Lyxor Bund Future Daily (-1x) Inverse UCITS ETF

Objectives and investment policy The Sub-Fund is a passively managed, index-tracking UCITS. The Sub-Fund tracks the Solactive Bund Daily (-1x) Inverse Index (ISIN DE000SLA8QS4) (the Sub-Fund’s “Index”) as the benchmark index and its investment objective is to provide shareholders with a return that is tied to the performance of the Sub-Fund’s Index. The Index tracks the performance of a hypothetical fixed-income investment in the underlying bond futures, with the investment rolling from one contract to the next taking a liquidity position and transaction costs into account. The Solactive Bund Daily (-1x) Inverse Index is tied to the performance of the Euro-Bund Future (Reuters code: FGBLc1) and reflects the performance of an investment with a short position in the Euro-Bund Future plus consideration of a liquidity position and transaction costs. Information on the strategy is available at www.cb-index.de. The Sub-Fund seeks to attain the investment objective via indirect replication, in that it will acquire transferable securities and will also employ derivative techniques to compensate for any difference in performance between those securities acquired by the Sub-Fund and the Index to be tracked. For example, the Sub-Fund will enter into swap agreements with one or more counterparties, Which firstly neutralise the performance of the Securities Basket through the swap in exchange for an agreed money market rate and secondly link the Sub-Fund’s assets to the performance of the Index in exchange for payment of an agreed money market rate. Alternatively, however, corresponding forward contracts or total return swaps may also be entered into, with the same economic objective of aligning the performance of the Sub-Fund’s assets with that of the Index. The total exposure of the Sub-Fund to total return swaps is not expected to exceed 100% of the net asset value. This threshold may be exceeded in certain circumstances. In order to maintain exposure, the positions in futures contracts need to be “rolled over”: the rolling over of futures contracts involves transferring futures contracts that are close to becoming due (and in all cases before they fall due) into futures contracts with a longer maturity. Shareholders are subject to a risk of losses due to the process of rolling over the futures contracts. Securities lending transactions may be concluded for the Sub-Fund. The indicative net asset value is published on the website www.boerse-frankfurt.de/etf as well as on the websites of other financial data providers (e.g. Bloomberg, Reuters, Telekurs). The indicative net asset value may also be published on other websites. The Sub-Fund’s units may be redeemed at their net asset value (NAV) on any bank business day or traded at their current market price on an exchange or over the counter. The Management Company may suspend redemption if exceptional circumstances make this necessary when taking investors’ interests into account. The base currency of the Sub-Fund is the euro. The Sub-Fund is a distributing fund, i.e. any dividends and other income can be distributed.