Change Country
Welcome to DenmarkWelcome
Please read the important information below before continuing to our website

Please read the important information below before continuing to our website.  

By clicking on your client type to enter the website, you are confirming that you have read and understood the important information that is contained below, and you accept the terms of the Privacy and Cookies policy.


This website is published by Lyxor International Asset Management (LIAM), a French asset management company approved by the AMF (17 place de la Bourse 75082 Paris Cedex 02) under the UCITS (2009/65/EC) and AIFM (2011/31/EU) directives.

The website is hosted by on Microsoft Azure servers.

This website is subject to French and Danish law.


A professional client is a client that is either a per se professional client or an elective professional client (Note article 4 (1) 12 of Mifid )

Marketing Restrictions and Implications


Lyxor UCITS compliant Exchange Traded Funds (Lyxor UCITS ETFs) referred to on this website are open ended mutual investment funds (i) established under the French law and approved by the Autorité des Marchés Financiers (the French Financial Markets Authority), or (ii) established under the Luxembourg law and approved by the Commission de Surveillance du Secteur Financier (the Luxembourg Financial Supervisory Committee). Most, , of the protections provided by the Danish regulatory system generally and for funds authorised in Denmark do not apply to these exchange traded funds (ETFs).


This website is exclusively intended for persons who are not "US persons", as such term is defined in Regulation S or the US Securities Act 1933, as amended, and who are not physically present in the US. This website does not constitute an offer or an invitation to purchase any securities in the United States or in any other jurisdiction in which such offer or invitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. Potential users of this website are requested to inform themselves about and to observe any such restrictions.


Index Replication Process


Lyxor UCITS ETFs follow both physical and synthetic index replication process.


However, most Lyxor UCITS ETFs follow synthetic replication process. This consists of entering into a derivative transaction (a ‘Performance Swap’, as defined below) with a counterparty that provides complete and effective exposure to its benchmark index. Lyxor has adopted this methodology in order to minimise tracking error, optimise transaction costs and reduce operational risks.


A Performance Swap is a contractual agreement which is negotiated over-the-counter (OTC) between two parties: the Lyxor UCITS ETF and its counterparty. From a risk perspective, each Performance Swap ranks equally with other senior unsecured obligations of the counterparty, such as common bonds (i.e., same rights to payments). In the Performance Swap, the counterparty of the Lyxor UCITS ETF commits to pay the Lyxor UCITS ETF a variable return based on a pre-determined benchmark index, instead of a fixed stream of income (as in bonds). At the same time, the counterparty will receive from the Lyxor UCITS ETF the performance and any related revenues generated by the basket's assets (excluding the value of the Performance Swap) held by the Lyxor UCITS ETF. Information provided on individual ETFs includes data on the basket relating to the ETF and the percentage value of the basket represented by each asset. The information is relevant to the closing values on the date given. 


Investment Risks


The Lyxor UCITS ETFs described on this website are not suitable for everyone. Investors' capital is at risk. Investors should not deal in this product unless they understand, having obtained independent professional advice where necessary, its nature, terms and conditions, and the extent of their exposure to risk. The value of the product can go down as well as up and can be subject to volatility due to factors such as price changes in the underlying instrument and interest rates. If a fund is quoted in a different currency to the index, currency risks exist.


Prior to any investment in any Lyxor UCITS ETF, you should make your own appraisal of the risks from a financial, legal and tax perspective, without relying exclusively on the information provided by us. We recommend that you consult your own independent professional advisors (including legal, tax, financial or accounting advisors, as appropriate).


Specific Risks


·         Capital at Risk. ETFs are tracking instruments: Their risk profile is similar to a direct investment in the Benchmark Index. Investors’ capital is fully at risk and investors may not get back the amount originally invested. Investments are not covered by the provisions of the Financial Services Compensation Scheme (“FSCS”), or any similar scheme.

·         Counterparty Risk. Investors may be exposed to risks resulting from the use of an OTC Swap with Societe Generale. Physical ETFs may have Counterparty Risk resulting from the use of a Securities Lending Programme.

·         Currency Risk. ETFs may be exposed to currency risk if the ETF or Benchmark Index holdings are denominated in a currency different to that of the Benchmark Index they are tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns.

