Lyxor MSCI Emerging Markets UCITS ETF PROSPECTUS

Transcription

1 Lyxor MSCI Emerging Markets UCITS ETF PROSPECTUS Page1

2 Lyxor MSCI Emerging Markets UCITS ETF PROSPECTUS COMPLIANT WITH DIRECTIVE 2009/65/EC GENERAL CHARACTERISTICS LEGALSTRUCTURE AFrenchcommonfund("fondscommundeplacement") NAME Lyxor MSCI Emerging Markets UCITS ETF(hereinafterthe Fund ). LEGALSTRUCTUREANDMEMBERSTATEINWHICHTHEFUNDWASCREATED AFrenchFCPcommonfundformedinFrance. DATEESTABLISHEDANDINTENDEDTERM ThisFundwasapprovedbytheAutoritédesMarchésFinanciers(FinancialMarketsAuthority)on30January2007andwasestablishedon18April2007 foratermof99years. KEYINFORMATION Units ISINCODES Allocationofdistr ibutableamounts CURRENCY Eligibleinvestors Minimumamountfors ubscription/redempti on(primarymarket)a ndpurchase/saleamou nt(secondarymarket) Listingexchange C-EUR FR Accumulation EUR Available to all investors EUR100,000onthep rimarymarket DeutscheBoerse (Frankfort);NYSEEurone xt(paris),borsaitaliana(m ilan) N/Aonthesecondarymarke t(1 ) C-USD FR Accumulation USD Available to all investors Ontheprimarymarket,the USDequivalentof 100,000euros N/Aonthesecondarymarke t(1 ) LondonStockExcha ngesingaporeexcha nge, SixSwissExchange(Z urich),luxembourgst ockexchange D-USD FR Accumulationand/or distribution USD Available to all investors Ontheprimarymarket,the USDequivalentof 100,000euros N/Aonthesecondarymarke t(1 ) N/A (1)Thereisnominimumpurchaseorsaleamountunlessrequiredbytherelevantexchange(s. WHERETOOBTAINTHEMOSTRECENTANNUALANDINTERIMREPORTS Themostrecentannualreportsandtheassetinventorystatementwillbesentoutwithineightbusinessdaysattheinvestor'srequestinwritingto:LYXORASSE TMANAGEMENT. 17CoursValmy ParisLaDéfenseFrance. contact@lyxor.com. MoreinformationcanberequestedonLyxor'swebsiteatwww.lyxoretf.com. Page2

3 SERVICE PROVIDERS INVESTMENTMANAGEMENTCOMPANY LYXORINTERNATIONALASSETMANAGEMENT. AFrenchsimplifiedjoint-stockcompany(SociétéparActionsSimplifiée-SAS) Registeredoffice:17CoursValmy-92987ParisLaDéfenseFrance. Postaladdress:TourSociétéGénérale-A08-17,CoursValmy-92987Paris-LaDéfenseCedex -FRANCE. REMUNERATION POLICY The management company has established a remuneration policy that complies with current regulations. This policy is consistent with the objectives, values and interests of the management company, of the funds it manages and of the investors in these funds, and includes measures intended to avoid conflicts of interest. The management company s remuneration policy provides a balanced framework where the remuneration of the relevant employees is based on the following principles: - The management company s remuneration policy is consistent with sound and effective risk management, encourages such management and does not encourage risk-taking that would be incompatible with the risk profiles, this prospectus or the other constitutional documents of the funds which the management company manages; - The remuneration policy was approved by the management company s supervisory board, which reviews the policy s general principles at least once a year; - The remuneration of internal control personnel is based on the achievement of control objectives and is independent of the financial performance of the business activities controlled; - When remuneration is performance-based, its total amount is determined on the basis of the assessed performance of the individual employee, his or her operating unit and the relevant funds in accordance with their risk exposure, and on the basis of the management company s overall performance when individual employee performance is assessed, while taking into account both financial and non-financial criteria; - An appropriate balance must be established between the fixed and variable components of the total remuneration; - Above a certain threshold, a substantial part of remuneration, and in any case at least 50% of the entire variable component, shall depend on exposure to an index the components and functioning of which ensure that the interests of employees are aligned with those of investors; - Above a certain threshold a substantial part of remuneration, and in any case at least 40% of the entire variable component, shall be deferred for an appropriate time; - The variable remuneration, including the deferred portion, shall only be paid or shall only vest if such payment or vesting is consistent with the management company s overall financial situation, and if such payment or vesting is justified by the performance of the operating units, the funds and the relevant employee. Up-to-date information on the remuneration policy may be found on the Internet at: DEPOSITARY&CUSTODIAN THE DEPOSITARY The Depositary is Société Générale S.A., acting through its Securities Services department (the Depositary ). Société Générale, which has its registered office at 29, boulevard Haussmann in Paris (75009), is registered in the Paris trade register under No , has been approved by the French Prudential Supervision and Resolution Authority (the ACPR) and is also subject to the supervision of the French Financial Markets Authority (the AMF). The Depositary s duties and potential conflicts of interest The Depositary is responsible for three things monitoring the compliance of the management company s decisions, holding the assets of investment funds in custody and monitoring the cash flows of these investment funds. The Depositary s main objective is to protect the interests of each fund s shareholders and investors. Potential conflicts of interest may be identified, particularly if the Management Company maintains a business relationship with Société Générale that extends beyond the latter s Depositary duties, for example, if the Management Company delegates to Société Générale the task of calculating the net asset value of the funds of which Société Générale is the Depositary, or when there is a group relationship between the Management Company and the Depositary. In order to manage such situations, the Depositary has set up and maintains a policy for managing conflicts of interest which serves to: - Identify and examine potential conflict-of-interest situations - Record, manage and follow up conflict-of-interest situations, by: (i) (ii) using ongoing measures