The Rise of the Robots - Lyxor... · & AI ETF Setting a megatrend 4 Think big, think different 5...

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Future-proof your portfolio

The Rise of the Robots

DiversifyFebruary 2020

Lyxor’s Diversifiers | Investing in Robotics and Artificial Intelligence

Lyxor’s Robotics & AI ETF

Setting a megatrend 4

Think big, think different 5

Creating an investment universe 7

Evolution and revolution 8

Building an index 9

Do diversify, don’t dilute 10

Future-proof your portfolio 13

This research contains the views, opinions and recommendations of Lyxor International Asset Management (“LIAM”) Cross Asset and ETF research analysts and/or strategists. To the extent that this research contains trade ideas based on macro views of economic market conditions or relative value, it may differ from the fundamental Cross Asset and ETF Research opinions and recommendations contained in Cross Asset and ETF Research sector or company research reports and from the views and opinions of other departments of LIAM and its affiliates. Lyxor Cross Asset and ETF research analysts and/or strategists routinely consult with LIAM sales and portfolio management personnel regarding market information including, but not limited to, pricing, spread levels and trading activity of ETFs tracking equity, fixed income and commodity indices. Trading desks may trade, or have traded, as principal on the basis of the research analyst(s) views and reports. Lyxor has mandatory research policies and procedures that are reasonably designed to (i) ensure that purported facts in research reports are based on reliable information and (ii) to prevent improper selective or tiered dissemination of research reports. In addition, research analysts receive compensation based, in part, on the quality and accuracy of their analysis, client feedback, competitive factors and LIAM’s total revenues including revenues from management fees and investment advisory fees and distribution fees.

Lyxor’s Diversifiers – Investing in Robotics and Artificial Intelligence

3

The best investment solutions address the biggest problems.

The development and increasingly widespread use of robotics and artificial intelligence (AI) is a vast, society-shifting trend, capable of addressing climate change, productivity and food shortages; and of job creation and destruction on a massive scale. It’s undoubtedly the next economic revolution – and it’s nearer than you might think.

Our ETF tracks the Rise of the Robots Index, a strategy we believe better captures the benefits of this revolution than other like-for-like products* which combine robotics and AI investing in Europe. The benefits of AI are stretching beyond familiar places like manufacturing and technology, and our unique product was specifically designed with this in mind.

François MilletHead of Strategy, ESG and Innovation Lyxor ETF

It’s undoubtedly the next economic revolution – and it’s nearer than you might think

*The peer products chosen are based on similar robotics, automation and AI ETFs available in Europe. By “like-for-like”, we refer to indices that target companies in the fields of both AI and Robotics & Automation.


Now, more than ever, investors need to be alert to the influence of AI, its power to disrupt and its potential for long-term returns.

And, with mainstream AI revenue growth still in its relative infancy, the question is how best to harness this megatrend.

AI is a first-mover advantage market where pioneers will gain most of the profits, and followers will share the leftovers. However, pinning it down to a single company or group of companies isn’t easy. AI pioneers may also have many other strands to their business, while areas such as robotics may be overly-concentrated in certain countries.

Achieving targeted exposure to AI and robotics – both the companies involved in its creation and those benefiting from it – while maintaining sufficient diversification is difficult but, in our view, more rewarding, than singular exposures to either area.

Setting a megatrend

Keeping you on the right side of change

For illustrative purposes only. This is not a recommendation.

CoreBroad exposure to

companies may include ‘robo laggards’ at risk

of obsolescence

SatelliteAccess ‘robo leaders’ –

companies using AI to improve business

models and profitability

... etc

... etc

... etc

Boost productivity

Reduce time to market

Speed up medical break-

throughs

Improve customer

experience

Serve new classes of consumer

Adapt to ageing

population/ decreasing workforce

Use resources more efficiently

5

To date, the large global technology companies have had the deepest resources to invest in the development of AI and are among its most successful proponents.

For example, Amazon has invested significantly in a bid to make its warehouses as efficient as possible. It has created robots equipped with 3D vision able to recognise, choose and manipulate boxes of different sizes and in different locations on the shelves. Big Tech companies have also been first-movers in using AI in the cloud.

The tech titans have also been increasingly active in buying smaller technology start-ups. A lot of innovation is happening at the smaller, nimbler end of the market and those companies are commanding an increasingly high price because none of the titans can afford to become obsolete. We wanted to create an investment option that would capture this entrepreneurial energy and this growth as well the main AI movers to date.

Think big, think different

1Source: PWC, ‘Sizing the prize – What’s the real value of AI for your business and how can you capitalise?’, 20172Source: SG Cross Asset Research/Thematic, The Boston Consulting Group.3Source: McKinsey Global Institute, June 2017.