·         Replication Risk. ETFs are designed to replicate the performance of the Benchmark Index. Unexpected events relating to the constituents of the Benchmark Index may impact the Index provider’s ability to calculate the Benchmark Index, which may affect the ETF’s ability to replicate the Benchmark Index efficiently. This may create Tracking Error in the ETF.

·         Underlying Risk. The Benchmark Index of a Lyxor ETF may be complex and volatile. When investing in commodities, the Benchmark Index is calculated with reference to commodity futures contracts which can expose investors to risks related to the 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.

·         Liquidity Risk. On-exchange liquidity may be limited as a result of a suspension in the underlying market represented by the Benchmark Index tracked by the ETF; a failure in the systems of one of the relevant stock exchanges, Societe Generale or other Market Maker systems; or an abnormal trading situation or event. 


The securities can be neither offered in nor transferred to the United States.




Any statement in relation to tax, where made, is generic and non-exhaustive and is based on our understanding of the laws and practice in force as of the date of this document and is subject to any changes in law and practice and the interpretation and application thereof, which changes could be made with retroactive effect. Any such statement must not be construed as tax advice and must not be relied upon. The tax treatment of investments will, inter alia, depend on an individual’s circumstances. Investors must consult with an appropriate professional tax adviser to ascertain for themselves the taxation consequences of acquiring, holding and/or disposing of any investments mentioned on this website. 

Further information on the risk factors are available in the [Risk Warning – link to risk page] section of the website.


Any fund prospectus and supplements are available at Information given about the past performance of the funds is no guarantee of future performance. No investment decision should be taken without reading the fund prospectus and any fund supplement of the fund concerned.


Although the content of the website is based upon information that LIAM consider reliable or comes from sources that LIAM consider reliable, LIAM have not verified such information. Lyxor make no representation or warranty as to the accuracy, completeness or adequacy of any information.  Any reproduction, disclosure or dissemination of the materials available on the website is prohibited.



This website uses cookies to make the website work or improve your user experience. Cookies are small text files that are saved on your computer or device, which are used for several purposes such as detecting preferences and improving site navigation. By continuing to use this website you consent for cookies to be used. For more details, including how to amend your preferences, please read our [Cookies Policy] link to privacy & cookie page.

By clicking on your client type to enter the website, you shall be deemed to have represented to us that you are not a U.S. person and that you are not located in the United States of America, its territories and possessions, and any State of the United States of America and that you are authorised to receive the information to and on this website.

August, 2015





11 Feb 2019

China: Portfolio management in the year of the pig

It’s the Year of the Pig in China– which marks the end of the 12-year cycle of the animals of Chinese astrology. As such, it’s a perfect time to look back, learn from the past and prepare for the new cycle. Chanchal Samadder does exactly that.

Leaving 2018 behind

There’s no doubt 2018 was a challenging year in China, as policymakers wrestled with the country’s debt issues and tariffs and the trade war took their toll. Corporate defaults mounted, shadow banking was targeted and credit growth contracted.  To alleviate the burden on a private sector suddenly bereft of liquidity, officials designed specific tax-cutting polices rather than resort to a re-run of the large infrastructure plans seen in 2008 and 2015. The damage done by the trade tensions materialised in the latter part of the year as trade figures dropped and housing investment soured.  

For all that, the Chinese market is still young and, while there’s not much history on which to base a strategic view, there are plenty of reasons to be constructive on the country’s assets from a tactical, shorter-term perspective. 

Controlling a slowdown

Why is that, given China’s economic growth could well slow further in H1? It’s not down to trade - even though the prospects of a temporary deal - or an extended truce - look greater, finding a lasting resolution will be challenging given the inescapable long-term rivalry between the US and China. Instead, the attraction is driven by policy. Growth should stabilise in H2, because there is more help on the way. We expect the PBOC to lower interbank lending rates and make further cuts to banks’ reserve requirements – which should free up more money for new lending to the private sector. China is also sticking with the large-scale tax cut strategy first deployed last year. The tax reduction programme for this year is set to be announced in March and could top 1.5 trillion yuan. The government has also outlined more tax breaks for small- and mid-sized businesses.

Chinese Credit growth suggests a stabilisation in activity
Chart 1

*Bloomberg economics China Credit Impulse: New credit as a % of GDP (Credit Impulse), provides a gauge of the boost that lending is providing to growth. The China Credit Impulse is calculated as: 12-month flow of total social finance, net of equity issuance, plus local government bond issuance, divided by the four quarter rolling sum of nominal GDP. Sources: Bloomberg, Macrobond, Lyxor International Asset Management/ Cross Asset Research, Data as at 31/01/2019. Past performance is not a reliable indicator of future results.

