Arnaud Llinas, head of ETFs and Indexing, at the firm, said there is no single replication method that works best in every case, as a result, especially given how diverse the Lyxor product range is, flexibility is important.
“Evolving market conditions mean we can now track developed markets better physically, so that is what we will do.”
Going forward, the firm said, Lyxor will favour physical replication for developed market exposures and synthetic replication “where it can improve efficiency in more complex market exposures (such as emerging markets)”.
According to the firm, the Lyxor Euro Stoxx 50 Fund will be the first fund in this round of changes to move to physical replication. THe change will come into effect on 3 November. Other European, global and US ETFs will follow over the course of the next twelve months, Lyxor said.
