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Structured Investments
Formula Funds
Lyxor’s formula-based management is characterised by the fact that we make a firm commitment with respect to your capital depending on your risk/return profile. This commitment takes the form of a formula.
Always a pioneer, Lyxor offers one of the widest ranges of formula funds on the market. With innovative funds and diversified underlying assets, Lyxor’s structured solutions harness our asset management experience and the expertise of the Cross Asset Solutions teams of SG CIB, world leader in structured products. With over 10 years of success and innovation in this sector, we have frequently won recognition from the finance industry.
Two types of formula funds
Our structured management solutions allow us to tailor the investment strategy to suit the client. By setting a few parameters, investors can define the market in which they want to invest. Lyxor offers a wealth of strategies to choose from, together with the widest range of formula funds on the market:
Formula-based directional funds: performance is directly linked to growth in the underlying asset. These products perform in a growth market.
Formula-based non-directional funds: the performance potential of these products, decided in advance, is subject to the fulfilment of one or more conditions.
These solutions have the advantage of predefining the performance level in a large number of market scenarios (particularly in erratic markets with no clear trend). In return, the investor surrenders any profit above the predefined performance target.
Some of our funds combine both of these characteristics: the potential is accompanied by the possibility of a directional gain, which enables investors to benefit from a bull market (mixed funds).
Our strengths
Why choose Lyxor formula-based management?
A source of enhanced diversification due to the range of market scenarios covered by the proposed strategies:
Expertise in structuring, thereby optimising the accounting and legal constraints for each category of investor in countries in which these funds are offered;
Significant flexibility so as to be able to accommodate very specific risk/return profiles: integration from the outset of the constraints specific to each investor in countries in which these funds are offered. Tailored redemption strategy;
Innovative formulas and underlying assets resulting from Lyxor’s quantitative and macroeconomic research;
A possible source of protection against the volatility of risky assets;
Add a point about experience, teams (number, quality) and their reputation.
Example of a formula fund
Below is an example of a fund with a 100% capital guarantee at maturity.
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