to deal with conflicts of interest, such as segregating duties, separating line and staff functions, monitoring insiders, and using dedicated IT environments; and also, on a case-by-case basis: (a) (b) implementing appropriate preventive measures such as drawing up ad hoc watch lists, setting up Chinese walls, checking that transactions are dealt with appropriately, and/or informing any clients who may be affected; or otherwise, refusing to engage in activities that may result in a conflict of interest. Custodial functions which the Depositary may delegate, delegates and sub-delegates, and the identification of conflicts of interest that may require such delegation: The Depositary is responsible for the custody of assets (as defined under Article 22.5 of Directive 2009/65/EC as amended by Directive 2014/91/EU).In order to provide custodial services in a large number of countries and enable investment funds to achieve their investment objectives, the Depositary has appointed sub-custodians in the countries where the Depositary normally does not have a direct local presence.these entities are listed on the Internet at: In accordance with Article 22 bis 2. of the UCITS V directive, the process for appointing and supervising sub-custodians complies with the highest standards of quality and includes the management of potential conflicts of interest that may arise when sub-custodians are appointed.the Depositary has prepared an effective policy for identifying, preventing and managing conflicts of interest in compliance with national and international regulations and international standards. The delegation of the Depositary s custodial functions may result in conflicts of interest.the latter have been identified and are monitored.the Depositary s conflict-of-interest policy includes measures to prevent the occurrence of conflict-of-interest situations and to ensure that, in the course of its business activities, the Depositary always acts in the best interests of the Page3

4 investment funds. These preventive measures consist most notably in ensuring the confidentiality of the information exchanged, physically separating activities that may result in a conflict of interest, determining and classifying remuneration and pecuniary and non-pecuniary benefits, and implementing a policy and measures that govern the acceptance of gifts and hospitality. Investors may obtain the most recent information on the above policy measures upon request. TRANSFERAGENTANDREGISTRAR BydelegationfromLyxorInternationalAssetManagement:SOCIÉTÉG ÉNÉRALE. Acreditinstitutionfoundedon4May1864byspecialdecreeofNapoleonIII.Registe redoffice:29,bdhaussmann-75009paris FRANCE. Postaladdress:32rueduchampdetir-44000Nantes-France AUDITOR PRICEWATERHOUSECOOPERS AUDIT. AFrenchjoint-stockcompany. Registeredoffice:3,ruedeVilliers-92208Neuilly-sur-Seine- France.Signatary:Marie-ChristineJetil. ADMINISTRATIONANDACCOUNTING LYXORINTERNATIONALASSETMANAGEMENTwilldelegatetheFund'sadministrationandaccountingto: SOCIÉTÉGÉNÉRALE. Acreditinstitutionfoundedon4May1864byspecialdecreeofNapoleonIII.Registeredoffice: 29,bdHaussmann-75009Paris FRANCE. TheservicesthatSociétéGénéraleprovidestoLyxorInternationalAssetManagementconsistofassistingitwiththeFund'sadministrationandaccounting,andmorespecificallyincalculatingitsnetassetv alueandinprovidingtheinformationandmaterialsrequired toprepareitsannualreports,regulatoryfilingsandstatisticsforthebanquedefrance. MARKETMAKER Thefollowingfinancialinstitution(the"MarketMaker")isresponsibleformakingamarketintheFund'sunits: SocieteGeneraleCorporateandInvestmentBanking-TourSocieteGenerale,17CoursValmy,92987Paris-LaDéfense,FRANCE. Page4

5 MANAGEMENT AND OPERATIONS:GENERAL CHARACTERISTICS UNITCHARACTERISTICS Unitsareregisteredinaregisterinthenameoftheentitiesthatkeeptheaccountsofunit-holdersontheirbehalf.Theregisteriskeptbythe Depositary. EachFundunit-holderhasacoownershiprighttotheFund'snetassetsthatisproportionaltothenumberofunitsheld.Theunitsdonotbearanyvotingrightsasalld ecisionsaremadebythemanagementcompany. Theunitsareheldinbearerformandwillnotbedividedintofractio. LISTINGOFTHEFUND'SUNITSONAREGULATEDMARKET 1. - WhentheunitsarelistedonEuronextParis,asindicatedinthe"KeyInformation"section,investorsshouldnotethefollowingrules: PursuanttoarticleD oftheFrenchMonetaryandFinancialCodetheunitsorsharesofundertakingsforcollectiveinvestmentsintransferablesecuritiesmaybeadmittedtotrading,providedthattheseundertakingshaveasyste mtoensurethatthemarketpriceoftheirunitsorsharesdoesnotdiffersignificantlyfromtheirnetassetvalue.undernyseeuronextparisrulestradinginthefund sunitsisalsosubjecttoa reservationthresh old of3%aboveorbelowthefund sindicativenetassetvalueor"inav"(seethe"indicativenetassetvalue"section),aspublishedbynyseeuronextparisandupdatedonanestimatedbasisduringtradi nginaccordancewith thechangeinthemsciemergingmarketsnettotalreturnindex. TocomplywiththereservationthresholdsoftheNYSEEuronextParisexchange(seethe"IndicativeNetAssetValue"section)theMarketMakerswillensurethatthemarketpriceoftheFund'sunitsdoesno tdifferfromthefund'sindicativenetassetvaluebymorethan3% WhentheunitsarelistedonanexchangeotherthanEuronextParis,asindicatedinthe"KeyInformation"section,investorsshouldnotethefollowingrules: InvestorswishingtoacquireunitsintheFundlistedonanexchangelistedinthe"KeyInformation"sectionshouldfamiliarizethemselveswiththeguidelineslaiddownbytherelevantmarketundertakinginc ompliancewithlocalregulations,andifnecessaryshouldseekassistancefromtheirusualbrokersontherelevantexchange(s. BALANCESHEETDATE ThelastbusinessdayinFranceinJuly. Firstbalancesheetdate:thelastbusinessdayinFranceinJuly2008. TAXATION Investorsshouldnotethatthefollowinginformationis justageneralsummaryoftheapplicabletaxregime,undercurrentfrenchlaw,forinvestmentinafrenchfcpfund.investorsarethereforeadvisedtoconsidertheirspecificsituationwiththeirusualtaxadvis or. France: TheFundiseligibleforunit-linkedlifeinsurancepolicies. 