Lyxor said fixed income ETFs have been ‘out of step’ with core equity exposures in terms of fees, and this move addresses this.
“We wanted to create a range of core fixed income exposures that are safe, liquid and low cost,” said Chanchal Samadder, head of UK and Ireland ETF sales for Lyxor. “These are staple, safe haven exposures in most portfolios and we wanted to give investors a better deal.”
Corporate bond exposures are an example where performance can be improved using synthetic replication, which is why Lyxor employed this approach, said the firm in a statement.
Lyxor is currently number three in Europe for fixed income ETFs by assets under management as at 31 December 2015.
In the time period from 1 January 2015 to 31 December 2015 Lyxor collected €8.9bn, of which €2.6bn was in fixed income ETFs, securing Lyxor a second place for net new fixed income flows in 2015, according to company data.
