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 MSCI AC Asia ex Japan ESG Swap UCITS ETF
1C (ISIN: LU0322252171)
Xtrackers MSCI EM Latin America ESG Swap UCITS ETF
1C (ISIN: LU0292108619)
Xtrackers MSCI EM Europe, Middle East & Africa ESG Swap UCITS ETF
1C (ISIN: LU0292109005)
(each a “Sub-Fund” and together the “Sub-Funds”)
27 November 2024
The board of directors of the Company (the "Board of Directors") hereby informs the shareholders of the Sub-Funds (the "Shareholders") that MSCI Limited (the “Index Administrator”) informed the Company on 14 November 2024 that it would introduce certain changes as detailed below (the “Changes”) to the reference index of each Sub-Fund (the “Reference Index”). The Changes have been applied at the scheduled MSCI ordinary index review on 26 November 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 the Changes
1. The relevant Reference Index of each Sub-Fund has been renamed as set out below:
Sub-Fund |
Current Reference Index |
New Reference Index
|
Xtrackers MSCI AC Asia ex Japan ESG Swap UCITS ETF |
MSCI AC Asia ex Japan Low Carbon SRI Leaders Capped Index |
MSCI AC Asia ex Japan Low Carbon SRI Selection Capped Index |
Xtrackers MSCI EM Latin America ESG Swap UCITS ETF |
MSCI EM Latin America Low Carbon SRI Leaders Index |
MSCI EM Latin America Low Carbon SRI Selection Capped Index |
Xtrackers MSCI EM Europe, Middle East & Africa ESG Swap UCITS ETF |
MSCI EM EMEA Low Carbon SRI Leaders Index |
MSCI EM EMEA Low Carbon SRI Selection Capped Index
|
2. The Index Administrator announced that additional exclusion criteria would be added to the existing Environmental, Social, and Governance exclusion criteria (the “ESG Exclusion Criteria”) of each Reference Index.
Each Reference Index currently applies Highest ESG Performance Selection Rules.
Under the Highest ESG Performance Selection Rules, MSCI ESG Business Involvement Screening Research (“MSCI BISR”) is utilised to identify and exclude companies involved in industries with a high potential for negative environmental, health and/or social impact based on the value-based criteria and thresholds from the MSCI SRI Indexes methodology.
As of the Effective Date, the index methodology was updated to reflect an additional oil & gas screen and enhanced power generation screen.
As a result, the following screens in relation to the MSCI BISR will apply:
Alcohol, tobacco, gambling, adult entertainment, genetically modified organisms, civilian firearms, oil & gas, nuclear weapons, thermal coal, fossil fuel, and fossil fuel-based power generation. Companies with any involvement in controversial weapons are explicitly excluded.
The ESG Exclusion Criteria comprise the requirements as laid out in Article 12(1)(a) to (g) of the Commission Delegated Regulation (EU) 2020/1818 (“PAB Exclusions”).
The relevant Product Annex of each Sub-Fund will be amended to include the list of industries set out above. From time to time, other activities may also be subject to exclusion and more conservative thresholds may apply.
For the avoidance of doubt, the Sub-Funds’ investment objective, investment policy, risk profile and fees remain unchanged.
For full details about the changes to the index methodology, please refer to the website of the Index Administrator on www.msci.com/index-methodology.
b. General Information
Copies of the revised Prospectus reflecting the Changes will be made available on the website of the Company (www.Xtrackers.com) as soon as possible, 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.
This product is based overseas and is not subject to UK sustainable investment labelling and disclosure requirements. Further information in relation to the UK sustainability labelling and disclosure requirements can be found on the UK FCA’s website.
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