1. TaxationoftheFund InFrance,theco-ownershipstatusofFCPfundsmeansthattheyarenotsubjecttocorporateincometaxandthereforeinherentlybenefitfromsometaxtransparency.Incomereceivedand generatedbythefundthroughitsmanagementactivitiesisnotthereforetaxableatthelevelofthefund. OutsideFrance(inthecountriesinwhichtheFundinvests),capitalgainsonthedisposalofforeignnegotiablesecuritiesandincomefromforeignsourcesreceivedbytheFundthroughitsmanagementactivi tiesmay,ifapplicable,besubjecttotax(generallyintheformofwithholdingtax).incertainlimitedcases,foreigntaxationmaybereducedorcancelledinthepresenceofanyapplicabletaxtreaties. 2. TaxationofFundunit-holders 2.1 Frenchresidentunit-holders TheFund'sdistributionstoFrenchresidents,aswellascapitalgainsorlosses,aresubjecttoprevailingtaxlegislation.Investorsareadvise dtoconsidertheirspecificsituationwiththeirusualtaxadvisor. 2.2 Non-Frenchresidentunit-holders Thetermsofataxtreatyor lackthereofmaymakethefund'sdistributionssubjecttoastandarddeductionatsourceorwithholdingtaxinfrance.moreover,capitalgainsrealizedonthepurchase/di sposaloffcpfundunitsaregenerallytax-exempt. UnitholdersresidentoutsideFrancewillbesubjecttotheapplicabletaxlegislationintheircountryofresidence. INFORMATION ON THE AUTOMATIC AND COMPULSORY EXCHANGE OF TAX INFORMATION The management company may collect and report to tax authorities information that concerns investors in the Fund for the sole purpose of complying with Article 1649 AC of the French General Tax code and with Council Directive 2014/107/EU of 9 December 2014 which amended Directive 2011/16/EU on the automatic and compulsory exchange of tax information. Investors are entitled to access information that concerns them and have this information corrected or deleted if necessary and may exercise these rights vis-à-vis the financial institution pursuant to the French data privacy act of 6 January 1978 (the loi information et libertés ) but also agree to provide the information the financial institution requires for its reporting purposes. INFORMATIONCONCERNINGTHEFOREIGNACCOUNTTAXCOMPLIANCEACT( FATCA ) FranceandtheUnitedStateshaveconcludedaModelIintergovernmentalagreement( IGA ),toenabletheenforcementinfranceoftheu.s.foreignaccounttaxcomplianceact( FATCA ),thepurpo seofwhichistopreventtaxevasionbyu.s.taxpayerswhoholdfinancialassetsabroad.theterm U.S.taxpayer meansau.s.citizenorresidentindividual,apartnershiporcorporationorganizedin theunitedstatesorunderthelawsoftheunitedstatesoranystatethereof,atrustif(i)acourtlocatedin theunitedstateswouldhaveauthorityunderapplicablelawtorenderordersorjudgmentsconcerningsubstantiallyallissuesregardingadministrationofthetrust,and(ii)oneormoreu.s.taxpayershaveth eauthoritytocontrolallsubstantialdecisionsofthetrust,oranestateofadecedentthatisacitizenorresidentoftheunitedstates TheFundhasbeenregisteredwiththeU.S.taxauthoritiesasa reportingfinancialinstitution.assuch,thefundisrequired,asof2014,toreportinformationtotheu.s.taxauthoritiesconcerningcertainass etholdingsof,orpaymentsto,certainu.s.taxpayersornon- U.S.financialinstitutionsthatareconsideredasnonparticipatingtoFATCA,viaautomaticinformationexchangebetweenFrenchandU.S.taxauthorities.Investorswillberesponsibleforcertifyingtheir Page5

6 FATCAstatus withtheirfinancialintermediaryorwiththemanagementcompany,asapplicable. SincetheFundwillobserveitsobligationsunderIGAasimplementedinFrance,itwillbeconsideredFATCAcompliantandshouldthereforebeexemptfromwithholdingtaxunderFATCAoncertainU.S.s ourceincomeorproducts. Itisrecommendedthatinvestorswhoseunitsareheldbyacustodianinajurisdictionthatisnotaparty toanigaasktheircustodianwhatthe custodian sintentionsarewithrespecttofatca.somecustodiansmayrequireadditionalinformationfrominvestorstocomplywiththeirobligationsunderfatcaorwiththeobligationsofthecustodia n sjurisdiction.moreover,thescopeofobligationsunderfatcaorunderanigamayvarydependingonthecustodian sjurisdiction.investorsshouldthereforeseekadvicefromtheirfinancialadvisor. Page6

7 MANAGEMENT AND OPERATIONS:SPECIFICCHARACTERISTICS ISINCODES C-EURunit class:fr C-USDunit class:fr D-USDunit class:fr CLASSIFICATION Globalequities. TheFundcontinuouslymaintainsatleast60%exposuretoatleastoneforeignequitymarket,ortotheequitymarketsoftwoormorecountrieswhichmayincludeFrance.TheFundisaUCI TSETFtypeindextracker. INVESTMENTOBJECTIVE TheFund sinvestmentobjectiveistogiveexposuretoemergingmarketequitymarkets(southafrica,argentina,brazil,chile,china,colombia,southkorea,egypt,hungary,india,indonesia,israel,jo rdan,malaysia,mexico,morocco,pakistan,peru,philippines,poland,czechrepublic,russia,taiwan,thailand,turkeyandvenezuela)byreplicatingtheperformanceofthemsciemergingma RKETS NetTotalReturnindex(the Benchmarkindex ),denominatedinusdollars(usd),whileminimisingthetrackingerrorbetweenthefund sperformanceandthatofthebenchmark Index. Theexpectedex-posttrackingerrorundernormalmarketconditionsis0.10% BENCHMARKINDEX TheBenchmark Index isthemsciemergingmarkets NetTotalReturnIndex(netdividendsreinvested). TheBenchmarkIndexisanequityindexthatiscalculatedandpublishedbytheglobalindexproviderMSCI. TheBenchmarkIndexcomprisessolelyemergingmarketequitiesandhasthesamebasiccharacteristicsastheMSCIindices,whichincludeadjustmentofthemarketcapitalisationofstocksintheindexbase dontheirfreefloatandclassificationbysectorusingtheglobalindustryclassificationstandard(gics). TheobjectiveoftheBenchmarkIndexistorepresent85%ofthefreefloat-adjustedmarketcapitalisationofeachgroupofindustriesintheemergingmarkets. Bytargeting85%representationforeachindustrygroup,theBenchmarkIndexreflects85%oftheentiremarketcapitalisationoftheemergingmarkets,whilealsomirroringtheeconomicdiversityofthese markets. TheMSCImethodologyandcalculationmethodarebasedonavariablenumberofcompaniesintheBenchmarkIndex. AfulldescriptionandthecompletemethodologyusedtoconstructtheBenchmarkIndexandinformationonthecompositionandrespectiveweightingsoftheBenchmarkIndexcomponentsareavailableo ntheinternetatwww.msci.com TheperformancetrackedisthatoftheBenchmarkIndex'sclosingprice. BENCHMARKINDEXCOMPOSITIONANDREBALANCING TheBenchmarkIndexisrebalancedquarterly. TheexactcompositionandMSCI'srulesforrebalancingtheBenchmarkIndexareavailableontheinternetatwww.msci.com ThefrequencywithwhichtheBenchmarkIndexisrebalanceddoesnotaffectthecostofimplementingtheInvestmentStrategy. BENCHMARKINDEXPUBLICATION TheBenchmarkIndexisclaculateddailyattheofficialclosingpriceoftheexchangeswheretheindexconstituentsarelisted.TheBenchmar kindexisalsocalculatedinrealtimeeverydaythatthebenchmarkindexispublished. TheBenchmarkIndex sclosingpriceisavailableviareutersandbloomberg.onreut ers:.dmief00000nus OnBloomberg:NDUEEGF TheclosingpriceoftheBenchmarkIndexisavailableonMSCI'swebsiteatwww.msci.com: Pursuant to EU Regulation 2016/1011, the management company has a plan for monitoring benchmark indices which it uses pursuant to this regulation. MSCI is the administrator of the Benchmark Index. Pursuant to EU Regulation 2016/1011 the administ rator must apply for approval or register with the relevant supervisory authority by 1 January Page7

