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 FTSE All-Share UCITS ETF
(the "Sub-Fund")
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 FTSE All-Share Index (the "Current Reference
Index"), which is administered by FTSE International Limited
("Current Index Administrator"). The Current Reference Index
reflects the performance of large, mid and small cap stocks listed
on the London Stock Exchange.
As of 9 December 2020 (the "Effective Date"), the investment
objective of the Sub-Fund will be amended to reflect the
performance of the MSCI United Kingdom IMI Low Carbon SRI Leaders
Select Index (the "New Reference Index"). The New Reference Index
is based on the MSCI United Kingdom Investable Market Index (IMI)
(the "Parent Index") and is administered by MSCI Limited (the "New
Index Administrator").
The New Reference Index is designed to represent the performance
of companies that have lower carbon exposure than that of the broad
UK equity market and have high Environmental, Social and Governance
("ESG") performance.
Differences between the Current Reference Index and the New
Reference Index include, but are not limited to, the following:
1. Securities included: The Current Reference Index only includes shares of
most of the companies listed on the London Stock Exchange as described
above. The New Reference Index invests in companies that have lower
carbon exposure than that of the broad UK equity market and have high
Environmental, Social and Governance (ESG) performance. The New Reference
Index aims to represent the larger liquid segment of securities in the
eligible UK equity universe above the defined size thresholds.
2. 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.
3. Weighting: The Current Reference Index and the New Reference Index are
both market capitalization weighted. However, the New Reference Index
aims to avoid concentration by capping issuers within the index to a
maximum weight of 18%, at each quarterly re-balancing, in accordance with
the MSCI Capped Indexes methodology. The Current Reference Index does not
have a capping mechanism.
4. Rebalancing frequency: The Current Reference Index and the New Reference
Index are both re-balanced on a quarterly basis. The New Reference Index
is reviewed on a quarterly basis instead of on an annual basis.
Further details on the index methodology of the New Reference
Index can be found on https://www.msci.com.
The change to the New Reference Index is proposed due to low
demand and consistently declining assets in the Sub-Fund whilst
tracking the Current Reference Index. To allow existing investors
to remain invested in the UK equity market, the Board of Directors
deems it to be in the best interests of the Shareholders to
restructure the Fund to reflect the New Reference Index.
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 FTSE All-Share UCITS ETF to Xtrackers MSCI UK ESG
UCITS ETF with effect from the Effective Date.
Change to the Investment Policy
As from the Effective Date, the Sub-Fund will be passively
managed in accordance with a Direct Investment Policy and will
become a Full Replication Fund.
Securities Lending
With effect from the Effective Date, the Sub-Fund will no longer
engage in securities lending activities. This is in line with other
Xtrackers ETFs that follow an ESG based investment objective.
General Information
For the avoidance of doubt, the Sub-Fund's fees will remain
unchanged.
Shareholders should be aware that certain transaction costs and
duties will arise as a result of the Changes which will be borne by
the Sub-Fund. Under normal market circumstances the transaction
costs and duties are expected to be material.
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 4.30 p.m. (Luxembourg time) on 8
December 2020. 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
View source version on businesswire.com:
https://www.businesswire.com/news/home/20201106005010/en/
CONTACT:
Xtrackers
SOURCE: Xtrackers
Copyright Business Wire 2020
(END) Dow Jones Newswires
November 06, 2020 04:00 ET (09:00 GMT)
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