Xtrackers Enhances DAX ETF with New ESG Criteria
Recently, Xtrackers made a significant announcement regarding the DAX ESG Screened UCITS ETF, informing shareholders of updates to the fund's reference index. This decision, made by STOXX Limited, aims to improve the fund's alignment with environmental, social, and governance (ESG) standards.
Understanding the New Exclusion Criteria
These updated exclusion criteria are designed to build upon the existing ESG frameworks by disqualifying companies that exceed designated revenue thresholds related to coal expansion, oil fuels, gaseous fuels, and energy generation. The criteria closely follow the standards detailed in Article 12(1)(a) to (g) of the European Commission's Delegated Regulation (EU) 2020/1818, commonly referred to as PAB Exclusions.
Implementation Timeline and Impact
The newly formulated exclusion criteria are set to take effect on a key date during the ordinary STOXX index review. Although the changes are notable, it's essential for investors to understand that the overall investment objective, policy, risk profile, and fee structure of the Sub-Fund will remain unchanged. This ensures a continuity in how the fund operates while enhancing its ESG commitments.
Access to Updated Documentation
In light of these adjustments, shareholders can expect to find updated versions of the Prospectus and the pre-contractual document (PCD) available on the Xtrackers website as the effective date approaches. Furthermore, these documents will also be obtainable free of charge at the company's registered office or through the channels provided by foreign representatives.
Consultation and Support for Shareholders
Xtrackers encourages all shareholders to reach out to their financial advisors if they have inquiries or require clarification regarding these changes. For direct communication, shareholders may contact the legal entities provided in the contact information or utilize the offices of foreign representatives to facilitate their queries. Email support is also available for additional assistance.
Product Framework Considerations
It's important for investors to note that this product is based outside the UK and therefore does not fall under the UK's sustainable investment labeling and disclosure regulations. Nonetheless, information related to the UK requirements remains accessible on the UK Financial Conduct Authority's website, providing further transparency for those interested in the regulatory landscape.
Conclusion on ESG Investments
With the ongoing evolution of the investment landscape, Xtrackers is taking strides to align its DAX ESG Screened UCITS ETF with emerging ESG standards. This move signifies a commitment to responsible investing while ensuring the integrity of the fund's existing structure.
Frequently Asked Questions
What are the new ESG criteria introduced by Xtrackers?
The new criteria disqualify companies exceeding certain revenue thresholds related to coal and fossil fuel activities, enhancing ESG compliance.
When will these changes take effect?
The updated criteria are set to be implemented on December 23, 2024, during the standard STOXX index review.
Will the investment objective of the DAX ETF change?
No, the investment objective, policy, risk profile, and fees will remain unchanged despite the new ESG criteria.
How can shareholders access updated documents regarding the fund?
Updated documents like the Prospectus and PCD will be available on the Xtrackers website and can also be obtained free of charge from the company’s registered office.
What should shareholders do if they have questions about these changes?
Shareholders should consult with their financial advisors or contact Xtrackers directly through provided communication channels for any inquiries.
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