone Equity ETFs

Despite a packed political calendar, broad European indices are up around 15%* over the last six months. They are now close to the multi-year peaks they reached in 2000, 2007 and 2015 before they subsequently corrected.

This time around the improving economic and political situation (on the mainland at least), attractive relative valuations and a degree of under-allocation by investors should keep the bears from the door.

The euro's new found strength means it could, however, be time to dig that little bit deeper for more domestic-related opportunities.

Welcome

The key events

► March 15: Rutte wins Dutch election

► March 29: Brexit triggered

► April 23 & May 7: Macron wins in France

► June 8: Hung parliament in the UK

► September 24: German elections

► Q3 - Q4: Snap elections in Italy?

* Source: SG Research, 1 June 2017.

3

Our key calls

► CAC 40 – France realises its catch up potential

► FTSE MIB – Italy benefits from significant exposure to banks

► IBEX 35 – a better beta play on recovery

► FTSE 100 – prepare for Brexit pain

► Euro Stoxx 50

► Euro Stoxx 300

► Stoxx Europe 600

► MSCI Europe

► MSCI EMU range

Broad equities

A brighter outlook than the US and UK

Single countries

Following different paths


► CAC Mid 60 – strong euro & tax reforms provide support

► MDAX – domestic revenue generator

► IBEX Mid – fuelled by consumption and capex

► Banks – cheap, pure way to play reflation

► Construction & Materials – post-election spending increases

► Retail – eurozone consumers are increasingly confident

► Automobiles & Parts – eurozone consumption climbs

► Oil & Gas – key reflation trade, well valued

► Basic Resources – deep value, brighter outlook

Mid-caps

Domestic markets win out

STOXX 600 sectors

Reflation trades, currency beneficiaries

5

Where equity markets go next is hard to call, given valuations generally look extended. The eurozone could be a place of greater safety now political risk has eased somewhat.

Less demanding valuations, continued ECB support and earnings improvements are powerful drivers. The pick-up in global trade bodes well.

European Equity indices overview

Key points ► Recovery – factors like low size and value play very firmly to recovery. Should you wish

to tilt towards small caps or value stocks, consider the MSCI EMU Small Cap and MSCI Value indices, respectively

► Financials – the MSCI EMU Value offers a high Financials weighting

Defensive Cyclical

Stoxx Europe 600

MSCI EMU Small Cap

MSCI EMU Value

MSCI EMU Growth

Euro Stoxx 50

MSCI Europe

Euro Stoxx 300

Source: Lyxor International Asset Management. Data as at 15 June 2017.

Broad European equities

Still room to run

Did you know?Fewer than 1 in 5 managers outperformed broad European indices in the 12 months to end March 2017*.

* Source: Lyxor ETF Research, Bloomberg. 12 months to end March 2017.

Lyxor ETF | Eurozone Equity ETFs

Key points ► Diversification vs. concentration – the MSCI Europe offers a wide exposure to the

Continent. The Euro Stoxx 50 has a 70% exposure to Germany and France should you favour the core.

► Island isolation – should the political uncertainty in the UK be of concern, the Euro Stoxx 50 and MSCI EMU indices have far less exposure to the UK than the MSCI Europe

Source: Factset. Data as at 15 June 2017.

**Source: Lyxor ETF, 12 June 2017.

Breakdown of revenues

0

10

20

30

40

50

60

Africa and Middle East Latin America North America Asia Oceania EU

MSCI Europe Stox x 600 Eurostox x 300 MSCI EMU

Did you know?Lyxor has cut fees to 0.07% on its Euro Stoxx 50 (Acc.), Euro Stoxx 300 and Stoxx Europe 600 ETFs.**

7

How European markets have performed over the last year

Index Number of stocks Cap Breakdown Top 3 sectors Top 3 countries 2016 Return

(EUR)5 Yr Return

(EUR)

