"Merger" of Lyxor Core Stoxx Europe 600 ETF "with" Amundi Stoxx Europe 600

[EthicsGradient]

I got today notice from ii that my holding in the Lyxor Core Stoxx Europe 600 ETF will be merged, whether I like it or not, with the Amundi Stoxx Europe 600 ETF. The catch is that the Amundi Stoxx Europe 600 ETF does not exist, yet, and this is not actually a "merger", but a transfer from a Lyxor umbrella fund to an Amundi umbrella fund. Not that ii told me that; I had to hunt, until I finally found this:

https://www.amundietf.lu/pdfDocuments/d ... 240103.pdf

(Ironically, it was only today that ii mentioned Lyxor Core Stoxx Europe 600 ETF as a low cost index tracker, with no indication that the "merger" is on the verge of happening.)

The ISIN (LU0908500753) and symbol (MEUD.LN) are staying the same.

ii also say "we've no idea of the tax implications of this, and don't have to tell you" (I hold this in a general trading account). Amundi say "Shareholders who do not agree with the terms and conditions of this Merger have the right to redeem or convert their shares at any time free of charges ... Such a redemption would be subject to the ordinary rules of taxation applicable to capital gains on the sale of transferable securities.", but nothing explicit about the implications if I keep them and they're "merged"/"absorbed". Fairness would seem to say that the original acquirement dates/costs are just carried over. Has anyone had experience of this kind of "merger" before?

I also note that the Amundi notice tells me the new fund has a financial year from October 1 to September 30, while the old one was November 1 to October 31. Which means the ERI, taxable 6 months after the year end, will be on March 31st, rather than April 30th. Which means there will be 2 ERIs taxable in the next tax year, rather than one (doesn't it?). It would have been nice if someone had noted that explicitly. Or were honest about capital gains implications, rather than saying "employ a tax expert to find out what we're doing to you, even though we surely thought about it first".

[PeterD]

It states " The Absorbed Sub-Fund will bear any
transaction costs associated with such operation as and when incurred.".
Does this mean that the costs are paid from the fund in addition to the advertised TER? If so, this seems to be a blatant breach of the published charges.

[EthicsGradient]

It states " The Absorbed Sub-Fund will bear any
transaction costs associated with such operation as and when incurred.".
Does this mean that the costs are paid from the fund in addition to the advertised TER? If so, this seems to be a blatant breach of the published charges.

Perhaps; the total charges are still listed as 0.07% PA, though it's possible that there could have been a reduction that we won't see.

[GeoffF100]

Fairness would seem to say that the original acquirement dates/costs are just carried over. Has anyone had experience of this kind of "merger" before?

Here are the rules:

https://www.gov.uk/hmrc-internal-manual ... s/ifm16110

So, yes, it is not a disposal for CGT purposes.

[EthicsGradient]

Fairness would seem to say that the original acquirement dates/costs are just carried over. Has anyone had experience of this kind of "merger" before?

Here are the rules:

https://www.gov.uk/hmrc-internal-manual ... s/ifm16110

So, yes, it is not a disposal for CGT purposes.

Thank you, I hoped (and expected) as much, but that it is 2 different offshore entities (even if managed by the same company) made me slightly concerned. And HMRC's prose was easy enough to follow, for once.