Last checked at 14 Feb 2022 09:00
Xtrackers II
Investment Company with Variable Capital
Registered office: 49, avenue J.F. Kennedy, L-1855 Luxembourg,
Xtrackers II - R.C.S. Luxembourg B-124.284
(the “Company”)
Important notice to Shareholders of
Xtrackers II ESG EUR Corporate Bond Short Duration UCITS ETF
1C (ISIN: LU2178481649)
(the “Sub-Fund”)
14 February 2022
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 resolved to make certain changes to the Environmental, Social and Governance (“ESG”) components of the index methodology of the Reference Index (collectively referred to as the “Changes”). The Changes will be effective as of 28 February 2022 (the “Effective Date”).
Sub-Fund | Reference Index |
Xtrackers II ESG EUR Corporate Bond Short Duration UCITS ETF | Bloomberg MSCI Euro Corporate Sustainable and SRI 0-5 Year Index |
Capitalised terms used in this notice shall have the same meaning ascribed to them in the current version of the prospectus of the Company (the “Prospectus”), unless the context otherwise requires.
A. OVERVIEW OF THE CHANGES
Addition of ESG exclusion standards
Currently the Reference Index of the Sub-Fund applies an ESG screening approach which excludes companies that, amongst others, (i) are unrated by MSCI ESG Research, (ii) are assigned an MSCI ESG Rating of BB or below, (iii) have a “red” MSCI ESG Controversies Score, (iv) are classified by MSCI in their Business Involvement Screening Research as breaching certain revenue thresholds in controversial activities and (v) are involved in controversial weapons, nuclear weapons, unconventional oil & gas, thermal coal or with any fossil fuel reserves (the “ESG Exclusion Criteria”).
As of the Effective Date, if having applied the ESG Exclusion Criteria less than 20% of the total number of issuers in the eligible universe (the “Relevant Threshold”) are excluded, the remaining issuers will be ranked according to MSCI ESG Rating score and MSCI ESG Controversies score and those with the lowest ranking will be excluded from the Reference Index, until the number of excluded issuers is higher than the Relevant Threshold.
B. GENERAL INFORMATION
Copies of the revised Product Annex 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 also be obtained from the legal entities mentioned under ‘Contact information’ below 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.
Yours sincerely,
Xtrackers II
The Board of Directors
Contact information
Xtrackers II49, 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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