8 INVESTMENTSTRATEGY 1.Strategyemployed TheFundwillcomplywiththeinvestmentrulessetoutintheEuropeanDirective2009/65/ECof13July2009. ToachievethehighestpossiblecorrelationwiththeperformanceoftheBenchmarkIndex,theFundwillemployanindirectreplicationmethod,whichmeansthatitwillenterintooneormoreOTCswapcontr actsenablingittoachieveitsinvestmentobjective.theseswapcontractswillservetoexchangethevalue ofthefund sassets,which willconsistofbalancesheetassets(excludinganysecuritiesreceivedascollateral),forthevalueofthesecuritiesthatunderliethebenchmarkindex. The Fund's securities may consist of those that make up the Benchmark Index, as well as other international equities from all economic sectors, listed on all exchanges including small-cap exchanges. The basket of assets held may be adjusted daily such that its value will generally be at least 100% of the net assets.when necessary, this adjustment will be made to ensure that the counterparty risk arising from the aforementioned swap contract will be neutralized. Informationontheupdatedcompositionofthebasketof'balancesheet'assetsintheFund'sportfolioandthevalueoftheswapcontractconcludedbytheFundisavailableonthepagededicatedtotheFundonL yxor'swebsiteat Upto20%oftheFund'sassetsmaybeexposedtoequitiesissuedbythesameentity.This20%limitmaybeincreasedto35%foragivenissuingentitywhenthisisshowntobejustifiedbyexceptionalmarketco nditionsandinparticularwhencertainsecuritiesarelargelydominantand/orintheeventofstrongvolatilitythataffectsafinancialinstrumentorsecuritieslinkedtoaneconomicsectorrepresentedintheben chmarkindex,particularlyintheeventofapublicofferingthatsubstantiallyaffectsabenchmarkindexsecurityorintheeventofasignificantdropintheliquidityofoneormoreofthebenchmarkindex'sfina ncialinstruments. 2.Balancesheetassets(excludingembeddedderivatives) Inaccordancewithregulatoryratios,theFundcanholdinitsportfolioglobalequitiesinalleconomicsectorsandlistedonanyexchange,including "smallcap"exchanges.theaforementionedequitieswillbeselectedonthebasisofthefollowing: - eligibilitycriteria,andinparticular: o theirinclusioninamajorstockexchangeindex o liquidity(mustexceedaminimumdailytradingvolumeandmarketcapitalization) o creditratingofthecountrywheretheissuerhasitsregisteredoffice(musthavealeastaminimums&porequivalentrating) - diversificationcriteria,inparticularregarding: o theissuer(applicationofinvestmentratiostoassetsthatqualifyforucits,pursuanttoart.r214-21ofthefrenchmonetaryandfinancialcode o geography o sector. Investorsmayfindmoreinformationontheaforementionedeligibilityanddiversificationcriteria,andinparticularthelistofeligibleindices,onLyxor swebsiteatwww.lyxoretf.com Investmentinundertakingsforcollectiveinvestmentintransferrablesecurities("UCITS")thatcomplywithDirective2009/65/ECislimitedto10%oftheFund'snetassets.TheFundmayinvestintheunits orsharesofucitsmanagedbythemanagementcompanyorbyacompanythatisrelatedtothemanagement company.thefundmanagerwillnotinvestinthesharesorunitsofalternativeinvestmentfunds(aif)orotherinvestmentfundsthatwereformedunderaforeignlaw. WhentheFundreceivescollateralintheformofsecurities,subjecttothetermsofsection8below,itacquiresfulltitletothesesecuritiesandtheyarethereforeincludedamongthebalancesheetassetstowhichit hasfulltitle. TooptimizetheFund'smanagement,themanagerreservestherighttouseotherinstrumentsinaccordancewiththeregulationsinordertoachieveitsinvestmentobjective. 3.Off-balancesheetassets(derivatives) TheFundwilluseOTCindex-linkedswapsthatswapthevalueoftheFund'sequityassets(orthevalueofany otherassetthefundmayhold)forthevalueofthebenchmarkindex(asdescribedinpart1ofthissection). TooptimizetheFund'smanagement,themanagerreservestherighttouseotherinstrumentsinaccordancewiththeregulationsinordertoachieveitsinvestmentobjective,includingderivativeinstruments otherthanindex-linkedswaps. Inaccordancewithitsbest executionpolicy,themanagement companyconsidersthatsociétégénéraleis thecounterpartythatisgenerallyabletoobtainthebestpossibleexecutionforthesefinancialderivativeinstruments.accordingly,thesefinancialderivativeinstruments(includingindexlinkedswaps)maybetradedviasociétégénéralewithouthavingtoseekacompetitivebidfromanothercounterparty. Thecounterpartyofthefinancialderivativeinstrumentsreferredtoabove(the"Counterparty")willhavenodiscretionarypoweroverthecompositionoftheFund'sportfolionorovertheunderlyingassets ofthefinancialderivativeinstruments. - Maximum proportion of assets under management for which total return swaps may be entered into: 100% of assets under management. - Expected proportion of assets under management for which total return swaps may be entered into: up to 100%. 4.Securitieswithembeddedderivatives N/A. 5.Cashdeposits Inordertooptimizeitscashmanagement,theFundmaydepositfundsrepresentingupto20%ofitsnetassetswithlendinginstitutionsthatbelongtothesamegroupasthedepositary/custodian. 6.Cashborrowing TheFundmaytemporarilyborrowupto10%ofitsnetassets. 7.Temporarypurchasesanddisposalsofsecurities N/AThemanagershallnotengageinanytemporarypurchasesorsalesofsecurities. 8. Financialguarantees Page8

