AMUNDI ETF CAC 40 UCITS ETF. Prospectus and Regulations

Transcription

1 AMUNDI ETF CAC 40 UCITS ETF Prospectus and Regulations

2 PROSPECTUS UCITS compliant with European standards I. GENERAL FEATURES Name: AMUNDI ETF CAC 40 UCITS ETF (the " Fund") Legal form and Member State in which the French Mutual Fund (FCP) UCITS has been set up: Launch date and scheduled duration: The Fund was approved by the French Market Regulator (AMF) on 13 February 2003 and launched on 28 February 2003 for an anticipated duration of 99 years. Summary of the management offer: Units ISIN code Allocation of profits Accounting currency Frequency of NAV calculation Initial NAV Minimum initial subscription Minimum subsequent subscription Eligible subscribers Allocation of net profit: Accumulation Primary market unit(s) Primary market unit(s) C units FR Allocation of net capital gains realised: euro Daily euros Secondary market 1 unit(s) Secondary market 1 unit(s) All subscribers Accumulation Allocation of net profit: Accumulation and/or distribution at the discretion of the Management Company Primary market unit(s) Primary market unit(s) D units FR Allocation of net capital gains realised: Accumulation and/or distribution at the discretion of the Management Company euro Daily Secondary market 1 unit(s) Secondary market 1 unit(s) All subscribers Address from which the latest annual or periodic report and financial statements may be obtained: The latest annual or periodic report and financial statements will be sent to investors within one week upon written request from the holder to: Amundi Amundi ETF 90 boulevard Pasteur CS / 29

3 75730 Paris Cedex 15 Tel.: Further details are available from Amundi and on its website amundietf.com. The AMF website (amf-france.org) contains further details on the list of regulatory documents and investor protection regulations. Management Company: II. SERVICE PROVIDERS Amundi (the "Management Company") Public company (Société Anonyme), Portfolio Management Company operating under AMF approval no. GP Registered office: 90, Boulevard Pasteur Paris Custodian and Registrar: CACEIS BANK (the Depositary ), Public company (Société Anonyme), Main business: Banking institution, investment services provider, licensed by the French banking and investment companies committee (Comité des Etablissements de Crédits et des Entreprises d'investissement - CECEI) on 1 April 2005, Registered office: 1-3 place Valhubert, Paris Institution responsible for clearing subscription and redemption orders by delegation of the Management Company: CACEIS Bank France, Public company (Société Anonyme), Bank and investment services provider approved by the CECEI on 1 April 2005, Registered office: 1-3 place Valhubert, Paris Independent Auditor: DELOITTE & ASSOCIES, represented by Gérard Vincent-Genod, Registered office: 185, avenue Charles De Gaulle, Neuilly sur Seine Delegated Accounting Manager: CACEIS Fund Administration, Public company (Société Anonyme), Registered office: 1-3, Place Valhubert Paris CACEIS Fund Administration is a company of the CRÉDIT AGRICOLE group specialising in the administrative and accounting management of UCITS on behalf of clients inside and outside the Group. CACEIS Fund Administration has accordingly been appointed by the Management Company as Delegated Fund Accountant for the valuation and accounting for the Fund. CACEIS Fund Administration is responsible for valuing the assets, establishing the Fund s NAV and establishing its regular financial statements. Market-makers: On 05 December 2012, the financial institution acting as market-maker was as follows: BNP Paribas Arbitrage 2 / 29

4 General Partnership (Société en nom collectif) Registered office: boulevard Mac Donald Paris 3 / 29

5 III.1 General features Features of the units: III. OPERATING AND MANAGEMENT ARRANGEMENTS Nature of the right attached to the category of units: each unitholder is entitled to joint-ownership of the Fund s assets, proportional to the number of units held. Registration or other arrangements for maintaining unitholder records: The Depositary is responsible for liability accounting. Units can be cleared through Euroclear France, Clearstream Banking S.A. and Euroclear Bank. Voting rights: no voting rights are attached to the units: decisions are made by the Management Company. Note: investors will be notified of changes to the Fund s operating arrangements either individually, through the press or by any other means in accordance with current regulations. Form of units: bearer units. Decimalisation (fractioning), if any: subscriptions and redemptions are made in whole units. Admission of the units to the NYSE Euronext NextTrack market: Under Article D of the French Monetary and Financial Code (the CMF ), shares or units of collective investment undertakings may be listed for trading provided that these entities have set up a mechanism to ensure that the listed market price of the shares or units does not diverge significantly from their net asset value. The following operating rules developed by NYSE Euronext SA apply accordingly to the listing of the Fund s units: reservation thresholds are set by applying a 1.5% variation on either side of the Fund s Indicative Net Asset Value or "inav" (see "Indicative Net Asset Value" section), published by NYSE Euronext Paris SA and provisionally updated during the session based on the change in the CAC 40 Index; trading of the Fund's units on the NYSE Euronext NextTrack market will be suspended in the following cases: suspension or halt in the listing or calculation of the CAC 40 Index by the index provider; suspension of the market(s) on which the securities composing the CAC 40 Index; the price of the CAC 40 index is unavailable to NYSE Euronext; if NYSE Euronext cannot obtain the Fund s NAV for the day and/or publish the "inav"; violation of applicable NYSE Euronext rules by a market-maker; failure of NYSE Euronext's IT or electronic systems in particular; if stock market disturbances or difficulties render normal market-making impossible. any other event that prevents the calculation of the Fund's inav or the trading of Fund units. Market-makers likewise ensure that the market price of the Fund units does not diverge by more than 1.5% either side of the Fund s Indicative Net Asset Value, in order to comply with the reservation thresholds set by NYSE Euronext Paris SA (see "Indicative Net Asset Value" section). End date of financial year: Last trading day in June of each year. End date of first financial year: Last trading day of June Tax treatment: The Fund is eligible for the Plan d Epargne en Actions ("PEA" reserved for French investors) and life insurance policies. The Fund may provide a support vehicle for life insurance policies denominated in units of account. 4 / 29

