TIDMXCS2
db x-trackers II
Investment Company with Variable Capital
Registered office: 49, avenue J.F. Kennedy, L-1855
Luxembourg
R.C.S. Luxembourg B-124.284
(the "Company")
IMPORTANT NOTICE TO THE SHAREHOLDERS OF
db x-trackers II AUSTRALIA SSA BONDS UCITS ETF
(the "Sub-Fund")
01 February 2017
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 under A) OVERVIEW OF THE CHANGES (such
changes collectively referred to as the "Changes").
The Changes in relation to the Sub-Fund will be carried out on a
date between 06 March 2017 and 31 August 2017 (the "Effective
Date"). Once the Changes have been implemented, a notice will be
published on the website of the Company,
http://www.etf.deutscheam.com (the "Company's Website"), confirming
the Effective Date.
Capitalised terms not defined herein shall have the meaning
given to them in the prospectus of the Company (the
"Prospectus").
A) OVERVIEW OF THE CHANGES
1) Switch of Investment Policy
The Board of Directors has resolved to switch the investment
policy of the Sub-Fund from its current Indirect Investment Policy
to a Direct Investment Policy with Optimised Index Replication (the
"DRSwitch").
Currently the Sub-Fund is exposed to the performance of the
Current Reference Index (as defined under 3) below) by way of
derivative transactions such as individually negotiated (OTC) swap
transactions. Once the DR Switch is effective, the Sub-Fund will
carry out its investment objective by directly buying a portfolio
of debt securities that may comprise the constituents of the New
Reference Index (as defined under 3) below), or unrelated
transferable securities or other eligible assets, as determined by
the Investment Manager and Sub-Portfolio Manager.
Shareholders' attention is specifically drawn to:
-- the "Investment Objectives and Policies" and "Risk
Factors" sections (including "Risks in relation to
the tracking of indices", "Taxes on transactions
(financial transaction tax)" and "Securities lending,
sale with right of repurchase transactions and repurchase and
reverse
repurchase agreement transactions") of the main part of the
Prospectus as well as to the Sub-Fund's Product Annex;
-- the fact that, depending on market conditions, for a short period of
time (the "Switch Period"), the portfolio of a Sub-Fund
may be partially exposed to swap transactions as well as
direct
investments in fixed income securities relating to the
Reference
Index. The Investment Manager and the Sub-Portfolio Manager will
seek
to minimise the duration of the Switch Period whilst taking
into
account prevailing market conditions and acting in the best
interests
of investors;
-- the fact that, following the DR Switch, the Sub-Fund may enter into
securities lending transactions as more fully described in
the
Prospectus. In this context, investors' attention is drawn to
the fact
that in cases where cash collateral is permitted and accepted,
it may
be reinvested subject to the Investment Restrictions;
-- the fact that, following the DR Switch, in relation to subscriptions
or redemptions on the primary market in respect of the Sub-Fund,
the
Minimum Initial Subscription Amount, the Minimum Subsequent
Subscription Amount and the Minimum Redemption Amount (when
applicable) may be changed or may be introduced (such terms
defined in
and as more fully described in the Prospectus and the
Sub-Fund's
Product Annex);
-- the fact that, following the DR Switch, in relation to subscriptions
or redemptions on the primary market in respect of the Sub-Fund,
the
applicable Significant Market will change from Indirect
Replication
Significant Market to Direct Replication Significant Market, and
the
applicable Cut-off Time of the Sub-Fund will be amended from
5.00 p.m.
Luxembourg time on the relevant Transaction Day to 5.00 p.m.
Luxembourg time on the Business Day prior to the relevant
Transaction
Day; and
-- the fact that, following the DR Switch, Transaction Costs, including
any taxes, may be incurred by the Sub-Fund and Primary
Market
Transaction Costs may be charged to Authorised Participants.
2) Change of Investment Manager
The Board of Directors has resolved to change the Investment
Manager of the Sub-Fund (the "IM Change"). Currently, State Street
Global Advisors Limited ("SSgA") acts as Investment Manager of the
Sub-Fund. SSgA shall be replaced by Deutsche Asset Management
Investment GmbH ("DeAM GmbH") as the Investment Manager of the
Sub-Fund.