9 WhenevertheinvestmentstrategyexposestotheFundtocounterpartyrisk,andinparticularwhentheFundusesover-thecounterswaps,theFundmayaccepteligiblesecuritiesascollateraltoreducethecounterpartyriskassociatedwiththeseswaps.Theportfolioofcollateralreceivedmaybeadjusteddailytoensurethatitsva lueisatleastsufficienttocoverthefund scounterpartyriskinmostcases.thepurposeofthisadjustmentistoneutralizethefund scounterpartyrisk. TheFundwillhavefulltitletoallcollateralreceived,whichwillbedepositedintheFund saccountwiththedepositary.thiscollateralwillthereforebeincludedinthefund sassets. If the counterparty defaults, the Fund may use the assets received from the counterparty to pay off the counterparty s debt pursuant to the collateralised agreement. AllcollateraltheFundreceivesforthispurposemustcomplywiththeapplicablelawsandregulations,withrespectinparticulartoliquidity,valuation,thecreditworthinessofsecuritiesissuers,correlation,andtherisksofcollateralmanagementandenforceability.Allcollateralreceivedmustinparticularmeetthefollowingcriteria: (a) (b) (c) (d) (e) allcollateralmustbeofhighquality,behighlyliquidandtradableonaregulatedmarketoronamultilateraltradingfacility,withtransparentpricingtoenablethecollateraltoberapidlysoldnear itsestimatedprice; Thiscollateralmustbevaluedat its mark-to-market value atleastdailyandassetswithhighlyvolatilepricesarenotacceptableascollateral,unlessasufficientlyprudentdiscountor haircut isapplied; Theissuerofthiscollateralmustbeindependentofthecounterpartyandmustnotbecloselycorrelatedwiththecounterparty sfinancialperformance; collateralmustbesufficientlydiversifiedintermsofcountry,marketandissuer,withexposuretoanysingleissuernotexceeding20%ofthefund snetassetvalue; collateralmustbeimmediatelyenforceablebythefund smanagementcompanywithoutinformingthecounterpartyandwithoutitsapproval. Notwithstanding the condition specified in (d) above, the Fund may accept a basket of securities collateral that increases its exposure to a single issuer to more than 20% of its net asset value provided that: such securities collateral is issued by (i) a Member State, (ii) one or more of a Member State s local authorities, (iii) a country that is not a Member State (iv) a public international organization to which one or more Member States belong; and such securities collateral consists of at least six different issues of securities of which no single issue exceeds 30% of the Fund s assets In accordance with the above conditions the collateral accepted by the Fund may consist of: (i) cashandcash-equivalentassets,whichforexampleincludeshort-termbankdepositsandbalancesandmoney-marketinstruments; (ii) Bondsissuedorguaranteedbyan OECDmemberstate,orbyitslocalgovernmententities,orbyan EU,regionalorglobalsupranationalinstitutionororganisation,orby anycountryprovidedthatconditions(a)to(e)abovearefullycompliedwith; (iii) Sharesorunitsissuedbymoney-marketfundsthatcalculateadailynetassetvalueandhaveanAAAorequivalentcreditrating; (iv) ThesharesorunitsofUCITSthatinvestmainlyinthebondsand/orequitiesindicatedin(v)and(vi)below; (v) Bondsissuedorguaranteedbyfirst-classissuersofferingsufficientliquidity; (vi) EquitiesadmittedfortradingortradedonaregulatedexchangeofanEUmembercountry,onastockexchangeofanOECDmembercountryoronastockexchangeofanothercountryprovidedt hatconditions(a)to(e)abovearefullycompliedwithandthattheseequitiesarecomponentsofamajorindex. Collateraldiscountpolicy: TheFund smanagementcompanyshallapplyadiscounttothecollateralacceptedbythefund.theamountofthesediscountswilldependmainlyonthefollowing: - Thenatureofthecollateralasset; - Thecollateral smaturity(ifapplicable); - Thecreditratingofthecollateralissuer(ifapplicable). Reinvestmentofcollateral: Non-cash collateral will not be sold, reinvested or pledged. At the manager's discretion, cash collateral may either be: (i) deposited with an authorized institution; (ii) invested in high-quality government bonds; (iii) used for reverse repurchase transactions, provided that these are entered into with credit institutions that are subject to prudential supervision and that the fund is able to withdraw the total amount of its cash collateral and the accrued interest at any time. (iv) invested in short-term money-market funds as defined in the guidelines for a common definition of European money-market funds. All cash collateral that is reinvested must be invested in a diversified manner in compliance with the rules that apply to the acceptance of non-cash collateral. RISKPROFILE Investors'moneywillbeinvestedmainlyinthefinancialinstrumentsselectedbythemanagementcompany.Theseinstrumentsaresubjecttomarkettrendsandcontingencies.Investorsint hefundareexposedtothefollowingmainrisks: Equityris k Thepriceofanequitysecuritycanincreaseordecreaseinaccordancewithchangesintheissuer'sriskexposureorintheeconomicconditionsofthemarketinwhichthesecurityistraded.Equity marketsaremorevolatilethanfixedincomemarkets,whereunderstablemacroeconomicconditionsincomeoveragivenperiodoftimecanbeestimatedwithreasonableaccuracy. LowBenchmarkIndexDiversificationrisk Sincetheindextowhichinvestorsareexposedrepresentsagivenregion,sectorandstrategyitmayprovidelessdiversificationofassetsincomparisonwithabroaderindexthatisexposed toseveralregions,sectorsorstrategies.exposuretosuchaless-diversifiedindexmay resultinhighervolatilitythanmorediversifiedmarkets.nevertheless,diversificationrulesasstatedintheucitsdirectivestillapplytotheunderlyingsofthefundatalltimes. Capitalris k Thecapitalinvestedisnotguaranteed.Investorsthereforemay oftheirinitialinvestment,particularlyintheeventthatthebenchmarkindexpostsanegativereturnovertheinvestmentperiod. notrecoverallorpart Page9

10 Liquidityrisk(primarymarket) TheFund'sliquidityand/orvaluemaybeadverselyaffectedif,whentheFundoracounterpartytoafinancialderivativeinstrument(FDI)isrebalancingitsexposure,theunderlyingfinancialmarketsarere stricted,closed,orsubjecttolargebid/offerspreads.aninability, duetolowtradingvolume,toexecutethetradesrequiredtoreplicatethebenchmarkindexmayalsoadverselyaffectthesubscription,conversionorredemptionofsharesorunits. Liquidityrisk(secondarymarket) ThepriceoftheFund'slistedunitsmaydeviatefromtheFund'sindicativenetassetvalue.Theliquidityofunitstradedonagivenexchangemay beadverselyaffectedbyasuspensionintradingforvariousreasons,forexample: i) thecalculationofthebenchmarkindexissuspendedorstopped ii) tradinginthemarket(s)inthebenchmarkindex'sunderlyingassetsissuspended iii) anexchangecannotobtainorcalculatetheindicativenetassetvalue iv) amarketmakerfailstocomplywithanexchange'srules v) anexchange'sit,electronicorothersystemfails. Counterpartyrisk TheFundisexposedtotheriskthatacounterpartywithwhichtheFundhasenteredintoacontractortransactionmaygo bankruptordefaultonasettlementorotherobligation.thefundismainlyexposedtocounterpartyriskresultingfromtheuseoffinancialderivativeinstruments(fdi)tradedoverthecounterwithsociétég