Amundi continues with Lyxor ETF mergers

mergers , ETF, assetsAmundi is to merge three Lyxor commodity ETFs impacting €2 billion in assets under management.

The Lyxor Commodities Refinitiv/CoreCommodity CRB EX-Energy TR Ucits ETF, the Lyxor Bloomberg Equal-weight Commodity ex-Agriculture Ucits ETF, and the Lyxor Commodities Refinitiv/CoreCommodity CRB TR Ucits ETF are to be pooled under one wrapper with Amundi branding.

The new fund will be named the Amundi Bloomberg Equal-weight commodity ex-Agricutlure Ucits ETF.

The latest deal marks a continuation in the French asset managers’ pursuit of economies of scale within its ETF business.

The overhaul will also see a new index introduced, switching from the Refinitiv/CoreCommodity CRB Total Return index to the Bloomberg Energy and Metals Equal Weighted Total Return index.

It will track 12 commodities within the energy, precious and industrial metal sectors, utilising futures contracts.

The total expense ratio will be reduced from 0.35% to 0.30%.

The merger is expected to commence on 20th January.

In a shareholder notice, the French asset manager said improved economies of scale would benefit shareholders through increased investment capacity.

It also noted that investors would be able to maintain exposures to the same target asset classes.

But the merger may present “tax consequences to certain shareholders,” Amundi noted.

The move follows a series of mergers since Amundi acquired Lyxor in 2022. The deal made Amundi Europe’s second-largest ETF issuer, second only to BlackRock.

The Lyxor corporate bond ESG ETF, renamed the Amundi EUR Corporate Bond Climate Net Zero Ambition PAB Ucits ETF, also saw its benchmark change, switching to a Paris-Aligned Benchmark.

In November last year, three Lyxor ETFs were merged to improve economies of scale.

An Amundi spokesperson said, "These mergers are part of our natural and ongoing product range review and are driven by client demand. Every decision is part of a comprehensive analysis and with our client’s best interest in mind.”

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