August 2021 - lyxor.com

ETF Research & Solutions | Money Monitor August 2021 1 MARKETING REPORT - FOR PROFESSIONAL AND QUALIFIED INVESTORS ONLY

This document is for the exclusive use of investors acting on their own account and categorised either as “Eligible Counterparties” or “Professional Clients” within the meaning of Markets in Financial Instruments Directive 2014/65/EU. This document is reserved and must be given in Switzerland exclusively to Qualified Investors as defined by the Swiss Collective Investment Scheme Act of 23 June 2006 (as amended from time to time, CISA).

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Money Monitor: August 2021 In our latest Money Monitor report we share a comprehensive analysis of flows in European open-ended funds and ETFs. We also look at the main investment trends observed over the past month.

Key takeaways:

It was another strong month for Equity and Fixed

Income flows across the board. Investors’

appetite for risk assets showed no signs of

slowing down.

ETF flows: ETFs gathered €10.0bn in August

2021. Fixed Income and Equity ETFs took in

€3.1bn and €6.5bn respectively.

ESG ETF flows were well supported, with €5.2bn

of inflows in August. ESG ETFs flows since the

beginning of the year totalled €55.9bn,

representing almost half of total flows in the

European ETF market.

Smart Beta ETFs recorded -€0.4bn net

outflows. Investors turned back to more

defensive building blocks such as Quality whilst

Value lost its appeal.

Fixed Income funds and ETFs: fixed income

funds and ETFs gathered a combined €24.8bn

in net new assets, with €21.7bn into open-

ended funds and €3.1bn into ETFs. Flows were

mostly directed into Global or Euro exposures.

Equity fund and ETFs: equity ETFs and open-

ended funds enjoyed €25.5bn of net new

assets, with €18.9bn into funds and €6.5bn into

ETFs. US and Japan were sought after along with

the Healthcare sector.

Table of Contents

Lyxor ETF Research & Solutions

Vincent Denoiseux (Head) [email protected]

Ida Troussieux [email protected]

Daniel Dornel, CFA

[email protected]

Christopher Martin [email protected]

Key Takeaways: 1

ETF Focus: 2

Chart of the Month: 3

Fixed Income: 5

Money Market: 13

Equity: 14

--- Regions: 15

--- Countries: 19

--- Sectors: 20

Smart Beta ETFs: 22

ESG ETFs: 24

Source: Morningstar, Bloomberg, Lyxor International Asset Management. Data as at 03/09/2021. See page 2 for a description of the methodology used in this report. Past performance is not indicative of future returns.

ETF Research & Solutions | Money Monitor August 2021 2

MARKETING REPORT - FOR PROFESSIONAL AND QUALIFIED INVESTORS ONLY


ETF Focus

Flows summary for the European ETF market in August 2021.

What happened last month? Equity ETFs gathered €6.5bn in net new assets. Fixed Income ETFs gathered €3.1bn over the same period.

Another strong month for ESG ETFs with €5.2bn in net new assets.

€ 10.0bn

Equities

€6.5bn

Fixed Income

€3.1bn

Money Market

€0.3bn

Commodities

€-0.0bn

Others

€0.1bn

Smart Beta

€-0.4bn

ESG

€5.2bn

Flows year to date € 114.2bn

Equities

€85.6bn

Fixed Income

€24.8bn

Money Market

€0.7bn

Commodities

€2.3bn

Others

€0.8bn

Smart Beta

€12.8bn

ESG

€55.9bn

Methodology

In this report we analyse flow data from open-ended funds (Active and Index Funds) and Exchange-Traded Funds

(ETFs) domiciled in Europe. To avoid reporting duplicated data points, this report disregards feeder funds and

funds of funds.

We cover here 28,164 funds that have reported flows for the entire month of August 2021. This encompasses EUR 12.17tn of total assets.

Fund and ETF classifications rely on a variety of sources including but not limited to Morningstar, Bloomberg,

Lyxor International Asset Management, providers’ websites and regulatory filings.

Source: Morningstar, Bloomberg, Lyxor International Asset Management. Data as at 03/09/2021. Past performance is not indicative of future returns. Asset and flow data may be slightly adjusted as additional data becomes available. Classification of Smart Beta ETFs and ESG ETFs is carried out by Lyxor International Asset Management. ETFs classified in the categories “ESG” or “Smart Beta” will appear in their respective categories and also in their associated asset class.




Focus: World Equity flows “Diversification is the only free lunch” in investing said Nobel Prize laureate Harry Markowitz. While not all

financial theories resonated successfully within the investment community, Markowitz’s models impregnated

the portfolio management community. Nowadays, most investors consider diversification as a key portfolio

metric.

In this context, it is interesting to look at the strength of the flow dynamics toward one of the most diversified

building blocks of an equity allocation, i.e. World Equities. As of end August 2021, World equity funds and ETFs

recorded twice as much flows compared to those recorded over the past four years. In August, more than half

of total equity flows where directed into Global equity exposures.

World Equity is a broad market segment and includes numerous exposure types:

- At the core of the World Equity segment lies funds or ETFs that can be benchmarked by global indices

such MSCI World. From an investment perspective, this is the key building block for a well-diversified

Equity portfolio. In this segment, ETFs are increasingly popular investment vehicles due to the scarcity

of long-term alpha in the active space.

