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 DBLCI Commodity Optimum Yield Swap UCITS ETF
2C (ISIN: LU0460391732)
3C -- GBP Hedged (ISIN: LU0460391906)
(the "Sub-Fund")
9 February 2021
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").
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.
The Changes will be carried out on a date between 12 March 2021
and 11 June 2021 (the "Effective Date"). Once the Changes have been
implemented, a notice will be published on the website of the
Company, http://www.Xtrackers.com (the "Company's Website"),
confirming the Effective Date.
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.
a) Xtrackers DBLCI Commodity Optimum Yield Swap UCITS ETF
Currently, the investment objective of this Sub-Fund is to
reflect the performance of the Deutsche Bank Liquid Commodity
Index-Optimum Yield Balanced Index (the "Current Reference Index")
and the investment objective of each of the Share Classes of this
Sub-Fund is to reflect the performance of:
(i) in respect of unhedged Share Classes, the Current Reference
Index; or
(ii) in respect of Currency Hedged Shared Classes, an index that
is linked to the Current Reference Index and hedged into the
relevant currency of the Share Class.
The Current Reference Index is administered by Deutsche Bank AG
(the "Current Reference Index Administrator").
From the Effective Date, the investment objective of this
Sub-Fund, including the Currency Hedged Share Classes, will be to
reflect the performance of the Bloomberg ex-Agriculture &
Livestock 15/30 Capped 3 Month Forward Index (for the purpose of
this section a), the "New Reference Index").
The New Reference Index is designed to reflect the performance
of a broad commodity investment by providing exposure to a
diversified basket of commodity future contracts.
Relevant differences between the Current Reference Index and the
New Reference Index include, but are not limited to, the
following:
-- Securities included: The New Reference Index does not include future
contracts that represent the agricultural and livestock sector.
-- Fees: The New Reference Index has no embedded index fee.
-- Rebalancing frequency: The Current Reference Index is rebalanced
annually. The New Reference Index is rebalanced monthly.
-- Index Administrator: The New Reference Index is administered by Bloomberg
Index Services Limited (the "New Index Administrator").
The change to the New Reference Index is proposed due to low
performance and high fees for the Sub-Fund whilst tracking the
Current Reference Index. The New Index Administrator being a leader
in the field of commodity indexing and due to the New Reference
Index not having index fees, 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.bloomberg.com/professional/product/indices/bloomberg-commodity-index-family.
2) Changes to the currency hedging model
The Board of Directors has resolved to make certain additional
changes to the Currency Hedged Share Classes as detailed below
(such changes in relation to the Sub-Fund, the "Hedging
Changes").
The Hedging Changes are being made in order that the Company
will be better positioned to meet the requirements of ESMA's
opinion in relation to UCITS share classes (ESMA 34-43-296) (the
"ESMA Opinion").
Currently, the Currency Hedged Share Classes of the Sub-Fund
track a currency hedged version of the Current Reference Index of
the Sub-Fund (each a "Hedged Index"). As of the Effective Date, the
Currency Hedged Share Classes will track the New Reference Index
(which is not hedged). State Street Bank & Trust Company,
London Branch will be appointed as "Currency Hedging Manager" for
the Sub-Fund. As per this methodology, the Currency Hedging Manager
will seek to hedge the Denomination Currency of the Currency Hedged
Share Class against the currency exposures of the underlying
securities in the New Reference Index, which differ to the
Denomination Currency of that Currency Hedged Share Class. The
Currency Hedging Manager will generally hedge these currency
exposures at Share Class level by entering into currency forward
exchange contracts or other types of derivative contracts, which
reflect a foreign exchange hedging exposure.
In line with the ESMA opinion, the Currency Hedging Manager will
also seek to ensure that any over-hedged or under-hedged positions
caused by external factors outside the control of the Company will
not exceed 105% of the Net Asset Value of the Currency Hedged Share
Class and will not fall short of 95% of the portion of the Net
Asset Value of the Currency Hedged Share Class which is to be
hedged against currency movements.
Investors should note that the Currency Hedged Share Classes
will not completely eliminate currency risk, or provide a precise
hedge, and as such, investors may have exposures to currencies
other than the currency of the Currency Hedged Share Class.
Investors should note that there may be costs associated with
the use of foreign exchange hedging transactions which will be
borne by the Currency Hedged Share Class.
Given that the Currency Hedged Share Class will no longer track
the Hedged Index, as of the Effective Date the anticipated level of
Tracking Error disclosed for the Currency Hedged Share Classes will
represent the anticipated level of Tracking Error of the unhedged
Share Class(es) of the Sub-Fund against the New Reference
Index.
3) Changes to Sub-Fund base currency
From the Effective Date the base currency of the Sub-Fund will
be amended from EUR to USD. For avoidance of doubt the Share Class
currencies remain unchanged.
4) Changes to Sub-Fund names
As a result of the Changes the Board of Directors has resolved
to change the names of the Sub-Fund as detailed in Appendix I
hereto, with effect from the relevant Effective Date.
5) Reduction of Management Company Fee (for certain share
classes only)
The Board of Directors has resolved to reduce the Management
Company Fee in respect of certain Share Classes of the Sub-Fund as
follows:
Sub-Fund Share Class Current Management New Management Fee
Fee
Xtrackers DBLCI 3C-GBP Hedged "up to 0.40% p.a." "up to 0.24% p.a."
Commodity Optimum (LU0460391906)
Yield Swap UCITS
ETF
As a result of the above changes to the Management Company Fee,
the All-In Fee applicable to the above mentioned Share Classes will
be amended as described in Appendix I hereto.
6) Changes to cut off times
Due to the Hedging Changes the applicable Cut-off Time for the
Sub-Fund will be amended from 5.00 p.m. to 3.30 p.m. Luxembourg
time on the relevant Transaction Day.
B) GENERAL INFORMATION
Shareholders should be aware that certain transaction costs and
duties will 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
11 March 2021. 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 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
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.
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
Appendix I: Summary of Changes applicable from the Effective
date
Current Share ISIN Current New Sub-Fund New Reference Changes New New Fund New
Sub-Fund Class Reference name Index to Cut-off base All-in
name Index / hedging time currency Fee
Hedged model
Index
Xtrackers 2C LU0460391732 DBLCI-OY Xtrackers Bloomberg N/A 3:30 p.m. USD N/A
DBLCI Balanced Bloomberg ex-Agriculture Luxembourg
Commodity USD Commodity & Livestock
Optimum Index ex-Agriculture 15/30 Capped 3
Yield & Livestock Month Forward
Swap Swap UCITS Index
UCITS ETF
ETF
Xtrackers 3C-GBP LU0460391906 DBLCI-OY Xtrackers Bloomberg Yes 3:30 p.m. USD Up to
DBLCI Hedged Balanced Bloomberg ex-Agriculture Luxembourg 0.39%
Commodity GBP Commodity & Livestock p.a.
Optimum Hedged ex-Agriculture 15/30 Capped 3
Yield Index & Livestock Month Forward
Swap Swap UCITS Index
UCITS ETF
ETF
View source version on businesswire.com:
https://www.businesswire.com/news/home/20210209005096/en/
CONTACT:
Xtrackers
SOURCE: Xtrackers
Copyright Business Wire 2021
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February 09, 2021 04:00 ET (09:00 GMT)
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