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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/

 
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    SOURCE: Xtrackers 
Copyright Business Wire 2020 
 

(END) Dow Jones Newswires

November 06, 2020 04:00 ET (09:00 GMT)