6 The UCITS, by its nature, is not subject to taxation. However, unitholders may be taxed on any income distributed by the Fund or when they sell Fund units. The tax treatment applicable to amounts distributed by the Fund or unrealised or realised capital gains or losses will depend on the individual unitholder's tax situation, residence for tax purposes and/or the investment jurisdiction of the Fund. If an investor is uncertain of his or her tax position, the investor should consult a financial advisor or a professional investment consultant to determine the tax rules applicable to his or her particular situation before any investment. Some income distributed by the UCITS to unitholders residing outside France may be subject to withholding tax in France. III.2 Special provisions ISIN code: C units D units ISIN code FR FR Classification: Eurozone equities. The Fund is an index-tracking Fund. Investment objective: The Fund s investment objective is to track the performance of the CAC 40 Index (see Benchmark index section), as closely as possible, whether the Index rises or falls. The Fund is managed to obtain the smallest possible difference between changes in the NAV and changes in the value of the CAC 40 Index (the CAC 40 Index ). The target for maximum tracking error between the Fund s NAV and the value of the CAC 40 Index is 1%. If the tracing error exceeds 1%, the objective would nevertheless be to remain below 5% of the volatility of the CAC 40 Index. Benchmark index: The Benchmark Indicator for the Fund in the CAC 40 Index, net dividends reinvested. The CAC 40 is a stock index, calculated continuously by Euronext SA, using a portfolio composed of the 40 largest caps on the Paris stock market. Each stock is weighed in the CAC 40 Index according to its market capitalisation. The CAC 40 is calculated in real time on each trading day. The CAC 40 Index is available in real time via Reuters and Bloomberg. Via Reuters:.PX1NR Via Bloomberg: NCAC The performance tracked is the closing prices of the CAC 40 Index. The full methodology used for the construction of the CAC 40 Index is available on the Euronext website: euronext.com. Investment strategy: The Fund is managed by index tracking. 1. Strategy used : The Fund is an indexed management fund, the objective of which is to track changes in the performance of 5 / 29

7 the CAC 40 Index using a physical tracking method. This method consists of investing in all financial securities included in the CAC 40 Index in proportions identical to those of the CAC 40. The Fund may use forward financial instruments and/or temporary acquisitions and sales of securities for hedging and/or exposure. The Fund will use the purchase of the portfolio (the Portfolio ) composed of the assets held directly by the Fund and described in the section Assets used. The Fund s exposure to the index may benefit from special ratios application to indexed UCITS as stipulated in Article R of the French Monetary and Financial Code (CMF). That Article stipulates that an index may comprise up to 20% equities or debt securities issued by the same entity; this limit may be raised to 35% maximum for a single issuing entity, when such increase is justified by special market circumstances such as the regulated markets where some marketable securities or some money-market instruments are largely dominant. 2. Assets used (except embedded derivatives): The Portfolio consists of the Fund's directly held assets described below. The Fund s investment universe is focused on French large cap stocks. Equities: The minimum exposure to the Stock risk is 60% (including convertible bonds). Over 75% of the portfolio s value will at all times consist of stocks of companies registered in a Member State of the European Union, or in another State which is part of the European Economic Area (EEA) and has signed a tax convention with France that provides for administrative assistance to prevent fraud and tax evasion. This minimum level of equity exposure makes the Fund eligible for the Plan d Epargne en Actions (French Stock Savings Plan (- PEA). The capitalisation of the companies in which the Fund may hold shares is similar to that of the companies in the CAC 40 Index. The Fund may also invest up to 20% of its net assets in stocks of the euro zone countries (excluding France and foreign securities in the CAC 40 Index). Convertible bonds will contribute only 20% to exposure to the stock risk. In order to meet its investment objective and/or manage intermediate financial flows, the Fund may hold up to 10% of its assets in the following: Debt instruments and money market instruments in euros: cash flow will be managed through money market instruments. The selected issuers (with a minimum rating of AA or above in the S&P and Moody s scale) may be from the private sector or from the public sector (national or local governments, etc.), and private sector debt may represent up to 100% of the debt instruments. The average maturity of these instruments will not exceed ten years. - UCITS units or shares: The Fund may hold up to 10% of its assets in shares or units of the following UCITS or investment Funds: 6 / 29