- World Sector Funds and ETFs provide greater granularity for investors. They can help tilt exposure

towards cyclical or defensive sectors depending on the stage of the economic cycle. World Sector

ETFs bring cheap and transparent building blocks and facilitate exposure to a particular industry.

- World Thematic Funds and ETFs have become a key segment over recent years. These investment

products aim to identify stocks demonstrating a strong relationship with a particular secular trend such

as Water, Alternative Energy, Digitalisation etc...

- Last but not least, ESG and Climate oriented Funds and ETFs are increasingly sought after when it

comes to increase an existing World exposure while improving a portfolio’s overall ESG score or Carbon

Emission footprint. Some investors even consider more radical moves such as an entire switch of their

core exposures toward these sustainable strategies.

Global Equity Funds and ETFs provide off-the-shelf diversified building blocks and allow investors to either set

up a core portfolio allocation or to steer it towards more tailored factor, sector or theme-oriented exposures.

The expansion of Climate and ESG offerings has also been driven by strong investor demand. The remarkable

resilience of Global Equity flows confirm that these approaches are gaining traction among investors.

Europe domiciled World equity funds and ETFs: cumulative monthly flows Cumulative monthly flows by year (in €)

Source: Morningstar, Lyxor International Asset Management. Data as at 03/09/2021. Past performance is not indicative of future performance.




Cross Asset Tracker

Europe Domiciled Funds and ETPs: cumulative flows Cumulative flows by asset class and period (in € Billion)

Asset Class Count AUMs August 2021 Mean (3Y) YtD

All Asset Classes 28,164 12,172.8 79.0 51.3 590.9

Equity 11,275 5,535.7 25.5 17.0 297.2

-- Developed 9,226 4,725.8 23.3 14.8 259.4

---- World 3,854 2,184.7 15.2 14.6 206.8

------ World Broad 2,511 1,583.5 12.6 9.6 135.3

------ World Sectors 905 478.3 2.2 4.3 63.8

---- Americas 1,112 830.1 3.8 1.6 27.5

------ US 1,087 823.8 3.9 1.6 27.0

-------- US Sectors 93 30.2 0.1 0.2 4.0

------ Europe 3,689 1,487.2 1.4 -1.6 11.6

-------- Europe Sectors 228 36.6 0.1 0.2 3.0

-------- EMU 1,162 320.2 0.0 -1.4 -6.0

-------- UK 493 348.6 -0.7 0.3 -4.4

------ Pacific 571 223.9 2.9 0.1 13.5

-------- Japan 374 142.0 3.2 -0.0 8.8

-- EM Equity 1,185 538.0 2.2 2.0 32.0

---- Broad EM 606 375.9 2.6 1.0 14.1

---- China 239 111.8 -0.2 1.4 19.4

-- Other Equity 864 272.0 0.0 0.2 5.9

Fixed Income 6,847 3,303.0 24.8 18.9 200.7

-- Global 1,481 871.2 7.7 6.5 54.6

---- Global Aggregate 782 493.0 5.5 3.7 36.7

---- Global High Yield 230 138.1 0.3 0.9 5.7

-- Euro 2,242 886.6 6.7 2.9 44.4

---- Euro Government 421 135.7 0.2 0.5 1.3

---- Euro Corporate 507 259.8 2.1 1.8 11.5

---- Euro High Yield 183 63.6 0.2 0.2 1.3

-- US Dollar 561 327.8 2.0 2.6 14.3

---- US Government 99 42.0 0.2 0.6 1.1

---- US Corporate 119 68.2 1.5 0.4 1.4

---- US High Yield 103 66.9 -0.7 0.3 5.2

-- Sterling 306 222.1 -0.6 0.6 5.8

-- Yen 13 4.7 0.1 0.1 -0.0

-- EM Fixed Income 588 316.3 -0.4 1.7 9.1

-- Other FI 1,656 674.4 9.3 4.7 72.5

Money-Market 492 1,384.3 13.5 10.3 -24.2

Commodities 371 117.3 0.4 0.7 2.5

Multi-Asset 8,411 1,658.5 13.0 5.3 101.7

Alternative 677 163.4 1.5 -0.9 11.4

Source: Morningstar, Lyxor International Asset Management. Data as at 03/09/2021. As per the methodology described in page 3, this report only considers funds which reported flows for the entire month of August 2021 as at 03/09/2021. Funds which have closed or did not publish flows are therefore disregarded here.




