Lyxor launches gold ETN

Lyxor Asset Management, a wholly owned subsidiary of Société Générale (SG) has launched its first exchange-traded note (ETN), the Lyxor ETN Long Gold, which is listed on the London Stock Exchange (LSE). The note is designed to track, in real time, the performance of the gold spot price quoted in US dollars per troy ounce.

Lyxor ETNs are secured notes guaranteed by SG and 100% collateralised with Standard & Poor's AAAf-rated euro government bond funds or government bonds from the Euro zone. An SG special purpose vehicle in Luxembourg, Codeis, is used to collateralise the notes. The collateral is completely ring-fenced. The note, which is eligible for capital gains tax treatment in the UK, has a fixed annual fee of 0.30% while a variable annualised cost is also incurred to finance the collateral used in the