8 French or foreign UCITS that comply with the Directive and may invest up to 10% of their assets in UCITS or investment funds French UCITS not complying with the directive Other investment funds UCITS or investment Funds included in the Fund's assets will primarily be those managed by the Management Company or an affiliated company. The investment strategies of these UCITS and investment funds will be compatible with those of the Fund. 3. Derivatives: The use of forward financial instruments, both firm and options, is an integral part of the investment process because of their advantages in terms of liquidity and/or their cost/effectiveness ratio. They allow rapid action to replace volatile securities,, particularly during significant cash flows related to subscriptions/redemptions, or in the case of special circumstances such as market fluctuations. Off-balance sheet commitments are calculated by the accrual method of accounting. The Fund may take positions in the following derivatives: Type of market: regulated organised over-the-counter Categories of risk in which the Fund intends to take a position: equity risk interest rate risk currency risk credit risk other risks Nature of positions to be taken, which must be limited to those required to meet the management objective: hedging exposure arbitrage other Types of instruments used: futures: on equities and indices options: on equities and indices total return swaps: on equities and indices total return swap: credit derivatives: credit default swaps other 7 / 29

9 Strategies for use of incorporated derivatives to achieve the management objective: constructing synthetic exposure to a particular security, sector and/or to the FTSE 40 Index via the use of swaps. management of intermediate flows (dividends, subscription/redemptions, etc.) to achieve the desire degree of exposure to a security, business sector and/or the CAC 40 index via the use of futures. management of intermediate flows (dividends, subscription/redemptions, etc.) to achieve the desire degree of exposure to a security, business sector and/or the CAC 40 index via the use of options. The commitment (and therefore the leverage effect) on the derivatives is limited to 100% of the Fund s assets. These instruments may be used to hedge up to 100% of the Fund s net assets. 4. Securities incorporating derivatives ( embedded derivatives ): The Delegated Fund Manager may, at its discretion and for future optimisation of management of the Fund, use other instruments to meet its management objective such as embedded derivatives. Categories of risk in which the Fund may take a position: equity risk interest rate risk currency risk credit risk other risks Nature of positions to be taken and description of all transactions that must be limited to the achievement of the management objective: hedging exposure arbitrage other Types of instruments used: Euro Medium Term Notes (EMTN) Negotiable Medium Term Notes (BMTN) Structured bonds Certificates Warrants Strategy for using embedded derivatives to meet the investment objective: general hedging of the portfolio, particular risks, particular securities, etc. constructing synthetic exposure to particular assets or particular risks, other strategy: following redemptions, retaining derivatives as opposed to selling them. The Fund s commitments from embedded derivatives must not exceed 100% of assets. The Fund will not overexpose its assets: all its commitments on derivatives and embedded derivatives may not exceed 100% of the Fund s net assets. 5. Deposits and liquid assets: The Fund may hold up to 10% of its net assets in deposits for a maximum term of twelve months with credit institutions registered in a Member State of the European Union or a party to the EEA. These deposits will be 8 / 29

10 made under a framework agreement approved by the AMF. They will contribute to achieving the Fund s management objective by allowing the Fund to obtain a performance as close as possible to the capitalized EONIA. 6. Borrowing: The Fund will not borrow cash. However, a period debit position may exist because of transactions related to the Fund s flow up to a maximum of 10% of the assets (investment and divestments in progress, subscription/redemption transactions). 7. Temporary acquisitions and sales of securities: Type of transactions used: repurchases and reverse purchases pursuant to the CMF securities loans and borrowings pursuant to the CMF other Types of transactions and description of all operations that must be limited to the achievement of the investment objective: cash management optimisation of the income of the UCITS other Level of use planned and authorised: up to 100% of the assets. Over-exposure of the assets: None These transactions generate costs that are paid by the UCITS. The temporary acquisitions and sales of securities executed by Amundi, which belongs to the same group as the Management Company, generate a conflict of interest risk. Information on UCITS financial guarantees (collateral): In the context of temporary acquisitions and sales of securities and derivative transactions, the Fund may receive securities or cash as collateral. The collateral received is reinvested pursuant to the rules governing the securities received. All the assets must be issued by tier one issuers, and be liquid, uncorrelated to the counterparty, not very volatile and diversified. The discounts applied to the collateral received take into account the credit quality, the price volatility of the securities and the results of the crisis simulations performed. These elements are detailed in a Risk Policy that may be consulted on the Management Company s website: All its commitments on derivatives and embedded derivatives may not exceed 100% of the Fund's net assets. Risk profile: Your money will be invested primarily in financial instruments selected by the Delegated Fund Manager. These financial instruments are subject to market fluctuations. Investors are warned that their initial capital invested is not guaranteed. The Fund has high volatility due to its exposure to equity markets. 9 / 29