ETPs and Funds Tracker


Asset Class AUMs Flows: August 2021 Flows: YtD

Funds ETPs Funds ETPs Funds ETPs

All Asset Classes 10,881.0 1,291.8 68.9 10.1 479.1 111.8

Equity 4,638.8 896.9 18.9 6.5 211.7 85.6

-- Developed 3,985.6 740.2 16.9 6.3 181.0 78.4

-- World 1,959.5 225.2 11.8 3.4 166.3 40.4

------ World Broad 1,443.0 140.4 9.6 3.0 110.6 24.7

------ World Sectors 425.7 52.6 1.8 0.4 51.4 12.4

---- Americas 540.4 289.6 0.9 2.9 3.0 24.5

------ US 538.6 285.2 1.0 2.9 3.5 23.5

-------- US Sectors 11.7 18.5 -0.1 0.2 1.4 2.6

------ Europe 1,292.7 194.5 1.5 -0.0 1.8 9.8

-------- Europe Broad 502.0 86.8 2.2 0.1 9.3 6.0

-------- Europe Sectors 19.1 17.5 0.4 -0.3 1.5 1.5

-------- EMU 247.7 72.5 0.1 -0.0 -7.9 1.9

-------- UK 315.9 32.7 -0.6 -0.1 -6.4 1.9

------ Pacific 193.0 30.9 2.8 0.0 9.8 3.7

-------- Japan 112.3 29.6 3.2 -0.0 5.1 3.7

-- EM Equity 464.3 73.7 1.6 0.6 24.1 7.9

-- Other Equity 188.9 83.0 0.4 -0.4 6.6 -0.7

Fixed Income 3,013.7 289.3 21.7 3.1 175.9 24.8

-- Global 837.4 33.8 7.0 0.6 49.0 5.6

---- Global Aggregate 481.1 11.9 5.5 0.0 34.1 2.6

---- Global Corporate 108.2 7.7 0.4 0.1 -3.4 1.0

-- Euro 775.3 111.3 5.5 1.2 39.0 5.4

---- Euro Government 96.9 38.8 -0.1 0.3 0.7 0.6

---- Euro Corporate 205.9 53.9 1.4 0.7 8.6 3.0

---- Euro High Yield 53.8 9.8 0.3 -0.0 1.4 -0.1

-- US Dollar 242.4 85.4 0.8 1.3 6.7 7.6

---- US Government 14.4 27.7 -0.0 0.2 0.3 0.8

---- US Corporate 36.9 31.4 1.1 0.4 -2.0 3.4

---- US High Yield 55.1 11.7 -1.4 0.7 3.8 1.4

-- Sterling 209.5 12.5 -0.7 0.1 5.9 -0.1

-- Yen 3.8 0.9 0.1 0.0 0.3 -0.3

-- EM Fixed Income 286.1 30.2 0.1 -0.5 9.5 -0.4

-- Other FI 659.2 15.2 9.0 0.3 65.5 7.1

Money-Market 1,374.1 10.2 13.3 0.3 -24.9 0.7

Commodities 24.8 92.5 0.3 0.1 2.6 -0.2

Multi-Asset 1,655.8 2.7 12.9 0.1 100.9 0.7

Alternative 163.4 0.0 1.5 0.0 11.4 0.0

Source: Morningstar, Lyxor International Asset Management. Data as at 03/09/2021. “Passive” refers to either Index Funds or ETPs. As per the methodology described in page 3, this report only considers funds which reported flows for the entire month of August 2021 as at 03/09/2021. Funds which have closed or did not publish flows are therefore disregarded here.




Active-Passive Tracker


Asset Class AUMs Flows: August 2021 Flows: YtD

Active Passive Active Passive Active Passive

All Asset Classes 9,688.5 2,484.3 65.8 13.3 452.9 138.0

Equity 3,749.3 1,786.4 18.0 7.5 211.5 85.8

-- Developed 3,219.4 1,506.4 17.6 5.7 185.5 73.8

-- World 1,690.0 494.7 11.9 3.3 156.5 50.2

------ World Broad 1,222.6 360.8 9.7 2.9 101.4 33.9

------ World Sectors 402.5 75.8 1.8 0.4 50.2 13.6

---- Americas 365.0 465.1 1.2 2.6 13.6 13.9

------ US 364.9 458.9 1.2 2.7 13.7 13.4

-------- US Large Cap 306.8 171.3 1.3 -0.1 7.8 -9.5

-------- US Small Cap 20.5 0.1 -0.1 0.0 1.6 -0.0

-------- US Sectors 11.1 19.1 -0.1 0.2 1.4 2.6

------ Europe 1,002.7 484.5 1.8 -0.3 5.7 5.9

-------- Europe Broad 423.8 164.9 2.2 -0.0 10.3 5.0

-------- Europe Sectors 18.9 17.7 0.4 -0.3 1.6 1.5

-------- EMU 220.5 99.7 0.1 -0.0 -6.3 0.2

-------- UK 211.3 137.3 -0.4 -0.3 -2.6 -1.8

------ Pacific 161.7 62.1 2.8 0.1 9.7 3.8

-------- Japan 82.2 59.8 3.2 0.1 4.7 4.1

-- EM Equity 380.9 157.1 0.2 2.0 20.9 11.0

---- Broad EM 234.9 141.0 0.7 1.9 4.3 9.8

---- China 102.1 9.6 -0.5 0.3 17.7 1.7

-- Other Equity 149.0 122.9 0.2 -0.2 5.0 0.9

Fixed Income 2,710.9 592.2 19.3 5.5 149.3 51.4

-- Global 742.7 128.5 5.0 2.6 37.2 17.4

---- Global Aggregate 413.2 79.8 3.9 1.7 24.6 12.1

---- Global Corporate 88.1 27.8 0.3 0.2 -5.6 3.3

-- Euro 735.3 151.4 5.3 1.4 37.7 6.7

---- Euro Government 78.3 57.4 -0.1 0.3 0.4 0.9

---- Euro Corporate 189.5 70.3 1.3 0.8 7.7 3.8

---- Euro High Yield 53.6 10.0 0.2 -0.0 1.2 0.1

-- US Dollar 225.0 102.8 0.8 1.3 5.6 8.6

---- US Government 6.5 35.5 0.1 0.1 -0.2 1.3

---- US Corporate 32.3 35.9 1.1 0.4 -1.8 3.2

---- US High Yield 55.1 11.7 -1.4 0.7 3.8 1.4

-- Sterling 149.5 72.6 -0.4 -0.2 2.6 3.3

-- Yen 0.6 4.1 0.0 0.1 0.1 -0.1

-- EM Fixed Income 259.3 57.0 0.0 -0.5 7.0 2.0

-- Other FI 598.5 75.8 8.6 0.7 59.0 13.6

Multi-Asset 1,652.6 5.9 12.9 0.1 101.2 0.5

Alternative 163.3 0.0 1.5 0.0 11.4 0.0

Source: Morningstar, Lyxor International Asset Management. Data as at 03/09/2021. “Passive” refers to either Index Funds or ETPs. As per the methodology described in page 3, this report only considers funds which reported flows for the entire month of August 2021 as at 03/09/2021. Funds which have closed or did not publish flows are therefore disregarded here.




