LTMU.L Regulatory News (LTMU)

Paris, 29 November 2012

Dear Sir or Madam, 

You are one of our holders of shares in the subfund Lyxor ETF MSCI EM Latin America (GBP) (FR0010526764) in the Multi Units France SICAV fund. In a letter dated 29 October, we announced the merger-absorption of the subfund with Lyxor ETF MSCI EM Latin America via the C-USD unit class (FR0010413310) on 10 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 EM Latin America (GBP) will be suspended beginning 30 November 2012 after 6.30 p.m. and that this subfund will be suspended 3 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 EM Latin America (GBP), as the C-USD units of Lyxor ETF MSCI EM Latin America received will be denominated in the same currency as the benchmark index, i.e. in US dollars (USD). 

Nevertheless, depending on the listing currencies used on the market where you normally buy or sell units in Lyxor ETF MSCI EM Latin America, the currency in which you settle these buying/selling transactions may be different from the currency in which Lyxor ETF MSCI EM Latin America 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:

10 shares in Lyxor ETF MSCI EM Latin America (GBP) for 1 C-USD unit in Lyxor ETF MSCI EM Latin America.  

That means that on the day of the merger-absorption, i.e. 10 December 2012, each lot of 10 shares in Lyxor ETF MSCI EM Latin America (GBP) (hereinafter: "Exchange Lot") that you own will be automatically exchanged for 1 C-USD unit in Lyxor ETF MSCI EM Latin America. 

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 Exchange Lots x (10 x VL1 - 1 x VL2)

Where:

VL1 = net asset value of Lyxor ETF MSCI EM Latin America (GBP) dated 7 December 2012  

VL2 = net asset value of the C-USD unit of Lyxor ETF MSCI EM Latin America dated 7 December 2012 expressed in GBP based on the WM Reuters GBP/USD exchange rate of the same date.

We draw your attention to the fact that if you hold strictly fewer than 10 shares in Lyxor ETF MSCI EM Latin America (GBP), i.e. a number of shares amounting to less than 1 Exchange Lot, all of your shares will be liquidated.

Similarly, all shares in Lyxor ETF MSCI EM Latin America (GBP) that you hold above a full number of Exchange Lots may not be exchanged and will be liquidated accordingly.

The amount of reimbursement (hereinafter the "Fractional Share") equivalent to this liquidation of shares shall be determined on the basis of the net asset value of Lyxor ETF MSCI EM Latin America (GBP) as of 7 December 2012.

By way of illustration, if the merger of Lyxor ETF MSCI EM Latin America (GBP) with Lyxor ETF MSCI EM Latin America had occurred on 26 November 2012 and if you held, for example, 15 shares in the absorbed ETF (i.e. Lyxor ETF MSCI EM Latin America (GBP)), the calculation based on the net asset values of 23 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 23 November 2012: 2,4132 GBP

- Net Asset Value of the absorbing ETF at 23 November 2012: 36,3076 USD

- WM Reuters GBP/USD exchange rate at 23 November 2012: 1,6011 USD = 1 GBP

- Net Asset Value of the absorbing ETF expressed in GBP at 23 November 2012: 22.6759 GBP

- Number of Exchange Lots held: A full number of (15 ÷ 10) = 1

- Number of shares exchanged: 1 x 10 = 10

- Number of units received: 1 x 1 = 1

- Number of shares liquidated: 15 - 10 = 5

- Balancing Cash Payment: 1 x (10 x 2.4132 - 1 x 22.6759) = 1.46 GBP

- Fractional Share: 5 x 2.4132 = 12.06 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,

Alain Dubois

Chairman and Chief Executive Officer 

of the SICAV Multi Units France