Lyxor ETF consolidates its leadership in the green bonds segment with more than EUR 300 million in assets under management

Lyxor is delighted to announce that its Lyxor Green Bond (DR) UCITS ETF – Acc now has more than EUR 300 million in assets under management, making it the world’s biggest green bond ETF in terms of AUM (1). This underscores the resilience of the ESG ETF market during the volatility resulting from the COVID-19 crisis.

Launched in February 2017 and tracking the Solactive Green Bond EUR USD IG index, this ETF invests in investment-grade green bonds denominated in euros and US dollars. These bonds are issued by supranationals, local authorities, corporations, banks and development banks to finance projects or assets which benefit the environment in a variety of ways, such as clean energy, energy-efficient buildings, transport and water. Green bonds eligible for the index are approved independently by Climate Bonds Initiative. They must finance activities covered by Climate Bond Taxonomy and meet Climate Bond Standards criteria.

The ETF has earned the Greenfin label, created by the French Ministry of Ecological Transition and Solidarity in late 2015 to certify investment funds’ green credentials. This ETF symbolises Lyxor’s ongoing commitment to fighting climate change, which was most recently reinforced by its launch of the first equity ETF Climate ecosystem designed to meet European Commission standards and reflect the ambitions of the 2015 Paris Agreement. Overall, Lyxor ETF now manages assets of over EUR 2 billion (2) in its ESG range.

The COVID-19 crisis and the resulting market volatility could have prompted investors to question their investment approach and, ultimately, their commitment to ESG. They have, however, only become more deeply committed. ESG ETFs raised EUR 1 billion in Europe when the markets bottomed in March and had attracted more than EUR 10 billion by the end of May (3). These investments do not follow short-term tactical allocation patterns, but instead tend to sit within the more stable parts of portfolios and reflect the structural changes affecting all types of investors.

Green bonds in particular are attracting growing interest from investors looking to accelerate their portfolio’s ecological transition. According to Climate Bonds Initiative, issues of green bonds could reach USD 350 billion by the end of 2020, up sharply from USD 257.5 billion in 2019 (4).

François Millet, Head of ESG, Strategy and Innovation for Lyxor ETF: “At Lyxor, we made the decision more than ten years ago to put socially responsible investment at the heart of our investment strategy. We are convinced ETFs can help investors to achieve their environmental goals. ETFs are, by their very nature, transparent, simple and fact-based – characteristics that align with ESG priorities. We are proud that a product as innovative as our Green Bond ETF has reached EUR 300 million in assets under management within three years.”

The Lyxor Green Bond UCITS ETF is listed on the main European stock exchanges (5) and charges fees of 0.25% on assets under management.

Press contact:
Lyxor International Asset Management
Stefano Bassi                      
Tel.: +33 1 58 98 69 72
Mobile: +33 6 14 51 92 56
Email: stefano.bassi@sgcib.com

(1) Source: Lyxor International Asset Management, Bloomberg, as at 29/05/2020.

(2) EUR 2.08 billion at 22/05/2020. Source: Lyxor International Asset Management, Bloomberg.

(3) Source: Lyxor ETF Research.

(4) Source: Climate Bonds Initiative at 30/04/2020: https://www.climatebonds.net/

(5) The Lyxor Green Bond (DR) UCITS ETF is listed on Euronext, London Stock Exchange, Borsa Italiana, Xetra, OMX and BX Swiss.

Notes to editors:

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 and alternative. From ETFs to multi-management, with EUR 153.4 billion* under management and advisory, Lyxor group creates innovative investment solutions to meet the long-term challenges of managing savings. 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 22.6 billion assets under advisory. Equivalent of USD 166.8 billion in assets under management and advisory (including USD 24.6 billion assets under advisory) at the end of April 2020.

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 largest (1), most liquid ETF managers. And our far-reaching range spans all asset classes, and includes some of the largest and best performing ETFs in Europe (2).

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 31/12/2019.

(2) Bloomberg. Data over the period 31/12/2018-31/12/2019.

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.

Updated composition of the Lyxor UCITS ETFs investment portfolio is available on www.lyxoretf.com. Indicative net asset value is published on the Reuters and Bloomberg pages of the products, and might also be mentioned on the websites of the stock exchanges where the product is listed. The products are the object of market-making contracts, the purpose of which is to ensure the liquidity of the products on the exchange, assuming normal market conditions and normally functioning computer systems. Units of a specific Lyxor 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.

The Lyxor UCITS ETF including the one detailed in this press release include a risk of capital loss. The redemption value of these Lyxor UCITS ETF may be less than the amount initially invested. In a worst case scenario, investors could sustain the loss of their entire investment. There is no guarantee that the objective of any Lyxor UCITS ETF will be met. A Lyxor UCITS ETF may not always be able to replicate exactly the performance of the index.

The indexes and the trademarks used in this document are the intellectual property of index sponsors and/or its licensors. The indexes are used under license from index sponsors. The UCITS ETFs based on the indexes are in no way sponsored, endorsed, sold or promoted by index sponsors and/or its licensors and neither index sponsors nor its licensors shall have any liability with respect thereto. The indices referred to herein (the “Index”) are not sponsored, approved or sold by Société Générale or Lyxor International Asset Management SAS. Each of Société Générale and Lyxor International Asset Management SAS shall not assume any responsibility in this respect.  The accuracy, completeness or relevance of the information which has been drawn from external sources is not guaranteed although it is drawn from sources reasonably believed to be reliable. Subject to any applicable law, each of Société Générale and Lyxor International Asset Management SAS shall not assume any liability in this respect.

This press release together with the prospectus and/or more generally any information or documents with respect to or in connection with the Lyxor UCITS ETF detailed herein 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.