LONDON – Xtrackers, an equity investment company, has announced changes to the indexes of its three exchange-traded funds (ETFs), effective November 26, 2024. These updates include renaming the indexes and introducing additional criteria for issuance based on environmental, social, and governance factors. (ESG).
The funds involved are Xtrackers MSCI AC Asia ex Japan ESG Swap UCITS ETF, Xtrackers Latin America ESG Swap UCITS ETF, and Xtrackers MSCI EM Europe, Middle East & Africa ESG Swap UCITS ETF. The indices of these funds have been renamed to include the “Low Carbon SRI Selection Capped Index” instead of the “Low Carbon SRI Leaders Capped Index” or the “Low Carbon SRI Leaders Index.”
The Index Administrator, MSCI Limited, also implemented a new ESG methodology, which became part of the index methodology on the effective date. These criteria now include an oil and gas screen and an enhanced energy screen, supplementing the existing ESG Exclusion Criteria based on the MSCI SRI Indexes methodology. Industries involved in alcohol, tobacco, gambling, adult entertainment, genetically modified organisms, public firearms, nuclear weapons, thermal coal, fossil fuel, and fossil fuel-based power generation will not be subject to the guidelines. Additionally, any companies involved in controversial weapons are expressly excluded.
The investment objectives, policies, risk profiles, and fees of the Sub-Funds remain unchanged despite the revision of the index methodology. Shareholders are advised to seek independent financial advice if they have any questions or need clarification on the changes.
The revised Prospectus, reflecting the changes, will be available on the Xtrackers website, and shareholders can obtain copies from the company’s registered office or from external representatives when available.
This announcement is based on a press release from Xtrackers. The company is based in Luxembourg and the products mentioned are not subject to the UK’s sustainable investment labeling and disclosure requirements.
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