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 the Shareholders of
Xtrackers FTSE China 50 UCITS ETF
1C (ISIN: LU0292109856)
(the “Sub-Fund”)
31 October 2024
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”). The Changes will be effective as of 4 December 2024 (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.
A) OVERVIEW OF CHANGES
1) Change of Reference Index and Index Administrator
The Board of Directors has resolved to change the investment objective of the Sub-Fund as follows:
Currently the Investment Objective of the Sub-Fund is to reflect the performance of the FTSE CHINA 50 Index (the "Current Reference Index") which is designed to reflect the performance of the shares of 50 mainland Chinese companies whose shares are listed on the Hong Kong Stock Exchange and are therefore available to international investors.
The Current Reference Index is administered by FTSE International Limited (the “Current Index Administrator”).
As of the Effective Date, the Investment Objective of the Sub-Fund will change to reflect the performance of a new Reference Index, MSCI China A Inclusion Index (the "New Reference Index") which is designed to reflect the performance of the shares of large and medium capitalisation Chinese companies, traded on domestic exchanges, that are included in the MSCI Emerging Markets Index (the “Parent Index”). The New Reference Index is designed for global investors accessing the onshore A shares market using the Stock Connect framework.
The New Reference Index is designed to track the progressive partial inclusion of A-Shares in the Parent Index over time. In the event A-Shares of a company are added to the Parent Index, the newly eligible A-Shares will also be added to the New Reference Index, reflecting those A-Shares compatible with Stock Connect and based on the offshore RMB exchange rate.
The New Reference Index and the Parent Index are administered by MSCI Limited (the “New Index Administrator”).
The change to the New Reference Index is proposed as part of the Company’s continuous review of its existing product range. Hence, the Board of Directors deems it to be in the best interests of the Shareholders to restructure the Sub-Fund to reflect the New Reference Index.
Further details on the New Reference Index, including its calculation, rules and methodology can be found on www.msci.com.
2) Change to the Sub-Fund’s name
As a result of the Changes, the Board of Directors has resolved to change the name of the Sub-Fund from the Effective Date, as follows:
Current Sub-Fund name |
New Sub-Fund name |
Xtrackers FTSE China 50 UCITS ETF |
Xtrackers MSCI China A UCITS ETF |
3) Change to the Sub-Fund’s fees
The Board of Directors has resolved to change the Sub-Fund´s fees from the Effective Date, as follows:
Current Fixed Fee |
Current Management Company Fee |
Current All-In Fee |
New Fixed Fee |
New Management Company Fee |
New All-In Fee |
0.016667% per month (0.20% p.a.) |
Up to 0.40% p.a |
Up to 0.60% p.a |
Up to 0.016667% per month (0.20% p.a.) |
Up to 0.15% p.a |
Up to 0.35% p.a |
B) GENERAL INFORMATION
Shareholders should be aware that although the transaction costs and duties are expected to be minimal, they may still arise as a result of the Changes and will be borne by the Sub-Fund.
Shareholders who subscribe for Shares in the Sub-Fund(s) on the primary market and who do not agree with the Changes, are entitled to redeem their Shares in the Sub-Fund(s) in accordance with the Prospectus. Such redemptions shall be free of any Redemption Charge from the date of this notice until 5:00 p.m. (Luxembourg time) on 2 December 2024. 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