The db x-trackers II IBOXX Sovereigns Eurozone UCITS ETF is to switch from its current indirect investment policy to a direct investment policy with optimised index replication.
Currently the sub-fund is exposed to the performance of the reference index by way of derivative transactions such as individually negotiated (OTC) swap transactions. Once the DR switch is effective on 5 September, the sub-fund will carry out its investment objective by directly investing in a portfolio of transferable securities or other eligible assets that will comprise a substantial number of the constituents of the reference index in a similar proportion as the reference index as determined by the investment manager and sub-portfolio manager.
The investment manager of the fund is also to change, with State Street Global Advisors (SSgA) being replaced by Deutsche Asset Management Investment (DeAM).
In addition, DeAM GmbH will sub-delegate certain of its portfolio management functions to Deutsche Asset Management (UK) Limited (DeAM (UK)). The investment manager change is to optimise and rationalise the portfolio management set-up of the fund. There will be no increase in the fees levied as a result of this replacement.
The fund is to change its name to the db x-trackers II Eurozone Government Bond UCITS ETF (DR).