énéraleorsomeothercounterparty.incompliancewithucitsregulations,exposuretocounterpartyrisk(whetherthecounterpartyissociétégénéraleoranotherentity),cannotexceed10%ofthefund'st otalassetspercounterparty. IfacounterpartydefaultsonanobligationtheFDIcontractmaybeterminatedbeforematurity.TheFundwilldoeverythinginitspowertoachieveitsinvestmentobjectiveby,ifappropriate,enteringintoanoth erfdicontractwithanothercounterpartyatthemarketconditionsatthetimeofsuchanevent. IfthiscounterpartyriskmaterializesitcouldhaveanimpactontheFund'sabilitytoachieveitsinvestmentobjectiveofreplicatingtheBenchmarkIndex. WhenSociétéGénéraleistheFDIcounterparty,conflictsofinterestmayarisebetweenitandtheFund'smanagementcompany,whichhasprocedurestoidentifyandreducesuchconflictsofinterestandtore solvethemequitablyifnecessary. EmergingMarketRisk TheexposureoftheFundtoemergingmarketscarriesagreaterriskofpotentiallossthan aninvestmentintraditionaldevelopedmarkets.specifically,marketoperatingandsupervisionrulesforanemergingmarketmaydiffer fromstandardsapplicableindevelopedmarkets.inparticular,exposuretoemergingmarketscanentail: increasedmarketvolatility,lowertradingvolumes,ariskofeconomicand/orpoliticalinstability,anuncertainorunstabletaxregimeand/orregulatoryenvironment,marketclosurerisks,governmentrestr ictionsonforeigninvestments,aninterruptionorlimitationofconvertibilityortransferabilityofoneofthecurrenciesmakingupthebenchmarkindex. Riskthattheinvestmentobjectiveisnotfullyachieved Thereisnoguaranteethattheinvestmentobjectivewillbeachieved,asnoassetorfinancialinstrumentcanensurethattheBenchmarkIndexwillbeautomaticallyandcontinuouslyreplicated,particularlyint heeventofoneormoreofthefollowingrisks: - Riskofusingfinancialderivativeinstruments Inordertoachieveitsinvestmentobjective,theFundcanenterintotransactionsinvolvingover-thecounterfinancialderivativeinstruments(FDI),suchasswaps,inordertosecuretheperformanceoftheBenchmarkIndex.TheseFDIinvolvevariousrisks,suchascounterpartyrisk,hedgingdisruption,Be nchmarkindexdisruption,taxationrisk,regulatoryrisk,operationalriskandliquidityrisk.theseriskscanmateriallyaffectanfdiandmayrequireanadjustmentofthefditransactionorevenitspremature termination,whichcouldadverselyaffectthefund'snetassetvalue. - Riskduetoachangeinthetaxregime A changeinthetaxregimeof ajurisdiction wherethefundisdomiciled,authorizedforsaleorlistedcouldadverselyaffectthetaxation ofinvestors.in such an event,thefundmanagershallnotbeliabletoanyinvestorwithrespecttoanypaymentthatmayhavetobemadetoacompetenttaxauthority. - RiskofachangeinthetaxationoftheFund'sunderlyingassets AchangeinthetaxationoftheFund'sunderlyingassetscouldadverselyaffectthetaxationoftheFund.InsuchaneventadiscrepancybetweentheestimatedtaxationandtheactualtaxationoftheFundand/orof thefund'sfdicounterpartymayadverselyaffectthefund'snetassetvalue. - RegulatoryriskaffectingtheFund IntheeventofachangeintheregulatoryregimeinajurisdictionwheretheFundisdomiciled,authorizedforsaleorlisted,thesubscription,conversionorredemptionofshareorunitsmaybeadverselyaffected. - RegulatoryriskaffectingtheFund'sunderlyingassets IntheeventofachangeintheregulationsthatgoverntheFund'sunderlyingassets,theFund'snetassetvalueandthesubscription,conversionorredemptionofsharesorunitsmaybeadverselyaffected. - BenchmarkIndexdisruptionrisk IfaneventadverselyaffectstheBenchmarkIndex,theFundmanagermay be required,asprovidedforbylaw,to suspendthesubscription andredemptionof thefund'ssharesorunits.thecalculationofthefund'snetassetvaluecouldalsobeadverselyaffected. IfthedisruptionoftheBenchmarkIndexpersists,the Fundmanagerwilldetermineanappropriatecourseofaction,whichcoulddecreasetheFund'snetassetvalue.A'BenchmarkIndexevent'includesbutisnotlimitedtothefollowing situations: i) thebenchmarkindexisdeemedtobeinaccurateordoesnotreflectactualmarketdevelopments ii) thebenchmarkindexispermanentlycancelledbytheindex provider iii) theindexproviderisunabletoindicatethelevelorvalueofthebenchmark Index iv) theindexprovidermakesamaterialchangeinthebenchmarkindexcalculationformulaormethod(otherthanaminormodificationsuchas an adjustmenttothebenchmarkindex'sunderlyingcomponentsortheirrespectiveweightings)whichthefundcannoteffectivelyreplicateatareasonablecost Page10

11 (v):abenchmarkindexcomponentbecomesilliquidbecauseitisnolongertradedonaregulatedmarketorbecauseitstradingover-the-counter(e.g.bonds)isdisrupted (vi):thebenchmarkindexcomponentsareexposedtohighertransactioncostsforexecutionorsettlement/delivery,ortospecifictaxconstraintsandthesecostsarenotreflectedinthebenchmarkindex'sperf ormance. - Corporateactionrisk Anunforeseenchange,bytheissuerofasecuritythatisacomponentoftheBenchmarkIndex,inaplannedcorporateactionthatisincontradictionwithapreviousofficialannouncementonwhichtheFundba seditsvaluationofthecorporateaction(and/oronwhichthefund'scounterpartytoafinancialderivativeinstrumentortransactionbaseditsvaluationofthecorporateaction)canadverselyaffectthefund'sn etassetvalue,particularlyifthefund'streatmentofthecorporateeventdiffersfromthatofthebenchmarkindex. - CurrencyriskassociatedwiththeBenchmarkindex TheFundisexposedtocurrencyrisk,astheunderlyingsecuritiescomposingtheBenchmarkIndexmaybedenominatedinacurrencydifferentfromtheBenchmarkIndex,orbederivedfromsecuritiesdeno minatedina currencydifferenttothatofthebenchmarkindex.exchangeratefluctuationscanthereforehaveanegativeimpacton thebenchmarkindextrackedbythefund. - EUR/USDcurrencyriskonC-EURunits TheseunitsareexposedtocurrencyrisksincetheyaredenominatedinadifferentcurrencythantheBenchmarkIndex.Changesintheexchangeratemaythereforecausethenetassetvalueoftheseunitstodec rease,evenifthevalueofthebenchmarkindexincreases. - Legal risk The Fund may be exposed to a legal risk arising from a total return swap (TRS) agreement as indicated in EU Regulation No. 2015/2365. ELIGIBLEINVESTORSANDTYPICALINVESTORPROFILE TheFundisavailabletoallinvestors. InvestorssubscribingtothisFundareseekingexposuretoemergingequitymarkets. TheamountthatcanbereasonablyinvestedintheFunddependsoneachinvestor'spersonalsituation.Todeterminethisamount,investorsmusttakeintoaccounttheirpersonalwealthand/orestate,theircas hrequirementscurrentlyandforthenextfiveyears,andtheirwillingnesstotakeonriskortheirpreferenceformoreprudentinvestment.investorsarealsoadvisedtodiversifytheirinvestmentssufficientlys