Sustainable Tracker

Europe Domiciled Sustainable Investment Funds and ETPs: cumulative flows Cumulative flows by asset class and period (in € Billion)

Asset Class August 2021: AUMs August 2021: Flows

All ESG Impact Environment All ESG Impact Environment

All Asset Classes 2,492.7 1,995.2 993.8 195.6 29.2 19.1 18.2 4.1

Equity 1,339.6 1,001.4 649.1 142.0 16.2 12.0 10.8 1.9

-- Developed 1,187.8 888.7 589.1 140.4 14.7 10.9 9.9 1.9

-- World 663.5 454.8 378.5 118.8 10.3 6.9 7.8 1.9

------ World Broad 502.1 371.2 288.9 57.7 8.4 5.9 6.4 1.2

------ World Sectors 132.2 57.5 79.3 59.7 1.4 0.6 0.9 0.5

---- Americas 140.1 111.9 67.6 3.6 1.9 1.6 0.8 -0.2

------ US 139.9 111.8 67.5 3.6 1.9 1.6 0.8 -0.2

-------- US Large Cap 126.7 102.7 57.2 3.6 1.7 1.6 0.6 -0.2

-------- US Small Cap 3.4 1.3 2.7 0.0 0.0 0.0 0.0 0.0

------ Europe 354.3 300.6 127.7 18.0 2.5 2.3 1.1 0.1

-------- Europe Broad 172.5 144.2 69.0 9.8 2.0 1.9 0.7 -0.0

-------- Europe Sectors 11.9 10.9 7.7 6.5 0.2 0.2 0.1 0.1

-------- EMU 81.7 76.4 17.0 1.8 0.3 0.2 0.3 0.0

-------- UK 22.5 21.5 11.8 0.7 0.1 0.1 0.1 0.0

------ Pacific 30.0 21.4 15.3 0.0 0.1 0.1 0.2 0.0

-------- Japan 19.8 13.2 13.0 0.0 0.2 0.1 0.2 0.0

-- EM Equity 105.3 80.1 40.6 0.7 1.5 1.0 1.0 0.0

---- Broad EM 95.2 76.0 34.2 0.6 1.5 1.0 0.8 0.0

---- China 4.2 1.9 2.6 0.0 0.0 -0.0 0.1 0.0

-- Other Equity 46.5 32.6 19.4 1.0 -0.0 0.1 -0.1 0.0

Fixed Income 546.9 427.3 217.7 36.2 7.3 3.9 4.1 2.1

-- Global 104.1 70.2 57.5 1.8 0.8 0.6 0.3 0.0

---- Global Aggregate 52.5 36.7 30.7 1.8 0.7 0.4 0.6 0.0

---- Global Corporate 16.6 9.9 9.9 0.0 0.2 0.2 0.1 0.0

-- Euro 237.3 206.0 68.9 9.7 2.7 2.3 0.8 0.0

---- Euro Government 18.5 17.1 2.8 0.6 0.1 0.0 0.1 0.0

---- Euro Corporate 100.6 79.6 37.6 1.1 1.3 1.1 0.3 0.0

---- Euro High Yield 16.3 15.3 2.1 0.0 0.2 0.2 0.0 0.0

-- US Dollar 35.2 32.7 6.5 0.0 0.2 0.2 0.0 0.0

---- US Corporate 16.4 15.9 0.9 0.0 0.1 0.1 0.0 0.0

---- US High Yield 8.1 6.3 4.1 0.0 -0.0 0.1 -0.1 0.0

-- Sterling 10.2 10.2 5.5 0.0 0.2 0.2 0.2 0.0

-- EM Fixed Income 43.3 41.0 9.6 0.6 -0.2 -0.3 -0.1 0.1

-- Other FI 116.8 67.2 69.7 24.1 3.6 0.8 2.9 2.0

Multi-Asset 324.8 318.7 89.9 17.3 4.0 4.1 0.9 0.1

Alternative 17.8 15.8 3.1 0.1 0.2 0.2 0.0 0.0

Source: Morningstar, Lyxor International Asset Management. Data as at 03/09/2021. The terms “Sustainable”, “Impact”, “ESG” and “Environment” refer to the corresponding Morningstar Sustainable Investment classifications. As per the methodology described in page 3, this report only considers funds which reported flows for the entire month of August 2021 as at 03/09/2021. Funds which have closed or did not publish flows are therefore disregarded here.




