Last checked at 6 May 2022 09:00
Xtrackers
Investment Company with Variable Capital
Registered office: 49, avenue J.F. Kennedy, L-1855 Luxembourg,
R.C.S. Luxembourg B-119.899
(the “Company”)
Important Notice to Shareholders of
Xtrackers DAX Income UCITS ETF
(ISIN: LU0838782315)
(the “Sub-Fund”)
6 May 2022
The board of directors of the Company (the "Board of Directors") hereby informs the shareholders of the Sub-Fund (the "Shareholders") that it has resolved to make certain changes to the Sub-Fund, as detailed below (collectively referred to as the “Changes”).
Capitalised terms used in this notice shall have the same meaning ascribed to them in the latest version of the prospectus of the Company (the “Prospectus”), unless the context otherwise requires.
A) OVERVIEW OF CHANGES
1) Change of Reference Index
The Board of Directors has resolved to change the investment objective of the Sub-Fund as follows.
Currently, the investment objective of the Sub-Fund is to reflect the performance of the DAX® Index (the “Current Reference Index”) which is designed to reflect the performance of the shares of 40 of the largest companies on the Frankfurt Stock Exchange.
As of 20 June 2022 (the “Effective Date”), the investment objective of the Sub-Fund will be to reflect the performance of the DAX ESG Screened Index (the “New Reference Index”). The Current Reference Index is the parent index of the New Reference Index.The New Reference Index consists of companies from the Current Reference Index, which meet certain minimum Environmental, Social and Governance (“ESG”) standards.
Additional relevant differences between the Current Reference Index and the New Reference Index include, but are not limited to, the following:
ESG: The Current Reference Index does not apply ESG screens. The New Reference Index utilises ESG data provided by Institutional Shareholder Services Inc. (“ISS ESG”) and excludes companies which do not fulfil specific ESG criteria, including those that are:Assigned an ISS ESG Rating of D- or below.Identified as ‘Red’ by ISS ESG in their Norms Based Screening. ISS ESG’s Norms Based Screening assesses companies against their adherence to international norms on human rights, labour standards, environmental protection and anti-corruption established in the UN Global Compact and the OECD Guidelines.Identified by ISS ESG as having any involvement in controversial weapons; andIdentified by ISS ESG as breaching certain revenue thresholds in business activities, including, but not limited to, tobacco, thermal coal mining, oil sands, nuclear power, civilian firearms, and military equipment.The New Reference Index also excludes companies which have missing ESG data.
The New Reference Index promotes ESG characteristics, therefore the Sub-Fund will qualify as a product subject to Article 8 of SFDR as of the Effective Date.
Calculation: The Current Reference index is a price return index, which means that it calculates the performance of the index constituents on the basis that any dividends or distributions are not included in the level of the Reference Index. The New Reference Index is a total return net index, which means that it calculates the performance of the index constituents on the basis that any dividends or distributions are reinvested after the deduction of any taxes that may apply.The change to the New Reference Index is proposed as part of the Company’s continuous review of its existing product range and due to increased demand for ESG compliant investments. Hence, the Board of Directors deems it to be in the best interests of the Shareholders to restructure the Sub-Fund to reflect the New Reference Index.
Further details on the index methodology of the New Reference Index can be found on www.stoxx.com.
2) Change to the Sub-Fund name
As a result of the Changes, the Board of Directors has resolved to change the name of the Sub-Fund to Xtrackers DAX ESG Screened UCITS ETF, with effect from the Effective Date.
3) Changes to the Securities Lending language to reflect ESG standards
As of the Effective Date, the Securities Lending language of the Product Annex will be amended to provide that, where the Sub-Fund enters into Securities Lending Transactions, the collateral received in relation to such transactions shall comply with ESG standards as determined by the relevant Investment Manager, Sub-Portfolio Manager and/or Securities Lending Agent, in accordance with and within the limits set forth in the agency securities lending and repurchase agreement and in addition to the criteria of the Prospectus. Equity collateral conforming to such ESG standards shall be identified by reference to an appropriate developed market ESG equity index and will incorporate as a minimum ESG screens substantially similar to those of the New Reference Index.
B) GENERAL INFORMATION
For the avoidance of doubt, the Sub-Fund’s fees will remain unchanged.
Shareholders should be aware that transaction costs and duties may arise as a result of the Changes which will be borne by the Sub-Fund. Under normal market circumstances the transaction costs and duties are expected to be immaterial.
Shareholders who subscribe for Shares in the Sub-Fund on the primary market and who do not agree with the Changes, are entitled to redeem their Shares in the Sub-Fund in accordance with the Prospectus. Such redemptions shall be free of any Redemption Charge from the date of this notice until 4.30 p.m. (Luxembourg time) on 6 June 2022. Please note that the Company does not charge any redemption fee for the sale of Shares in the secondary market. Orders to sell Shares through a stock exchange can be placed via an authorised intermediary or stockbroker. Shareholders should note that orders in the secondary market may incur costs over which the Company has no control and to which the above exemption on redemption charges does not apply.
Copies of the revised Prospectus and the key information documents of the Sub-Fund reflecting the Changes will be made available on the Company’s website (www.xtrackers.com) on or around the Effective Date, and copies thereof may be obtained on request free of charge at the registered office of the Company or at the offices of foreign representatives, once available.
Shareholders who have any queries or to whom any of the above is not clear should seek advice from their stockbroker, bank manager, legal advisor, accountant or other independent financial advisor. Shareholders should also consult their own professional advisors as to the specific tax implications under the laws of the countries of their nationality, residence, domicile or incorporation.
Further information in relation to the Changes may be obtained from the legal entities mentioned under Contact information below, the offices of foreign representatives or by sending an email to Xtrackers@dws.com.
Neither the contents of the Company’s website nor the contents of any other website accessible from hyperlinks on the Company’s website is incorporated into, or forms part of, this announcement.
Xtrackers
The Board of Directors
Contact information
Xtrackers
49, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg
DWS Investment S.A.
2, boulevard Konrad Adenauer, L-1115 Luxembourg, Grand Duchy of Luxembourg
View source version on businesswire.com: https://www.businesswire.com/news/home/20220506005025/en/
Copyright Business Wire 2022