11 The main risks to which the investor may be exposed through the Fund s investments are as follows: - Equity risk: The Fund is 100% exposed to the CAC 40 Index and is therefore 100% exposed to the market risks related to fluctuations in the value of the stocks that make up this index. Variations in the equity markets may lead to significant variations in the net assets, which could have an adverse effect on the Fund's NAV. Since the Fund s degree of exposure to equity risk is 100%, the Fund s NAV may decline significantly. The Fund accordingly has a high degree of equity risk. - Risk related to changes in the CAC 40: The Fund is specifically exposed to upward and downward movements in the CAC 40 Index. The Fund is therefore exposed to market risk relating to the movements in the CAC 40 Index. The value of the Fund will decrease in the event that the CAC 40 Index falls. - Capital risk: Given the equity risk, investors are warned that they may suffer capital losses which cannot be quantified in advance since investments are subject to normal market fluctuations and to the risks inherent in any investment in securities. The initial capital invested is not guaranteed. Only people who would be able to bear the loss of their investment should invest. - Factors that may influence the ability of the Fund to track the performance of the CAC 40 Index: The ability of the Fund to track the performance of the CAC 40 Index may be affected by the following factors: re-weightings of the CAC 40 Index tracked by the Fund may generate transaction and/or trading costs; whether there are market fees; and/or due to minor valuation discrepancies that would not be such as to result in the calculation of the Fund's net asset value being suspended. These discrepancies may be due to the temporary unavailability of certain securities in the CAC 40 Index or to exceptional circumstances that could have the effect of causing distortions in the CAC 40 Index, including cases of suspension or temporary disruption in the listing of securities in the CAC 40 Index. The principal specific risks related to management are: - Liquidity restriction: The portfolio is primarily invested through securities and derivatives offering the best liquidity conditions, regardless of market conditions. The other risks are: - Credit risk: This is the risk of a decline in the credit quality or the default of a private issuer. Depending on the direction of the Fund s transactions, a fall (in the case of a purchase) or a rise (in the case of a sale) in the value of the debt securities to which the Fund is exposed can decrease and lead to a decrease in the net asset value. - Counterparty risk relating to temporary purchases and sales of securities: The default of a counterparty or issue can drive down the NAV of the Fund. - Counterparty risk relating to the use of financial futures: To meet its management objective, the Fund will use forward financial instruments. The Fund will be exposed to the counterparty risk that results from the use of forward financial instruments executed with a credit institution. The Fund is accordingly exposed to the risk that the credit institution in question will not be able to honour its commitments for these instruments. Default by the counterparty may result in a decline in the net asset value of the Fund. Under the current rules, however, the counterparty risk resulting from the use of swaps will be limited to 10% of the Fund s net assets per counterparty at any time Guarantee or protection: None 10 / 29

12 Eligible subscribers and standard investor profile: Eligible subscribers: All subscribers Standard investor profile: The Fund is open to any subscriber, including those investing in a French PEA. This Fund is intended for investors who seek long term capital growth and exposure to equity markets in France, while offering opportunities for short-term arbitrage. The Fund is indeed continuously listed on one or more trading markets and its units may be traded in the same way as simple stocks. It therefore combines the advantages of a listed security and those of an UCITS. Furthermore, it is eligible for the French stock savings plan (PEA). The amount that might be reasonably invested in this Fund depends on the investor s personal situation. To determine this amount, investors should consider their personal assets, their current financial needs and the recommended investment period as well as their willingness to accept risks or their wish to invest cautiously. It is also strongly recommended that investors diversify their investments sufficiently to avoid exposure only themselves entirely to the contingencies affecting this Fund s performance. All investors are therefore invited to consult their own financial advisors about their individual situations. Recommended investment period: The minimum recommended investment period is 5 years. Determination and allocation of revenues: Allocation of net profit: C Units: Accumulation D units: Accumulation and/or distribution at the discretion of the Management Company Allocation of net capital gains realised: C Units: Accumulation D units: Accumulation and/or distribution at the discretion of the Management Company The amount distributed for D units is defined every year by the Management Company. The remaining distributable amount shall be fully capitalised. Distribution frequency: If the Management Company decides to distribute some or all of the net profit and/or of the net realised capital gains one or more payments may be made in a year. Distributions will be made by encashment of coupons. Accounting currency: euro 11 / 29

13 Features of the units: Characteristics Units ISIN code Allocation of Profits Accounting currency Frequency of NAV calculation Initial Net Asset Value Minimum initial subscription Minimum subsequent subscription Eligible subscribers Allocation of net profit: Accumulation Primary market unit(s) Primary market unit(s) C units FR Allocation of net capital gains realised: euro Daily euros Secondary market 1 unit(s) Secondary market 1 unit(s) All subscribers Accumulation Allocation of net profit: Accumulation and/or distribution at the discretion of the Management Company Primary market unit(s) Primary market unit(s) D units FR Allocation of net capital gains realised: Accumulation and/or distribution at the discretion of the Management Company euro Daily 40.5 euros Secondary market 1 unit(s) Secondary market 1 unit(s) All subscribers Currency of the units: "See table above (section Unit features )" Initial NAV: C units: Euros per Fund C unit. The initial net asset value is equal to the closing price for the CAC 40 Index divided by 100 on 28 February The Fund was turned into a listed index fund on 10 February 2005 and was listed on Euronext on 2 March The net asset value of the Fund's C units amounted to on 2 March D units: 40.5 Euros per Fund D unit. The initial net asset value is equal to the closing price of the CAC 40 Index on 12 April 2010, divided by 100. Subscription and redemption: As indicated above, the Fund s activity is organised on two markets, one primary and the other secondary. Subscription and redemption in the primary market: Subscription of Fund units (C and D) : Subscription price The unit subscription price each business day on the Euronext markets, with the exception of public holidays in France, is equal to the net asset value plus, where applicable, a subscription fee of 1%, which accrues to the Management Company and may be charged at its discretion. The preferred subscription method is the contribution of securities. However, cash subscriptions are authorised. Subscription volume 12 / 29

