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21 May 2019

UK REPORTABLE INCOME INFORMATION Lyxor Stoxx Europe 600 Personal & Household Goods UCITS ETF

Lyxor Stoxx Europe 600 Personal & Household Goods UCITS ETF A-EUR FR0010344978
Transparent Fund Regime
The above listed funds are French Fonds Commun de Placement (‘FCP’) managed by Lyxor International Asset Management. An
FCP is treated as transparent for income tax purposes and opaque for capital gains tax purposes on UK investors. Specifically, the
income returns of the funds are taxed directly on the investors as the income arises to the FCP as the investors are deemed to hold
the underlying investments directly by themselves, whereas capital returns are deferred until the fund units are disposed of by the
In the UK there is no absolute requirement for an FCP to obtain RFS, however if the fund does not meet certain conditions then
investors of the FCP will be subject to the higher income tax rates rather than the capital gains tax (‘CGT’) rate on gains realised
from disposal of their interests in the FCP. To obtain the preferential CGT treatment, an FCP without RFS must comply with both of
the following requirements:
• The FCP does not hold more than 5% of its net assets in other non-reporting funds; and
• Sufficient information is provided to investors to enable them to satisfy their UK tax obligations.
The statements relate to investors who are UK resident or ordinarily resident for UK tax purposes, who are the beneficial owners of
their unit classes and who hold their unit classes as an investment (as opposed to on trading account). The statements are based on
current law and the published practice of Her Majesty’s Revenue and Customs (“HMRC”).
Offshore Funds Regime
All unit classes set out above meet the definition of an offshore fund as laid out in the relevant UK tax legislation. Accordingly, UK
investors should be aware of the following:
Reporting Fund Status (“RFS”)
The Taxation (International and Other Provisions) Act 2010 and the Offshore Funds (Tax) Regulations (SI 2009/3001) (the “new
regime”) provide that, unless a fund is approved by HMRC as a “reporting fund”, any gains arising to unit holders resident or
ordinarily resident in the UK on sale, redemption or other disposal of units (including deemed disposal on death) will be taxed as
offshore income rather than capital gains.
The unit class set out above has been accepted as a reporting fund with effect from 1 July 2011. It is our intention that this unit class
will maintain its qualification as a reporting fund in order for UK investors to enjoy the typically more advantageous tax treatment of
capital gains.