EURO STOXX 50 Net Return EUR

5090.90% €30bn 9.10% €10-30bn

22.1% Financials14.4% Industrials11.3% Consumer discretionary

35.82% France 33.34% Germany 10.90% Spain

3.72% 64.66%

MSCI Europe Net Return EUR Index

44663.47% €30bn 24.89% €10-30bn 10.26% €5-10bn

19.9% Financials13.9% Consumer Staples13.4% Industrials

24.46% UK 16.01% France 14.96% Germany

2.58% 66.69%

MSCI EMU Small Cap Net Return EUR Index

46716.28% €5-10bn 49.73% €2-5bn 21.66% €1-2bn

22.6% Industrials13.7% Financials12.7% Consumer Discretionary

24.92% Germany 16.39% France 15.47% Italy

3.26% 120.87%

MSCI EMU Value Net Return EUR Index

12268.67% €30bn 24.81% €10-30bn 5.58% €5-10bn

36.7% Financials10.5% Industrials10.2% Consumer Discretionary


6.89% 67.02%

MSCI EMU Growth Net Return EUR Index

14355.44% €30bn 34.01% €10-30bn 9.38% €5-10bn

20.4% Consumer Staples20.1% Industrials17.4% Consumer Discretionary

31.10% France 31.09% Germany 11.58% Netherlands

1.49% 84.06%

EURO STOXX Net Return EUR

29558.73% €30bn 28.85% €10-30bn 8.78% €5-10bn

20.1% Financials16.1% Industrials14.1% Consumer Discretionary


4.15% 76.71%

STOXX Europe 600 (Net Return) EUR

60159.02% €30bn 23.92% €10-30bn 11.33% €5-10bn

20.1% Financials14.2% Industrials13.5% Health Care

25.47% UK15.92% France 14.65% Germany

1.73% 70.62%

Source: Lyxor International Asset Management. Data period as at 15 June 2017. Past performance is not a reliable indicator of future returns.

Source: Lyxor International Asset Management. Data from 6 June 2017. Past performance is not a reliable indicator of future returns.

(2)%

(1)%

0%

1%

2%

3%

0% 5% 10% 15% 20% 25% 35%30%

One

mon

th p

erfo

rman

ce

One year performance

Euro STOXX 50

Euro STOXX

MSCI EMU VALUEMSCI EMU GROWTH

Reversing down

Trending up

MSCI EuropeSTOXX Europe 600

MSCI EMU Small-Cap

FTSE Developed EuropeMinimum Variance

The numbers that matter


I think European equities are much better value than their US peers

Growth means I want more specific, cyclical exposures

I think the earnings outlook for European companies is bright. I favour growth at this stage

I like the eurozone. I'm not so sure about post-election UK

I’m expecting small-caps to benefit

MSCI Europe, Euro STOXX,

STOXX Europe 600

MSCI EMU Value

MSCI EMU Growth

Euro STOXX 50

FTSE Developed Europe Min Var

MSCI EMU Small-Caps

Which route will you take?

*Source: Lyxor International Asset Management/Bloomberg. Data as at 15 June 2017.**Source: Lyxor International Asset Management/Bloomberg. Data period from 12 months to 31 May 2017. The rationale and construction of the indicator are detailed in an academic paper published by Thierry Roncalli, former Head of Research & Development at Lyxor and Professor of Finance at the Evry University, and Marlene Hassine Konqui, ETF strategist. The academic paper can be downloaded from SSRN: http://ssrn.com/abstract=2212596 or from REPEC http://ideas.repec.org/p/pra/mprapa/44298.html

Why Lyxor for European equities?

Lowest-cost broad European exposures*

Over 15 ways to explore broad European markets*

Most efficient Euro STOXX 300 ETF**15+ 0.07%

#1

Did you know?European equities are trading at a 46%discount to their US peers (in P/BV terms)*Source: SG Equity Research, 1 June 2017

9

Better economic momentum, inflation expectations picking up and more fiscal easing should support single country exposures, but the euro's new found strength calls for more selectivity than we've seen so far.

Some countries will be more affected than others, especially those like the DAX, which get the majority of their revenues from exports overseas. Markets like the CAC, IBEX and MIB are less reliant on international trade (getting 57%, 61% and 60% of their revenues from the EU respectively, according to Factset).*

*Source: Lyxor International Asset Management. Data as at 31 March 2017. **Source: Lyxor ETF Research, Bloomberg, 12m to end March 2017.

Single countries

Evolving opportunities

How country indices have performed over the last year


(2)%

(1)%

0%

1%

2%

3%

0% 5% 10% 15% 20% 25% 35%30%

One

mon

th p

erfo

rman

ce


Reversing down

Trending up

IBEX 35

CAC 40 Euro Stoxx 50

FTSE MIB

FTSE 100

DAX

Did you know?Fewer than 1 in 10 managers outperformed the CAC 40 over the 12 months to 31 March 2017.**


12 ways to explore European countries*

Largest ETFs in Europe on the CAC 40, FTSE MIB and IBEX 35*

*Source: Lyxor International Asset Management. Data as at 15 June 2017. First single country ETF launched 13/12/2000 (Lyxor CAC 40 (DR) UCITS ETF).