oasnottobeexposedsolelytothisfund'srisks. Allinvestorsarethereforeaskedtoconsidertheirspecificsituationwiththehelpoftheirusualinvestmentadvisor.Therecomm endedminimuminvestmentperiodisatleastfiveyears. CURRENCY C-EURunits C-USDunits D-USDUnits EUR USD USD CALCULATIONANDALLOCATIONOFDISTRIBUTABLEAMOUNTS C-EURandC-USDunit classes:alldistributableamountsareaccumulated. D-USDunit class:themanagementcompanyreservestherighttodistributedistributableamountsoneormoretimesayearand/oraccumulateallorpartoftheseamounts.realizednetcapitalgainswillbeaccumulate d. DISTRIBUTIONFREQUENCY If a distribution is decided, themanagementcompanyreservestherighttodistributedistributableamountsinoneormoreannualdistri butions. UNITCHARACTERISTICS Subscriptionordersmaybeplacedforaspecificmonetaryamountorforawholenumberofunits.Onlyawh olenumberofunitsmayberedeemed. SUBSCRIPTIONANDREDEMPTION 1. SUBSCRIPTIONANDREDEMPTIONONTHEPRIMARYMARKET Subscription/redemptionrequestsforunitsintheFundwillbeprocessedbythe Depositaryfrom9:00amand6:30pm(Paristime)everydaythattheFund'snetassetvalueistobepublished,providedthatpricescanbequotedforasignificantproportionoftheBenchmarkIndexcomponent s(hereinaftera"primarymarketday"),andwillbeexecutedatthenetassetvalueonthefollowingprimarymarketday,hereinafterthe"referencenav".subscription/redemptionrequestssubmittedaft er6:30pm(paristime)onaprimarymarketdaywillbeprocessedasifreceivedfrom9:00amto6:30pm(paristime)onthefollowingprimarymarketday.orderstosubscribefororredeemunitsinthefundm ustbemadeforawholenumberofunitsandforaminimumamountofatleast100,000euros(forthe C-EURunit class)andforaminimumamountinusdollarsthatisequivalentto100,000eurforthe C- USDandD-USDunit classes. Subscriptionsandredemptionsincash: SubscriptionsandredemptionsshallbemadeexclusivelyincashandexecutedattherefNAV. Deliveryandsettlement. Settlement/deliveryofsubscriptionsandredemptionsshallbecompletedwithinfiveFrenchbusinessdaysafterthesubscriptionorredemptionorderisreceived. Page11

12 Dateandfrequencyofnetassetvaluecalculation ThenetassetvaluewillbecalculatedandpublishedeverydaythattheFund snetassetvalueistobepublished,providingthatthemarketonwhichthefund sunitsaretradedisopenandthatordersplacedinth eprimaryandsecondarymarketscanbefunded. TheFund'snetassetvalueiscalculatedusingtheBenchmarkIndex'sclosingprice. ThenetassetvalueoftheunitclassesthataredenominatedinanothercurrencythantheFund saccountingcurrency(ifapplicable)iscalculatedusingtheexchangeratebetweentheaccountingcurrencyandt hecurrencyoftheunitclass,attheapplicablewmreutersrateonthedatethereferencenaviscalculated. 2. PURCHASESANDSALESONTHESECONDARYMARKET A. COMMONPROVISIONS ForanypurchaseorsaleofunitsintheFundexecuteddirectlyonanexchangeonwhichtheFundisadmittedorwillbeadmittedforcontinuoustrading,nominimumpurchaseorsaleamountisrequiredotherth anthatwhichmayberequiredbytherelevantexchange(s). Sharesor unitsin alisted fundthat arepurchased onthe secondarymarket cannot generallybe directlysold backto that fund.investors mustthereforebuy andsell theirshares orunits onasecondarymarketthroughanintermediary(e.g.abroker)andmayconsequentlyincurcosts.furthermore,thereisapossibilitythatinvestorsmaypaymorethantheindicativenetassetvaluewhenbuyin gsharesorunitsandreceivelessthantheindicativenetassetvaluewhensellingsharesorunits. IfthestockmarketvalueoftheFund'sunitsdifferssignificantlyfromitsindicativenetassetvalue,oriftradingintheFund'sunitsissuspended,investorsmaybeauthorised,subjecttotheconditionssetoutbel ow,toredeemtheirunitsontheprimarymarketdirectlyfromthefund,withoutbeingsubjecttotheminimumredemptionamountrequirementspecifiedhereininthesectionentitled"subscriptionan DREDEMPTIONFEES(chargedonlyonprimarymarkettransactions). Themanagementcompanyshalldecidewhethertoallowsuchprimarymarketredemptionsandforhowlong,onthebasisofthefollowingcriteriaforassessingthesignificanceofamarketdisruption: - Thesuspensionorstrongdisturbanceofsecondarytradingonagivenexchangeisrelativelyfrequent - Thelinkbetweenthemarketdisruptionandsecondarymarketoperators(suchasthedefaultofoneormoreoftheMarketMakersofagivenexchange,orabreakdownormalfunctionofanexchan ge'sitoroperatingsystems),excludingadisruptioncausedbyasourceexternaltothesecondaryexchangeonwhichthesharesorunitsofthefundaretraded,suchasaneventthataffectstheliqui dityandvaluationofallorsomeofthebenchmarkindex'scomponents - Anyotherobjectivecircumstancethatcouldadverselyaffectthefairtreatmentand/ortheinterestsoftheFund'sunit-holders. Notwithstandingtheprovisionsconcerningfeespresentedinthesectionentitled"SUBSCRIPTIONANDREDEMPTIONFEES(chargedonlyonprimarymarkettransactions"),redemptionsmadeinth eprimarymarketinthiscaseshallonlybesubjecttoanetredemptionfeeof1%paidtothefundandwhichservestocoveritstradingcosts. Insuchexceptionalcases whenredemptionintheprimarymarketisallowed,themanagementcompanyshallpostonlyxor'swebsiteatwww.lyxoretf.comtheprocedurethatinvestorsmustobservetoredeemtheirunitsintheprima rymarket.themanagementcompanyshallalsomakethisprocedureavailabletothemarketundertakingthathandlestradinginthefund'sunits. B. SPECIALPROVISIONS a. IftheFund sunitsarelistedoneuronextparis,asindicatedinthe"keyinformation"section,investorsshouldnotethefollowingrules NegotiabilityofunitsandinformationaboutthefinancialinstitutionsactingasMarketMakers: TheunitarefreelynegotiableontheEuronextParisregulatedmarketunderthefollowingconditionsandaccordingtotheapplicablelegalandregulatoryprovisions.TheFundunits willbelistedonaspecifictradinglist,therulesforwhicharedefinedinthefollowinginstructionspublishedbyeuronextparissa: - InstructionNo.4-01"UniversalTradingPlatformManual" - AppendixtoInstructionN4-01(AppendixtotheEuronextMarketTradingManual - InstructionNo.6-04"DocumentationtobeprovidedwhenfilingalistingapplicationforanETF,ETN,ETVandopen-endedundertakingsforcollectiveinvestmentotherthanETFS" PursuanttoarticleD oftheFrenchMonetaryandFinancialCodetheunitsorsharesofundertakingsforcollectiveinvestmentsintransferablesecuritiesmaybeadmittedtotrading,providedthattheseundertakingshaveasyste mtoensurethatthemarketpriceoftheirunitsorsharesdoesnotdiffersignificantlyfromtheirnetassetvalue.undereuronextparissa'srulestradinginthefund'sunitsisalsosubjecttoa'reservationthreshol