14 Subscriptions to Fund units must be for at least 200,000 units, i.e. a Creation Unit, or whole multiples of this amount. Any subscription in securities or cash for a number of units different from a Creation Unit or a multiple of that Unit may be subject to a maximum commission of 1% of the NAV per unit, acquired by the Management Company and withdrawn at its discretion. Subscription process Subscriptions are usually made through a contribution of securities included in a specific basket known as the Subscription/Redemption Basket and of a specific amount in cash called the Compensatory Amount. Valid for the creation of a Creation Unit, the Subscription/Redemption Portfolio is a portfolio of securities defined by the Management Company to allow the Fund to track the performance of the CAC 40 Index, given that these securities are financial instruments in which the Fund is authorised to invest. The Compensatory Amount per Creation Unit is an amount equal to the difference between (1) the net asset value per Creation Unit on the subscription date and (2) the market value per Creation Unit of the securities composing the Subscription/Redemption Portfolio at closing on the same date. The purpose of the Compensatory Amount is to compensate for any differences between the net asset value per Creation Unit and the closing value on the same date of the portfolio of securities contributed for each Creation Unit. For example, the Compensatory Amount may cover the income receivable and not distributed and held by the Fund. If the Compensatory Amount is negative (i.e. if the net asset value per Creation Unit is less than the value of the basket of securities contributed), the subscriber will receive the Compensatory Amount. Before 9:00 am (Paris time), the Management Company makes available the composition of the Subscription/Redemption Portfolio and an estimate of the Compensatory Amount valid for the creation of a Creation Unit on the same day. The identity and the required number of securities included in the Subscription/Redemption Basket may vary from day to day depending on potential adjustments to rebalance the Fund. The securities contributed must be delivered to the Depositary no later than the third (3rd) Business Day after the relevant subscription date. The cash amount equal to the Compensatory Amount must be transferred electronically, directly to the Depositary, so that the Depositary receives it no later than the third (3rd) Business Day after the subscription date. However, if the Custodian does not receive the appropriate amount in securities and cash within three (3) Business Days after the trading date, this subscription may be cancelled at the Management Company s discretion. At the investor s request, the Management Company may agree for the investor to replace one or more securities in the Subscription/Redemption Portfolio with their value(s) in cash at the close of the subscription date. The investor then agrees to apply any fee paid by the Fund to purchase the security or securities in question (market tax, etc.). In addition, a maximum commission of 1% accruing to the Management Company may be charged to the cash amount at its discretion. Subscription requests may be made to the Management Company before 4:30 pm (Paris time) on any Trading Day and are processed, if accepted, on the basis of the composition of the Subscription/Redemption Portfolio on the relevant Trading Day. Any subscription request received by the Management Company after the deadline on the Trading Day in question will be notified to the subscriber, who may resubmit their request on the following Trading Day. Investors will be responsible for all direct and indirect losses suffered by the Fund where the subscription requests they have submitted are cancelled after the deadline on the subscription date for receiving subscription requests. If a request is accepted, the investor will receive on the same day as the request a confirmation that the request has been accepted. This confirmation will specifically detail the securities to be delivered, the amount to be paid or received in cash and the settlement location. No Fun unit will be issued to the investor before ownership of all securities has been transferred to the Fund and the required cash amount has been received. If a subscription request is rejected, the securities and the cash amount will be returned to the investor within 13 / 29