Lengthy experiencemanaging single country ETFs*

Single country sector breakdown

0%

5%

10%

15%

20%

25%

30%

35%

40%

ConsumerDiscretionary

ConsumerStaples

Energy Financials HealthCare Industrials InformationTechnology

Materials RealEstate

TelecommunicationServices

Utilities

CAC 40 Total Return Index DAX Index FTSE MIB Net Total Return Index IBEX 35 Net Return Index Source: Lyxor International Asset Management. Data as at 15 June 2017.


Index name

Number of stocks Exposure Domestic

Revenues Top 3 sectorsWeight Market Cap

€2-5bn €5-10bn €10-30bn €30bn

CAC 40 Total Return Index

40French

large caps57.4%

17.9% Consumer Discretionary 16.7% Industrials 14.7% Financials

0.00% 0.00% 24.69% 75.31%

DAX INDEX 30German

large caps49.2%

17.9% Consumer Discretionary 15.9% Health Care 15.8% Financials

0.00% 1.70% 16.51% 81.78%

FTSE MIB Net Total Return Index

40Italian large

caps59.7%

36.7% Financials 16.7% Energy 15.3% Utilities

10.02% 10.57% 36.93% 42.47%

IBEX 35 Net Return Index

35Spanish

large caps60.9%

34.1% Financials 14.3% Utilities

14.3% Industrials4.67% 4.39% 38.42% 52.17%

Source: Lyxor, Factset. June 2017. Data as at 15 June 2017.

Why Lyxor for Single countries?

×12 +16yrs

11

Germany’s MDAX index generates almost 60% of its revenue from the EU, while for France’s CAC Mid-60, that number is higher again at around 70%*. Macron’s potential tax cuts could add further support and, unlike some European assets, French assets haven’t overshot yet.

Mid-caps

The home front

Mid-cap index revenues are mainly generated in the EU

* Source: Lyxor, Factset, 5 June 2017.

FTSE 250

CAC MID 60

MDAX

66.29%

66.79%

59.53%

How European mid-caps have performed over the last year


(4)%

(3)%

(2)%

(1)%

0%

1%

2%

3%

6%

5%

4%

7%

0% 5% 10% 15% 20% 30%25% 45%40%35%

One

mon

th p

erfo

rman

ce


Reversing down

Trending up

FTSE Spain Mid Cap Index

FTSE Italy Mid Cap Index

FTSE UK Mid Cap Index

FTSE Germany Mid Cap Index

FTSE France Mid Cap Index


Why Lyxor for mid-caps?

×5 #1


Index name

Number of stocks Exposure

Overweight of cyclicals

vs. large cap index

Weight Market Cap

€150m-1bn €1-2bn €2-5bn €5-10bn €10-30bn €30bn

CAC Mid 60 Gross Return Index

60French mid

caps16.80% 0.94% 5.75% 34.30% 45.06% 13.95% 0%

MDAX PERF INDEX

50German mid caps

18.90% 0% 4.56% 18.33% 38.75% 28.32% 10.03%

IBEX Medium Cap Net Return

20Spanish mid caps

16.80% 2.44% 26.97% 70.59% 0% 0% 0%

Source: Lyxor International Asset Management. Data as at 15 June 2017. Large cap benchmarks used for comparison are the CAC 40, DAX, and IBEX 35 indices.

We have 5 ways to access European mid-caps

The only CAC Mid 60 and IBEX Medium Cap ETFs on the market1

Among the oldest and lowest cost ETFs in Europe2

1 Source: Lyxor International Asset Management. Data as at 15 June 2017.2 Lyxor CAC Mid 60 UCITS ETF launched 13/05/2011.

Key points ► If recovery prospects harden further, look to mid cap indices for their higher

weightings toward cyclical sectors like financials and industrials

► All of our single country mid-cap exposures have at least a 16% higher exposure to cyclicals than their large-cap equivalents

► Mid-caps aren’t always as volatile as their reputation suggests. The MDAX and CAC Mid-60 have been marginally less volatile than their large-cap peers since the 2008 financial crisis.