Did you know?

$15.7tn $20-30bn16%

Potential contribution to the global economy by

2030 from AI1

Average global estimated labour cost savings from robot adoption by 20252

Amount spent on AI by tech giants in 2016, including

R&D and AI acquisitions3


For all that, there’s plenty of growth outside of the traditional areas of IT and industrials if you’re prepared to seek it out. As the products already on the market have shown, it is possible to become too concentrated in certain sectors or geographic regions when investing in AI.

Most technology companies are based in the US or Asia, while the majority of robotics companies are based in Japan. North America is ahead, with 60% of all companies working on AI. However, we believe including those companies that are benefiting from AI as well as those innovating in AI gives a broader sector and geographic spread of investments.

The Lyxor Rise of the Robots Index provides targeted exposure to those companies where AI is a key part of their development strategy and will drive revenue and profitability into the future across a range of sectors and geographic regions.

Source: SG Cross Asset Research/Thematic. For illustrative purposes only. This is not a recommendation.

25%60% 15%

Where AI companies are found

7

During the design process, our expert index builders in the SG Thematic Research team were confronted with three main constraints:

► How to define a consistent universe which truly captured the development and spread of AI, without ignoring the benefits hardware and robotics can bring

► How to ensure the index would select stocks from as complete a universe as possible

► How to ensure it could systematically select companies from within that universe in order to really capture the investment benefits of the AI megatrend

In doing so, they came to the conclusion that a new, bespoke industry classification was required. Older definitions were already in danger of becoming obsolete and wouldn’t, as we’ve alluded to above, allow us to fully exploit the investment opportunity.

So they started with 1,400 companies across the three main sectors benefiting from AI – healthcare, information technology and industrials. Our big data analysis scanned for the most relevant companies within those sectors, narrowing down the universe to around 230 stocks.1 So far, so conventional.

How we define the starting universe

Creating an investment universe

1As at February 2020.

3 main sectors~1,400 companies

identified1

Big data analysisScans for most

relevant companies

Human touchQuality control by SG’s

Thematic Research team and renowned futurist and AI specialist, Martin Ford

(occurs annually)

Exceptions from other

sectors added

Information Technology

HealthcareHealthcare Equipment

& Supplies, Life Sciences Tools

& Services

IndustrialsAerospace &

Defence, Electrical Equipment, Industrial

Conglomerates, Machinery

e.g. Amazon, Spotify,

Man Group...Starting universe

228 stocks1


1Martin Ford is a futurist focusing on the impact of artificial intelligence and robotics on society and the economy. He is author of the book “Rise of the Robots: Technology and the Threat of a Jobless Future”, and acts as a consultant to Société Générale, the index designer.2As at February 2020.*By “like-for-like”, we refer to indices that target companies in the fields of both AI and Robotics & Automation.

Some products on the market stop there but the SG team believed big data and machine-learning only get you so far, so they added over 20 exceptional companies in the field from other industries, such as financial services or retail.

And, because the best technologies require both man and machine, they then consulted renowned futurist and author Martin Ford1 on the list the data process had delivered. After all, even the most sophisticated data mining algorithms can be deceived. Martin’s role was advisory – he helped determine which were the most relevant companies in the selection, highlighted any exceptions and provided suggestions for additional entries. The result of this work was a starting universe of 228 eligible companies.2

Industry expertise ensures this ETF won’t get left behind

This gives us a list but makes no judgement on the strength or performance of these individual companies. For that, we still need systematic rules. It is a larger investment universe than some like-for-like products* which focus only on companies involved in the development of AI and Robotics, rather than those that benefit from them.

The classification gets reviewed annually by the SG Thematic Research team and by Martin, ensuring that it stays fully relevant and picks up the latest trends. We believe this reduces the risk of obsolescence as technologies change and yesterday’s start ups become tomorrow’s titans. Every year there will be new potential entrants (or deletions), so a quality control process is vital. The human touch should help the universe – and by extension, the final index – identify the right stories, rather than every story.

Evolution and revolution

A human touch ensures... ... a dynamic and evolving universe

9

Building an index

1As at February 2020.*By like-for-like, we refer to indices that target companies in the fields of both AI and Robotics & Automation.

In narrowing down this universe to an investable index, we sought to find those companies benefiting most from AI, where AI is or is becoming a main business driver.