15 fourteen (14) days after the request date, minus all expenses incurred by the Management Company in order to process the request. The Management Company also reserves the right to demand more information from any subscriber. Every subscriber must inform the Management Company of any change in their situation and forward any additional document relating to such change that may be requested by the Management Company. No fractional units are issued. Redemption of Fund units (C and D) : Redemption price The redemption price per unit on each Trading Day is equal to the net asset value minus, where applicable, a redemption commission of 1% accruing to the Management Company, which it may charge at its discretion. The preferred redemption mode is the contribution of securities. However, cash redemptions are authorized. Redemption volume Redemptions of Fund units must be for at least 200,000 units, i.e. a Creation Unit, or whole multiples of this amount. Any redemption in cash or securities for a number of units different from a Creation Unit or a multiple of that Unit may be subject to a maximum commission of 1% of the net asset value, acquired by the Management Company and withdrawn at its discretion. Redemption process Redemptions are usually made through a contribution of securities included in a specific basket known as the Subscription/Redemption Basket and of a specific amount in cash called the Compensatory Amount. Valid for the creation of a Creation Unit, the Subscription/Redemption Portfolio is a portfolio of securities defined by the Management Company to allow the Fund to track the performance of the CAC 40 Index, given that these securities are financial instruments in which the Fund is authorised to invest. The Compensatory Amount per Creation Unit is an amount equal to the difference between (1) the net asset value per Creation Unit on the subscription date and (2) the market value per Creation Unit of the securities composing the Subscription/Redemption Portfolio at closing on the same date. The purpose of the Compensatory Amount is to compensate for any differences between the net asset value per Creation Unit and the closing value on the same date of the portfolio of securities contributed for each Creation Unit. For example, the Compensatory Amount may cover the income receivable and not distributed and held by the Fund. If the Compensatory Amount is positive (i.e. if the net asset value per Creation Unit is greater than the value of the basket of securities contributed), the applicant will receive the Compensatory Amount. Before 9:00 am (Paris time), the Management Company makes available the composition of the Subscription/Redemption Portfolio and an estimate of the Compensatory Amount valid for the creation of a Creation Unit on the same day. The identity and the required number of the securities composing the Subscription/Redemption Portfolio may vary from day to day based on any adjustments to rebalance the Fund. The securities contributed are delivered by the Depositary no later than the third (3rd) Business Day after the relevant redemption date. The cash amount equal to the Compensatory Amount is transferred electronically no later than the third (3rd) Business Day after the redemption date. Investors will be responsible for all direct and indirect losses suffered where the orders that they have placed are cancelled after the deadline on the redemption date for receipt of the orders, as described below. Requests for redemption may be made to the Management Company before 4:30 pm (Paris time) on any Trading Day and are processed, if accepted, on the basis of the composition of the Subscription/Redemption Portfolio on the Trading Day in question. Any request received by the Management Company after the deadline on the Trading Day in question will be notified to the applicant, who may resubmit their request on the following Trading Day. 14 / 29

16 If a request is accepted, the applicant will receive confirmation on the same day as the request that the request has been accepted. This confirmation will specifically detail the securities to be received, the amount to be paid or received in cash and the place of settlement. Institutions designated to receive subscriptions and make redemptions: CACEIS Bank France, Registered office: 1-3 place Valhubert, Paris Investors should note that orders sent to distributors other than the aforementioned institution should take into account the fact that the cut-off time for the centralisation of orders applies to those distributors with CACEIS Bank France. As a result, these distributors may apply their own cut-off time, which may precede the cut-off time mentioned above, so as to allow them to meet their order transmission deadline withcaceis Bank France.. Listing and trading Fund units in the secondary market: The secondary market is where existing Fund units are traded. It consists of all stock markets on which the Fund is or will be listed for regular trading. Purchases and sales on the secondary market do not incur any subscription or redemption fees. Orders for the purchase or sale of both unit categories may be placed in any market where the Fund is (or will be) traded, through an approved broker. Nevertheless, placing a stock market order will trigger costs over which the Management Company has no influence. There is no minimum amount for purchase/sale orders placed in the secondary market, except those that might be imposed by the stock market where Fund units are listed. The price of a unit (C and D) traded in the secondary market depends on supply and demand and roughly matches the indicative NAV (see Indicative Net Asset Value section). "Market makers" maintain market liquidity secondary market acting as market counterparties (see Market-makers section). They contract with the market companies in question to maintain a maximum difference between the highest bid and lowest offer prices within a set range. Their activities ensure that trading in each Fund unit category remains liquid. They also ensure, through arbitrage between the primary and secondary markets, that the Fund s listed market price for C and D units does not diverge significantly from its Indicative NAV. If trading in the CAC 40 Index is halted or suspended, trading in the Fund will be simultaneously suspended. As soon as trading in the CAC 40 Index resumes, the Fund s listing will resume, and will take account of any change in the net asset value of each Fund unit class and of the Indicative Net Asset value since the interruption. The units acquired in the secondary market generally cannot be resold directly in the primary market. Unitholders must buy and sell units in a secondary market, with the assistance of an intermediary (a broker, for example) and may have to pay corresponding fees. In addition, unitholders may pay more than the current NAV when they buy units; unitholders may also receive less than the current NAV when they sell them. Fund units (C and D) will be listed on the NYSE Euronext market. The Management Company may apply for C and D units to be listed on other markets. On NYSE Euronext, Fund units (C and D) will be listed and traded in the NextTrack product segment dedicated to Trackers. NextTrack. Market-makers: On 05 December 2012, the financial institution acting as market-maker was as follows: BNP Paribas Arbitrage General Partnership (Société en nom collectif) Registered office: boulevard Mac Donald Paris 15 / 29

