Last checked at 6 Dec 2012 15:38
Paris, 6 December 2012
Dear Sir or Madam
You are one of our holders of shares in the subfund Lyxor ETF MSCI EMERGING MARKETS (GBP) (FR0010526780) in the Multi Units France SICAV fund. In a letter dated 5 November, we announced the merger-absorption of the subfund with the Lyxor ETF MSCI EMERGING MARKETS via the C-USD unit class (FR0010435297) on 17 December 2012.
This merger-absorption was approved by the French Financial Markets Authority (AMF) on 2 October 2012.
We remind you that, in order to carry out this merger-absorption, subscriptions and redemptions in Lyxor ETF MSCI EMERGING MARKETS will be suspended beginning 6 December 2012 after 6.30 p.m. and that this subfund will be suspended 10 December 2012 (inclusive) and delisted 19 December 2012 (inclusive).
We also remind you that, following this merger-absorption, you will no longer be exposed to currency risk (GBP/USD) incurred by the subfund Lyxor ETF MSCI EMERGING MARKETS (GBP), as the C-USD units of Lyxor ETF MSCI EMERGING MARKETS received will be denominated in the same currency as the benchmark index, i.e. in US Dollar (USD).
Nevertheless, depending on the listing currencies used on the market where you normally buy or sell units in, Lyxor ETF MSCI EMERGING MARKETS the currency in which you settle these buying/selling transactions may be different from the currency in which Lyxor ETF MSCI EMERGING MARKETS is denominated and, thus, expose you to a specific currency risk.
Exchange parity:
The exchange parity set today by the management company, Lyxor International Asset Management, is as follows:
1 shares in Lyxor ETF MSCI EMERGING MARKETS (GBP) for 1 C-USD unit in Lyxor ETF MSCI EMERGING MARKETS.
That means that on the day of the merger-absorption, i.e. 17 December 2012, each share in Lyxor ETF MSCI EMERGING MARKETS (GBP) that you own will be automatically exchanged for 1 C-USD unit in Lyxor ETF MSCI EMERGING MARKETS.
No subscription fee will be charged for this exchange.
This exchange will also come with a balancing cash payment that will be paid to you and will be calculated as follows:
Balancing cash payment = number of shares held x (VL1 - VL2)
Where:
VL1 = net asset value of Lyxor ETF BRAZIL (iBovespa) (GBP) dated 14 December 2012
VL2 = net asset value of the C-USD unit of Lyxor ETF MSCI EMERGING MARKETS dated 14 December 2012 expressed in GBP based on the WM Reuters GBP/USD exchange rate of the same date.
By way of illustration, if the merger of Lyxor ETF MSCI EMERGING MARKETS (GBP) with Lyxor ETF MSCI EMERGING MARKETS had occurred on 3 December 2012 and if you held, for example, 15 shares in the absorbed ETF (i.e. Lyxor ETF MSCI EMERGING MARKETS (GBP)), the calculation based on the net asset values of 30 November 2012 and the WM Reuters GBP/USD exchange rate of the same date would have been as follows:
- Number of shares held: 15
- Net Asset Value of the absorbed ETF at 30 November 2012: 6.6061 GBP
- Net Asset Value of the absorbing ETF at 30 November 2012: 10.0964 USD
- WM Reuters GBP/USD exchange rate at 30 November 2012: 1.60265 USD = 1GBP
- Net Asset Value of the absorbing ETF expressed in GBP at 30 November 2012: 6.2998 GBP
- Number of units received: 15 x 1 = 15
- Balancing Cash Payment: 15 x (6,6061 - 6,2998) = 4,59 GBP
For more information, the prospectuses of the funds concerned are available at: www.lyxoretf.com.
Your Advisor is standing by to provide you with any additional information you may need.
We thank you for your trust and your loyalty.
Yours sincerely,
Clarisse Djabbari
Director of the SICAV Multi Units France