Last checked at 17 Oct 2022 09:00
Xtrackers (IE) plcInvestment Company with Variable CapitalRegistered Office: 78 Sir John Rogerson's Quay, Dublin 2, IrelandRegistration number: 393802(“the Company”)
Important Notice to Shareholders of:
Xtrackers ESG USD Corporate Bond Short Duration UCITS ETF1D (ISIN: IE00BF8J5974)
and
Xtrackers ESG USD Corporate Bond UCITS ETF1C (ISIN: IE00BL58LJ19)
(each a “Fund” and together the “Funds”)
_________________________________________________________________________________
17 October 2022
Dear Shareholder,
The board of directors of the Company (the “Board of Directors”) hereby informs the shareholders of the Funds (the “Shareholders”) that Bloomberg Index Services Limited, in its capacity as Index Administrator of the Reference Index of each Fund (as set out in the table below), has announced on 15 September 2022 that it will make certain changes to the index methodology and name of each Reference Index (collectively referred to as the “Changes”). The changes will be effective as of 1 November 2022 (the “Effective Date”).
Unless otherwise defined or inconsistent with the context in this document, capitalised terms used herein have the same meanings as are ascribed to them in the current prospectus of the Company and supplement in respect of the Fund.
1. Overview of the Changes
As of the Effective Date, each Reference Index shall aim to comply with the minimum standards laid out for EU Paris Aligned Benchmarks (“EU PAB”) in the Commission Delegated Regulation (EU) 2020/1818 supplementing Regulation (EU) 2016/1011 of the European Parliament and European Council with regards to the minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (the “PAB Regulation”). The Bloomberg MSCI USD Liquid Investment Grade Corporate Sustainable and SRI Index will set an initial 50% decarbonisation of absolute greenhouse gas (“GHG”) emissions relative to the Bloomberg USD Liquid Investment Grade Corporate Index, followed by an annual 7% decarbonisation trajectory of absolute GHG emissions. The Bloomberg MSCI USD Corporate Sustainable and SRI 0-5 Years Index will set an initial 50% decarbonisation of absolute GHG emissions relative to the Bloomberg USD Corporate 0-5 Year Index, followed by an annual 7% decarbonisation trajectory of absolute GHG emissions.
Furthermore, each Reference Index shall apply the following additional environmental, social, and governance (“ESG”) criteria, such that the following bonds will be excluded from the Reference Index:
Issuers where MSCI does not have reported or estimated absolute GHG emissions data; andIssuers which breach a MSCI Environmental Controversy Score.In addition to standard monthly rebalancings, the Reference Index shall also incorporate a semi-annual emissions exclusions process. The semi-annual process will establish which issuers should be excluded from the Reference Index to maintain compliance with the PAB Regulation.
As a result of the above, the Index Administrator has resolved to change the name of each Reference Index as follows, with effect from the Effective Date:
Fund | Current Reference Index name | Amended Reference Index name |
Xtrackers ESG USD Corporate Bond UCITS ETF | Bloomberg MSCI USD Liquid Investment Grade Corporate Sustainable and SRI Index | Bloomberg MSCI USD Liquid Investment Grade Corporate SRI PAB Index |
Xtrackers ESG USD Corporate Bond Short Duration UCITS ETF | Bloomberg MSCI USD Corporate Sustainable and SRI 0-5 Years Index | Bloomberg MSCI USD Corporate SRI 0-5 Years PAB Index |
2. Transparency under SFDR
As a result of the Changes, the Funds shall be subject to the disclosure requirements of a financial product under Article 9(3) SFDR. This determination is made solely on the basis that, as of the Effective Date, the Reference Index that each Fund reflects shall have a reduction of carbon emissions as its objective. Prior to the Effective Date, the Funds were subject to the disclosure requirements of a financial product under Article 8(1) SFDR.
3. Fund name change
As a result of the Changes, the Board of Directors has resolved to change the name of each Fund as follows, with effect from the Effective Date:
Current Fund name | New Fund name |
Xtrackers ESG USD Corporate Bond UCITS ETF | Xtrackers USD Corporate Bond SRI PAB UCITS ETF |
Xtrackers ESG USD Corporate Bond Short Duration UCITS ETF | Xtrackers USD Corporate Bond Short Duration SRI PAB UCITS ETF |
General Information
The Changes will be reflected in an updated Supplement to be issued on or around the Effective Date, subject to the approval of the Central Bank of Ireland.
Copies of the revised supplement and the key information documents of the Funds reflecting the changes will be made available on the website of the Company (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.
______________________________
DirectorFor and on behalf ofXtrackers (IE) plc
Contact informationXtrackers (IE) plc78 Sir John Rogerson’s Quay, Dublin 2, Ireland
DWS Investment S.A.2, boulevard Konrad Adenauer, L-1115 Luxembourg, Grand Duchy of Luxembourg
Registered in Dublin, Ireland as an open-ended variable capital umbrella investment company with limited liability and as an umbrella fund with segregated liability between funds.Registration Number 393802. Registered Office as above.Directors: Tom Murray (Irish), Michael Whelan (Irish), Gerry Grimes (Irish), Julien Boulliat (French), Philippe Ah-Sun (British) and Michael Mohr (German)
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