Xtrackers (IE) plc
Investment Company with Variable Capital
Registered Office: 78 Sir John Rogerson's Quay, Dublin 2, Ireland
Registration number: 393802
Important notice to shareholders of the Company
10 January 2020
This letter is to inform you on behalf of the board of directors of the Company (the “Board of Directors”) about certain changes to the sub-funds of the Company (the “Funds”), as outlined below.
Changes for Direct Investment Funds Only
Exclusions based on Investment Manager Policies
The Prospectus will be updated to reserve to DWS Investment GmbH (the “Investment Manager”) the right to exclude from the portfolios of the Direct Investment Funds any securities which do not comply with the Investment Manager’s policies (the “Policy Exclusions”). This will include those securities which have been identified as parties involved in the production or manufacturing of controversial conventional weapons, production of delivery devices and the deliberate and knowing production of primary key components of controversial conventional weapons, each as determined by the DWS Controversial Conventional Weapons identification methodology.
Prospectus Update in respect of Direct Investment Funds
The Prospectus provides that a Direct Investment Fund may seek to achieve its investment objective by following one of two distinct investment strategies, namely Full Index Replication or Optimised Index Replication (such Funds, “Full Replication Funds” and “Optimised Replication Funds” respectively).
In order to facilitate the Policy Exclusions and following a review and analysis undertaken in respect of the Company’s Direct Investment Funds, it is proposed that the language in the Prospectus be updated to clarify in more detail the operation of the Direct Investment Funds, in particular of Full Replication Funds (the “Replication Update”).
The Replication Update will make clear that Full Replication Funds may not contain all of the constituents of the Index, and accordingly such Funds may hold other transferable securities or other eligible assets on a time to time basis as opposed to on an exceptional basis. Full Replication Funds will continue to seek to achieve their investment objective by investing in all, or a substantial number of, the constituents of their Reference Index.
The extent to which a Full Replication Fund does not contain all of the constituents of the Index will vary, and will be dependent on a number of factors which may include, but are not limited to; the nature and number of the constituents of the Index (for example, where an Index comprises a large number of securities, contains a number of illiquid securities or where the availability of constituent securities for purchase is limited), legal or regulatory restrictions, the size of the Fund, and the utilisation of efficient portfolio management techniques.
Re-classification of Certain Full Replication Funds
In response to the Replication Update, certain Funds currently classified as Full Replication Funds and Optimised Replication Funds respectively shall be re-designated, as set out at Annex I hereto (the “Fund Re-Designations”).
Impact of the Changes
For the avoidance of doubt, neither the Replication Update, Fund Re-Designations, nor the implementation of the Policy Exclusions represents a material change to the investment policy of the relevant Funds and/or the Reference Index and each Fund’s name, investment objective, risk profile and fees remains unchanged.
Timing for Implementation
It is intended that the changes in respect of the Replication Update and Policy Exclusions, take effect on or about 12 February 2020, and the Fund Re-Designations be effected on or about 12 February 2020.
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.
Copies of the revised Prospectus, supplements for the Funds and the key investor information document of the Funds reflecting the changes will be made available on the website of the Company (www.Xtrackers.com), 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.
Capitalised terms not defined herein shall have the meaning given to them in the Prospectus of the Company unless the context otherwise requires.
This notice is for information purposes only. The 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.
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.
for and on behalf of
Xtrackers (IE) plc
Full Replication Funds to be re-designated as Optimised Replication Funds:
Xtrackers FTSE All-World ex UK UCITS ETF
Xtrackers MSCI AC World UCITS ETF
Xtrackers MSCI Emerging Markets UCITS ETF
Xtrackers MSCI World UCITS ETF
Xtrackers USD Emerging Markets Bond Quality Weighted UCITS ETF
Xtrackers iBoxx EUR Corporate Bond Yield Plus UCITS ETF
Xtrackers USD Corporate Bond UCITS ETF
Optimised Replication Funds to be re-designated as Full Replication Funds:
Xtrackers ESG MSCI Europe UCITS ETF
Xtrackers ESG MSCI Japan UCITS ETF
Xtrackers ESG MSCI World UCITS ETF
Xtrackers ESG MSCI USA UCITS ETF