LONDON--(BUSINESS WIRE)--
Xtrackers
Investment Company with Variable Capital
Registered office: 49, avenue J.F. Kennedy, L-1855 Luxembourg,
R.C.S. Luxembourg B-119.899
(the “Company”)
Important Notice to Shareholders of
Xtrackers MSCI EM Latin America Swap UCITS ETF
(ISIN: LU0292108619)
(the “Sub-Fund”)
23 February 2021
The board of directors of the Company (the "Board of Directors") hereby informs the shareholders of the Sub-Fund (the "Shareholders") that it has resolved to make certain changes to the Sub-Fund, as detailed below (collectively referred to as the “Changes”).
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.
Change of Reference Index and Index Administrator
Currently the investment objective of the Sub-Fund is to reflect the performance of the MSCI Total Return Net Emerging Markets Latin America Index (the “Current Reference Index”), which is administered by MSCI Inc. ("Current Index Administrator"). The Current Reference Index reflects the performance of the shares of certain companies in Latin America emerging markets, as classified by MSCI Inc.
As of 25 March 2021 (the “Effective Date”), the investment objective of the Sub-Fund will be amended to reflect the performance of the MSCI EM Latin America Low Carbon SRI Leaders Index (the “New Reference Index”). The New Reference Index is based on the MSCI EM Latin America Index (the "Parent Index") and is administered by MSCI Limited (the "New Index Administrator"), a subsidiary of the Current Index Administrator.
The New Reference Index is designed to represent the performance of companies that have lower current and potential carbon exposure than that of the broader equity market in Emerging Markets countries in Latin America and have high ESG performance.
Differences between the Current Reference Index and the New Reference Index include, but are not limited to, the following:
- Securities included: The Current Reference Index includes shares of companies of the emerging markets of Latin America, as described above. The New Reference Index includes companies that have lower current and potential carbon exposure than that of the broader equity market in Emerging Markets countries in Latin America, and also have high Environmental, Social and Governance (ESG) performance.
- ESG: The Current Reference Index does not apply ESG screens. The New Reference Index applies two sets of rules independently, Low Carbon Exposure Selection Rules and Highest ESG Performance Selection Rules. The New Reference Index’s ESG standards limit the number of securities eligible for inclusion in the New Reference Index. As a result, the New Reference Index, and as such, the Sub-Fund may be more heavily weighted in securities, industry sectors or countries that underperform the market as a whole or underperform other funds screened for ESG standards, or which do not screen for such standards.
Further details on the New Reference Index, including its composition, ESG criteria, calculation, rules and methodology can be found on https://www.msci.com.
The change to the New Reference Index is proposed due to low historical demand for the Sub-Fund and increased demand for ESG compliant emerging market sub-funds.
Change to Sub-Fund name
As a result of the changes to the Reference Index and Index Administrator, as described above, the Sub-Fund’s name shall change from Xtrackers MSCI EM Latin America Swap UCITS ETF to Xtrackers MSCI EM Latin America ESG Swap UCITS ETF with effect from the Effective Date.
General Information
For the avoidance of doubt, the Sub-Fund’s investment policy and fees will remain unchanged.
Shareholders should be aware that material transaction costs and duties may arise as a result of the Changes, which will be borne by the Sub-Fund.
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 3.30 p.m. (Luxembourg time) on 24 March 2021. 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
The Board of Directors
Contact information
Xtrackers
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