d'of3%aboveorbelowthefund'sindicativenetassetvalueor"inav"(seethe"indicativenetassetvalue"section),aspublishedbyeuronextparissaandupdatedonanestimatedbasisduringtradinginac cordancewiththechangeinthebenchmarkindex. TocomplywithEuronextParisSA'sreservationthresholdrequirement(seethesectionentitled"Indicativenetassetvalue")theMarketMakerswillensurethatthemarketpriceoftheFund'sunitsdoesnotdiffe rfromthefund'sindicativenetassetvaluebymorethan3%. EuronextParisSAmaysuspendtradingintheFund'sunitspursuanttothetermsofitsoperatingrules,iftheaforementionedreservationthresholdlimitisexceeded.EuronextParisSAwilla lsosuspendtradinginthefund'sunitsinthefollowingcases: - thebenchmarkindexisnolongertradedorcalculated - EuronextParisSAcannotobtaintheBenchmarkIndex'slevel - EuronextParisSAcannotobtaintheFund'snetassetvalue. InaccordancewiththetermsandconditionsgoverningadmissiontotradingonEuronextParis,theMarketMakersundertaketoprovidemarketmakingservicesfortheFund'sunitsassoonastheyareadmittedtotradingontheEuronextParisexchange. Inparticular,theMarketMakersundertaketocarryoutmarket-makingoperationsbymaintainingasignificantpresenceinthemarket,whichinitiallyentailsthesettingofabid/askspread. Morespecifically,theMarketMakersarerequiredbycontractwithEuronextParisSAtoensurethattheFundmaintains: - amaximumglobalspreadof3%betweenthebidandofferpriceinthecentralizedorderbook. - aminimumnominaltradingvalueofeur100,000. Theobligationsofthe Fund'sMarketMakerswillbesuspendedinthefollowingcases: - thebenchmarkindexisnolongertradedorcalculated; - iftradingissubstantiallydisrupted,forexampleduetoawidespreadshiftinpricesoraneventthatmakesnormalmarketmakingimpossible.indicativeneta ssetvalue Page12

13 EuronextParisSAwillcalculateandpublish,eachTradingDay(asdefinedbelow)andduringtradinghours,theFund'sindicativenetassetvalue(hereinafter"iNAV").TheiNAVisameasureoftheintradayvalueoftheFund'snetassetvaluebasedon themostrecentdata.theinavisnotthevalueatwhichinvestorsbuyandsellunitsinthefundonthesecondarymarket. A"TradingDay"isadayonwhichNSYEEuronextisnormallyopenandonwhichtheBenchmarkIndexisnormallypublished. TheFund'siNAVisatheoreticalnetassetvaluecalculatedevery15secondsbyEuronextSAthroughouttheParistradingdayandisbasedontheleveloftheBenchmarkIndex.TheiNAVenablesinvestorstoc omparethepricesthatthemarketmakersofferonthemarketwiththetheoreticalvaluecalculatedbyeuronext. ForthecalculationoftheFund'siNAVduringtheParistradingsession(from9.05amto5.35pm),NYSEEuronextwillusetheBenchmarkIndexvaluepublishedbyReuters.Forthecalculationo fthefund'sinavduringtheparistradingsession(from9.05amto5.35pm),euronextparissawilluethebenchmarkindexvalueprovidedbyreuters. IfoneormorestockexchangesonwhichtheBenchmarkIndex'sconstituentequitiesarelistedareclosed(onapublicholidayasindicatedontheTARGETcalendar)andifthecalculationoftheiNAVprovesi mpossible,tradinginthefund'sunitsmaybesuspended. LyxorInternationalAssetManagement,theFund'smanagementcompany,willprovideEuronextParisSAwithallthefinancialandaccountingdatait needstocalculatethefund'sinavandinparticular: - Theday'sestimatednetassetvalue - Theofficialnetassetvalueofthepreviousbusinessday - TheleveloftheBenchmarkIndexonthepreviousbusinessday. - ThesedatawillserveasabasisforEuronextParisSA'scalculationstodeterminetheFund'siNAVinrealtimeeveryTradingDay. Additionalinformationabouttheindicativenetassetvalue ofaunitlistedonan exchangemay,dependingontheterms andlimitssetbytherelevantmarketundertaking,beprovidedonthisexchange swebsite.thisinformationisalsoavailableonthereutersorbloombergpagesthatspecificallyconcerntheunit.thisinform ationisalsoavailableonthereutersorbloombergpagesdedicatedtotheparticularunit.additionalinformationaboutthebloombergandreuterscodesfortheindicativenetassetvaluesofallucitsetft ypeunitclassesisalsoavailableinthe"termsheets"sectionoflyxor'swebsiteatwww.lyxoretf.com. b. IftheFund sunitsarelistedonanexchangeotherthaneuronextparis,asindicatedinthe"keyinformation"section,investorsshouldnotethefollowing:investorswishingtoacquireuni tsinthefundorobtainmoreinformationregardingthemarket-makingtermsthatgovernthelistingandtradingofunitsonthetypesofexchanges indicatedinthe"keyinformation"sectionareadvisedtofamiliarizethemselveswiththeguidelineslaiddownbytherelevantmarketundertakingincompliancewithlocalregulations,andtoseekifnecessa rytheassistanceoftheirusualbroker(s)forexecutingtradesontherelevantexchange(s). FEES AND CHARGES SUBSCRIPTIONANDREDEMPTIONFEES(charged only on primary market transactions) Thesubscriptionandredemptionfeesshownbelowrespectivelyincreasethesubscriptionpricepaidbytheinvestoranddecreasetheredemptionpricereceived.FeeskeptbytheFundcompensateitforth eexpensesitincursininvestinginthefund'sassetsorindivestingtheseassets.anyfeesthatarenotkeptbythefundarepaidtothemanagementcompany,marketingagentorotherserviceprovider. Feespaidbyinvestorsuponsubscriptionorredemption Base Maximumcharge SubscriptionfeenotkeptbytheFund SubscriptionfeekeptbytheFund RedemptionfeenotkeptbytheFund RedemptionfeekeptbytheFund NAVperunit numberofunits NAVperunit numberofunits NAVperunit numberofunits NAVperunit numberofunits ThehighervalueofeitherEUR50,000persubscriptionorderor5%payabl etothirdparties N/A ThehighervalueofeitherEUR50,000perredemptionorderor5%payabletothird parties N/A OPERATIONALANDMANAGEMENTFEES ThesefeescoverallthecostsinvoiceddirectlytotheFund,exceptfortransactionexpenses,whichincludeintermediaryfees(brokerage,stockmarkettaxesetc.)andanyturnoverfeethatmaybechargedbyt hedepositaryorthemanagementcompany. ForthisFundthefollowingfeesmaybechargedinadditiontotheoperatingandmanagementfees(seetablebelow): - incentivefees,whichthefundpaystothemanagementcompanywhenthefundexceedsitsobjectives - turnoverfeeschargedtothefund FormoreinformationonthefeesorexpensesthattheFundmustpay,seetheStatisticssectionoftheKeyInvestorInformationDocument). FeeschargedtotheFund Base Maximumcharge Operatingandmanagementfeesthatareexternaltothemanagem entcompany(auditor,depositary,funddistributionandlegalfees )includingtax (1 ) Netassetvalue 0.55%perannum Incentivefee Netassetvalue N/A Turnoverfee: Chargeoneachtransaction N/A (1) Includesallfeesandexpensesexceptfortransactionexpenses,incentivefeesandfeesassociatedwithinvestmentinUCITSoralternativeinvestmentfunds. Page13