Lyxor ETF accelerates the expansion of its range on the three key pillars of Environmental, Social and Governance (ESG) & Climate, Thematic and Core ETFs
In 2021, Europe’s third-largest ETF provider Lyxor ETF plans to accelerate its efforts to expand its range on three key ETF product pillars – ESG and Climate, Thematics and Core. This acceleration is to help meet the long-term needs of the wealth management segment as ETF usage in Europe expands among individuals and to support its institutional client base. To achieve this, Lyxor ETF has made building assets in these three key areas a strategic priority for 2021.
As such, it plans to:
- Double its ESG assets and become the leading ETF provider for climate ETFs
Lyxor aims to double the ESG ETF assets it had in 2020 to EUR 10 Bn by the end of 2021. This builds on the equivalent growth in 2020 and the record volumes witnessed in ESG ETFs, which last year accounted for more than half of European market flows. To achieve this, Lyxor ETF plans to expand its ESG offering by switching several of its existing ETFs to equivalent ESG indices, thereby offering a simple alternative to traditional market capitalisations to meet its clients’ needs. Lyxor also continues to implement its ambitious programme of fund labelling and intends to obtain the “SRI Label” for its entire thirty-strong ESG ETF range by the end of the year. At the end of February, ESG ETF assets managed by Lyxor totalled EUR 6.5 Bn (1).
As a pioneer in passive fund management, last year Lyxor ETF was the first ETF provider in the world to launch an extensive ecosystem of ETFs in line with the Paris Agreement and carbon neutrality by 2050. Having made a strong start last year, interest in climate indices appears set to grow. We are already seeing evidence of this in the flows towards regional (notably European and US equities) and global indices from various types of institutional investors (insurers, pension funds, asset managers), in part because of increasingly stringent regulations in Europe. This year, Lyxor ETF intends to bolster its range of climate ETFs by extending it to certain fixed income segments and expanding its range of Green Bond ETFs, another popular choice for taking direct climate action. In total, Lyxor now manages close to EUR 1.5 Bn in climate-focused ETFs (2).
- Increase its successful Thematic ETF range to capture new global post-Covid trends
Following the success of its megatrend ETF range last year – over EUR 700 M in net new assets collected in less than a year – Lyxor plans to offer wealth managers in particular more ways to invest in the companies set to benefit from significant and lasting changes in the post-pandemic world. Having launched five Thematic ETFs in partnership with MSCI in 2020 – on Digital Economy, Disruptive Technology, Future Mobility, Smart Cities and consumer habits of Millennials – Lyxor is looking to offer investors exposure to rapid innovation in a range of sectors such as healthcare and Clean Tech and in specific geographies.
- Further enhance its Core range
Since it was launched in 2017 with some of the lowest Total Expense Ratios (TER) in Europe, Lyxor’s Core range has become a cornerstone of the firm’s product offering and remains a key tool for various types of investors as they look to manage their portfolios as efficiently as possible. Lyxor has a raft of initiatives planned for 2021, notably within fixed income, where inflation products are key priorities with central banks and governments around the world spending freely to fuel a post pandemic recovery. This builds on the success of the Lyxor Core ETF on US TIPS, which now totals EUR 3.6 Bn in AUM (3) after a very strong 2020. Regional and single country allocations are also key areas of interest.
In support of its repositioning around these three key pillars, Lyxor also plans to adapt and streamline the rest of its range to ensure it better reflects clients’ long-term investment and savings goals.
“Having started as tactical allocation building blocks for institutional investors, ETFs have since become long-term savings instruments for a much wider range of investors including in the wealth management segment. That is only going to accelerate. Our shift in focus aims at addressing investors’ long-term concerns – aiding the transition to a low-carbon economy, capturing new themes in a post-Covid world and ensuring maximum efficiency for their investments – and as such reflects the profound change in nature of the ETF market”, stated Arnaud Llinas, Head of Lyxor ETFs and Indexing at Lyxor Asset Management.
Media Contact:
Lyxor International Asset Management
Stefano Bassi
Tel.: +33 1 58 98 69 72
Mob.: +33 6 14 51 92 56
Email: stefano.bassi@sgcib.com
(1) Source: Lyxor International Asset Management, Bloomberg, as at 28/02/2021.
(2) Source: Lyxor International Asset Management, Bloomberg, as at 28/02/2021.
(3) Source: Lyxor International Asset Management, Bloomberg, as at 28/02/2021.
Notes to editors:
About Lyxor:
Lyxor Asset Management Group ("the Lyxor group"), wholly-owned directly or indirectly by Societe Generale and composed notably of two subsidiaries (1) (2), is a European asset management specialist, an expert in all investment styles, active, passive or alternative. From ETFs to multi-management, with EUR 160.4 billion* under management and advisory, Lyxor group creates innovative investment solutions to meet the long-term challenges of sustainable investments, with a particular focus on the fight against climate change. Thanks to its experts and its engineering tradition and research, Lyxor group combines search for performance and risk management.
(1) Lyxor Asset Management S.A.S. is approved by the «Autorité des marchés financiers» (French regulator) under the agreement
# GP98019.
(2) Lyxor International Asset Management S.A.S. is approved by the «Autorité des Marchés Financiers» (French regulator) under the agreement # GP04024.
* Including EUR 19.1 billion Assets under Advisory, equivalent of USD 194.7 billion in assets under management and advisory (including USD 23.2 billion Assets under Advisory) at the end of January 2021.
Lyxor International Asset Management: the original pioneers
Lyxor has been running ETFs since 2001, longer than any other European provider. Our pioneering spirit helped shape the market you know today.
We’ve become one of Europe’s largest1, most liquid ETF managers. And our far-reaching range spans all asset classes, and includes some of the largest and best performing ETFs in Europe2.
We now offer 200+ ways to explore markets. So, whether you’re seeking essential core index exposure or reaching out for more tactical opportunities in specific sectors or markets, we have the product to match. We also offer unique ESG and thematic exposures to help you prepare for a changing world. Wherever you roam, rest assured our quality charter means every fund meets the same meticulous standards.
1 Lyxor International Asset Management, as at 31/12/2020.
2 Bloomberg. Data over the period 31/12/2019-31/12/2020.
Disclaimer
It is each investor’s responsibility to ascertain that it is authorised to subscribe, or invest into the product detailed in this press release. Prior to investing in the product, investors should seek independent financial, tax, accounting and legal advice. Lyxor UCITS ETFs are French or Luxembourg open ended mutual investment funds respectively approved by the French Autorité des Marchés Financiers or by the Luxembourg Commission de Surveillance du Secteur Financier, and authorized for marketing of their units or shares in various European countries (the Marketing Countries) pursuant to the article 93 of the 2009/65/EC Directive. Lyxor International Asset Management SAS recommends that investors read carefully the “risk factors” section of the Lyxor UCITS ETFs prospectus and the “Risk and reward” section of the Key Investor Information Document (KIID). The prospectus in French for French Lyxor UCITS ETFs and in English for Luxembourg Lyxor UCITS ETFs and the KIID in the local languages of the Marketing Countries are available free of charge on www.lyxoretf.com or upon request to client-services-etf@lyxor.com.
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