Fixed Income Net New Assets: €24.8bn Fixed Income funds and ETFs gathered €24.8bn with €21.7bn into open-ended funds and €3.1bn into ETFs in August 2021

Fixed income funds and ETFs: cumulative monthly flows Cumulative monthly flows by year (in €)

Fixed income funds and ETFs: daily flows Daily flows by fund type (in €)

Fixed income funds: currencies Fixed income funds and ETFs: fund types Cumulative flows in August 2021 grouped by currency (in €) Cumulative flows in August 2021 grouped by fund type (in €)

Source: Morningstar, Lyxor International Asset Management. Flows observed in August 2021, data as at 03/09/2021. Past performance is not indicative of future performance.




Euro Fixed Income Net New Assets: €6.7bn

Euro Fixed Income funds and ETFs gathered a combined €6.7bn in net new assets in August 2021.

Euro fixed income funds and ETFs: cumulative monthly flows Cumulative monthly flows by year (in €)

Euro fixed income funds and ETFs: daily flows Daily flows by fund type (in €)

Euro Fixed income funds and ETFs: issuer types Euro Fixed income funds and ETFs: fund type

Cumulative flows in August 2021 grouped by issuer type (in €) Cumulative flows in August 2021 grouped by fund type (in €)





USD Fixed Income Net New Assets: €2.0bn

USD fixed income funds and ETFs gathered a combined €2.0bn in net new assets in August 2021.

USD fixed income funds and ETFs: cumulative monthly flows Cumulative monthly flows by year (in €)

USD fixed income funds and ETFs: daily flows Daily flows by fund type (in €)

USD fixed income funds and ETFs: issuer types USD fixed income funds and ETFs: fund type

Cumulative flows in August 2021 grouped by issuer type (in €) Cumulative flows in August 2021 grouped by fund type (in €)





Global Fixed Income Net New Assets: €7.7bn

Global Fixed Income funds and ETFs gathered €7.7bn in net new assets in August 2021.

Global fixed income funds and ETFs: cumulative monthly flows

Cumulative monthly flows by year (in €)

Global fixed income funds and ETFs: daily flows

Daily flows by fund type (in €)

Global fixed income funds and ETFs: issuer types Global fixed income funds and ETFs: fund type

Monthly flows in August 2021 grouped by issuer type (in €) Monthly flows in August 2021 grouped by fund type (in €)





Emerging Market Fixed Income Net New Assets: €-0.4bn

Emerging Market fixed income funds and ETFs saw €-0.4bn of outflows in August 2021.

Emerging Market fixed income funds and ETFs: cumulative monthly flows

Cumulative monthly flows by year (in €)

Emerging Market fixed income funds and ETFs: daily flows

Daily flows by fund type (in €)

Emerging Market fixed income funds and ETFs: currency Emerging Market fixed income funds and ETFs: fund type

Monthly flows in August 2021 grouped by issuer type (in €) Monthly flows in August 2021 grouped by fund type (in €)





Money Market Net New Assets: €13.5bn

Money Market fixed income funds and ETFs gathered a combined €13.5bn in net new assets in August 2021.

Money Market funds and ETFs: cumulative monthly flows Cumulative monthly flows by year (in €)

Money Market funds and ETFs: daily flows Daily flows by fund type (in €)

Money Market funds and ETFs: currency Money Market funds and ETFs: fund type

Monthly flows in August 2021 grouped by issuer type (in €) Monthly flows in August 2021 grouped by category (in €)





Equity Net New Assets: €25.5bn

Equity open-ended and ETFs gathered €25.5bn in August 2021 with €18.9 bn into funds and €6.5bn into

Equity ETFs.

Equity funds and ETFs: cumulative monthly flows Cumulative monthly flows by year (in €)

Equity funds and ETFs: daily flows Daily flows by fund type (in €)

Equity funds and ETFs: regions Equity funds and ETFs: fund type Cumulative flows by region (in €) Cumulative flows in August 2021 by fund type (in €)





World Equity Net New Assets: €15.2bn

World Equity funds and ETFs gathered €15.2bn in net new assets in August 2021.

World equity funds and ETFs: cumulative monthly flows Cumulative monthly flows by year (in €)

World equity funds and ETFs: daily flows Daily flows by fund type (in €)

World equity funds and ETFs: investment areas World equity funds and ETFs: fund type Monthly flows in August 2021 grouped by category (in €) Monthly flows in August 2021 grouped by fund type (in €)





Europe Equity Net New Assets: €1.4bn

Europe Equity funds and ETFs gathered €1.4bn in net new assets in August 2021.

Europe equity funds and ETFs: cumulative monthly flows Cumulative monthly flows by year (in €)

Europe equity funds and ETFs: daily flows Daily flows by fund type (in €)

Europe equity funds and ETFs: investment areas Europe equity funds and ETFs: fund type

Monthly flows in August 2021 grouped by category (in €) Monthly flows in August 2021 grouped by fund type (in €)

Source: Morningstar, Lyxor International Asset Management Flows observed in August 2021, data as at 03/09/2021. Past performance is not indicative of future performance.




US Equity Net New Assets: €3.9bn

US Equity funds and ETFs gathered €3.9bn in net new assets in August 2021.

US equity funds and ETFs: cumulative monthly flows Cumulative monthly flows by year (in €)

US equity funds and ETFs: daily flows Daily flows by fund type (in €)

US equity funds and ETFs: investment areas US equity funds and ETFs: fund type Cumulative flows in August 2021 grouped by category (in €) Cumulative flows in August 2021 grouped by fund type (in €)





Emerging Market Equity Net New Assets: €2.2bn

Emerging Market (EM) Equity funds and ETFs gathered €2.2bn in net new assets in August 2021.

