Deutsche Asset & Wealth Management today announced the further expansion
of the db X-trackers suite of exchange-traded funds (ETFs) with the
launch of the db X-trackers Solactive Investment Grade Subordinated Debt
Fund (NYSE Ticker: SUBD). The first-of-its kind U.S. listed ETF tracking
a subordinated debt index offers investors uncomplicated access to
investment-grade subordinated bonds, which have the potential to produce
higher yields than equivalent unsubordinated bonds and may provide
attractive returns to investors capable of taking on additional risk.
“Our goal for the db X-trackers suite of products has always been to
offer investors the means to easily gain exposure to various investment
opportunities,” said Fiona Bassett, Deutsche Asset & Wealth Management
Americas Head of Passive Asset Management. “With the addition of SUBD to
our platform, we continue to bolster our fixed income offerings, growing
the number of investment options available.”
SUBD tracks the Solactive Subordinated Bond Index, a rules-based, market
value-weighted index designed to track the investment-grade,
subordinated corporate bond market of U.S. dollar-denominated corporate
securities classified as subordinated or junior subordinated. As of
April 30, 2014, the Index is comprised of 137 constituents representing
approximately 70 parent companies with $169 billion in total amount
outstanding.
By tracking the subordinated, investment grade debt mirrored by the
Solactive Subordinated Bond Index, SUBD is designed to provide higher
yields via bonds of investment-grade companies. The higher yields are
produced by the subordinated nature of the bonds rather than by using
junk bonds. The fund will be subject to marginally higher credit risk
due to its investments in subordinated debt.
Astrid Ludwig, Head of the Bond & Complex Team, Solactive, said, “We are
excited to support Deutsche Asset & Wealth Management as they launch
another innovative fund tracking a Solactive branded index. In a context
of historically low interest rates, the Solactive Subordinated Bond
Index is tracking a market which offers an interesting compromise
between yield and risk.”
Deutsche Asset & Wealth Management’s U.S. exchange traded products (ETP)
platform includes 64 ETPs, with approximately $11 billion in assets
under management. Deutsche Asset & Wealth Management’s ETP platform was
launched in 2006 and has risen to become the second largest ETP provider
in Europe and the fifth largest in the world, with approximately $63
billion in assets under management as of December 31, 2013.
For more information about the ETPs available in the U.S., visit: http://www.dbxus.com.
Deutsche Asset & Wealth Management
With $1.27 trillion of assets under management (as of December 31,
2013), Deutsche Asset & Wealth Management¹ is one of the world's leading
investment organizations. Deutsche Asset & Wealth Management offers
individuals and institutions traditional and alternative investments
across all major asset classes. It also provides tailored wealth
management solutions and private banking services to high-net-worth
individuals and family offices.
¹ Deutsche Asset & Wealth Management is the brand name of the Asset
Management and Wealth Management division of the Deutsche Bank Group.
The legal entities offering products or services under the Deutsche
Asset & Wealth Management brand are listed in contracts, sales materials
and other product information documents.
Solactive
Solactive AG is one of the key players in the indexing space. Focusing
on tailor-made indices, the German multi asset class provider is
developing, calculating and distributing them worldwide. As of 31st
December 2013, Solactive AG calculates 1,000 indices for over 100
clients in Europe, America and Asia. Approximately 20 billion USD are
invested in products linked to indices calculated by the Company
globally, primarily via 125 ETFs.
www.solactive.com
The financial instrument is not sponsored, promoted, sold or supported
in any other manner by Solactive AG (the "Licensor") nor does the
Licensor offer any express or implicit guarantee or assurance either
with regard to the results of using the Index and/or Index trade mark or
the Index Price at any time or in any other respect. The Index is
calculated and published by the Licensor. The Licensor uses its best
efforts to ensure that the Index is calculated correctly. Irrespective
of its obligations towards the Issuer, the Licensor has no obligation to
point out errors in the Index to third parties including but not limited
to investors and/or financial intermediaries of the financial
instrument. Neither publication of the Index by the Licensor nor the
licensing of the Index or Index trade mark for the purpose of use in
connection with the financial instrument constitutes a recommendation by
the Licensor to invest capital in said financial instrument nor does it
in any way represent an assurance or opinion of the Licensor with regard
to any investment in this financial instrument.
Carefully consider the fund’s investment objectives, risk factors,
and charges and expenses before investing. This and other information
can be found in the fund‘s prospectuses, which may be obtained by calling
1-855-329-3837 or by visiting www.dbxus.com.
Read the prospectus carefully before investing.
RISKS
Investing involves risk, including possible loss of principal.
Investments in bonds and bond funds are subject to interest rate,
credit, liquidity and market risks to varying degrees. Generally, all
other factors being equal, bond prices are inversely related to
interest-rate changes and rate increases can cause price declines.
Credit risk refers to the possibility that the bond issuer will not be
able to make principal and interest payments. Subordinated securities
are more likely to suffer a credit loss than non-subordinated securities
of the same issuer, any loss incurred by the subordinated securities is
likely to be proportionately greater, and any recovery of interest or
principal may take more time. The fund may use derivatives to hedge its
investments or to seek to enhance returns. Derivatives entail risks
relating to liquidity, leverage and credit that may reduce returns and
increase volatility. An investment in this fund should be considered
only as a supplement to a complete investment program. Please refer to
the fund’s prospectus for a more complete discussion of the risks
associated with the fund.
Foreign investing involves special risks such as currency fluctuations
and political uncertainty. The Fund may invest a significant portion of
its assets in the financial services sector which may experience greater
volatility. The Fund may invest a significant portion of its assets in
securities offered pursuant to Rule 144A under the 1933 Act, which are
restricted securities. They may be less liquid and more difficult to
value than other investments because such securities may not be readily
marketable in broad public markets.
One cannot invest directly in an index.
Shares of the funds may be sold throughout the day on the exchange
through any brokerage account. However, shares may only be purchased and
redeemed directly from the funds by authorized participants in very
large creation/redemption units. There is no assurance that an active
trading market for shares of a fund will develop or be maintained.
Investment products: No bank guarantee | Not FDIC insured | May lose
value
db X-trackers are distributed by ALPS Distributors, Inc (“ALPS”). DBX
Advisors LLC ("DBX") is the investment adviser to the Fund and Deutsche
Investment Management Americas Inc. ("DIMA") is the sub-investment
adviser to the Fund. DBX and DIMA are subsidiaries of Deutsche Bank AG,
and are not affiliated with ALPS. I-034759-2.1 DBX000897 EXP 5/15
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