NOTICE TO THE SHAREHOLDERS OF

 

MULTI UNITS LUXEMBOURG - LYXOR CHINA ENTERPRISE (HSCEI) UCITS ETF

 (the « Sub-Fund »)

 

Share Class	ISIN Code	Ticker Bloomberg
LYXOR CHINA ENTERPRISE (HSCEI) UCITS ETF - Acc	LU1900068914	ASIL LN, ASIU LN

 

 

Amendment to the Prospectus and the Key Investor Information Document of the Sub-Fund

 

Terms not specifically defined herein shall have the same meaning as in the articles of incorporation (the "Articles") and in the latest Prospectus of the Company.

 

Luxembourg, September 10, 2021,

 

Dear Shareholders,

 

The Management Company and the board of directors of the Company hereby inform the Shareholders of the Sub-Fund that changes detailed below will be effective at the opening of October 11, 2021 (the "Effective Date").

 

Hence, from the Effective Date:

 

 

1. Change of the Index

 

The Index of the Sub-Fund will change as specified in the following table:

 

Previous Index	New Index
Hang Seng China Enterprises Net Total Return Index	MSCI China Select ESG Rating and Trend Leaders Net Total Return Index

 

The aim of this change is to provide the Shareholders with an exposure to the New Index that grants an exposure to large and mid cap stocks, across the Chinese economy, issued by companies with robust Environmental, Social and Governance (ESG) ratings relative to their sector peers and/or which experienced a yearly improvement in these ESG ratings.

 

The New Index is an equity index, calculated, maintained and published by MSCI Limited.

 

The Sub-Fund does not currently promote environmental and/or social characteristics within the meaning of "Article 8" of Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector ("SFDR"). Following the change from the Previous Index to the New Index, the Sub-Fund will promote environmental and/or social characteristics within the meaning of "Article 8" of SFDR.

A full description of the New Index and its construction methodology and information on the composition and respective weightings of the New Index components are available on the index provider's website at http://www.msci.com and in the Prospectus.

 

2. Change of the replication method

 

The index replication method carried out by the Sub-Fund will change from Indirect Replication to Direct Replication.

 

Currently the Sub-Fund's exposure to the performance of its Index is achieved by way of financial derivative transactions and/or instruments by using at any time one or both funded and/or unfunded techniques as further described in section I/ Investment Objectives/ Investment Powers and Restrictions of the Prospectus of the Company.

 

Once the change from Indirect Replication to Direct Replication is effective, the Sub-Fund may carry out its Investment Objective by investing in a portfolio of transferable securities or other eligible assets that will typically comprise the constituents composing the Index.

 

In order to optimize such Direct Replication method and to reduce the costs of investing directly in all constituents of the Index, the Sub-Fund may decide to use optimization techniques such as "sampling" as more fully described in section I/ Investment Objectives/ Investment Powers and Restrictions of the Prospectus of the Company.

 

Please note that this change concerns only the way the Sub-Fund aims to track the performance of the Index. The Investment Objective of the Sub-Fund will remain unchanged.

 

3. Change of the name

 

The name of the Sub-Fund is modified in order to reflect the change of Index and the change of the replication method of the Sub-Fund as follows:

 

Previous name of the Sub-Fund	New name of the Sub-Fund
Lyxor China Enterprise (HSCEI) UCITS ETF	Lyxor MSCI China ESG Leaders Extra (DR) UCITS ETF

 

 

The Sub-Fund will otherwise retain all its other characteristics, in particular the codes used in trading and the total fees.

 

The Sub-Fund will bear the costs associated with these changes. The attention of the Shareholders is drawn to the fact that the costs linked to these changes could have a negative impact on the net asset value of the Sub-Fund.

 

• In case where the Shareholders do not agree with these changes, the Shareholders who usually subscribe or redeem Shares in the Sub-Fund on the primary market may redeem their Shares without fee during a period of one month as from the date of this notice.

 

• We draw Shareholders' attention to the fact that if the Sub-Fund's Shares are sold on a market or exchange, the Shareholders may be charged broker fees on to the sale of (a) Share(s) in the Sub-Fund.

 

• In case where the Shareholders agree with the changes, no action is required from the Shareholders.

 

Following the implementation of the changes, the Prospectus and the Key Investor Information Document of the Sub-Fund will be amended accordingly.

 

The new Prospectus and Key Investor Information Documents of the Sub-Fund may be obtained on request from the Management Company to client-services-etf@lyxor.com, or consulted as from the Effective Date on the following website: www.lyxoretf.com.

 

For any questions, do not hesitate to contact Lyxor Client Services at the following contact details: Phone number +33 (0)1 42 13 42 14 - Email address: client-services-etf@lyxor.com

 

 

Yours sincerely,

 

 

 

 

For the Board of Directors