Last checked at 27 Oct 2020 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 MSCI Korea UCITS ETF (ISIN: LU0292100046)
and Xtrackers MSCI Taiwan UCITS ETF (ISIN: LU0292109187)
(each a “Sub-Fund”, together the “Sub-Funds”)
27 October 2020
This letter is to inform you on behalf of the board of directors of the Company (the “Board of Directors”) about certain changes to the Sub-Funds of the Company, as outlined below.
Background
The current investment objective of Xtrackers MSCI Korea UCITS ETF is to reflect the performance of the MSCI Total Return Net Korea Index (the “Original Reference Index” in relation to Xtrackers MSCI Korea UCITS ETF) which is designed to reflect the performance of the shares of certain companies in Korea. The current investment objective of Xtrackers MSCI Taiwan UCITS ETF is to reflect the performance of the MSCI Total Return Net Taiwan Index (the “Original Reference Index” in relation to Xtrackers MSCI Taiwan UCITS ETF) which is designed to reflect the performance of the shares of certain companies in Taiwan (together the “Original Reference Indices”).
Changing market circumstances have caused the Original Reference Indices to be no longer consistently satisfying the criteria of a “financial index” as set out in the Law and Regulations as defined in the Prospectus.
Changes
As a result of the foregoing and in accordance with the provisions of the Prospectus, the Board of Directors has decided to change the Original Reference Indices as further described hereafter.
The Original Reference Index in relation to Xtrackers MSCI Korea UCITS ETF will be replaced with the MSCI Korea 20/35 Custom Index (the “New Reference Index” in relation to Xtrackers MSCI Korea UCITS ETF).
The Original Reference Index in relation to Xtrackers MSCI Taiwan UCITS ETF will be replaced with MSCI Taiwan 20/35 Custom Index (the “New Reference Index” in relation to Xtrackers MSCI Taiwan UCITS ETF).
(together the “New Reference Indices”)
The methodology of each New Reference Index will be the same in all material respects to the corresponding Original Reference Index apart from the weight of the largest group entity in each New Reference Index will be capped at 31.5% and the weights of all other entities will be capped at 18% at each quarterly index rebalancing (that is 35% and 20% respectively, with a buffer of 10% applied on these limits at each index rebalancing).
Further details on the index methodology of the New Reference Indices can be found on http://www.MSCI.com.
Impact of the Changes
For the avoidance of doubt each Sub-Fund’s name, investment policy, risk profile and fees remain unchanged.
Timing for Implementation
It is intended that the changes will take effect on or about 1 December 2020.
General Information
Further information in relation to the changes set out herein may be obtained from the offices of foreign representatives or by sending an email to Xtrackers@dws.com.
Copies of the revised Prospectus and the key investor information documents' of the Sub-Funds reflecting the changes will be made available on the website of the Company (www.Xtrackers.com), 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.
Capitalised terms not defined herein shall have the meaning given to them in the Prospectus of the Company unless the context otherwise requires.
Shareholders who subscribe for Shares in the Sub-Funds on the primary market and who do not agree with the above changes are entitled to redeem their Shares in the Sub-Funds in accordance with the Prospectus. Such redemptions shall be free of any Redemption Charge from the date of this notice until 5 p.m. (Luxembourg time) on 27 November 2020. 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.
If you have any queries or if any of the above is not clear you should seek advice from your stockbroker, bank manager, legal adviser, accountant or other independent financial advisor.
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.
XtrackersThe Board of Directors
Contact InformationXtrackers49, 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
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