17 The "Market-makers" will provide market-making services for Fund units from the date they are listed on the market where the Fund is traded. They will mainly act as market-makers through their continuous presence on the market, maintaining a buy/sell price range and ensuring adequate liquidity. Specifically, the financial institutions acting as "Market-Makers" that have signed a market-making contract for the Fund have made a commitment to NYSE Euronext Paris SA to meet the following conditions for the Fund: a maximum total spread of 2% between offer price and bid price in the centralised order book a nominal minimum amount at purchase and sale corresponding to 100,000 euros. The obligations of the Market Makers will be suspended when the value of the CAC 40 Index is not available, or if one of the stocks composing the Index is suspended. The obligations of the "Market-makers'" will generally be suspended in case of unusual disturbances or difficulties on the stock market in question which prevents standard market-making operations (e.g. listing disturbances, etc.). Market-makers must also ensure that the Fund unit s listed market price does not differ by more than 1.5% either side of the Indicative NAV (see Indicative Net Asset Value section). The Management Company may ask market-makers to halt their trading in each Fund unit category should exceptional circumstances arise or should investor interest require this. SECONDARY MARKET BUY AND SELL TERMS AND CONDITIONS Fund units acquired in the secondary market generally cannot be resold directly to the Fund. Investors must buy and sell units in a secondary market, with the assistance of an intermediary (a broker, for example) and may have to pay corresponding fees. In addition, investors may have to pay more than the current net asset value when they buy units; investors may also receive less than the current net asset value when they sell them. Investors may however be authorised to sell their units in the primary market in the event of significant discrepancy between the stock market price of the Fund's units and its indicative net asset value or in the event of long-lasting suspension of trading in the units by the stock exchange operator in the main quotation market in which the unit is listed or in the event of lasting failure of the market-makers to fulfil their market-making commitment to ensure continuous presence in the market, thereby making trading in the unit impossible in the principal quotation market in which the Fund is listed for trading. Should any of these events occur, the Management Company will post on its website amundietf.com the procedure to be followed by investors wishing to redeem their units in the primary market. The Management Company will notify the operator of the stock exchange that customarily lists the units so that the operator may notify the market of the procedure in place and of the location where such procedure is available. Accordingly, a reasonable redemption fee will be charged to cover the transaction costs incurred by the Fund. Date and frequency of NAV calculation: Daily (each trading day on the Euronext markets, with the exception of legal public holidays in France). Place and methods of publication or communication of the net asset value: The net asset value of each unit category is calculated and published each day when the NYSE Euronext listing market is open and if one of the markets on which the Fund is listed for trading is open (including Borsa Italiana, Deutsche Börse, London Stock Exchange and SIX Swiss Exchange), provided that the orders placed given in the primary and secondary markets can be covered. The net asset value of each Fund unit category is available on request to the Management Company and on its website 16 / 29

18 Furthermore, on days the net asset value is published, an Indicative Net Asset Value (see Indicative Net Asset Value section) in euros will be published by NYSE Euronext. Costs and Fees: Subscription and redemption fees: : Subscription and redemption fees increase the subscription price paid by the investor, while redemption fees decrease the redemption price. Fees are retained by the Fund to compensate for its costs incurred in investing or liquidating the assets. Fees not paid to the Fund revert to the Management Company, the distributor, etc. - On the primary market: Fees payable by the investor, deducted when subscriptions or redemptions are made Subscription fee not retained by the Fund Basis Net asset value X number of units Rate For any unit category 1.2% on each subscription request Subscription fee not retained by the Fund Subscription fee not retained by the Fund Net asset value X number of units Net asset value X number of units For any unit class 0.20% on each cash subscription For any unit category 1% on each subscription request Subscription fee not retained by the Fund Net asset value X number of units For any unit category N/A Exemption: The Management Company and BNP Paribas Arbitrage and BNP Paribas SA are exempt from paying subscription or redemption fees. The nature of these fees is detailed in the section describing subscription and redemption arrangements. - On the secondary market: Purchases and sales on the secondary market do not incur any subscription or redemption fees. Purchase and sale orders for both unit categories can be placed through an approved broker in any market where the Fund is traded. Nevertheless, placing a stock market order will trigger costs over which the Management Company has no influence (e.g. broker s commission on stock-market orders to buy or sell units of each category charged by the investor s broker). The distribution of this Prospectus, and the purchase or sale of Fund units, may be subject to restrictions in certain countries, as may the purchase or sale of each category of Fund unit. This Prospectus is not an offer or solicitation by any person in any country where such offer or solicitation would be illegal or where the person making it would not meet the applicable statutory conditions or directed to any person to whom it would be illegal to make such a solicitation. Administrative and management fees: : These fees cover all expenses billed directly to the Fund, except for transaction costs. These fees cover all costs directly billed to the Fund, except transaction costs which include dealing costs (brokerage ) and any turnover commission that might be received by the Depositary the Management Company. The following fees may be charged on top of management and administrative fees: - outperformance fees, These reward the Management Company when the Fund exceeds its objectives. They are therefore billed to the Fund; - transaction fees billed to the Fund. 17 / 29

