Hi Team,
It looks like there is an issue with the price of Lyxor EuroStoxx 50 (MSED) - see attached screenshot.
Please correct it and address the underlying issue to prevent this from happening again.
Thanks,
Shalin
There’s been a merger effective 22/09/2023. The price has gone down as a consequence, reflected everywhere, FT, google finance, yahoo finance. I don’t know the details of how the merger is organised, but would expect that there’s a split at the same time. If this is right then it’s the historical prices and quantities that need adjusting for the purposes of the price graphs, so they don’t show a drop. There’s not been enough time yet, so this may already be planned to happen shortly.
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It’s an odd one as the price of the same fund on other exchanges/currencies does not appear to have been affected… something is clearly wrong here
Sharing Amundi’s announcement on this
https://www.amundietf.com/pdfDocuments/shareholders-notice/LU1681047236/ENG/LUX
Note: While this a a merger/absorbing into an existing fund – that fund didn’t historically have a GBP share class, so one has to be created. This means the we don’t have price history for MSED.
The net result of all this seems to be that the value of my investment reduced by over 50% on 22/09 …that’s how it is presented on the Invest Engine app.
What does this mean for us that have seen our investments drop over 50%? Will there be an eventual correction?
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Another who was momentarily shocked logging in seeing a 50% drop in fund value…
As others, hoping it is some reporting error and there is a correction forthcoming.
It would be good to hear some feedback or know a timeline for this to be sorted.
Hi All – Apologies, we’ll post an update on what happening with the corporate action shortly.
It sounds like we’re pulling in prices for the new ETF MSED in merging into…but we haven’t yet updated the quantities. Hence why values are showing as down. We’ll get a full updated to follow when I have the completed picture
Update
I have some more detail on what’s going on with the Corporate Action
This merger is a little unusually in far the fund is changing from Lyxor Core EURO STOXX 50 to → Amundi EURO STOXX 50 but the ticker its traded under MSED is staying the same.
This means that on Friday 22nd all the pricing feeds for Ticker MSED swapped to show a unit in the new fund…You can see this on the LSE website
What then should happens is we would be informed of your new share allocations in the new fund via the custodian CREST. Amundi inform CREST, CREST notify us. Each of the old fund share will have a conversion ratio to the new shares. Old fund quantity x Old fund price = New fund quantity x New fund price everyone is square.
When I checked last night we had yet to receive the update of the new share allocation from CREST – hence we’ve not been able to apply these.
As I understand it we typically received these new allocation on the day of the merger (22nd) however sometimes they are delayed. We now chasing CREST for these details & will update allocations as soon as we have these details!
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Thank you for that info Tom!
Please keep us updated on the progress you make on this matter. Regular updates helps us all.
Until this is resolved, I assume it is better to avoid buying / selling this ETF to keep things simple, unless you suggest otherwise?
Best Regards,
Shalin
I believe we have locked it down for trading - But yes, I would avoid trying to trade this stock.
It sounds like we’re makings progress on this one. I’m hopeful it will be resolved very shortly
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@tom.winterton - I see that the price is now back to the previous levels, thus reflecting a much realistic view of the total value of this ETF in my portfolio, however, my understanding based on your feedback was that the new price was fine and that the quantity will be corrected. Has anything changed since?
Thank you!
@tom.winterton - any updates on this please?
Thank you!
I had a small panic when I saw my investment in this Lyxor fund drop by several hundred pounds. I then learned it was due to merging funds and the rate would right itself after a few days, which it has. The TER has jumped to 0.15 though. I’m not sure of there’s another stoxx50 fund with a similar performance but lower TER - one to research.
I have 1 buy transaction from 21st September (1 day before the ETF’s merger) in the “Awaiting settlement” state 
I am not sure how this will get settled.
InvestEngine team - please advise.
@tom.winterton / @PaulGichemi – I have just submitted a support request on IE’s website for this “Awaiting settlement” issue. Since MSED has stopped trading, I am not sure how this transaction from 1 day before the merger will settle. Please advise.
hi @navro – Let me flag to the Corporate Actions team & get you an answers.