New Products
Lyxor AM Lists Four Tracker ETFs

SocGen subsidiary Lyxor Asset Management is offering investors access on Euronext Paris to the “fundamental strategy” indexes developed by FTSE RAFI, with four new trackers covering the Eurozone, Europe, the US and Japan. The FTSE RAFI indexes were conceived by Research Affiliates. As opposed to traditional “market cap” indexes, they weight each stock according to four fundamental criteria: sales, cash-flows, dividends and book value. Such indices have had great success in the United States, at first with institutional and now with retail investors, who use them as an additional strategy for their equity investments: $6.5 billion of assets are currently invested using the FTSE RAFI methodology. Isabelle Bourcier, ETF co-ordinator for Lyxor, said: "The objective of these fundamental strategy indexes is to offer better performance and reduced volatility in the long term with respect to traditional indexes. They also propose a more reliable link to the economic reality of the component companies." Imogen Dillon-Hatcher, managing director of FTSE EMEA, said: "FTSE is committed to offering investors choice and diversification across investment styles. We are proud to license Lyxor AM to use the FTSE RAFI series and be involved with the burgeoning interest in fundamental indexing".