The fund is quoted on the Structured Funds compartment of Euronext’s NextTrack segment.
Allowing investors to gain exposure to the index through a simple ETF with a lower risk profile, the product combines real time trading and the transparency of an ETF, with the advantages of a UCITS III fund.
Based on equity holdings rather than derivatives, it can be used by institutional investors to outsource the risk management of their exposure to European equity markets. This structured ETF is also intended for retail investors interested in exposure to the Dow Jones EURO STOXX 50® whilst profiting from capital protection.
In case of a market decline, exposure to the index is adjusted to less than 100%, the difference being transferred into a money market placement until the markets rebound.
The portfolio insurance method guarantees a partial capital protection of 80% of the net asset value of the ETF on 31st of December of the preceding year.
Every quarter, SGAM Alternative Investments’ analysts and fund managers examine the market in detail and anticipate future trends in order to determine the optimal participation in the index performance. Thus, during stable or bullish up markets, the exposure to the index can reach its maximum of 100%. If the market declines, investors will be under-exposed to the market with the aim of maximizing the partial capital protection.
Dow Jones EURO STOXX 50® is the most traded index on NextTrack, Euronext’s segment dedicated to trackers and Structured Funds.. Launched in 1998, the Dow Jones EURO STOXX 50® is composed of the
fifty most important stocks of the Eurozone ranked by free float market capitalisation.
SGAM structured exchange-traded funds combine the benefits of structured management with the transparency of continuously quoted ETFs. Based on an actively managed exposure to the index, they
provide either a cushion (i.e. partial capital protection) or leverage, depending on their “Flexible” or “Leveraged” profile.
