EUROPE - Standard & Poor's (S&P) and Crédit Lyonnais Asset Management (CLAM), a subsidiary of Crédit Lyonnais Group, have formed an alliance under which CLAM will distribute exchange traded funds (ETF) in Europe.
The funds, Standard & Poor’s Depositary Receipts (SPDR), will be indexed on and track the S&P Europe 350 and S&P Euro indices and their sub-components for geographical, sectors and styles indices.
Under this agreement and before year-end, CLAM plans to introduce its first two SPDRs on NextTrack, the ETF market segment on Euronext. These introductions are subject to regulatory and market approval.
The European SPDRs will be aimed at institutional investors, many of whom are currently users of other SPDR family products as trading and investment tools, as well as to retail investors.
AIB/Bank of New York will act as European SPDR administrator and custodian, while Crédit Lyonnais Securities and Morgan Stanley are considering making a market, subject to regulatory approval and conclusion of satisfactory agreements.
CLAM and S&P will leverage on the international brand recognition of the SPDR name, as the pre-eminent ETF brand world-wide, for developing Europe’s market potential.
By Janet Du Chenne
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