The problems are priced in

The market may not be at the distressed levels of end-2008, but things are still pretty ugly and Chinese equities remain well below their long-term averages. Equity valuations have in fact reverted to 2014 levels and many domestic Chinese firms have taken the hit already and issued profit warnings. On the listed market, earnings expectations are for low double-digit growth for both onshore and offshore markets – 13.6% and 12.0% respectively for the MSCI China and the Shanghai composite indices. We don’t, however, expect a deterioration from here. We suspect the worst has been priced-in and that targeted stimulus (tax relief, relaxing regulations for margin trading) has put a floor under earnings downgrades. 

China is too big to ignore…

The size of the China market means even more than its potential weighting in global indices. Inflows from non-residents recovered further to almost return to their long-term upward trend in 2018, thanks to a rebound in external banking debt and strong portfolio inflows facilitated by the fast-track opening-up of domestic capital markets. In fact. China attracted $50bn of equity inflows and $103bn of bond inflows in the first three quarters of last year - in the process surpassing full-year figures for 2017 - despite a slowing economy and a depreciating currency. Fast-track capital market liberalisation was the crucial ingredient. Portfolio inflows are likely to stay strong again this year, especially with MSCI likely to quadruple the inclusion ratio of China’s A shares in their bellwether emerging market benchmark, the MSCI Emerging Markets Index. All told, China A shares should account for around 15% of the index. Meanwhile, FTSE will include China in its EM indices for the first time. This should help fuel portfolio investments for few more years yet.

MSCI’s actions could be a substantial support for A-Share performance

  • On 31 May 2018, 233 China A Large Cap shares were added to the                                     MSCI Emerging market Index using a two-step inclusion process 
Chart 2

Source: MSCI, based on data used for MSCI ‘s May 2018 semi- annual index review. At a hypothetical 100% inclusion (which may or may not occur in the future), China would comprise 42% of the index, based on current market capitalization. All figures are approximate.

…and too disruptive to dismiss

China has become unavoidable for investors wanting exposure to the world’s new tech titans. According to the 2018 Kleiner Perkins Internet Trend report, nine of the top 20 internet companies in the world (by market valuation) are Chinese. On the listed market, China technology stocks have a weighting in global indices that is twice as high as the Japan and European technology sectors combined. China tech stocks have even become bigger than Korea, Taiwan and India combined (based on MSCI data). In our view, if you want to capture the opportunities on offer, there’s no better index than the MSCI China. Here’s why.

If, like us, you believe this index represents the truest and best reflection of China’s economy, why not consider investing in our ETF? With a TER of just 0.30% it is the cheapest Chinese equity ETF your money can buy.

Find out more about our Lyxor MSCI China UCITS ETF

Chinese astrology suggests those born in previous years of the pig are diligent, compassionate, and generous. They set goals and devote all their energy to achieving them. Calm when facing trouble, these “Pigs” handle things with care. They take responsibility to finish what they are engaged in. They are due some luck with their investments in 2019. Perhaps, if you adhere to those traits, you can expect the same! 

Sources: All views & opinions, Lyxor ETF Equity Strategy as at 7 February 2019, unless otherwise stated. Statements on Lyxor’s credentials vs. peers refer to the European UCITS ETF market only.

Risk Warning​

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 2014/65/EU. These products comply with the UCITS Directive (2009/65/EC). Société Générale and Lyxor International Asset Management (LIAM) recommend that investors read carefully the “investment risks” section of the product’s documentation (prospectus and KIID). The prospectus and KIID are available free of charge on, and upon request to

The products mentioned are the object of market-making contracts, the purpose of which is to ensure the liquidity of the products on 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 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 is of a commercial nature and not of a regulatory nature. This material is of a commercial nature and not 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.

Lyxor International Asset Management (LIAM), 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 (2009/65/EU) and the AIFM Directive (2011/31/EU). LIAM is represented 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. Société Générale is a French credit institution (bank) authorised by the Autorité de contrôle prudentiel et de résolution (the French Prudential Control Authority).

Research disclaimer

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

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.

Connect with us on linkedin