To do this, we systematically score each stock based on:

1. R&D expenditure on net sales

2. Return on invested capital

3. 3-year sales growth

In so doing, we give plenty of weight to start-ups, rather than simply focusing on big tech. In fact, SMEs represent over 50% of the Index (so you hold more SMEs than you would in like-for-like* indices because we have at least half as many constituents again), with the smallest market capitalisation at $500m.1 We also include those companies that may have missed the first wave but are making acquisitions to leverage the potential of AI and Robotics for their core business or to catch up with peers.

Across the board, we want to invest in companies that have demonstrated the ability to deliver real results and to identify companies with growing businesses. The result is a portfolio of 150 robust businesses capable, in our eyes, of giving investors exposure to the full impact of AI on business and consumers.

How the index works

►Stocks weighted according to their Z-scores

►Rules-based and process-driven

►Rebalanced quarterly, reviewed annually

Systematic approach, with stocks scored for...

ADV filter

R&D expenditure

on net sales

Return on invested capital

3-year sales

growth

Z-scoring

Rise of the Robots Index

Top 150 stocks

Starting universe

228 stocks1

The team behind the index

The SG Thematic Research Team has extensive experience in creating investable equity indices on themes ranging from ageing population (World Silver Economy Index) to companies with leading positions in their respective businesses (World Champions Index). In designing the Rise of the Robots Index, the team developed a proprietary systematic algorithm that tracks developing trends in AI.


The index is more diversified than other like-for-like* blended indices both in terms of number of components (150 vs. c90-100)1 and its industry/sector exposures. It won’t hold more stocks as it risks diluting its ability to capture the theme. And, by definition, it is more diverse than products focusing solely on either AI or Robotics.

While most of it is concentrated on Information Technology, Industrials and Health Care, it also includes a number of other sectors. For example, Expedia (Consumer Discretionary), Man Group (Financials) and Netflix (Communication Services) are all in the index, plus more unusual names such as Chinese speech and language recognition specialist iFlytek. We have also added online retail giants like Amazon and Alibaba so we can capture AI’s impact on consumers.

Do diversify, don’t dilute

More stock diversification than like-for-like products1


iSTOXX FactSet Automation & Robotics Index

ROBO Global Robotics and Automation UCITS Index

STOXX AI Global Artificial

Intelligence ADTV5 Index

Nasdaq Yewno Global AI and Big Data Index

Robotics & Automation?

AI & big data?

# stocks 150 133 90 266 100

% large caps 71.9% 42.5% 51.2% 80.9% 69.0%

% mid caps 13.2% 24.5% 21.3% 11.0% 19.9%

% small caps 14.9% 32.8% 27.5% 8.1% 11.1%

Comparing index holdings1

1Source: Lyxor International Asset Management. Data as at 10/02/2020. The peer indices chosen are based on similar robotics, automation and AI ETFs available in Europe. *By “like-for-like”, we refer to indices that target companies in the fields of both AI and Robotics & Automation.


Company %

Datadog Inc 1.01%

Atlassian Corp PLC 0.94%

Intuit Inc 0.93%

Twilio Inc 0.93%

Adyen NV 0.92%

Cadence Design Systems Inc 0.89%

Dropbox Inc 0.89%

Smartsheet Inc 0.89%

Workday Inc 0.89%

Dynatrace Inc 0.88%

Total top 10 9.17%

iSTOXX FactSet Automation & Robotics

Index

Company %

Lasertec Corp 1.81%

Ping An Healthcare and

Technology1.51%

Advantest Corp 1.36%

Cloudera Inc 1.26%

ASMedia Technology Inc 1.22%

Inphi Corp 1.18%

NVIDIA Corp 1.09%

LINE Corp 1.12%

Advanced Micro Devices Inc 1.07%

Apple Inc 1.07%

Total top 10 12.74%

ROBO Global Robotics and Automation

UCITS Index

Company %

Blue Prism Group plc 2.54%

NVIDIA Corp 1.96%

iRobot Corp 1.81%

Hiwin Technologies Corp 1.79%

Krones AG 1.75%

AeroVironment Inc 1.73%

Harmonic Drive Systems Inc 1.69%

Daifuku Co Ltd 1.66%

Kardex AG 1.65%

Rockwell Automation Incl 1.63%

Total top 10 18.21%

STOXX AI Global Artificial Intelligence

ADTV5 Index

Company %

Tesla Inc 1.08%

Fitbit Inc 0.61%

Advanced Micro Devices Inc 0.60%

DexCom Inc 0.58%

Zillow Group Inc 0.55%

Zillow Group Inc 0.55%

Fortinet Inc 0.54%

Sophos Group PLC 0.54%

Fujitsu Ltd 0.52%

STMicroelectronics NV 0.52%

Total top 10 6.07%

Nasdaq Yewno Global AI and Big Data

Index

Company %

Unisys Corp 1.32%

Uber Technologies Inc 1.31%

Ingenico Group SA 1.30%

MongoDB Inc 1.23%

Nuance

Communications Inc1.23%

Synaptics Inc 1.22%

Groupon Inc 1.19%

Fujitsu Ltd 1.18%

Microsoft Corp 1.16%

NetScout Systems Inc 1.14%

Total top 10 12.28%

While there is some overlap with its peers, the Rise of the Robots index

has many unique holdings.

