A version of this story previously ran in Financial Advisor IQ's sister publication, Ignites Europe.
DWS has postponed the planned switch to a new environmental, social and governance index for one of its exchange-traded funds, ETF Stream reports.
The planned reduction of the annual management fees for the German asset manager’s Irish £42m ($57 million) Xtrackers FTSE All-World ex-UK Ucits ETFs will also be delayed.
ETF Stream says the publicly traded fund firm controlled by Deutsche Bank had originally scheduled to switch the benchmark of the product to ESG-screened indices on Oct. 20.
DWS plans to halve the total expense ratio of the world ex-UK vehicle from 40 basis points to 20 bps.
The equity ETF will in future track the MSCI EM Select ESG Screened Index instead of the FTSE All-World Ex-UK Index, as part of a wider strategy overhaul that will see it ramp up its exposure to China.
DWS, which manages €860 billion ($997 billion) in assets globally, tells ETF Stream that the delay in the benchmark switch is designed to “ensure all operational aspects of the new tracking arrangement are in place, ensuring a smooth transition.”
The Frankfurt-based asset manager says it will announce a new date for the index change “in due course.”
The firm has announced several changes across its Xtrackers range that have seen conventional ETFs move to ESG benchmarks.
DWS last month converted nine existing European equity sector Xtrackers ETFs to ESG-screened MSCI indices.
Including the launch of the Xtrackers MSCI Europe Consumer Discretionary ESG Screened Ucits ETF in June, this has created a 10-strong range of European equity sector ETFs that use ESG screening.