“EuroMTS 7-10Y™” – Bloomberg ticker: EXED5.…
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Lyxor International Asset Management has decided to update the Prospectus and the Key Investor Information Document of the “LYXOR ETF EUROMTS 7-10Y” FCP to reflect the change in methodology of its “EuroMTS 7-10Y™” benchmark index (the “Benchmark Index”), operated by the company EuroMTS®, which is this index sponsor.
This change involves the eligibility criteria for the underlying securities in the Benchmark Index. Its sole purpose is to henceforth select only those bonds that are rated Investment Grade by at least two of the three main ratings agencies.
PROSPECTUS HEADING:
Benchmark Index name:
Before: EuroMTS 7-10Y
After: EuroMTS Investment Grade Eurozone Government Bond 7-10Y
Bloomberg ticker:
Before: EXED5
After: EMIED5
Methodology:
Before: The EuroMTS 7-10Y™ index is the sub-index, consisting of securities having a maturity between 7 and 10 years, of the EuroMTS Global™ index, formerly known under the name CNO ETRIX Global, which is a “Total Return” type index (i.e. all coupons detached by the index constituents are reinvested in the index), weighted by country, consisting of securities issued by the governments of member states in the Euro zone. The EuroMTS -7-10Y™ index is calculated in real-time by EuroMTS.
The eligible universe of EuroMTS indices consists of securities:
(i) denominated in Euros and issued by the government of a member state of the European Monetary Union;
(ii) detaching coupons and having a maturity greater than or equal to 1 year;
(iii) with at least EUR2 billion issued;
(iv) listed on the MTS markets.
The methodology of the EuroMTS indices is supervised by an independent consulting committee consisting of bond and issuer specialists.
The composition of these indices is reviewed each month.
These characteristics are such that the EuroMTS indices are a highly liquid and representative measure of the performance of sovereign bond securities..
The monitored performance is based on the 5.30pm (Paris time) fixing of the index as determined by EuroMTS.
After: The EuroMTS Investment Grade Eurozone Government Bond 7-10YTM index is the sub-index, consisting of securities having a maturity between 7 and 10 years, of the EuroMTS Investment Grade Eurozone Government Bond All-Maturity™, formerly known under the name CNO ETRIX Global, which is a “Total Return” type index (i.e. all coupons detached by the index constituents are reinvested in the index), weighted by country, consisting of securities issued by the governments of member states in the Euro zone. The EuroMTS Investment Grade Eurozone Government Bond 7-10YTM
index is calculated in real-time by EuroMTS.
The eligible universe of EuroMTS Investment Grade indices consists of the following securities:
(i) nominal and fixed coupons denominated in Euros which does not include option nor any convertibility with a maturity greater than or equal to 1 year;
(ii) listed on the MTS markets;
(iii) issued by the sovereign governments of a member state of the European Monetary Union, selected by EuroMTS from the following list of countries as having at least two ratings in the category “Investment Grade” issued by the rating agencies Standard & Poors, Moody’snand Fitch: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Slovenia and Spain;
(iv) with at least EUR2 billion issued. The methodology of the EuroMTS indices is supervised by an independent consulting committee consisting of bond and issuer specialists.
The composition of these indices is reviewed each month.
These characteristics are such that the EuroMTS indices are a highly liquid and representative measure of the performance of sovereign bond securities..
The monitored performance is based on the 5.30pm (Paris time) fixing of the index as determined by EuroMTS.
The aforementioned FCP retains all other specifications, including its ticker code and its management fees.
These changes have no effect on the FCP’s investment objective and risk profile, which remain unchanged. These changes are effective as of 14 February 2012.
Source: ETFWorld – Lyxor
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