Important Notice to Shareholders of Xtrackers MSCI AC Asia ex Japan Swap UCITS ETF

LONDON--(BUSINESS WIRE)-- 

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 MSCI AC Asia ex Japan Swap UCITS ETF (ISIN: LU0322252171)
(the “Sub-Fund”)

11 April 2022

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”), which will be effective as of 12 May 2022 (the “Effective Date”).

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.

A) OVERVIEW OF CHANGES

1) Change of Reference Index

The Board of Directors has resolved to change the investment objective of the Sub-Fund as follows:

Currently, the investment objective of the Sub-Fund is to reflect the performance of the MSCI AC Asia ex Japan TRN Index (the “Current Reference Index”) which is designed to reflect the performance of the shares of certain companies in developed and emerging markets in Asia, as classified by MSCI Inc, excluding Japan. The Current Reference Index is administered by MSCI Limited (the “Index Administrator”).

As of the Effective Date, the investment objective of the Sub-Fund will be to reflect the performance of the MSCI AC Asia ex Japan Low Carbon SRI Leaders Capped Index (the “New Reference Index”) which is designed to represent the performance of companies that have lower carbon exposure than that of the broad market in developed and emerging markets countries in Asia, excluding Japan, and have high Environmental, Social and Governance (“ESG”) performance. The New Reference Index is based on the MSCI AC Asia ex Japan Index (the “Parent Index”).

For the avoidance of doubt, the New Reference Index and the Parent Index are also administered by the Index Administrator.

Additional relevant differences between the Current Reference Index and the New Reference Index include, but are not limited to, the following:

• ESG: The Current Reference Index does not apply ESG screens. Using the Parent Index as the universe of eligible securities, the New Reference Index applies two sets of rules independently, Lowest 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.

The New Reference Index promotes ESG characteristics, therefore the Sub-Fund will qualify as a product subject to Article 8 of SFDR as of the Effective Date.

• Weighting Criteria: The Current Reference Index is a free float-adjusted market capitalisation weighted index. In relation to the New Reference Index, after the ESG based exclusions have been applied the remaining securities are weighted in proportion to their free float-adjusted market capitalisation and then capped whereby the maximum weight of any issuer in the New Reference Index is capped at 10%.

The change to the New Reference Index is proposed as part of the Company’s continuous review of its existing product range and due to increased demand for ESG compliant investments. Hence, the Board of Directors deems it to be in the best interests of the Shareholders to restructure the Sub-Fund to reflect the New Reference Index.

Further details on the index methodology of the New Reference Index can be found on www.msci.com.

2) Change to the Sub-Fund’s name

As a result of the Changes, the Board of Directors has resolved to change the name of the Sub-Fund from the Effective Date, as follows:

Current Sub-Fund name	New Sub-Fund name
Xtrackers MSCI AC Asia ex Japan Swap UCITS ETF	Xtrackers MSCI AC Asia ex Japan ESG Swap UCITS ETF

B) GENERAL INFORMATION

For the avoidance of doubt, the investment policy and fees of the Sub-Fund will remain unchanged.

Shareholders should be aware that transaction costs and duties may 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 immaterial.

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 5:00 p.m. (Luxembourg time) on 10 May 2022. 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 Company’s website (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 [e-mail].

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