26 Jul 2019
Dear Unit-holder,
According to our records you hold units in the FCP fund Lyxor NEW ENERGY UCITS ETF (hereinafter the “Absorbed Fund”).
In order to provide investors with an investment vehicle that offers a corporate governance structure, it was decided, at the request of Lyxor International Asset Management (hereinafter “LIAM”), to merge the Absorbed Fund into Lyxor NEW ENERGY UCITS ETF (hereinafter the “Absorbing Sub-fund”), which is a sub-fund of MULTI UNITS FRANCE (MUF), a French SICAV fund.
As a result of this merger through absorption the Absorbing Sub-fund will receive all of the Absorbed Fund’s assets.
When this merger is completed, the Absorbed Fund’s unit-holders will be shareholders of the MULTI UNITS FRANCE fund.
1. The merger
This merger through absorption will not modify the investment strategy nor the ISIN code for unit-holders in the Absorbed Fund.
The investment and benchmark replication methods of the Absorbed fund and the Absorbing Sub-fund are in effect identical, since the investment strategy for both is to achieve the highest possible correlation with the benchmark index’s performance by implementing a direct replication method, which means that the Absorbing Sub-fund may enter into one or more over-the-counter swap agreements to enable it to achieve its investment objective.
The tracking error objective between the Absorbed Fund’s performance and that of its Benchmark Index under normal market conditions is 0.3%. The tracking error objective between the Absorbing Sub-fund’s performance and that of its Benchmark Index under normal market conditions will be 0.3%.
All other characteristics of the Absorbed Fund and the Absorbing Sub-fund are also identical, including the investment policy and strategy, the typical investor profile, the risk profile, the frequency of net asset value calculation, trading days, the accounting currency, the requirements for submitting subscription and redemption orders, share/unit category characteristics, fees and expenses and the method used to determine the overall risk exposure.
This merger by absorption was approved by the French financial markets authority, l’Autorité des marchés financiers (AMF), on 3rd July 2019.
The Absorbed Fund is an undertaking for the collective investment in transferable securities (hereinafter “UCITS”) that is classified as a “Global equities” fund. It was approved by the AMF on 2 October 2007 and was established on 10 October 2011. LIAM is the Absorbed Fund’s management company and Société Générale is its depositary.
LYXOR INTERNATIONAL ASSET MANAGEMENT
Tours Société Générale - 17 cours Valmy
92987 Paris - La Défense Cedex - France
www.lyxor.com
Lyxor International Asset Management - a French simplified joint stock company (société par actions simplifiée or “SAS”) with issued capital of 1,059,696 euros - Registered in Nanterre under No.
419 223 375 - Head Office: Tour Société Générale, 17 cours Valmy, 92800 Puteaux
The Absorbing Sub-fund is a UCITS that was approved by the AMF on 3rd July 2019 and will be launched on the Merger Date, which is defined below. LIAM is the Absorbing Sub-fund’s delegated asset manager and Société Générale is its depositary.
Unless you decide otherwise, your units of the Absorbed Fund will be automatically merged into the Absorbing Sub-fund on 5 September 2019 (the “Merger Date”).
During a period of 30 calendar days after the date this letter is posted, primary market investors (i.e. who subscribe for and redeem shares directly with LIAM) may redeem their units from LIAM and/or the depository without having to pay a redemption fee, provided that they comply with the minimum redemption requirements specified in the prospectus of the Absorbed Fund.
As always, LIAM will of course charge no subscription or redemption fee on the purchase or sale of the Absorbed Fund’s units on any exchange where they are listed (i.e. in the secondary market).
Pour information : Please note that in order to ocomplete this merger through absorption as smoothly as possible, the subscription and redemption of the Absorbed Fund’s units on the primary market will be suspended on 30 August 2019 after 6.30 p.m (Paris time). However, it should be noted that the Absorbed Fund’s units may be purchased and sold on the secondary market up until the Merger Date.
Lastly, for operational reasons, subscriptions and redemptions of the Absorbing Sub-fund’s shares on the primary market will not be processed on the first business day after the Merger.
2. What will the merger change?
This merger by absorption will not modify the risk profile for unit-holders in the Absorbed Fund.
Will the risk-return profile be altered? NO
Will the risk-return profile be increased? NO
Will there be an increase in costs? NO
As indicated in section 1 above (“The merger”), the only impact the merger will have on unit/shareholders will be the fund’s conversion from a contract-based entity (the FCP fund) to a corporate entity (the SICAV fund).
The Absorbing Sub-fund will be eligible for French PEA equity savings plans.
You will find the merger procedure calendar in Schedule 1, information on the exchange of units in Schedule 2, and a comparison between the characteristics of the Absorbed Fund and the Absorbing Sub-fund in Schedule 3.
3. Key points for investors
LIAM informs investors that if an Absorbed Fund unit class is listed on an exchange, the corresponding Absorbing Sub-fund unit class is or will be listed on the same exchange.
Unlike an FCP, whose unit-holders enjoy none of the rights of shareholders, a SICAV open-ended investment company can issue shares in response to investor demand. Upon completion of this merger you will therefore become a shareholder of the MULTI UNITS FRANCE SICAV and will be entitled to express your opinion at annual and extraordinary shareholder meetings.
Investors should also note that the merger by absorption may affect their personal tax situation since the Absorbed Fund is an FCP common fund and was therefore formed under contract law (whereas the Absorbing Sub-fund is a SICAV open-ended investment company), and as a result of the merger itself. Investors are therefore invited to consult with their usual advisor as to the possible consequences the merger by absorption may have on their personal situation.
LIAM recommends that investors carefully read the "Risk Profile" section of the Absorbing Sub-fund's prospectus and the "Risk and Return Profile" section of its Key Information for Investors Document (KIID). The KIID and the prospectus are both available in French and free of charge at www.lyxoretf.com or from client-services-etf@lyxor.com.
LYXOR INTERNATIONAL ASSET MANAGEMENT
Tours Société Générale - 17 cours Valmy
92987 Paris - La Défense Cedex - France
www.lyxor.com
Lyxor International Asset Management - a French simplified joint stock company (société par actions simplifiée or “SAS”) with issued capital of 1,059,696 euros - Registered in Nanterre under No.
419 223 375 - Head Office: Tour Société Générale, 17 cours Valmy, 92800 Puteaux
The management company will provide unit-holders, upon request, with (i) additional information on the merger, (ii) a copy of the independent auditor’s report, (iii) a copy of the depository's report and (iv) a copy of the merger agreement.
Should you require any further information, we recommend that you contact your advisor.
• If you are not happy with the change in your fund, you may sell your investment free of charge.
• If you are satisfied with the change in your fund, you don't have to do anything.
• If you feel you need advice, you may consult with your advisor or distributor.
We thank you for your trust and loyalty.
Yours faithfully
The Chairman
