Xtrackers (IE) plc UK Regulatory Announcement: Important Notice to Shareholders of Reference Index Methodology change of Xtrackers (IE) plc
LONDON–(BUSINESS WIRE)–
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 ESG USD Emerging Markets Bond Quality Weighted UCITS ETF
(ISINs: IE00BD4DX952)
(the “Fund”)
10 September 2021
The board of directors of the Company (the “Board of Directors“) hereby informs the shareholders of the Fund (the “Shareholders“) about changes to the methodology of its Reference Index.
The Reference Index of the Fund is the iBoxx MSCI ESG USD Emerging Markets Sovereigns Quality Weighted Index (the “Reference Index”). The Reference Index aims to offer a targeted coverage of the USD denominated emerging market sovereign bonds universe with adjusted weights, by allocating higher weights to countries with relatively solid fundamentals and higher MSCI ESG Government Ratings while reducing weights of countries with relatively weak fundamentals and lower MSCI ESG Government Ratings.
New Reference Index methodology
As of 31 August 2021 (month end rebalancing) the Index Administrator has implemented the following changes to the methodology of the Reference Index (the “Index Changes”):
- Following the application of financial screening criteria, the Reference Index will normalise country weights such that they add up to 100% and rank countries which are still eligible for inclusion by their MSCI ESG Government Ratings. Starting with the lowest MSCI ESG Government Ratings, countries will be excluded until the cumulative market value weight of such exclusions reaches a minimum 20% threshold (effectively a “best-in-universe” approach). The remaining eligible country weights are then normalised again so that the cumulative weightings in the Reference Index add up to 100%.
- As a result, there will be adjustments to the relevant percentages for country caps and for excluding countries with low weightings, details of which can be found in the official announcement at the link below.
The full announcement is available on: https://www.markit.com/NewsInformation/ViewArchive/IBoxx
For the avoidance of doubt this is not a material change to the Reference Index, and the Fund’s name, investment policy, risk profile and fees remain unchanged.
Implementation of changes
As a consequence of the Index Changes, the Supplement of the Fund and relevant KIIDs will be amended to reflect the changes and shall be made available on www.Xtrackers.com.
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.
General Information
Copies of the revised Supplement 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.
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, if any, 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 [email protected].
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 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), Alex McKenna (British), Philippe Ah-Sun (British) and Julien Boulliat (French).
Contacts
Xtrackers (IE) plc
