Friday's announcement from Xtrackers informed shareholders of the DAX ESG Screened UCITS ETF about upcoming changes to the fund's reference index. These modifications, set by STOXX Limited, the index administrator, introduce additional exclusion criteria focusing on environmental, social, and governance (ESG) considerations.
The new exclusion criteria will expand on the existing ESG Exclusion Criteria by disqualifying companies that exceed specified revenue thresholds in activities related to coal expansion, oil fuels, gaseous fuels, and power generation. These criteria align with the standards outlined in Article 12(1)(a) to (g) of the Commission Delegated Regulation (EU) 2020/1818, known as PAB Exclusions.
The changes are scheduled to take effect on December 23, 2024, during the ordinary STOXX index review. It is important to note that the investment objective, policy, risk profile, and fees of the Sub-Fund will not be altered as a result of these updates.
To reflect the upcoming adjustments, revised versions of the Prospectus and the pre-contractual document (PCD) for the Sub-Fund will be accessible on the Xtrackers website around the effective date. Shareholders will also be able to obtain these documents free of charge at the registered office of the Company or at the offices of foreign representatives.
Xtrackers encourages shareholders with questions or those seeking clarity on the changes to consult with their financial advisors. Further inquiries can be directed to the legal entities listed in the contact information, through the offices of foreign representatives, or by emailing Xtrackers.
The announcement clarified that this product is based overseas and is not subject to the UK's sustainable investment labeling and disclosure requirements. However, information regarding these UK requirements can be found on the UK Financial Conduct Authority's website.
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