French international asset management giant Amundi has announced that it will halt marketing its three Exchange Traded Funds (ETFs) on the Tel Aviv Stock Exchange (TASE). The three ETFs are traded by Lyxor, which Amundi acquired last year.
The decision will come into effect on March 13 when the company will halt offering the funds to investors. However, it will still be possible to invest directly in the funds via the overseas stock markets on which Amundi operates, and those who invest in the funds prior to March 13 can continue to hold the funds.
Lyxor's AI & Robotics ETF was registered for trading on April 20, 2021 and manages assets worth NIS 3.8 million. Subsequently Lyxor launched two other ETFs - one that tracks Nasdaq and manages assets worth NIS 800,000, and the second tracks the S&P 500 and manages assets worth NIS 34 million.
Since acquiring Lyxor, Amundi has decided to reorganize Lyxor's assets after examining duplication of products, which has resulted in the company ceasing to market various products worldwide. Amundi, which has other activities in Israel, notified the TASE five months ago that it would be suspending marketing of the ETFs.
Behind Amundi's decision to halt marketing in Israel is dissatisfaction with the small scale of activity by foreign investment bodies in the country, which is mainly influenced by the fact that the investment advisors, especially those of the banks, do not refer the Israeli public to the foreign investment entities.
Published by Globes, Israel business news - en.globes.co.il - on February 12, 2023.
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