Lyxor Asset Management (“Lyxor AM”), a wholly-owned subsidiary of Societe Generale, is pleased to announce today the launch of the Lyxor Emerging Markets Infrastructure Fund (the Fund) aiming to capitalise on the growth of emerging markets through the infrastructure sector and selected currencies.
Combined with the flexibility and transparency of daily dealing, the Fund provides exposure to the infrastructure sector via the S&P Emerging Markets Infrastructure Total Return Index (the index) and an extra potential return brought by a basket of emerging market currencies, aiming to capture potential currency appreciation and positive interest rates differentials against the U.S. dollar.
The infrastructure sector has seen considerable expansion in recent years following a strong growth in emerging markets worldwide. The need for the continued development of land and air transportation, increased electricity generation capacity as well as oil exploration ability in the emerging markets, are expected to drive this growth forward. The index tracks the performance of the stocks of the largest 30 listed infrastructure companies1 in developing Asia, Eastern Europe, the Middle East and Latin America covering three clusters namely, utilities, transportation and energy.
The Fund further incorporates a unique alpha generator aiming to capture potential currency appreciation of the selected emerging markets currencies and positive interest rates differentials between the selected currencies and the U.S. dollar. The basket is expected to include the U.S. dollar and one to three emerging market currencies selected to maximise interest rates returns combined with potentially lower downside risks.
As of 30 May 2008, the Currencies Basket is proposed to be made up of the Argentine Peso, the South African Rand, the New Turkish Lira and the U.S. dollar in equal proportions2. The potential total return of the Fund will be equals to the performance of the underlying shares of the Index, the stock dividends, the FX gain from the potential currency appreciation of the emerging market currencies and also the interest rate differentiation against USD from the Currencies Basket.
The Fund is distributed by Bank of China (Hong Kong), Bank of Communications Co., Ltd. Hong Kong Branch, China Construction Bank (Asia), Chiyu Bank, CITIC Ka Wah Bank, Dah Sing Bank, DBS Bank (Hong Kong) Limited, MEVAS Bank, Nanyang Commercial Bank, Public Bank (Hong Kong), Shanghai Commercial Bank, Sun Hung Kai Financial, The Hongkong and Shanghai Banking Corporation Limited, Wing Hang Bank and Wing Lung Bank. With a minimum investment amount of USD3,000, the initial offer period for the Fund opens on 16 June 2008, with a close date of 11 July 2008.