Did you know?On average, fewer than 1 in 4 managers outperformed large- and mid-cap single country indices over the 12 months to 31 March 2017.*

* Source: Lyxor ETF Research, Bloomberg, 12m to end March 2017.

13

Better data and a ramp up in infrastructure spending should support sectors like Banks and Construction & Materials, both of which generate most of their revenues domestically. Banks in particular represent a cheap way to play eurozone reflation.

Rampant consumer confidence and the stronger employment picture should help the retail and autos & parts sectors finally ride the wave of European markets.

How European sectors have performed over the last year


(4)%

(3)%

(2)%

(1)%

0%

1%

2%

3%

4%

5%

0% 5% 10% 15% 20% 30%25% 60%35% 40% 50% 55%45%

One

mon

th p

erfo

rman

ce


Reversing down

Trending up

Auto & Parts

Food & BeverageReal Estate

Retail

Utilities

Construction & Materials

Banks

Oil & Gas

Basic Resources

Sectors

Digging deeper

Did you know?All eurozone sectors are currently cheaper than their US peers.*

* Source: SG Research, 1 June 2017.


Percentage of STOXX 600 companies within 10% of their historical highs on 1y and 10y horizon

Source: Bloomberg. SG Cross Asset Research/Equty Strategy, 1 June 2017.

Telec

om

Chem

s.

Cons

tr. M

at.

Food

& B

ev

Fin. S

vces

P&Hh

Gds Utili

Tech

Autos

Bank

s

Ind. G

&S

Healt

hcar

e

Insur

ance

STOX

X 60

0

Trav

el

Media

Retai

l

Real

Estae

Oil &

Gas

Basic

Res

0%

20%

40%

60%

80%

100%1 year 10 years

Why Lyxor for Equity sectors?

10+ ×20 #1


Index Number of stocks Top 3 countries Cap breakdown 2016 return (EUR) 5yr return (EUR)

EURO STOXX Banks Net Return EUR

2531.84% Spain 24.58% France 16.52% Italy

78.70% €30bn 14.80% €10-30bn 3.83% €5-10bn

-4.60% 37.32

STOXX Europe 600 Banks Net Return EUR

4530.12% UK 16.13% Spain 12.45% France

75.25% €30bn 20.00% €10-30bn 2.18% €5-10bn

-2.83 50.96

STOXX Europe 600 Retail (Net Return) EUR

2930.68% UK 18.78% Spain 16.24% France

34.56% €30bn 27.48% €10-30bn 26.20% €5-10bn

-4.76 42.25

STOXX Europe 600 Basic Resources Net Return EUR

2028.12% UK 14.57% Switzerland 13.66% Australia

48.95% €30bn 27.60% €10-30bn 18.25% €5-10bn

65.71 13.34

STOXX Europe 600 Construction & Materials (Net Return) EUR

2135.03% France 21.24% Switzerland 12.95% Sweden

27.53% €30bn 57.47% €10-30bn 10.09% €5-10bn

11.47 110.75

STOXX Europe 600 Oil & Gas (Net Return) EUR

2129.47% France 21.98% UK 15.92% Netherlands

74.90% €30bn 17.72% €10-30bn 2.11% €5-10bn

28.76 17.16

STOXX Europe 600 Automobiles & Parts (Net Return) EUR

1760.62% Germany 26.49% France 6.84% UK

55.28% €30bn 35.16% €10-30bn 6.06% €5-10bn

-1.65 134.35

Source: Lyxor International Asset Management. Data as at 15 June 2017.

Over a decade of experience managing sector ETFs*

20 ways to explore European sectors*

Most efficient, lowest cost banks ETF in Europe*

*Source: Lyxor International Asset Management. Data refers to the Lyxor Euro STOXX Banks UCITS ETF. Data as at 15 June 2017.

