Lyxor is extending its physically replicated exchange-traded fund range by switching seven UCITS ETFs which track the EUROMTS Investment grade indices from synthetic to physical replication.
For each underlying index, Lyxor provides the fund structure which optimises investment performance against each index.
The funds will be managed using a full replication method: each fund will invest directly in investment grade Eurozone sovereign bonds across different maturities which comprise the respective EuroMTS Investment Grade Government Index, without any sampling, with the aim of achieving the best possible correlation between the funds’ performance and the performance of the indices.
Securities lending will not form part of the funds’ management process as the performance benefit to investors would be negligible and would not justify the additional counterparty risk to the fund. Lyxor’s goal is to provide a solution that offers the best risk/reward ratio to its clients.
