Industry Updates

Amundi switches semiconductor ETF to physical replication

CHIP will be eligible to undertake securities lending

Theo Andrew

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Amundi is switching the replication method on its semiconductor ETF from synthetic to physical as it looks to open the ETF up to securities lending.

In a shareholder notice, Amundi said the Lyxor MSCI Semiconductor ESG Filtered UCITS ETF (CHIP) will be renamed the Amundi MSCI Semiconductors ESG Screen UCITS ETF as well as switching replication from 21 June.

The ETF, which tracks the MSCI ACWI Semiconductors and Semiconductor Equipment ESG Filtered index, currently has €38.2m assets under management (AUM) and has returned 29.8% this year, as at 26 May.

Following the change, Amundi said CHIP will be able to enter securities lending transactions on up to 45% of its net assets.

“Following the switch, the ETF will be allowed to use investment techniques as specified the prospectus. In particular, the ETF will be allowed to enter into securities lending transactions for an expected exposure of 15% of its net assets with a maximum exposure of 45% of its net assets,” it said.

“Furthermore, the sub-fund will no longer be allowed to use total return swaps.”

Europe’s largest asset manager said the total expense ratio (TER) will remain unchanged at 0.45%.

Earlier this month, Amundi said it was streamlining its fixed income range by merging two Lyxor floating rate bond ETFs and then combining it with two of its euro-denominated bond ETFs.

The French asset manager has undertaken a string of product mergers since it acquired Lyxor from Société Générale last January.

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