19 For more details of the costs actually billed to the Fund, refer to the key investor information document. Fees charged to the UCITS Base Rate structure P1 Management fees and fees external to the Management Company (CAC, custodian, distribution, and lawyers) Net assets For any unit category maximum 0.25% inclusive of tax P2 Maximum indirect fees (fees and management fees) Net assets For any unit category N/A Turnover commissions P3 Received by the custodian ***** Received by the management company Levied on each transaction or operation N/A **************** N/A P4 Performance fees Net assets For any unit category N/A Administrative and management fees will be charged directly to the Fund s income account. Exceptional legal costs for the recovery of the Fund s loans may be added to the fees invoiced to the Fund as listed above. Temporary acquisitions and sales of securities: The remuneration on securities loans is divided between the Fund and Amundi Intermediation. The fund receives 60% and Amundi Intermediation 40%. Commission in kind: The Management Company receives no commission in kind either for itself or for third parties. Warning: The tax treatment applicable to amounts distributed by the Fund or to its unrealised or realised capital gains or losses depends on the tax laws applicable to the individual investor s tax position and country of tax residence and/or on the jurisdiction in which the Fund holds assets. Some income distributed by the Fund to unitholders residing outside France may be subject to withholding tax in France. We recommend that you consult your tax adviser on this issue. Investors should also note that the Investment Income Taxation Directive specifies certain tax obligations taxation for Fund representatives and agents and on certain unitholders. Other regulations specifying similar obligations may be introduced in jurisdictions outside the European Union. In principle, under that Directive, and potentially under comparable regulations that might be adopted elsewhere, the payment of interest (which may include the proceeds of the sale, redemption or repurchase of Fund units by certain unit-holders) may in certain circumstances be disclosed to the local tax authorities. Investors are invited to refer to the Fund s Annual Report for further information. 18 / 29

20 IV. COMMERCIAL INFORMATION Unitholders are informed of any changes affecting the Fund in accordance with the procedures defined by the Autorite des Marches Financiers (AMF): individual information or by any other method (financial notice, interim report, etc.). The Prospectus for the Fund, Key Investor Information Document, latest annual and periodic documents, and the Fund's NAV are sent within one week on request in writing from the investor to are sent within one week upon written request from the investor to: Amundi - Amundi ETF - 90 boulevard Pasteur - CS PARIS cedex 15 The Management Company provides investors with information on how the criteria for compliance with social, environmental and governance quality objectives are taken into account in its investment policy on its website at amundi.com and, in the Fund's annual report. The transparency policy is available on request from the Management Company and on its website amundietf.com and information about the asset composition of the Fund is available on request from the Management Company and on its website amundietf.com where it is published with a delay of at least three stock market days. Further details are available from the Management Company and at amundietf.com. Indicative net asset value: The indicative net asset value ( inav ) is published by the stock exchange operator every day throughout the trading hours on which the NAV of both C and D Fund unit categories can be calculated and published. The inav is the Fund s instantaneous theoretical market value at a given moment, used as a reference price by market-makers and day traders. It is calculated for each market in which both Fund unit categories are listed and traded. The inav is automatically and continuously updated throughout the days when Fund units are listed for trading. If one or more markets on which the shares in the CAC 40 Index are closed (on legal holidays as defined by the Target calendar for example), and therefore in the event it is impossible to calculate the Net Asset Value, then trading in each class of Fund units may be suspended. On NYSE Euronext, the "inav" is published every 15 seconds throughout the Paris trading session (09:00 to 17:35). The "inav" history is published continuous on the NYSE Euronext website (euronext.com) and by most financial information providers (Reuters, Bloomberg and others). Reservation thresholds are set by applying a 1.5% variation on either side of the inav of the Fund units, as published by NYSE Euronext Paris S.A. These thresholds are updated during each trading session on an estimated basis depending on changes in the CAC 40 Index. 19 / 29

21 V. INVESTMENT RULES The Fund shall comply with the investment rules set forth by European Directive 2009/65/EC dated 13 July The Fund will comply with the legal ratios decreed by the French Monetary and Financial Code - Regulatory Part. The legal investment rules applicable to the Fund are those which govern coordinated UCITS, up to 10% of whose assets are invested in other UCITS, as well as those which are applied to its AMF classification - "Eurozone country equities". The main financial instruments and management techniques used by the Fund are described in Chapter II.2 "Special Provisions" of the Prospectus. Amendments to the French Monetary and Financial Code will be taken into consideration by the Management Company in manging the Fund as soon as they are implemented. EURONEXT PARIS S.A. HAS ALL PROPRIETARY RIGHTS WITH RESPECT TO THE CAC 40 INDEX. IN NO WAY EURONEXT PARIS S.A. AND ANY DIRECT OR INDIRECT AFFILIATES SPONSOR, ENDORSE OR ARE OTHERWISE INVOLVED IN THE ISSUE AND OFFERING OF THE PRODUCT. EURONEXT PARIS S.A. AND ANY DIRECT OR INDIRECT AFFILIATES SHALL NOT BE HELD LIABLE TOWARDS ANY THIRD PARTY FOR ANY INACCURACY IN THE DATA ON WHICH THE INDEX IS BASED, OR FOR ANY MISTAKES, ERRORS, OR OMISSIONS IN THE CALCULATION AND/OR DISSEMINATION OF THE INDEX, OR FOR THE MANNER IN WHICH IT IS APPLIED IN CONNECTION WITH THIS ISSUE AND THIS OFFER. "CAC 40 " ET "CAC " ARE TRADEMARKS REGISTERED BY EURONEXT PARIS S.A., A SUBSIDIARY OF EURONEXT N.V. 20 / 29