EM equity funds and ETFs: cumulative monthly flows Cumulative monthly flows by year (in €)

EM equity funds and ETFs: daily flows Daily flows by fund type (in €)

EM equity funds and ETFs: investment areas EM equity funds and ETFs: fund type Cumulative flows in August 2021 grouped by category (in €) Cumulative flows in August 2021 grouped by fund type (in €)





Equity: a country perspective

Top country flows

Equity Funds and ETFs: top developed countries Cumulative flows in August 2021 by country (in €)

Equity Funds and ETFs: top emerging countries Cumulative flows in August 2021 by country (in €)

Source: Bloomberg, Lyxor International Asset Management. Data as at 03/09/2021. Past performance is not indicative of future performance.

Bottom country flows

Equity Funds and ETFs: bottom developed countries Cumulative flows in August 2021 by country (in €)

Equity Funds and ETFs: bottom emerging countries Cumulative flows in August 2021 by country (in €)

Source: Bloomberg, Lyxor International Asset Management. Flows observed in August 2021, data as at 03/09/2021. Past performance is not indicative of future performance.




Equity: a sector perspective

World Equity sectors gathered €2.2bn of assets across funds and ETFs in August 2021. World

Healthcare was the top sector, gathering €1.1bn of flows. World Financials recorded the lowest flows

(€-0.3bn).

Europe Equity sectors funds and ETFs have gathered €0.1bn. The Europe Real Estate sector lead the

pack with €0.2bn of inflows, while Europe Financials sector experienced the lowest flows, with €-0.2bn.

Equity funds and ETFs: World sectors Cumulative flows in August 2021 by sector (in €)

Source: Morningstar, Lyxor International Asset Management. Data as at 03/09/2021. Past performance is not indicative of future performance.

Equity funds and ETFs: European sectors Cumulative flows in August 2021 by sector (in €)





Commodities Net New Assets: €0.4bn

Commodities funds and Exchange Traded Products (‘ETPs’) gathered €0.4bn.

Commodities funds and ETPs: cumulative monthly flows Cumulative monthly flows by year (in €)

Commodities funds and ETPs: daily flows Daily flows by fund type (in €)

Commodities funds and ETPs: commodity type Commodities funds and ETPs: fund type Cumulative flows by commodity type (in €) Cumulative flows in August 2021 by fund type (in €)





Smart Beta

Net New Assets: €-0.4bn

► Smart Beta ETFs experienced outflows of €-0.4bn in August 2021.

Smart beta ETFs: cumulative monthly flows Cumulative monthly flows (in €)


Smart beta ETFs: asset classes Smart beta ETFs: top strategies Cumulative flows in August 2021 by asset class (in €) Cumulative flows in August 2021 by strategy (in €)





Sustainable

Investment Net New Assets: €29.4bn

Funds engaged in Sustainable Investment (“Sustainable Funds”) and ETFs gathered €29.4bn in

August 2021.

Sustainable Equity ESG Funds and ETFs gained €16.2bn and Fixed Income Sustainable Funds and

ETFs saw €7.3bn of flows.

ESG Funds and ETFs: cumulative monthly flows Cumulative monthly flows (in €)


ESG Funds and ETFs: asset classes ESG Funds and ETFs: regions Cumulative flows in August 2021 by asset class (in €) Cumulative flows in August 2021 by strategy (in €)





ESG ETFs Net New Assets: €5.2bn

ESG ETFs gathered €5.2bn in August 2021.

ESG ETFs: cumulative monthly flows Cumulative monthly flows (in €)


ESG ETFs: asset classes ESG ETFs: regions Cumulative flows in August 2021 by asset class (in €) Cumulative flows in August 2021 by strategy (in €)





Knowing your risk It is important for potential investors to evaluate the risks described below and in the fund prospectus on our website www.lyxoretf.com Capital at risk ETFs are tracking instruments: Their risk profile is similar to a direct investment in the Underlying index. Investors’ capital is fully at risk and investors may not get back the amount originally invested. Replication risk The fund objectives might not be reached due to unexpected events on the underlying markets which will impact the index calculation and the efficient fund replication. Counterparty risk With synthetic ETFs, investors are exposed to risks resulting from the use of OTC swap. In-line with UCITS guidelines, the exposure a swap counterparty cannot exceed 10% of the total fund assets. Physically replicated ETFs may have counterparty risk if they use a securities lending program. Concentration risks Some ETFs, e.g. thematic and Smart Beta ETFs select stocks or bonds for their portfolio from the original benchmark index. Where selection rules are extensive it can lead to a more concentrated portfolio where risk is spread over fewer stocks than the original benchmark.

