CSH2

AndyTh_2

maybe they intended to start out £10/share but accidentally gave the GBX value of it in GBP

the_seer

I've seen many stock splits (and consolidations) in my portfolio over the years, but I don't recall there ever being an accompanying trading suspension. And for this to last almost a week seems utterly ridiculous.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82165277#Comment_82165277

More likely it was a deliberate move by Lyxor. When Amundi acquired them from Soc Gen in 2021, a number of changes were made, this being the latest.

AndyTh_2

https://forums.moneysavingexpert.com/discussion/comment/82165344#Comment_82165344

yep, I was only joking, it probably was only to target the types of investors at the time with cost and that has changed both with the investors and more automation

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82165379#Comment_82165379

It does seem odd to have chosen such a large share size. The fund manager does not handle individual trades from retail investors with an ETF. They are handled by market makers, or take place in the order book.

aroominyork

There will be a lot of decimal places involved. At a price of ~£5.00 and a spread of 0.01%, they will be priced around £5.0005.

The fund manager does not handle individual trades from retail investors with an ETF. They are handled by market makers, or take place in the order book.

Presumably demand will increase and additional units will be created, but if no additional units are created what will happen to the price?

EthicsGradient

https://forums.moneysavingexpert.com/discussion/comment/82164849#Comment_82164849

According to this, it has been 31/12 up until now:

Amundi Smart Overnight Return UCITS ETF GBP Hedged Acc LU1230136894 | Amundi ETF

I have an accumulating Amundi ETF that used to be Lyxor, and they changed that to 30/9 after taking over Lyxor, and I find it annoying - they only tell you what the ERI is a few days before the end of the tax year (and I have no idea if they're going to do it before the end of the tax year in the future). That means that if you've sold some, you have to wait until the last moment to know what your capital gain is, which makes it hard to plan.

aroominyork

Your link for CSH2 says the financial year end is 31/12. That is not the same as the reporting date of 30/9 (amended last year from the previous 31/10). It is good that the distribution date, six months later, now falls in the same financial year so you only have to tackle CSH2 on one tax return instead of two. And while in theory they should "tell you what the ERI is a few days before the end of the tax year", this year it was June before they did. I do not currently own CSH2 but the split might tempt me back.

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82165662#Comment_82165662

If there is excess demand, the ETF will trade at a premium to NAV. An Authorised Participant can then make a risk free profit by buying a basket of the underlying securities and selling them to the ETF manager for incorporation into the fund. That should reduce the premium by increasing the supply of ETF shares.

aroominyork

Thank you. Having run your answer though ChatGPT, I now have a basic idea of what arbitrage is (and what Turner did when he wasn't painting).