DeAM GmbH, was established in the Federal Republic of Germany as
a private limited liability company (Gesellschaft mit beschränkter
Haftung), having its registered office at Mainzer Landstraße 11-17,
D-60329 Frankfurt am Main, Germany and is authorized and regulated
by the Federal Financial Supervisory Authority in Germany
(Bundesanstalt für Finanzdienstleistungsaufsicht - BaFin). It is
registered with the commercial register of the local court of
Frankfurt am Main under number HRB 9135.
DeAM GmbH will sub-delegate certain of its portfolio management
functions to Deutsche Asset Management (UK) Limited ("DeAM (UK)")
under the terms of a Sub-Portfolio Management Agreement as more
fully described in the Prospectus. DeAM (UK) is a limited liability
company incorporated on 16 September 2004 under the laws of England
and Wales, having its registered office at Winchester House, 1
Great Winchester Street, London, EC2N 2DB, United Kingdom and is
authorised and regulated by the Financial Conduct Authority in the
conduct of its designated investment business (as defined in the
FCA Handbook).
Investors should note that both on and after the Effective Date,
SSgA shall continue to carry out certain functions for the Sub-Fund
in order to facilitate the IM Change. Such functions would, for
example, include the oversight of settlement of trades initiated
before the Effective Date.
The IM Change has been decided in order to optimise and
rationalise the portfolio management set-up of the Sub-Fund.
3) Change of Reference Indices
The Board of Directors has resolved to change the investment
objective of the Sub-Fund as follows (the "IO Change").
Currently, the investment objective of the Sub-Fund is to
reflect the performance of the DB Australia SSA Bonds Total Return
Index (the "Current Reference Index").
Once the IO Change is effective, the investment objective of the
Sub-Fund will be to reflect the performance of the Citi Australian
Government Bond Index (the "New Reference Index").
Similar to the Current Reference Index, the New Reference Index
is designed to reflect the performance of fixed-rate, local
currency sovereign debt issued by the Australian government.
4) Change of Names
The Board of Directors has resolved to change the name of the
Sub-Fund as detailed in the annex to this document as from the
Effective Date.
B) GENERAL INFORMATION
Any costs or expenses associated with the implementation of the
Changes, will not be borne by the Sub-Fund or its Shareholders.
Shareholders who subscribe or redeem Shares in the Sub-Fund on
the primary market and who do not agree with the Changes are
entitled to redeem their Shares 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 03 March
2017. 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 of Redemption Charge
does not apply.
Further information regarding the Changes, including more
detailed information regarding the Direct Investment Policy, the
new Investment Manager and Sub-Portfolio Manager and the New
Reference Index, will be contained in the revised Prospectus, which
will be available on the Company's Website on or around the date of
this document, and a copy of which may be obtained free of charge
at the Company's registered office or at the foreign
representatives' offices.
The updated key investor information document for the Sub-Fund
will be available on the Company's Website on or around the
Effective Date, and a copy of which may be obtained free of charge
at the Company's registered office or at the foreign
representatives' offices. 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.
If you have any queries or if any of the above is not clear, you
should seek advice from your stockbroker, bank manager, legal
adviser, accountant or other independent financial advisor. All
shareholders are strongly advised to consult their tax advisor to
assess (1) the impact of the Changes and any potential tax
consequences thereof and (2) any potential changes between the
current and / or future taxation of their investment under the laws
of the countries of their nationality, residence, domicile or
incorporation.
Further information in relation to the Changes may also be
obtained from the legal entities mentioned under 'Contact
information' below, the offices of foreign representatives or by
sending an email to info.dbx-trackers@db.com.
db x-trackers II
The board of directors
C) CONTACT INFORMATION
db x-trackers II
49, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of
Luxembourg
Deutsche Asset Management S.A.
2, boulevard Konrad Adenauer, L-1115 Luxembourg, Grand Duchy of
Luxembourg
Annex - Summary of changes
Current name Switch Change New name Share class / ISIN New Reference
of investment of investment Index
policy manager
db x-trackers From Indirect From SSgA to db x-trackers Share class 1C Citi
II AUSTRALIA Investment DeAM GmbH II AUSTRALIA (LU0494592974) Australian
SSA BONDS UCITS Policy (Sub-Portfolio GOVERNMENT Government
ETF to Management BOND UCITS Bond Index
Direct delegated ETF (DR)
Investment to DeAM (UK))
Policy
(Optimised
Index
Replication)
View source version on businesswire.com:
http://www.businesswire.com/news/home/20170201005090/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
February 01, 2017 04:00 ET (09:00 GMT)
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