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.

DWS sponsored survey: uncertainty over net zero ambitions as pensions funds make progress on sustainability

  • Latest DWS-sponsored CREATE-Research survey of major pension funds shows progress but also a reality check on pension fund net zero ambitions
  • Over 50% of pension funds surveyed have embedded or are embedding a net-zero strategy into their portfolios, but many believe it unlikely their net zero aims will be achieved under current conditions
  • Over 50% of pension funds view passive investments as a permanent feature of their climate portfolios

The majority of pension funds have either embedded or are in the process of embedding climate change goals into their investment portfolios, according to the latest DWS-sponsored survey of global pension funds from CREATE-Research. However, a bigger push is required if pension funds are to meet their net zero ambitions, with 60% of those surveyed believing their net zero aims will not be met under current conditions. This suggests more bespoke solutions and the focus on stewardship could be more important than ever.

The survey of 50 large pension funds based in North America, Europe and Australasia, which collectively manage EUR 3.3 trillion in assets (as at 31, December 2021), found 16% of respondents have fully embedded climate change goals into their investment portfolios. Forty-two percent are in the process of implementation, with 22% close to decision-making and 20% at the awareness-raising stage. Net zero strategies are therefore being pursued by almost three in five respondents. 

"Although many pension funds are being highly proactive when it comes to climate change, it is clear that the pensions sector is still in the foothills of net zero action," said Amin Rajan, Chief Executive of CREATE-Research.

Fifty-six percent of pension funds surveyed view passive investments as a permanent feature of their climate portfolio, while the same number, 56%, expect to the use Paris-aligned indices "on a notable scale". Forty-two percent of pension funds have adopted or are adopting climate investing into their passive portfolios. 

The survey also found that 80% of pension fund participants use stewardship as the principal vehicle of climate investing, with 78% engaging in proxy voting and shareholder resolutions.

The survey finds that in passive funds only 28% of respondents are still in the 'awareness raising' phase of implementing climate investments, down from 43% in the 2020 survey. Twenty-four percent of respondents now classify themselves as being in the 'mature' phase of implementation, up from 21% in 2020. More pension funds are therefore embracing sustainable index investments.

"We are delighted to once again sponsor this important survey from CREATE-Research. The survey shows that more pension funds are moving along the path to embracing sustainable investing, including the latest ESG index products. But more work clearly needs to be done, by institutional investors and investment solution providers, if we are to reach net zero," said Simon Klein, Global Head of Passive Sales at DWS.  

The full report “Net zero: Going beyond the hype: Passive Investing 2022” can be found here.

About DWS Group

DWS Group (DWS) is one of the world's leading asset managers with  EUR 908bn of assets under management (as of 31 March 2022). Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognised 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 Chief Investment Office (CIO View), which guides our investment approach strategically.

DWS wants to innovate and shape the future of investing: with approximately 3,600 employees in offices all over the world, we are local while being one global team. We are investors – entrusted to build the best foundation for our clients’ future.

Key risks

  • Investors should note that the Xtrackers UCITS ETFs and ETCs 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 the 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.
  • Investments in ETC securities will not accrue any interest and performance is subject to the deduction of the product fee.
  •  Pricing of the ETC securities on the secondary market may be at a significant discount or premium compared to the Value per ETC Security (intrinsic value) published by the Issuer. Investments in Xtrackers ETCs involve numerous risks including but not limited to, general market risks relating to the relevant commodities, exchange rate risks, interest rate risks, inflationary risks, liquidity risks, and legal and regulatory risks.
  • Movements in exchange rates can impact the value of your investment. If the currency of your country of residence is different from the currency in which the underlying investments of the fund are made, the value of your investment may increase or decrease subject to movements in exchange rates.
  • For a full description of risk factors, please refer to the relevant prospectus.

Important Notice

This press release has been issued in the UK and approved by DWS Investments UK Limited. DWS Investments UK Limited is authorised and regulated by the Financial Conduct Authority. Any reference to “DWS” shall, unless otherwise required by the context, be understood as a reference to DWS Investments 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. DWS Investment S.A. acts as the management company of Xtrackers, Xtrackers II and Xtrackers (IE) plc.

This information is intended for informational purposes only and does not constitute investment advice, recommendation, an offer or solicitation. 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.

© DWS Investments UK Limited 2022.


CIO View