15

Explore all that Europe has to offer

ETF name ISIN Main Ticker TER (bps) Income AUM Base

currencyBenchmark

currencyBloomberg benchmark

Broad Equities

EURO STOXX 50 (DR) FR0007054358 MSE FP 20 Dist 8,353 EUR EUR SX5T

MSCI Europe FR0010261198 MEU FP 25 Dist 1,981 EUR EUR M7EU

MSCI EMU Growth FR0010168765 GWT FP 40 Dist 53 EUR EUR M7EM000G

MSCI EMU Value FR0010168781 VAL FP 40 Dist 259 EUR EUR M7EM000V

MSCI EMU Small Cap FR0010168773 MMS FP 40 Dist 362 EUR EUR M7EMSC

Euro Stoxx 300 (DR) LU0908501058 MFED FP 7 Acc 96 EUR EUR SXXT

Stoxx Europe 600 (DR) LU0908500753 MEUD FP 7 Acc 162 EUR EUR SXXR

Single countries: standard & leverage

CAC 40 (DR) FR0007052782 CAC FP 25 Dist 5,030 EUR EUR CACR

DAX (DR) LU0252633754 DAX FP 15 Acc 1,102 EUR EUR DAX

FTSE MIB FR0010010827 MIB FP 35 Dist 951 EUR EUR FTSEMIBN

IBEX 35 (DR) FR0010251744 LYXIB SM 30 Dist 970 EUR EUR IBEXNR

FTSE 100 FR0010438127 L100 FP 15 Acc 853 GBP EUR TUKXG

Mid-caps & Sectors

CAC Mid 60 FR0011041334 CACM FP 50 Dist 123 EUR EUR CM1GR

German Mid-Cap MDAX FR0011857234 MD4X GY 40 Dist 105 EUR EUR MDAX

IBEX Mid FR0011855188 IBXM SM 50 Dist 2 EUR EUR IBEXCN

STOXX Europe 600 Automobiles & Parts

FR0010344630 AUT FP 30 Acc 52 EUR EUR SXAR

STOXX Europe 600 Banks FR0010345371 BNK FP 30 Acc 818 EUR EUR SX7R

STOXX Europe 600 Basic Resources

FR0010345389 BRE FP 30 Acc 280 EUR EUR SXPR

STOXX Europe 600 Construction & Materials

FR0010345504 CST FP 30 Acc 46 EUR EUR SXOR

STOXX Europe 600 Oil & Gas FR0010344960 OIL FP 30 Acc 279 EUR EUR SXER

STOXX Europe 600 Retail FR0010344986 RTA FP 30 Acc 15 EUR EUR SXRR

Source: Lyxor ETF, 1 June 2017.


Product Snapshot

The original pioneers.lyxoretf.com

This communication is for professional clients only.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 2004/39/EC. These products comply with the UCITS Directive (2009/65/EC). Lyxor International Asset Management (Lyxor ETF) recommends that investors read carefully the “investment risks” section of the product’s documentation (prospectus and KIID). The prospectus and KIID in English are available free of charge on www.lyxoretf.com, and upon request to [email protected]. Lyxor International Asset Management (Lyxor AM), société par actions simplifiée having its registered office at Tours Société Générale, 17 cours Valmy, 92800 Puteaux (France), 418 862 215 RCS Nanterre, is authorized and regulated by the Autorité des Marchés Financiers (AMF) under the UCITS Directive and the AIFM Directive (2011/31/EU). Lyxor ETF is represented in the UK by Lyxor Asset Management UK LLP, which is authorised and regulated by the Financial Conduct Authority in the UK under Registration Number 435658.*Source: Lyxor International Asset Management / Bloomberg. Data refers to Assets Under Management and is correct as of May, 2017.

We’ve scaled new heights. Thank you for making us Europe’s 2nd largest ETF issuer*.

As one of Europe’s first ever ETF providers, we’ve consistently pioneered new products and pushed quality and performance higher for investors.

We’ve reached the number 2 spot, but our aim’s higher. Thank you for driving us on.

Knowing your risk It is important for potential investors to evaluate the risks described below and in the fund prospectus on our website www.lyxoretf.com

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 riskThe 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 riskinvestors are exposed to risks resulting from the use of an OTC swap with Société Générale. In-line with UCITs guidelines, the exposure to Société Générale cannot exceed 10% of the total fund assets. Physically replicated ETFs may have counterparty risk resulting from the use of a securities lending programme.

Concentration RiskSmart Beta ETFs select stocks or bonds for their portfolio from the original benchmark index. Where selection rules are extensive it can lead to a more concentrated portfolio where risk is spread over fewer stocks than the original benchmark.

Compounding RiskThe performance of single short, double short and leveraged ETFs is calculated on a daily basis. This means there is a compounding effect as the daily return will always be based on the previous day’s closing price. Compounding can thus lead to slippage over time between the index and the ETF, meaning single short, double short and leveraged ETFs may not be suitable as long-term holdings.

Leverage RiskLeveraged products amplify both gains and losses by a given leverage factor. Losses can therefore potentially be substantial.

