Investment Company with Variable Capital
Registered office: 49, avenue J.F. Kennedy, L-1855 Luxembourg,
R.C.S. Luxembourg B-119.899
Important Notice to Shareholders of
Xtrackers FTSE 100 Short Daily Swap UCITS ETF
23 July 2019
The Board of Directors of the Company hereby informs the shareholders of the Sub-Fund (the “Shareholders”) about certain changes (the “Changes”) to the interest rate component of the reference index of the Sub-Fund, the FTSE 100 Daily Short Index (the "Reference Index").
As described in the Product Annex of the Sub-Fund, the performance of the Reference Index is composed of the negative performance of the FTSE 100 Total Return Declared Dividend Index, plus a portion of interest, based on double the Sterling Overnight Index Average (“SONIA”), and minus the costs of borrowing the constituents of the Reference Index. This notice intends to inform Shareholders that SONIA has been reformed as of 23 April 2018 (the “Effective Date”).
Prior to reform, SONIA was sponsored by the Wholesale Markets Broker Association (WMBA) and reflected the weighted average rate of all unsecured sterling overnight cash transactions brokered in London by WMBA member firms with all counterparties in a minimum deal size of £25 million.
On the Effective Date, SONIA underwent certain changes1:
- The Bank of England assumedresponsibility for end-to-end administration of SONIA from the WMBA, including the calculation and publication of the rate;
- The coverage of SONIA was broadened to reflect the weighted average of overnight unsecured transactions negotiated bilaterally as well as those arranged via brokers, and reported to the Bank of England’s Sterling Money Market Daily Data Collection;
- The averaging methodology for calculating SONIA changed to a volume-weighted trimmed mean; and
- Publication of SONIA moved to 9.00 AM on the business day following that to which the rate pertains.
Investors should note that the Changes to SONIA have not had a material impact on the performance of the overall Reference Index or the NAV of the Sub-Fund. This notice is for information purposes only. The Shareholders are not required to take any action.
For the avoidance of doubt, the overall Reference Index, Sub-Fund’s name, its investment objectives, investment policy, risk profile and fees have remained unchanged.
Following the above, certain changes will be made in the Product Annex of the Sub-Fund in the section ‘General Description of the Reference Index’. The revised version of the key investor information document of the Sub-Fund will be available on the Company’s website (www.Xtrackers.com) on or around 23 July 2019 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 of the Company.
Capitalised terms used herein shall have the meaning ascribed to them in the most recent version of the prospectus of the Company (the "Prospectus") and the Product Annex of the Sub-Fund unless the context otherwise requires.
Further information in relation to the above may also 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.
The Board of Directors
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
1 A full overview of these Changes is available at https://www.bankofengland.co.uk/news/2018/april/sonia-interest-rate-benchmark-reform