Industry Updates

Amundi continues Lyxor range merge with synthetic emerging markets ETF

AEEM will house €3.8bn in assets under management following the merge

Theo Andrew


Amundi is merging the synthetic emerging market Lyxor ETF into its own strategy as it continues to seek “economies of scale” following the acquisition of its French rival in January.

Effective 19 December, the Lyxor MSCI Emerging Markets UCITS ETF (E123) will be absorbed into the Amundi MSCI Emerging Markets II UCITS ETF (AEEM), Amundi said in a shareholder notice.

The total expense ratios (TERs) are the same for both ETFs and will remain at 0.14%.

E123 will cease trading on the primary market on 13 December, with the stock exchanges to follow three days later.

The €2.8bn AEEM ETF will see its assets under management grow to €3.7bn following the merger.

The latest changes come following several others, all of which have taken on the Amundi branding.

The €121m Lyxor Core Euro Government Bond UCITS ETF (CMTX) and the €18m Lyxor EuroMTS Covered Bond Aggregate UCITS ETF (ECB) were absorbed by the €1bn Amundi Prime Euro Govies UCITS ETF (PR1R) and the €106m Amundi Euro Corp 0-1Y ESG UCITS ETF (ECR1), respectively on 18 November.

Meanwhile, the Lyxor STOXX Europe 600 Real Estate UCITS ETF (MEH) was merged with the Amundi FTSE Epra Europe Real Estate UCITS ETF (EPRE).

At the time, an Amundi spokesperson said the mergers were to achieve larger fund sizes to reach economies of scale.

Europe’s largest asset manager said it is continually reviewing its product range while decisions were also driven by client demand.

In October, Amundi merged two Lyxor ETFs with its Paris-aligned equivalents last month as it looks to meet its target of 40% ESG ETFs within its range by 2025.

Amundi’s €825m acquisition of Lyxor mean it had a product range of over 300 ETFs in Europe and a 14% market share, second only to BlackRock.

In May, the French giant started domiciling new ETFs in Ireland to benefit from an efficient Irish tax regime including ETFs being treated as tax neutral like other fund structures regulated in Ireland.

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