Lyxor AM and Finvex Group launch the first indexed ETF on low-volatility European SRI equities

Lyxor AM and Finvex Group announce the launch of the Lyxor UCITS ETF Finvex Sustainability Low Volatility Europe, which has been listed on Euronext Paris since 17 October 2014.

The aim of this ETF is to improve the stability of a portfolio of European equities, thereby optimising its performance. The index strategy is therefore founded on a two-pronged risk management approach that considers “qualitative risk” by filtering the investment universe in accordance with SRI criteria as well as “financial risk” via a selection process aimed at identifying low-volatility stocks.

The Finvex Sustainability Low Volatility Europe index replicated by this ETF is constructed on the basis of the S&P Dow Jones Sustainability Europe, which groups together the 120 most advanced companies in terms of sustainable development from among the 600 largest European stocks.

The index is based on risk reduction techniques aiming to reduce volatility. Comprising 50 to 60 stocks, the index is rebalanced on a monthly basis and has posted solid performances on a regular basis since its launch in 2011 [1].

Benedict Peeters, CEO of Finvex Group, explains: “Finvex Group is delighted to be the first independent partner and developer of investment solutions to work with Lyxor AM on its ETF platform – the efficiency and success of which are plain to see. ETFs are the best tool for providing access to the Finvex Group’s risk reduction techniques on the market and offering investors prudent exposure to European equity markets.”

Arnaud Llinas, Global Head of Lyxor ETFs and Indexing, adds: “Lyxor’s assets under management are constantly increasing and our product range is under continuous development. As at 30 September 2014, we had no less than EUR 38 billion of assets under management and 195 listed ETFs. Building on this success, we are now opening up our model to selected partners, enabling us to broaden our investment strategies. Together with Finvex Group, we are therefore pleased to launch a product that meets investor expectations in the field of sustainable investment and smart beta.”