Last checked at 7 Oct 2022 09:00
Xtrackers II
Investment Company with Variable CapitalRegistered office: 49, avenue J.F. Kennedy, L-1855 Luxembourg,R.C.S. Luxembourg B-124.284(the Company)
Important Notice to Shareholders of
Xtrackers II ESG EUR Corporate Bond Short Duration UCITS ET1C (ISIN: LU2178481649)(the “Sub-Fund”)
07 October 2022
Dear Shareholder
The board of directors of the Company (the “Board of Directors”) hereby informs the shareholders of the Sub-Fund (the “Shareholders”) that Bloomberg Index Services Limited, in its capacity as Index Administrator of the Reference Index of the Sub-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 the Reference Index (collectively referred to as the “Changes”). The Changes will be effective as of 1 November 2022 (the “Effective Date”).
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.
1) Overview of the Changes
As of the Effective Date, the 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 Euro Corporate Sustainable and SRI 0-5 Year Index will set an initial 50% decarbonisation of absolute greenhouse gas (“GHG”) emissions relative to the Bloomberg Euro Corporate 0-5 Year Index, followed by an annual 7% decarbonisation trajectory of absolute GHG emissions.
Furthermore, the 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 the Reference Index as follows, with effect from the Effective Date:
Sub-Fund | Current Reference Index name | Amended Reference Index name |
Xtrackers II ESG EUR Corporate Bond Short Duration UCITS ETF | Bloomberg MSCI Euro Corporate Sustainable and SRI 0-5 Year Index | Bloomberg MSCI Euro Corporate SRI 0-5 Year PAB Index |
2) Transparency under SFDR
As a result of the Changes, the Sub-Fund 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 the Sub-Fund reflects shall have a reduction of carbon emissions as its objective. Prior to the Effective Date, the Sub-Fund was subject to the disclosure requirements of a financial product under Article 8(1) SFDR.
3) Sub-Fund name change
As a result of the Changes, the Board of Directors has resolved to change the name of the Sub-Fund as follows, with effect from the Effective Date:
Current Sub-Fund name | New Sub-Fund name |
Xtrackers II ESG EUR Corporate Bond Short Duration UCITS ETF | Xtrackers II EUR Corporate Bond Short Duration SRI PAB UCITS ETF |
General Information
For the avoidance of doubt, the Sub-Fund´s fees will remain unchanged.
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 3:00 p.m. (Luxembourg time) on 07 November 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 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.
Xtrackers II
The Board of Directors
Contact Information
Xtrackers II
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
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