Underlying risk The Underlying Index of a Lyxor ETF may be complex and volatile. When investing in commodities, the Underlying Index is calculated with reference to commodity futures contracts exposing the investor to a liquidity risk linked to costs such as cost of carry and transportation. ETFs exposed to Emerging Markets carry a greater risk of potential loss than investment in Developed Markets as they are exposed to a wide range of unpredictable Emerging Market risks. Currency risk ETFs may be exposed to currency risk if the ETF is denominated in a currency different to that of the Underlying index they are tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns. Liquidity risk Liquidity is provided by registered market-makers on the respective stock exchange where the ETF is listed, including Societe Generale. On exchange, liquidity may be limited as a result of a suspension in the underlying market represented by the Underlying index tracked by the ETF; a failure in the systems of one of the relevant stock exchanges, or other market-maker systems; or an abnormal trading situation or event.

http://www.lyxoretf.com/




Important information This message is a product of LIAM sales group and is not a product of LIAM Cross Asset Research Department. It is not intended for use by or targeted at retail clients. The circumstances in which this message has been produced are such that it may not be characterised as independent investment research and should be treated as a marketing communication even if it contains a research recommendation. For more, visit our global research disclosure website www.lyxoretf.com/compliance. This document is for the exclusive use of investors acting on their own account and categorised either as “eligible counterparties” or “professional clients” within the meaning of markets in financial instruments directive 2014/65/EU. This communication is not directed at retail clients. Except in the UK, where the document is issued by Lyxor Asset Management UK LLP, which is authorized and regulated by the Financial Conduct Authority in the UK under Registration Number 435658, this document is issued by Lyxor International Asset Management (LIAM), a French management company authorized by the Autorité des marchés financiers and placed under the regulations of the UCITS (2014/91/EU) and AIFM (2011/61/EU) Directives. Société Générale is a French credit institution (bank) authorised by the Autorité de contrôle prudentiel et de résolution (the French Prudential Control Authority). Some of the funds described in this brochure are sub-funds of either Multi Units Luxembourg or Lyxor Index Fund, being both investment companies with Variable Capital (SICAV) incorporated under Luxembourg Law, listed on the official list of Undertakings for Collective Investment, and have been approved and authorised by the CSSF under Part I of the Luxembourg Law of 17th December 2010 (the “2010 Law”) on Undertakings for Collective Investment in accordance with provisions of the Directive 2009/65/EC (the “2009 Directive”) and subject to the supervision of the Commission de Surveillance du Secteur Financier (CSSF). Alternatively, some of the funds described in this document are either (i) French FCPs (fonds commun de placement) or (ii) sub-funds of Multi Units France a French SICAV, both the French FCPs and sub-funds of Multi Units France are incorporated under the French Law and approved by the French Autorité des marchés financiers. Each fund complies with the UCITS Directive (2009/65/CE) and has been approved by the French Autorité des marchés financiers. Société Générale and Lyxor AM recommend that investors read carefully the “risk factors” section of the product’s prospectus and Key Investor Information Document (KIID). The prospectus and the KIID are available in French on the website of the AMF (www.amf-france.org). The prospectus in English and the KIID in the relevant local language (for all the countries referred to, in this document as a country in which a public offer of the product is authorised) are available free of charge on Lyxor etf. com or upon request to client-services-etf@ lyxor.com. The products are the object of market-making contracts, the purpose of which is to ensure the liquidity of the products on NYSE Euronext Paris, Deutsche Boerse (Xetra) and the London Stock Exchange, assuming normal market conditions and normally functioning computer systems. Units of a specific UCITS ETF managed by an asset manager and purchased on the secondary market cannot usually be sold directly back to the asset manager itself.

Investors must buy and sell units on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when selling them. Updated composition of the product’s investment portfolio is available on www. lyxoretf.com. In addition, the indicative net asset value is published on the Reuters and Bloomberg pages of the product and might also be mentioned on the websites of the stock exchanges where the product is listed. Prior to investing in the product, investors should seek independent financial, tax, accounting and legal advice. It is each investor’s responsibility to ascertain that it is authorised to subscribe or invest into this product. This document together with the prospectus and/or more generally any information or documents with respect to or in connection with the Fund does not constitute an offer for sale or solicitation of an offer for sale in any jurisdiction (i) in which such offer or solicitation is not authorized, (ii) in which the person making such offer or solicitation is not qualified to do so, or (iii) to any person to whom it is unlawful to make such offer or solicitation. In addition, the shares are not registered under the U.S Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States (including its territories or possessions) or to or for the benefit of a U.S Person (being a “United State Person” within the meaning of Regulation S under the Securities Act of 1933 of the United States, as amended, and/or any person not included in the definition of “Non-United States Person” within the meaning of Section 4.7 (a) (1) (iv) of the rules of the U.S. Commodity Futures Trading Commission.). No U.S federal or state securities commission has reviewed or approved this document and more generally any documents with respect to or in connection with the fund. Any representation to the contrary is a criminal offence. This document is of a commercial nature and not of a regulatory nature. This document does not constitute an offer, or an invitation to make an offer, from Société Générale, Lyxor Asset Management (together with its affiliates, Lyxor AM) or any of their respective subsidiaries to purchase or sell the product referred to herein. These funds include a risk of capital loss. The redemption value of this fund may be less than the amount initially invested. The value of this fund can go down as well as up and the return upon the investment will therefore necessarily be variable. In a worst-case scenario, investors could sustain the loss of their entire investment. This document is confidential and may be neither communicated to any third party (with the exception of external advisors on the condition that they themselves respect this confidentiality undertaking) nor copied in whole or in part, without the prior written consent of Lyxor AM or Société Générale. The obtaining of the tax advantages or treatments defined in this document (as the case may be) depends on each investor’s particular tax status, the jurisdiction from which it invests as well as applicable laws. This tax treatment can be modified at any time. We recommend to investors who wish to obtain further information on their tax status that they seek assistance from their tax advisor. The attention of the investor is drawn to the fact that the net asset value stated in this document (as the case may be) cannot be used as a basis for subscriptions and/or redemptions. The market information displayed in this document is based on data at a given moment and may change from time to time.




