Risk considerations

Investors should note that the Xtrackers ETFs & ETCs are not capital protected or guaranteed and investors in each Xtrackers ETF or ETC should be prepared and able to sustain losses up to the total capital invested. The value of an investment in an Xtrackers ETF or ETC may go down as well as up and past performance does not predict future returns. Investment in Xtrackers ETFs or ETCs involve risks. For a list of related risks please click on the Risks and Terms tab.

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DWS sponsored survey of pension funds finds increased usage of ETFs and other passive solutions

The majority of pension funds now view passive investments as a mature part of their portfolio, according to a DWS sponsored report.

The analysis, conducted by consultants CREATE-Research, came from a survey of over 150 pension plans globally, responsible for approximately EUR 2.9 trillion in assets under management. Sixty-six percent of pension fund managers surveyed regard passive investments as an established, mature part of their portfolio. The report also found that:

  • The average pension fund surveyed holds 32% of its investments in passives products or solutions, in the form of either index funds, passive mandates or exchange-traded funds (ETFs).
  • Amongst passive investors, there is a shift from market capitalisation-weighted indices towards smart beta, factor-based, ESG (environmental, social and governance) and other thematic strategies.
  • Almost 50% of pension funds plan to increase their passive ESG allocations by more than 5% of assets under management.
  • Only 10% of survey respondents expect passive investments to replace active, with the majority expecting both to co-exist in pension portfolios.

Thorsten Michalik, DWS’s Co-Head of Global Coverage Group and Regional Head of Asset Management, EMEA, commented: “Over the last decade we have seen a fundamental reshaping of asset management, with some strategies becoming standardised and made easily accessible at low cost, which means investors today have an unprecedented level of choice to help them meet their asset allocation goals. It is our job at DWS to facilitate that choice and provide market-leading products and solutions for our clients. ” 

DWS Group

DWS Group GmbH & Co. KGaA (DWS) is one of the world's leading asset managers with EUR 676bn of assets under management (as of 31 Mar 2018). Building on more than 60 years of experience and a reputation for excellence in Germany and across Europe, DWS has come to be recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.

We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our strategic investment approach.

DWS wants to innovate and shape the future of investing: with staff from 35 nationalities, speaking more than 75 languages rooted in 22 countries, we are local while being one global team.

Key risks
Investors should note that the Xtrackers UCITS ETFs are not capital protected or guaranteed and investors should be prepared and able to sustain losses of the capital invested up to a total loss.

Shares in Xtrackers UCITS ETFs which are purchased on the secondary market cannot usually be sold directly back to the relevant fund. Investors must purchase and redeem such shares on the secondary market with the assistance of an intermediary (e.g. a market maker or a stock broker) and may incur fees for doing so (as further described in the applicable prospectus). In addition, investors may pay more than the current net asset value of a share in a Xtrackers UCITS ETF when buying shares on the secondary market, and may receive less than the current net asset value when selling such shares on the secondary market.

Investments in funds involve numerous risks including, among others, general market risks, credit risks, foreign exchange risks, interest rate risks and liquidity risks. The value of an investment in a Xtrackers UCITS ETF may go down as well as up and investors may not get back the full amount of their original investment.

Important Notice
This press release has been issued in the UK and approved by Deutsche Asset Management (UK) Limited, a 100% subsidiary of DWS. Deutsche Asset Management (UK) Limited is authorised and regulated by the Financial Conduct Authority.

Any reference to  “DWS”, “Deutsche Asset Management” or “Deutsche AM” shall, unless otherwise required by the context, be understood as a reference to Deutsche Asset Management (UK) Limited including any of its parent companies, any of its or its parents affiliates or subsidiaries and, as the case may be, any investment companies promoted or managed by any of those entities.

Past performance is not a guide for future returns.

Xtrackers UCITS ETFs are all ETFs of one of the following platforms: Xtrackers, Xtrackers II or Xtrackers (IE) plc. Xtrackers, Xtrackers II and Xtrackers (IE) plc are undertakings for collective investment in transferable securities (UCITS) in accordance with the applicable laws and regulations and set up as open-ended investment companies with variable capital and segregated liability between their respective compartments.

Xtrackers and Xtrackers II are incorporated in the Grand Duchy of Luxembourg, are registered with the Luxembourg Trade and Companies’ Register under number B-119.899 (Xtrackers) and B-124.284 (Xtrackers II) respectively and have their registered office at 49, avenue J.F. Kennedy, L-1855 Luxembourg. Xtrackers (IE) plc is incorporated in Ireland with registered number 393802 and has its registered office at 78 Sir John Rogerson’s Quay, Dublin 2, Ireland.

Deutsche Asset Management S.A. acts as the management company of Xtrackers, Xtrackers II and Xtrackers (IE) plc.

The information contained in this document is provided for information purposes only. Any investment decision in relation to an Xtrackers ETF should be based solely on the latest version of the prospectus, the audited annual and, if more recent, un-audited semi-annual reports and the Key Investor Information Document (KIID), all of which are available in English upon request or on www.Xtrackers.com. In the case of any inconsistency with the prospectus, the latest version of the prospectus shall prevail.

© Deutsche Asset Management (UK) Limited 2018.

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