Xtrackers (IE) plc
Investment Company with Variable Capital
Registered office: 78 Sir John Rogerson's Quay, Dublin 2, Ireland
Central Bank of Ireland registry number: 393802
(the “Company”)
Important Notice to Shareholders of
Xtrackers MSCI Emerging Markets ESG UCITS ETF (ISIN: IE00BG370F43)
Xtrackers MSCI EMU ESG UCITS ETF (ISIN: IE00BNC1G699)
Xtrackers MSCI Europe ESG UCITS ETF (ISIN: IE00BFMNHK08)
Xtrackers MSCI Japan ESG UCITS ETF (ISIN: IE00BG36TC12)
Xtrackers MSCI World ESG UCITS ETF (ISIN: IE00BZ02LR44)
Xtrackers MSCI USA ESG UCITS ETF (ISINs: IE00BFMNPS42, IE000UMV0L21)
(each a “Fund” and together the “Funds”)
23 May 2022
The board of directors of the Company (the “Board of Directors”) hereby informs the shareholders of the Funds (the “Shareholders”) that MSCI Limited, in its capacity as index administrator of the Reference Index of each of the Funds (the “Index Administrator”), is introducing certain changes as detailed below to the index methodology of each Reference Index set out in the table below, effective as of 1 June 2022 (the “Effective Date”).
Capitalised terms not defined herein shall have the meaning given to them in the prospectus of the Company (the “Prospectus”) and the supplements of the Funds (the “Supplements”).
Each of the Funds tracks a Low Carbon SRI Leaders Index (the “Reference Indices”) which are based on their respective Parent Index (as set out in the table below) and administered by the Index Administrator. Only companies exhibiting high ESG performance and low current and potential carbon emissions, relative to their peers, are eligible for inclusion in the relevant Reference Index. The Index Administrator is introducing certain changes to the way in which high ESG performance and low current and potential carbon emissions are determined.
Currently, the Reference Indices apply two sets of rules independently; Low Carbon Exposure Selection Rules and High ESG Performance Selection Rules.
From the Effective Date, the Reference Indices will apply three sets of rules sequentially:
- Low Carbon Transition Risk Assessment Rules designed to identify companies’ exposure to and management of risks and opportunities related to the low carbon transition;
- High ESG Performance Selection Rules continue to apply as before. From time to time, other activities may also be subject to exclusion and more conservative thresholds may apply; and
- Low Carbon Emissions Rules whereby, if current selected carbon metrics relating to the Reference Index are insufficiently reduced compared to the current carbon metrics relating to the Parent Index, securities with the highest current carbon metrics are removed until the carbon metrics of the Reference Index are sufficiently reduced as compared with the Parent Index.
In addition, from the Effective Date, positive deviations for single constituents against their weight in the Parent Index are limited via the application of a relative weight cap.
For the avoidance of doubt, the Funds will continue to track the same Reference Indices. The Funds’ names, investment objectives, investment policies, risk profiles and fees remain unchanged.
Fund Name | Reference Index | Parent Index |
Xtrackers MSCI Emerging Markets ESG UCITS ETF | MSCI EM Low Carbon SRI Leaders Index | MSCI Emerging Markets Index |
Xtrackers MSCI EMU ESG UCITS ETF | MSCI EMU Low Carbon SRI Leaders Index | MSCI EMU Index |
Xtrackers MSCI Europe ESG UCITS ETF | MSCI Europe Low Carbon SRI Leaders Index | MSCI Europe Index |
Xtrackers MSCI Japan ESG UCITS ETF | MSCI Japan Low Carbon SRI Leaders Index | MSCI Japan Index |
Xtrackers MSCI World ESG UCITS ETF | MSCI World Low Carbon SRI Leaders Index | MSCI World Index |
Xtrackers MSCI USA ESG UCITS ETF | MSCI USA Low Carbon SRI Leaders Index | MSCI USA Index |
General Information
Copies of the revised Supplements and the key information documents of each Fund reflecting the aforementioned 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.
This notice is for information purposes only. Shareholders are not required to take any action. If you have any queries or if any of the above is not clear you should seek advice from your stockbroker, bank manager, legal adviser, accountant or other independent financial advisor.
Further information in relation to the changes set out herein may be obtained from 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.
______________________
Director
for and on the behalf of Xtrackers (IE) plc
Contact Information
Xtrackers (IE) plc
78 Sir John Rogerson's Quay, Dublin 2, Ireland
DWS Investment S.A.
2, boulevard Konrad Adenauer, L-1115 Luxembourg, Grand Duchy of Luxembourg
Registered in Dublin, Ireland as an open-ended variable capital umbrella investment company with limited liability and as an umbrella fund with segregated liability between sub-funds.
Registration Number 393802. Registered Office as above.
Directors: Tom Murray (Irish), Michael Whelan (Irish), Gerry Grimes (Irish), Philippe Ah-Sun (British), Julien Boulliat (French) and Michael Mohr (German).
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