Lyxor ETF Japan (TOPIX®) offers investors a unique opportunity to gain instant exposure to Japanese stock market through a well-established globally recognised index. The investment objective of the ETF is to achieve results that closely correspond to the performance of the TOPIX® index insofar as possible minimising the tracking error between the ETF performance and that of the Index
1. The world's third largest economic giant* is rebuilding for growth
- Japan's economy has been expanding since early 2002 and is enjoying its longest period of growth in the postwar era, albeit at a slower pace than in previous booms
- Despite slower US growth, Japanese GDP growth still marked the 10th straight quarter of expansion. GDP growth forecasts for 2007 and 2008 remain at 2.5%.
(Source: SG Research, 3rd Quarter 2007)
2. Export growth is still in good shape
- Robust demand from China and other emerging countries will support export growth of Japan
- 2007 first quarter exports rose by 10.2% year-on-year with trade surplus increased by 74%
- Yen is expected to remain competitive relative to other Asian currencies. Yen has appreciated against US dollars by 0.5% since 2006 vs. Korea Won's 8% and Chinese Yuan's 6%.
(Source: Bloomberg, as of 15 August 2007)
3. Investment and consumption gorwth remain intact
- Growth in corporate captial spending remains a key driving force of the economy. Investment growth is at a pace of more than 6% p.a. for the past 2 years.
- Capital spending rebounded to 1.2% from 0.3% in the previous quarter, pointing to solid expansion ahead
- Private consumption is in the uptrend fro 3rd straight quarter. Consumption and capital expenditure were relatively firm, which show Japan's economy remains on track for steady growth led by domestic demand.
(Source: SG Research, 3rd Quarter 2007)
Lyxor International Asset Management is a wholly-owned subsidiary of Societe Generale, belonging to the Corporate and Investment Banking arm of the Group. Lyxor AM offers the best in financial innovation and specializes in three businesses: structured alternative investments, structured funds, and index tracking for retail investors, institutional investors, management professionals and distribution networks for financial products.
Disclaimers:
A full description of the Lyxor ETF Japan (Topix®) ("the Lyxor ETF") is set out in the prospectus in respect thereof dated 16 July 2007 which may be amended from time to time (the "Prospectus") issued by Lyxor International Asset Managment ("Lyxor"), the responsbile person for the Lyxor ETF in Singapore. The Prospectus of the Lyxor ETF is available from RBC Dexia Trust Services Singapore Limited (Registration Number 199504677Z), the Singapore representative of the Lyxor ETF. All applications for units in the Lyxor ETF ("Units") must be made on the application form accompanying the Prospectus. Past performance or any forecast is not necessarily indicative of future or likely performance. This document is published for information and general circulation only and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person.Investors should note that (a) the value of Units and the income accruing to the Units, if any, may rise or or fall, (b) Units maybe redeemed with Lyxor under certain specified conditions, and (c) the Lyoxr ETF may use or invests in financial derviative instruments.
Potential investors should read the Prospectus of the Lyxor ETF before deciding whether to invest in the units of the Lyxor ETF, and should seek advice from a financial adviser regarding the suitability of the investment product or consider carefully whether the Lyxor ETF is suitable for him before investing. Investors may only redeem units with Lyxor International Asset Management under certain specified conditions. The listing of the units of the Lyxor ETF does not guarantee a liquid market for the units. The information contained herein is provided by Société Générale, the Singapore marketing representative of the Lyxor ETF. Any reference to Lyxor International Asset Management is a reference to such company solely in its capacity as the manager of the Lyxor ETF. Lyxor carries on fund management work outside Singapore and neither carries on business nor offers any services in Singapore.
The TOPIX® also known as the Topix Stock Price Index is a free float adjusted market captialisation-weighted index of all companies listed on the First section of the Tokyo Stock Exchange.
The TOPIX® index is highly representative of the Japanese economy. As of 31 July 07, the TOPIX® index composed of 1,728 listed Japanese companies with a total market capitalisation of Yen 2,967 trillen million.
For interactive charting, please click here.