11

1Source: Lyxor International Asset Management. Data as at 10/02/2020. The peer indices chosen are based on similar robotics, automation and AI ETFs available in Europe. 2Source: Lyxor International Asset Management, Bloomberg. 5yr data is backtested, as at 10/02/2020. Lyxor Robotics & AI UCITS ETF launched 20/06/2018. The peer indices chosen are based on similar robotics, automation and AI ETFs available in Europe. Past performance is not a reliable indicator of future results. Nasdaq Yewno Global AI and Big Data Index first data available is 12/11/2018. *By “like-for-like”, we refer to indices that target companies in the fields of both AI and Robotics & Automation.

More of a good thing1

In our view, a well-balanced exposure to robotics and AI can help future-proof your portfolio because the application of AI offers greater return potential than traditional robotics alone. Our index is weighted more towards AI leaders (notably in the US and China) and less towards robotics manufacturers (Japan and South Korea) than other like-for-like* products, but we don’t ignore the benefits of an exposure to robotics. After all, it is still a key growth engine.

We believe the Rise of the Robots Index provides targeted but diversified access to this exciting megatrend, allowing you to capture the influence of robotics and AI on companies across the globe.

Does it work?2

Geographical breakdown1 Sector breakdown1

5yr performance - Rise of the Robots index vs. peers

Feb-201570

190

170

150

130

110

90

230

210

Aug-2015

Feb-2016

Aug-2016

Feb-2018

Aug-2018

Feb-2019

Aug-2019

Feb-2020

250

Feb-2017

Aug-2017

Rise of the Robots iSTOXX FactSet Automation & Robotics ROBO Global Robotics and Automation

STOXX AI Global Artificial Intelligence ADTV5 Nasdaq Yewno Global AI and Big Data

70%

60%

20%

0%

40%

US

Japa

n

Chin

a UK

Taiw

an

Othe

r

Neth

erla

nds

10%

30%

50%

Fran

ce

Germ

any

Rise of the Robots


ROBO Global Robotics and Automation UCITS

STOXX AI Global Artificial Intelligence ADTV5Nasdaq Yewno Global AI and Big Data

Rise Of The Robots iSTOXX FactSet Automation & Robotics

ROBO Global Robotics and Automation Nasdaq Yewno Global AI and Big Data

STOXX AI Global Artificial Intelligence ADTV5

70%

60%

20%

0%

40%

US

Japa

n

Chin

a UK

Taiw

an

Othe

r

Neth

erla

nds

10%

30%

50%Fr

ance

Germ

any

Rise of the Robots


ROBO Global Robotics and Automation UCITS

STOXX AI Global Artificial Intelligence ADTV5Nasdaq Yewno Global AI and Big Data

Rise Of The Robots iSTOXX FactSet Automation & Robotics

ROBO Global Robotics and Automation Nasdaq Yewno Global AI and Big Data

STOXX AI Global Artificial Intelligence ADTV5

80%

60%

40%

20%

0%

Inf.

Tech

Cons

. Dis

c.

Heal

th C

are

Com

m. S

vcs

Indu

stria

ls

Othe

r

Fina

ncia

ls

Rise of the RobotsiSTOXX FactSet Automation & RoboticsROBO Global Robotics and Automation UCITSSTOXX AI Global Artificial Intelligence ADTV5Nasdaq Yewno Global AI and Big Data

Performance

ROBO Global Robotics and Autumation UCITS Index

iSTOXX FacSet

Automation & Robotics

Index

STOXX AI Global Artificial

Intelligence ADTV5 Index

Nasdaq Yewno Global

AI and Big Data Index


5Y 74.9% 78.6% 84.0% - 136.2%

4Y 113.6% 127.0% 111.2% - 170.5%

3Y 43.4% 53.7% 51.1% - 78.1%

2Y 6.5% 13.8% 24.5% - 30.7%

1Y 18.8% 22.6% 20.5% 17.5% 28.9%

6M 20.5% 18.9% 15.1% 16.4% 22.4%

3M 5.5% 5.3% 5.3% 8.1% 12.0%

1M 0.1% -0.7% 0.3% 0.9% 2.3%


Does it work?

