NEW YORK--(BUSINESS WIRE)--Deutsche Asset & Wealth Management (Deutsche AWM) today announced that its Deutsche X-trackers US ETF platform, with approximately $16.7 billion in assets, will close and liquidate the following five target-date exchange traded funds (ETFs), representing less than 1% of the platform’s assets:
- Deutsche X-trackers In-Target Date ETF (TDX)
- Deutsche X-trackers 2010 Target Date ETF (TDD)
- Deutsche X-trackers 2020 Target Date ETF (TDH)
- Deutsche X-trackers 2030 Target Date ETF (TDN)
- Deutsche X-trackers 2040 Target Date ETF (TDV)
Commencing on Friday, May 15, 2015, the ETFs will no longer be accepting creation orders and the final day of trading on the NYSE Arca exchange will be Monday, May 18, 2015. The ETFs will be accepting redemption requests until May 18, 2015. Proceeds of the liquidation are currently scheduled to be sent to shareholders on or about Wednesday, May 27, 2015.
When each ETF commences liquidation of its portfolio securities, each ETF may hold cash and securities that may not be consistent with the ETF’s investment objective and strategy. During this period, each ETF is likely to incur higher tracking error than is typical for the ETF.
Shareholders may sell their holdings of a ETF on the NYSE until the market close on May 18, 2015, and may incur typical transaction fees from their broker-dealer. At the time the liquidation of the ETFs is complete, shares of the ETFs will be individually redeemed. For investors that still hold shares as of May 19, 2015, each ETF will automatically redeem its shares for cash at the ETF’s current net asset value as of close of business. Shareholders generally will recognize a capital gain or loss on the redemptions. The ETFs may or may not, depending upon each ETFs circumstances, pay one or more dividends or other distributions prior to or along with the redemption payments.
Deutsche X-trackers US ETF business has experienced breakthrough years in 2014 and 2015. With assets totaling $16.7 billion as of April 22, 2015, an increase of approximately 380% since year end 2014, Deutsche X-trackers continues to be among the fastest growing ETF franchises in the US.1 The firm’s global exchange traded products platform has grown to become the world’s fifth largest, with approximately $56.8 billion in assets under management as of December 31, 2014.2
Deutsche Asset & Wealth Management
With USD 1.26 trillion of assets under management (as of December 31, 2014), Deutsche Asset & Wealth Management* is one of the world's leading investment organizations. Deutsche Asset & Wealth Management offers individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices.
* Deutsche Asset & Wealth Management is the brand name of the Asset Management and Wealth Management division of the Deutsche Bank Group. The legal entities offering products or services under the Deutsche Asset & Wealth Management brand are listed in contracts, sales materials and other product information documents.
Deutsche X-trackers ETFs ("ETFs") are managed by DBX Advisors LLC or DBX Strategic Advisors LLC (the "Advisors"), and distributed by ALPS Distributors, Inc. (“ALPS”). The Advisors are subsidiaries of Deutsche Bank AG, and are not affiliated with ALPS. Deutsche X-trackers ETFs are not FDIC insured and there is no bank guarantee and they may lose value.
The Zacks Lifecycle index (the "Index") that the ETF seeks to track is comprised of a diversified group of domestic equities, international equities and fixed income securities. The allocations gradually shift from aggressive strategies to more conservative strategies as the target date approaches.
Shares of the Deutsche X-trackers ETFs may be sold throughout the day on the exchange through any brokerage account. However, shares are not individually redeemable from the ETFs and may only be purchased and redeemed directly from the ETFs by Authorized Participants, in very large creation/redemption units. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.
Zacks and Zacks Lifecycle index are servicemarks of Zacks Investment Research, Inc. ("Zacks") and have been licensed for use by db-X. The ETF is not sponsored, endorsed, issued, sold or promoted by Zacks. Zacks does not make any representation regarding the advisability of investing in the ETFs.
Carefully consider the fund's investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the fund's prospectus, which may be obtained by calling 1-855-DBX-ETFS (1-855-329-3837), or by viewing or downloading a prospectus from www.deutsche-etfs.com. Read the prospectus carefully before investing.
Risks:
Investing involves risk, including the possible loss of principal. Stocks may decline in value. Bond investments are subject to interest-rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. The allocation model used to calculate the Underlying Index may not maximize returns and/or minimize risks in accordance with the targeted time horizon for the Underlying Index. Performance of the Fund may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. An investment in this fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the fund. See the prospectus for details.
No bank guarantee | Not FDIC insured | May lose value
Deutsche Asset & Wealth Management represents the asset management and wealth management activities conducted by Deutsche Bank AG or any of its subsidiaries. Clients will be provided Deutsche Asset & Wealth Management products or services by one or more legal entities that will be identified to clients pursuant to the contracts, agreements, offering materials or other documentation relevant to such products or services.
© 2015 Deutsche Asset & Wealth Management. All rights reserved. R-038162-1.0 DBX001416 4/14/2016
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1 Source: ETF.com
2
Source: Deutsche AWM