Regulatory Announcement Xtrackers UK: Important Notice to Xtrackers Shareholders MSCI Pacific ex Japan UCITS ETF 1C

LONDON–(BUSINESS WIRE)–

Xtrackers

SICAV

(SICAV)

Registered office: 49, avenue JF Kennedy, L-1855 Luxembourg,

RCS Luxembourg B-119.899

(there “Company”)

Important Notice to Shareholders of

Xtrackers MSCI Pacific ex Japan UCITS ETF

1C (ISIN Code: LU0322252338)

(the compartment “)

April 29, 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 decided to make certain changes to the Sub-Fund, as detailed below (collectively referred to as the “Changes”).

Capitalized terms used in this notice shall have the same meaning as given to them in the latest version of the Company’s prospectus (the “Prospectus”), unless the context requires otherwise.

A) OVERVIEW OF CHANGES

1) Change of benchmark

The Board of Directors has decided to modify 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 Pacific ex Japan TRN index (the “Current benchmark”) which aims to reflect the performance of the shares of certain companies in the developed countries of the Pacific but excluding Japan. The current benchmark is administered by MSCI Inc. (the “Current Benchmark Administrator“).

As of June 1, 2022 (the “Effective date“), the investment objective of the Sub-Fund will be to reflect the performance of the MSCI Pacific ex Japan Select ESG Screened index (the “New benchmark“) which is based on the MSCI Pacific ex Japan index (the “parent index”), which aims to reflect the performance of stocks of large and mid capitalization companies in the developed countries of the Pacific region excluding Japan. The New Benchmark Index is composed of companies in the Parent Index that meet certain minimum environmental, social and governance requirements (“ESG“) standards. The new benchmark and parent index are administered by MSCI Limited (the “New Index Administrator“), a subsidiary of the administrator of the current benchmark.

Other relevant differences between the Current Benchmark and the New Benchmark include, but are not limited to, the following:

  • ESG: The current benchmark does not apply ESG screens. The New Benchmark Index excludes companies that do not meet specific ESG (environmental, social and governance) criteria, including those that:
  1. Are assigned an MSCI ESG rating from CCC

  2. Are classified by MSCI in their ESG Business Involvement Screening research as having any involvement in controversial weapons

  3. Are categorized by MSCI in their ESG business engagement screening research as exceeding certain thresholds in controversial activities, including but not limited to tobacco, conventional weapons, nuclear weapons, weapons civil fire, thermal coal and oil sands mining

  4. Non-compliance with the principles of the United Nations Global Compact

The New Benchmark promotes ESG characteristics, therefore the Sub-Fund will be considered as a product subject to Article 8 of the SFDR from the Effective Date.

  • Weighting criteria: The current benchmark is a float-adjusted market capitalization weighted index. For the new benchmark, after applying ESG-based exclusions, the remaining stocks are weighted proportionally to their free float-adjusted market capitalization, but after that an additional weighting scheme is applied, with constituent weights of the new benchmark index. updated so that certain sector weights do not deviate by more than a certain fixed percentage from the weights of the parent index.

The change to the new benchmark is proposed as part of the Company’s ongoing review of its existing product range and due to increased demand for ESG-compliant investments. Accordingly, the Board of Directors believes that it is in the interests of Shareholders to restructure the Sub-Fund to reflect the New Benchmark Index.

Further details on the index methodology of the new benchmark are available at www.msci.com

2) Modification of the name of the Sub-Fund

Following the Amendments, the Board of Directors has decided to change the name of the Sub-Fund to Xtrackers MSCI Pacific ex Japan ESG Screened UCITS ETF, with effect from the Effective Date.

3) Changes to securities lending language to reflect ESG standards

From the Effective Date, the wording of the Product Annex relating to securities lending will be amended to provide that where the Sub-Fund enters into Securities Lending Transactions, the collateral received in connection with such transactions must comply with ESG standards as determined by the Investment Manager, Sub-Portfolio Manager and/or Securities Lending Agent, in accordance with and within the limits set out in the Agency Securities Lending and Repurchase Agreement and in addition to the criteria of the Prospectus. Equity collateral that complies with these ESG standards will be identified by reference to an appropriate developed market ESG equity index and will at a minimum incorporate ESG filters substantially similar to those of the New Benchmark Index.

4) Modification of the securities lending limit

As of the Effective Date, the proportion of the Sub-Fund’s net assets being subject to Securities Lending Transactions, the “Securities Lending Limit” will be changed from “between 0% and 30%” to “between 0% and 50%”.

B) GENERAL INFORMATION

For the avoidance of doubt, the costs of the Sub-Fund will remain unchanged.

Shareholders should be aware that transaction costs and liabilities may arise from the Changes which will be borne by the Sub-Fund. Under normal market circumstances, transaction costs and fees are expected to be immaterial.

Shareholders who subscribe for Shares in the Sub-Fund on the primary market and who do not agree to the Amendments have the right to redeem their Shares in the Sub-Fund in accordance with the Prospectus. Such redemptions will be free of any Redemption Charge from the date of this notice until 5:00 p.m. (Luxembourg time) on 30 May 2022. Please note that the Company does not charge any redemption charge for the sale of Shares on the secondary market. Orders to sell Shares through a stock exchange may be placed through an authorized intermediary or stockbroker. Shareholders should note that secondary market orders may incur costs over which the Company has no control and to which the above waiver of redemption charges does not apply.

Copies of the revised Prospectus and key Fund information documents reflecting the Amendments will be made available on the Company’s website (www.xtrackers.com) on or about the Effective Date, and copies of these may be obtained on request without charge to be charged at the registered office of the Company or at the offices of foreign representatives, as soon as they become available.

Shareholders who have questions or for whom any of the above is unclear should seek advice from their stockbroker, bank manager, legal adviser, accountant or other independent financial adviser. Shareholders should also consult their own professional advisers as to the specific tax implications under the laws of the countries of their nationality, residence, domicile or incorporation.

Further information regarding the Amendments may be obtained from the legal entities mentioned under Contact information below, Foreign Representative Offices or by emailing [email protected]

Neither the content of the Company’s website nor the content of any other website accessible from hyperlinks on the Company’s website is incorporated into or forms part of this announcement.

Xtrackers

Board of directors

Contact information

Xtrackers

49, avenue JF Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg

DWS Investment SA

2, boulevard Konrad Adenauer, L-1115 Luxembourg, Grand Duchy of Luxembourg

Category Code: MSCM

Sequence number: 828709

Received time (offset from UTC): 20220428T180005+0100