Our ETF has fared well compared to active funds

Fund Name 2019 Performance (%)

Echiquier Robotics 46.0

Pictet - Robotics 38.5

Echiquier Fund - Echiquier Artificial Intelligence 37.8

AXA World Funds - Framlington Robotech 37.5

Lyxor Robotics & AI UCITS ETF 37.4

Natixis International Funds Lux I - Thematics AI and Robotics Fund 34.2

Artificial Intelligence Technology Fund 31.6

Credit Suisse Lux Robotics Equity Fund 29.5

Trecento Robotique 28.0

Eiger SICAV plc - Robotics Fund 24.2

FIM Artificial Intelligence 22.6

Robocap Ucits Fund 19.3

Comparing index holdings

Some overlap, but the Rise of the Robots has many unique holdings

There is a total of 237 stocks across the three indices

with some overlap, but the Rise of the

Robots has the highest number of

unique stocks

16 in Rise of the Robots and iSTOXX FactSet 11 in Rise of the Robots

and ROBO Global

60unique to

iSTOXX FactSet

46unique to Rise of the Robots

26unique to

ROBO Global

22 in all three

26in iSTOXX and ROBO

Source for all data: Lyxor International Asset Management. Data as at 10/02/2020. The two peer indices chosen are based on similar robotics and automation ETFs available in Europe. Past performance is not a reliable indicator of future results

13

1Source: Lyxor International Asset Management, as at 21/02/2020. TER correct as at 21/02/2020. Past performance is not a reliable indicator of future results.

Capture the megatrend with our Robotics and AI ETF

Embracing the AI and robotics revolution could help future-proof your portfolio. Our ETF gives you exposure to 150 companies harnessing the power of robotics and AI, whether for themselves or their customers.

Future-proof your portfolio

Five things to know

A note on investing in megatrends

This document is for informative purposes only, and should not be taken as investment advice. Lyxor ETF does not in any way endorse or promote the companies mentioned in this document.

BalancedThe blend of robotics and AI helps future-proof your portfolio

DiversifiedWe look beyond Industrials & IT to

better capture change

InnovativeAI Industry expertise

ensures our ETF won’t get left behind

Future-proofAlign your portfolio

with the technological megatrend

Low costCapture the Robotics

and AI theme for just 0.40%1

ETF name Bloomberg ticker Trading currencies Replication type AuM1 TER1

Lyxor Robotics & AI UCITS ETF ROAI EUR, USD, CHF Synthetic €157m 0.40%

► Megatrends take time to shape the world; your investment horizon should be long term

► At 150 stocks, the Rise of the Robots Index is more narrow than a traditional cap weighted global index

► As a result of this increased concentration, volatility may be higher


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 riskThe 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 riskWith synthetic ETFs, investors are exposed to risks resulting from the use of an OTC swap with Société Générale. In-line with UCITS guidelines, the exposure to Société Générale cannot exceed 10% of the total fund assets. Physically replicated ETFs may have counterparty risk if they use a securities lending programme.

Underlying riskThe Underlying index of a Lyxor ETF may be complex and volatile. For example, 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 riskETFs 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 Société Générale. 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.

Conflicts of interest:This research contains the views, opinions and recommendations of Lyxor International Asset Management (“LIAM”) Cross Asset and ETF research analysts and/or strategists. To the extent that this research contains trade ideas based on macro views of economic market conditions or relative value, it may differ from the fundamental Cross Asset and ETF Research opinions and recommendations contained in Cross Asset and ETF Research sector or company research reports and from the views and opinions of other departments of LIAM and its affiliates. Lyxor Cross Asset and ETF research analysts and/or strategists routinely consult with LIAM sales and portfolio management personnel regarding market information including, but not limited to, pricing, spread levels and trading activity of ETFs tracking equity, fixed income and commodity indices. Trading desks may trade, or have traded, as principal on the basis of the research analyst(s) views and reports. Lyxor has mandatory research policies and procedures that are reasonably designed to (i) ensure that purported facts in research reports are based on reliable information and (ii) to prevent improper selective or tiered dissemination of research reports. In addition, research analysts receive compensation based, in part, on the quality and accuracy of their analysis, client feedback, competitive factors and LIAM’s total revenues including revenues from management fees and investment advisory fees and distribution fees.

15

Important information 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. It 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 lyxoretf. 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 buying units and may receive less 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.

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The Rise of the Robots - Lyxor... · & AI ETF Setting a megatrend 4 Think big, think different 5...

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