Important Notice to Shareholders of Xtrackers II

18 Mar 2022 09:00

 

Xtrackers IIInvestment Company with Variable CapitalRegistered office: 49, avenue J.F. Kennedy, L-1855 LuxembourgR.C.S. Luxembourg B- 124.284(the "Company")

Important Notice to Shareholders ofXtrackers II Global Aggregate Bond Swap UCITS ETF1D (ISIN: LU0942970103)3D-GBP Hedged (ISIN: LU0942970368)(the "Sub-Fund")

18 March 2022

With reference to the notice to shareholders dated 19 November 2021 (the “Original Notice”), we hereby inform you that the changes as described in that notice shall be effected in relation to the Sub-Fund on 24 March 2022 (the “Effective Date”).

Hence, as from the Effective Date:

the Sub-Fund shall change its name to Xtrackers II ESG Global Aggregate Bond UCITS ETF;the Reference Index of the Sub-Fund shall change to Bloomberg MSCI Global Aggregate Sustainable and SRI Currency Neutral Index;the Sub-Fund shall be passively managed in accordance with a Direct Investment Policy and shall become an Optimised Replication Fundthe Currency Hedged Share Classes shall track the Reference Index (which is not hedged);the anticipated level of Tracking Error disclosed for the Currency Hedged Share Classes will represent the anticipated level of Tracking Error of the unhedged Share Classes of the Sub-Fund against the Reference Index.the Management Company shall sub-delegate the day-to-day investment management with respect to the Sub-Fund to DWS Investment GmbH. DWS Investment GmbH shall delegate all or part of its investment management responsibilities with respect to the Sub-Fund to DWS Investments UK Limited.In addition to the delegation to DWS Investments UK Limited as Sub-Portfolio Manager, DWS Investment GmbH may delegate all or part of its investment management responsibilities in relation to those parts of the Sub-Fund’s portfolio that are denominated in certain currencies to DWS Investment Management Americas, Inc. (along with DWS Investments UK Limited a "Sub-Portfolio Manager"). DWS Investments UK Limited shall act as Sub-Portfolio Manager in relation to all other parts of the Sub-Fund’s portfolio.

Contrary to the Original Notice and the transitional wording in the Sub-Fund’s Product Annex, it has been decided that:

the Sub-Fund shall not engage in securities lending activities. Therefore there will be no change to the securities lending status of the Sub-Fund following the Effective Date and the Sub-Fund’s Product Annex shall be updated to reflect this in due course.State Street Bank & Trust Company, London Branch shall not be appointed as “Currency Hedging Manager” for the Sub-Fund. The Investment Manager DWS Investment GmbH will perform this activity in accordance with the approach for all Direct Investment Policy Sub-Funds;

Additionally, the Board of Directors of the Company hereby informs shareholders of certain reductions in the Share Classes’ fees effective as of the Effective Date. DWS Investment S.A., acting in its role as the management company of the Company agreed to reduce the Management Company Fee for the Share Classes, as set out in Schedule 1 hereto. The Fixed Fee for the Share Classes shall also be reduced, as set out in Schedule 1 hereto. As a result, the All-In Fee of the Share Classes will also be reduced as set out in Schedule 1.

Capitalised terms not defined herein shall have the meaning given to them in the prospectus of the Company (the "Prospectus").

Further information regarding the changes above mentioned, are contained in the Prospectus. The Prospectus, as well as the revised key investor information documents in relation to the Sub-Fund are available on the website of the Company (www.Xtrackers.com), and a copy of which may be obtained free of charge at the Company’s registered office or at the foreign representatives’ offices.

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. All shareholders are strongly advised to consult their tax advisor to assess (1) the impact of the changes and any potential tax consequences thereof and (2) any potential changes between the current and / or future taxation of their investment under the laws of the countries of their nationality, residence, domicile or incorporation.

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 IIThe Board of Directors

Schedule 1 - Fee Changes

		Before the Effective Date			After the Effective Date
Share Class	ISIN	Current Management Fee	Current Fixed Fee	Current All-In Fee	New Management Fee	New Fixed Fee	New All-In Fee
3D - GBP Hedged	LU0942970368	Up to 0.10% p.a.	Up to 0.10% p.a.	Up to 0.20% p.a.	Up to 0.06% p.a.	Up to 0.09% p.a.	Up to 0.15% p.a.
1D	LU0942970103	Up to 0.05% p.a.	Up to 0.10% p.a.	Up to 0.15% p.a.	Up to 0.01% p.a.	Up to 0.09% p.a.	Up to 0.10% p.a.

 

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