For investors in Switzerland This document has been provided by Lyxor International Asset Management that is solely responsible for its content. This document is not to be deemed distribution of funds in Switzerland according to the Swiss collective investment schemes act of 23 June 2006 (as amended from time to time, CISA) or any other applicable Swiss laws or regulations. This document is reserved and must be given in Switzerland exclusively to Qualified Investors as defined by the Swiss Collective Investment Scheme Act of 23 June 2006 (as amended from time to time, CISA). The shares are not registered under the U.S Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States (including its territories or possessions) or to or for the benefit of a U.S Person (being a “United State Person” within the meaning of Regulation S under the Securities Act of 1933 of the United States, as amended, and/or any person not included in the definition of “Non-United States Person” within the meaning of Section 4.7 (a) (1) (iv) of the rules of the U.S. Commodity Futures Trading Commission.). No U.S federal or state securities commission has reviewed or approved this document and more generally any documents with respect to or in connection with the fund. Any representation to the contrary is a criminal offence. Past performance is no indication of current or future performance. The performance data do not take into account of the commissions and costs incurred on the issue and redemption of units. Financial intermediaries (including particularly, representatives of private banks or independent asset managers, Intermediaries) are hereby reminded on the strict regulatory requirements applicable under the CISA to any distribution of foreign collective investment schemes in Switzerland. It is each Intermediary’s sole responsibility to ensure that (i) all these requirements are put in place prior to any Intermediary distributing any of the Funds presented in this document and (ii) that otherwise, it does not take any action that could constitute distribution of collective investment schemes in Switzerland as defined in article 3 CISA and related regulation. Any information in this document is given only as of the date of this document and is not updated as of any date thereafter. This document is for information purposes only and does not constitute an offer, an invitation to make an offer, a solicitation or recommendation to invest in collective investment schemes. This document is not a prospectus as per article 652a or 1156 of the Swiss Code of Obligations, a listing prospectus according to the listing rules of the SIX Swiss Exchange or any other trading venue as defined by the Swiss Financial Market Infrastructure Act of 19 June 2015 (as amended from time to time, FMIA), a simplified prospectus, a key investor information document or a prospectus as defined in the CISA. An investment in collective investment schemes involves significant risks that are described in each prospectus or offering memorandum. Each potential investor should read the entire prospectus or offering memorandum and should carefully consider the risk warnings and disclosures before making an investment decision. Any benchmarks/indices cited in this document are provided for information purposes only. This document is not the result of a financial analysis and therefore is not subject to the “Directive on the Independence of Financial Research” of the Swiss Bankers Association. This document does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investments in financial products. Important information for German and Austrian Investors For professional investors - not suitable for private investors This publication is an advertising client information and is for informational purposes only and does not constitute an individual investment recommendation or an offer to buy or sell or trade securities or other financial instruments. This information does not meet all legal requirements for the impartiality of investment recommendations and is not subject to any prohibition of trading prior to publication. All sources of information have been classified as reliable and no guarantee is given for external sources of information. This elaboration alone does not replace individual investor- and investment-oriented advice. Before investing in the funds, the investor should seek independent financial, tax, legal and, where appropriate, accounting advice. As an investor, you should consider the risks you face with investing in ETFs. In particular, when subscripting and purchasing ETF shares, the investor should be aware that ETFs involve certain risks and that the repayment may be below the value of the capital used and that, at worst, a total loss may occur. A comprehensive description of the fund’s terms and conditions and associated risks can be found in the respective prospectus and the key investor information (KIID, in German), which, like the annual and semi-annual reports in paper form, available free of charge from Lyxor International Asset Management S.A.S. Deutschland (Lyxor Deutschland), Neue Mainzer Strasse 46-50, 60311 Frankfurt am Main, in Austria from Erste Bank der österreichischen Sparkassen AG, Am Belvedere 1, A-100 Vienna, who acts as paying agent and tax representative and under www.lyxoretf.com in English. The tax treatment depends on the individual circumstances of each investor and may change in the future. The current composition of the investment portfolio of the respective ETF can be found under www.lyxoretf.com. The indicative net asset value is published on the corresponding websites for the ETF product of Reuters and Bloomberg and, if applicable, also reported on the websites of the exchanges on which the product is listed. Professional advice should be sought before making an investment decision. The drafting is not intended for distribution to or use by persons or entities having the citizenship of a country or domicile dwell in a country or judicial district where the distribution, publication or use of such information is prohibited. Each investor is responsible for verifying that he/she is entitled to subscribe or investment in the respective ETFs. The fund is not registered under the United States Securities Act of 1933 or the United States Investment Company Act of 1940 and may not be registered, directly or indirectly, in the United States of America, including its territories and properties. or other jurisdictions under its jurisdiction or to or on the basis of any U.S. citizen. This document is confidential and may not be passed on or reproduced in whole or in part to third parties without the prior written permission of Lyxor Germany. This document is issued by Lyxor International Asset Management (LIAM), a French limited-liability company established on 12 June 1998 by the French Autorité des Marchés Financiers (“AMF”) as a management company. registered office in 17 Cours Valmy, Tour Société Générale, 92800 Puteaux, France and registered with the Registre de Commerce et des Sociétés in Nanterre. ©2020 Lyxor Asset Management. All rights reserved. As of August 2021.

August 2021 - lyxor.com

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