Underlying riskThe 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 riskETFs 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.

Liquidity risk Liquidity is provided by registered market-makers on the respective stock exchange where the ETF is listed, including Société Générale. 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, or other market-maker systems; or an abnormal trading situation or event.


Important information This communication is exclusively directed and available to Institutional Investors as defined by the 2004/39/EC Directive on markets in financial instruments acting for their own account and categorised as eligible counterparties or professional clients. This communication is not directed at retail clients.

This document 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.

Some of the funds described in this brochure are sub-funds of either Multi Units Luxembourg or Lyxor Index Fund, being both investment companies with Variable Capital (SICAV) incorporated under Luxembourg Law, listed on the official list of Undertakings for Collective Investment, and have been approved and authorised by the CSSF under Part I of the Luxembourg Law of 17th December 2010 (the “2010 Law”) on Undertakings for Collective Investment in accordance with provisions of the Directive 2009/65/EC (the “2009 Directive”) and subject to the supervision of the Commission de Surveillance du Secteur Financier (CSSF).

Alternatively, some of the funds described in this document are either (i) French FCPs (fonds commun de placement) or (ii) sub-funds of Multi Units France a French SICAV, both the French FCPs and sub-funds of Multi Units France are incorporated under the French Law and approved by the French Autorité des marchés financiers. Each fund complies with the UCITS Directive (2009/65/CE), and has been approved by the French Autorité des marchés financiers.

Société Générale and Lyxor AM recommend that investors read carefully the “risk factors” section of the product’s prospectus and Key Investor Information Document (KIID). The prospectus and the KIID are available in French on the website of the AMF (www.amf-france.org). The prospectus in English and the KIID in the relevant local language (for all the countries referred to, in this document as a country in which a public offer of the product is authorised) are available free of charge on lyxoretf.com or upon request to client-services-etf@ lyxor.com.

The products are the object of market-making contracts, the purpose of which is to ensure the liquidity of the products on NYSE Euronext Paris, Deutsche Boerse (Xetra) and 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 together with the prospectus and/or more generally any information or documents with respect to or in connection with the Fund does not constitute an offer for sale or solicitation of an offer for sale in any jurisdiction (i) in which such offer or solicitation is not authorized, (ii) in which the person making such offer or solicitation is not qualified to do so, or (iii) to any person to whom it is unlawful to make such offer or solicitation. In addition, the shares are not registered under the U.S Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States (including its territories or possessions) or to or for the benefit of a U.S Person (being a “United State Person” within the meaning of Regulation S

under the Securities Act of 1933 of the United States, as amended, and/or any person not included in the definition of “Non-United States Person” within the meaning of Section 4.7 (a) (1) (iv) of the rules of the U.S. Commodity Futures Trading Commission.).

No U.S federal or state securities commission has reviewed or approved this document and more generally any documents with respect to or in connection with the fund. Any representation to the contrary is a criminal offence.

This document is of a commercial nature and not of 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.

These funds include a risk of capital loss. The redemption value of this fund may be less than the amount initially invested. The value of this fund can go down as well as up and the return upon the investment will therefore necessarily be variable. In a worst case scenario, investors could sustain the loss of their entire investment.

This document is confidential and may be neither communicated to any third party (with the exception of external advisors on the condition that they themselves respect this confidentiality undertaking) nor copied in whole or in part, without the prior written consent of Lyxor AM or Société Générale. The obtaining of the tax advantages or treatments defined in this document (as the case may be) depends on each investor’s particular tax status, the jurisdiction from which it invests as well as applicable laws. This tax treatment can be modified at any time. We recommend to investors who wish to obtain further information on their tax status that they seek assistance from their tax advisor.

The attention of the investor is drawn to the fact that the net asset value stated in this document (as the case may be) cannot be used as a basis for subscriptions and/or redemptions.

The market information displayed in this document is based on data at a given moment and may change from time to time.

Authorizations: Lyxor International Asset Management (Lyxor AM) is a French management company authorized by the Autorité des marchés financiers and placed under the regulations of the UCITS (2009/65/EC) 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.

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.

19

Contact information +33 (0)1 42 13 42 14 | [email protected] | www.lyxoretf.fr

Documents

Ride the wave - Lyxor ETF - Ride the Political Wave Brochure - FR...Which route will you take? *Source: Lyxor International Asset Management/Bloomberg. Data as at 15 June 2017. **Source: