REG - Mirae Asset ETF ICAV - Shareholder Notice IE00BLCHJB90 & IE00BLCHJC08
20/02/2024 15:15
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RNS Number : 8052D Mirae Asset ETF ICAV 20 February 2024
This document is a Supplement to the Prospectus dated 4 September 2023 issued
by Global X ETFs ICAV (the "ICAV"). This Supplement forms part of, and should
be read in conjunction with, the Prospectus.
Investors' attention is drawn to the risk warnings contained in the section of
the Prospectus entitled "Risk Factors" and, in particular, to the risk
warnings contained in the section of this Supplement entitled "Risk Factors".
Words and expressions defined in the Prospectus, unless the context otherwise
requires, have the same meaning when used in this Supplement.
SUPPLEMENT
in respect of
GLOBAL X ROBOTICS & ARTIFICIAL INTELLIGENCE UCITS ETF
(the "Fund")
a UCITS ETF Sub-Fund of the Global X ETFs ICAV
an open-ended Irish collective asset-management vehicle having registration
number C435449 and established as an umbrella fund with segregated liability
between sub-funds and authorised by the Central Bank of Ireland as a UCITS.
Dated 20 February 2024
The Directors of the ICAV, whose names appear in the Directory in the
Prospectus, accept responsibility for the information contained in this
Supplement. To the best of the knowledge and belief of the Directors (who have
taken all reasonable care to ensure that such is the case) the information
contained in this document is in accordance with the facts and does not omit
anything likely to affect the import of such information.
THE FUND
Investment Objective
The investment objective of the Fund is to provide investment results that
closely correspond, before fees and expenses, generally to the price and yield
performance of the Indxx Global Robotics & Artificial Intelligence
Thematic v2 Index (the "Index").
Investment Policy
In order to achieve this investment objective, the Fund will seek to replicate
the performance of the Index, subject to the deduction of the TER and other
expenses associated with operating the Fund as further described in the "Fees
and Expenses" section of the Prospectus. It will do so by investing primarily
in a portfolio of equity securities that, as far as possible and practicable,
consists of the component securities of the Index in similar proportions to
their weightings in the Index and in American Depositary Receipts ("ADRs") and
Global Depositary Receipts ("GDRs") based on the securities in the Index. By
holding each equity security in approximately the same proportion as its
weighting in the Index, the Fund may have exposure to or invest up to 20% of
the Net Asset Value of the Fund in stocks issued by the same body. This limit
may be raised to 35% for a single issuer in exceptional market conditions
which may include the dominance of a particular issuer in the relevant market.
The Fund is not classified as an Article 8 or Article 9 fund pursuant to SFDR,
however, disclosure in accordance with the requirements of Article 6 of SFDR
in relation to the integration of sustainability risks is set out in the
Prospectus.
The Index is designed to provide exposure to exchange-listed companies in
developed markets that are involved in the development of robotics and/or
artificial intelligence, including companies involved in developing industrial
robots and production systems, automated inventory management, unmanned
vehicles, voice/image/text recognition, and medical robots or robotic
instruments (collectively, "Robotics & Artificial Intelligence
Companies"), as defined by Indxx, LLC, the Index Provider.
The eligible universe of the Index includes among the most liquid and
investable companies in accordance with the standard market capitalization and
liquidity criteria associated with developed markets, as defined by the Index
Provider. As of 13 March 2023, companies must have a minimum market
capitalization of $300 million and a minimum average daily turnover for the
last 6 months (or since the initial public offering launch date for
"Significant Initial Public Offerings" as defined by the Index Provider or 3
months, in the case of other initial public offerings) greater than or equal
to $2 million in order to be eligible for inclusion in the Index. As of 13
March 2023, components from the following countries were eligible for
inclusion in the Index: Australia, Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Luxembourg,
Netherlands, New Zealand, Norway, Portugal, Singapore, South Korea, Spain,
Sweden, Switzerland, Taiwan, the United Kingdom and the United States.
From the eligible universe, the Index Provider identifies Robotics &
Artificial Intelligence Companies by applying a proprietary analysis that
consists of two primary components: theme identification and company
analysis. As part of the theme identification process, the Index Provider
analyzes industry reports, investment research and consumer data related to
the robotics and artificial intelligence industry in order to establish the
themes that are expected to provide the most exposure to the growth of the
robotics and artificial intelligence industry. As of 13 March 2023, the
Index Provider has identified the following four robotics and artificial
intelligence themes: (1) Industrial Robotics and Automation, (2) Unmanned
Vehicles and Drones, (3) Artificial Intelligence and (4) Non-Industrial
Robotics (collectively, "Robotics & Artificial Intelligence Themes"). In
order to be included in the Index, a company must be identified as having
significant exposure to these Robotics & Artificial Intelligence Themes,
as determined by the Index Provider. In the second step of the process,
companies are analyzed based on two primary criteria: revenue exposure and
primary business operations. A company is deemed to have significant
exposure to the Robotics & Artificial Intelligence Themes if (i) according
to a public filing, it derives a significant portion of its revenue from the
Robotics & Artificial Intelligence Themes, or (ii) it has stated its
primary business to be in products and services focused on the Robotics &
Artificial Intelligence Themes, as determined by the Index Provider.
Accordingly, the Fund assets will be concentrated in companies that provide
exposure to Robotics & Artificial Intelligence Themes.
The Investment Manager uses a "passive" or indexing approach to try to achieve
the Fund's investment objective. The Fund does not try to "outperform" the
Index and does not seek temporary defensive positions when markets decline or
appear overvalued.
Where it is not possible or practicable for the Fund to invest directly in or
continue to hold all of the component securities of the Index (for reasons
such as, but not limited to, where this would involve difficulties or
substantial costs, where one or more securities in the Index becomes
temporarily illiquid or unavailable, or as a result of legal restrictions or
regulatory limitations that apply to the Fund but not the Index) and/or where
consistent with its investment objective, the Fund may also invest in the
following additional assets subject to the conditions and within the limits
laid down by the Central Bank:
• Depositary Receipts relating either to component securities of the
Index or to equity securities of the type referred to above;
• FDIs - namely, total return "unfunded" OTC Swaps and
exchange-traded equity futures - which may be used for investment purposes
(such as gaining exposure to the Index and/or any particular constituents of
the Index) in accordance with the terms set out in the sections entitled "Fund
Investments", "Unfunded OTC Swap Model" and Schedule II of the Prospectus.
While the Fund may invest up to 100% of its Net Asset Value in total return
"unfunded" OTC Swaps, it is not expected that this flexibility will be used.
The Fund will only invest in FDIs as provided for in the RMP prepared by the
Investment Manager in respect of the Fund and filed with the Central Bank;
• Equity securities which are not constituents of the Index, which,
in the opinion of the Investment Manager, are expected to provide similar
performance and risk characteristics to the Index constituent(s) which are not
possible or practicable for the Fund to invest directly in or continue to
hold; and
• collective investments schemes that have a similar strategy to the
Fund or allow similar exposure to the index constituents.
The equity securities and FDI investments of the Fund will be listed, traded
and dealt with on one or more of the Regulated Markets set out in Schedule 1
to the Prospectus.
The Fund may, in addition, employ other techniques relating to transferable
securities, including entering into securities lending transactions, investing
in repurchase and reverse repurchase transactions and collective investment
schemes, for the purpose of efficient portfolio management only, in accordance
with the terms set out in the section entitled "Efficient Portfolio Management
Techniques" and Schedule III of the Prospectus. While the Fund may invest up
to 100% of its Net Asset Value in repurchase and reverse repurchase
transactions it is not expected that this flexibility will be used.
The maximum proportion of the Net Asset Value of the Fund that can be subject
to securities lending is 50%. The proportion of the Net Asset Value of the
Fund that will be subject to securities lending is expected to range from 0%
to 50%.
The maximum proportion of the Net Asset Value of the Fund that can be subject
to repurchase transactions is 20%. The proportion of the Net Asset Value of
the Fund that will be subject to repurchase transactions is expected to be 0%.
The maximum proportion of the Net Asset Value of the Fund that can be subject
to reverse repurchase transactions is 20%. The proportion of the Net Asset
Value of the Fund that will be subject to reverse repurchase transactions is
expected to be 0%.
The maximum proportion of the Net Asset Value of the Fund that can be subject
to total return swaps is 20%. The proportion of the Net Asset Value of the
Fund that will be subject to total return swaps is expected to be 0%.
As at the date of this Fund Supplement, to the extent the Fund undertakes
securities lending, the Fund will receive 87% of the associated revenue
generated from securities lending activities and the remaining 13% will be
retained by the securities lending agent (representing the attendant direct
and indirect operational costs and fees of the securities lending). In
circumstances where the attendant direct and indirect operational costs and
fees of the securities lending are less than 13% of the revenue generated from
securities lending activities, the excess revenue will be returned to the
Fund.
Base Currency
The Base Currency of the Fund is USD.
Investment Manager
The Investment Manager of the Fund is Global X Management Company LLC.
There is no guarantee that the Fund will achieve its investment objective.
It is recommended that an investment in the Fund should not constitute a
substantial proportion of an investment portfolio and may not be appropriate
for all investors.
PROFILE OF A TYPICAL INVESTOR
A typical investor in the Fund would want to take a long or short-term
exposure to the market covered by the Index and would be prepared to accept
the medium level risks associated with an investment of this type, including
the potential volatility of such market. Such an Investor is also one that is
able to assess the merits and risks of an investment in the Shares of the
relevant Class of the Fund.
SHARE CLASSES
Only ETF Shares will be issued in respect of the Fund.
Details of the Classes available in the Fund, are set out below.
Classes TER Dividend Policy/Frequency Unlaunched Classes of ETF Shares are indicated below Hedged share Class Class
Currency
USD Accumulating 0.50% Accumulating Unlaunched No USD
EUR Accumulating 0.50% Accumulating Unlaunched No EUR
GBP Accumulating 0.50% Accumulating Unlaunched No GBP
CHF Accumulating 0.50% Accumulating Unlaunched No CHF
USD Distributing 0.50% Distributing Unlaunched No USD
(Semi-annually)
EUR Distributing 0.50% Distributing Unlaunched No EUR
(Semi-annually)
GBP Distributing 0.50% Distributing Unlaunched No GBP
(Semi-annually)
CHF Distributing 0.50% Distributing Unlaunched No CHF
(Semi-annually)
USD Hedged Accumulating 0.50% Accumulating Unlaunched Yes USD
EUR Hedged Accumulating 0.50% Accumulating Unlaunched Yes EUR
GBP Hedged Accumulating 0.50% Accumulating Unlaunched Yes GBP
CHF Hedged Accumulating 0.50% Accumulating Unlaunched Yes CHF
USD Hedged Distributing 0.50% Distributing Unlaunched Yes USD
(Semi-annually)
EUR Hedged Distributing 0.50% Distributing Unlaunched Yes EUR
(Semi-annually)
GBP Hedged Distributing 0.50% Distributing Unlaunched Yes GBP
(Semi-annually)
CHF Hedged Distributing 0.50% Distributing Unlaunched Yes CHF
(Semi-annually)
The Directors reserve the right to differentiate between persons who are
subscribing for or redeeming Shares and to waive or reduce the Minimum
Subscription Amount and Minimum Redemption Amount for any such person or to
refuse an application for the subscription of Shares in their absolute
discretion.
Additional Classes may be created in accordance with the requirements of the
Central Bank.
TRACKING ERROR
The anticipated tracking error in normal market conditions is set out below
for each of the Classes of the Fund. Please note that, whilst the Fund has
multiple Classes some of which are denominated in different currencies, some
of which are distributing Classes and/or some of which are Hedged Classes, the
anticipated tracking error displayed for all Classes is that applicable for
the USD Accumulating (which is denominated in USD, unhedged and accumulates
any applicable dividends) as against the Index (which is also denominated in
USD, unhedged and accumulates any applicable dividends).
The anticipated tracking error of a Class is not a guide to its future
performance. The annual and semi-annual report and accounts will set out the
actual realised tracking error as at the end of the period under review.
Classes Tracking Error
USD Accumulating 1% (annualised)
EUR Accumulating 1% (annualised)
GBP Accumulating 1% (annualised)
CHF Accumulating 1% (annualised)
USD Distributing 1% (annualised)
EUR Distributing 1% (annualised)
GBP Distributing 1% (annualised)
CHF Distributing 1% (annualised)
USD Hedged Accumulating 1% (annualised)
EUR Hedged Accumulating 1% (annualised)
GBP Hedged Accumulating 1% (annualised)
CHF Hedged Accumulating 1% (annualised)
USD Hedged Distributing 1% (annualised)
EUR Hedged Distributing 1% (annualised)
GBP Hedged Distributing 1% (annualised)
CHF Hedged Distributing 1% (annualised)
DIVIDENDS
Where the ICAV intends to declare dividends with respect to one or more
Classes of the Fund, the proposed frequency of such dividend declarations
shall be as set out in the table in the section entitled "Share Classes".
It is not the current intention of the Directors to declare dividends in
respect of the Classes identified as "accumulating" classes in this
Supplement. The income and earnings and gains of the Funds will be accumulated
and reinvested. Any change to this dividend policy shall be set out in an
updated version of the Supplement and notified to the Shareholders in advance.
It is intended to declare dividends in respect of the Classes identified as
"distributing" classes in this Supplement. Distributions in respect of these
Classes will be declared on each Distribution Date in each year provided that
if such dates are not Business Days, the declaration date will be the Business
Day immediately following such date respectively. The distribution may
comprise net income (if any) of the Fund.
The Distribution Date for this Fund will be as noted on the distribution
calendar available at https://globalxetfs.eu (https://globalxetfs.eu) .
Payments
With the authorisation and upon the instruction of the Common Depositary's
Nominee, any dividends declared and any liquidation and mandatory redemption
proceeds are paid by the ICAV or its authorised agent (for example, a paying
agent) to the applicable ICSD. Investors, where they are Participants, must
look solely to the applicable ICSD for their share of each dividend payment or
any liquidation or mandatory redemption proceeds paid by the ICAV or, where
they are not Participants, they must look to their respective nominee, broker
or Central Securities Depositary (as appropriate, which may be a Participant
or have an arrangement with a Participant of the applicable ICSD) for any
share of each dividend payment or any liquidation or mandatory redemption
proceeds paid by the ICAV that relates to their investment.
Investors shall have no claim directly against the ICAV in respect of dividend
payments and any liquidation and mandatory redemption proceeds due on Shares
represented by the Global Share Certificate and the obligations of the ICAV
will be discharged by payment to the applicable ICSD with the authorisation of
the Common Depositary's Nominee.
DEALING IN SHARES OF THE FUND
Only the ETF Shares issued in respect of this Fund will be listed and/or
traded on the Relevant Stock Exchanges. It is envisaged that ETF Shares will
be bought and sold by private and institutional investors in the secondary
market.
Only Authorised Participants may subscribe for and redeem ETF Shares in the
Fund directly with the ICAV in accordance with the section of the Prospectus
entitled "Subscriptions and Redemptions" having regard to the information set
out below:
Business Day A day on which the New York Stock Exchange and London Stock Exchange is open
for normal business.
Class Currency The dealing currency and the currency of denomination of the relevant Class.
Dealing Day On each Business Day.
Initial Offer Period The Initial Offer Period shall commence at 9:00 a.m. (Dublin time) on 21
February 2024 and shall end at 3 p.m. (Dublin time) on 20 August 2024 or such
other time as the Directors may determine.
Initial Offer Price The price per Share is expected to be approximately USD 25, or its equivalent
in the Class Currency. However, the actual initial price per ETF Share will
depend on the actual cost to the ICAV of purchasing the relevant Investments
(please see the definition of "Duties and Charges" in the Prospectus). Details
of the Initial Offer Price will be available from the Administrator and on
https://globalxetfs.eu (https://globalxetfs.eu)
Minimum Redemption Amount 1 Creation Unit of 10,000 Shares or its cash equivalent
Minimum Subscription Amount 1 Creation Unit of 10,000 Shares or its cash equivalent
Settlement Time Settlement of subscriptions shall generally occur within two Business Days
after the relevant Dealing Day (unless otherwise stipulated by the Manager or
its delegate) and in any event will occur within a maximum of ten Business
Days.
Settlement of redemptions shall generally occur within two Business Days after
the relevant Dealing Day (unless otherwise agreed with the Manager or its
delegate).
Subscription Fee None
Redemption Fee None
Trade Cut-Off Time 4:30 p.m. (London time) on the Business Day prior to the relevant Dealing Day
or such earlier or later time as may be determined by the Manager or the
Investment Manager at their discretion with prior notice to Authorised
Participants, which is the cut-off time in respect of any Dealing Day for
receipt of applications for subscriptions and redemptions in the Fund.
The Trade Cut-Off Time for this Fund reflects that some, or all, of the Fund's
underlying assets are traded in time zones earlier than the European time
zone.
Valuation Point 4:00 p.m. New York time on the relevant Dealing Day.
FEES AND EXPENSES
A TER will be paid out of the assets of each Class to the ICAV. The TER for
each Class is set out under the heading "TER" in the table included under the
heading "Share Classes".
This section should be read in conjunction with the section headed "Fees,
Costs and Expenses" in the Prospectus.
RISK FACTORS
Investment in the Fund carries with it a degree of risk including, but not
limited to, the risks described in the "Risk Factors" section of the
Prospectus including particularly Securities Lending Risk, Concentration Risk,
Non-Diversification Risk, Investable Universe of Companies Risk, Risk of
Investing in Developed Markets, Risk of Investing in Japan, Risk of Investing
in Switzerland, New Fund Risk and the following:
Given the investment strategy of the Fund and its risk profile, the likely
impact of sustainability risks on the Fund's returns is expected to be low.
Associated Risks Related to Investing in Robotics & Artificial
Intelligence Companies: Robotics & Artificial Intelligence companies may
have limited product lines, markets, financial resources or personnel. These
companies typically face intense competition and potentially rapid product
obsolescence. These companies are also heavily dependent on intellectual
property rights and may be adversely affected by loss or impairment of those
rights. There can be no assurance these companies will be able to successfully
protect their intellectual property to prevent the misappropriation of their
technology, or that competitors will not develop technology that is
substantially similar or superior to such companies' technology. Robotics
& Artificial Intelligence companies typically engage in significant
amounts of spending on research and development, and there is no guarantee
that the products or services produced by these companies will be successful.
Robotics & Artificial Intelligence companies are potential targets for
cyberattacks, which can have a materially adverse impact on the performance of
these companies. Robotics & Artificial Intelligence companies, especially
smaller companies, tend to be more volatile than companies that do not rely
heavily on technology. In addition, robotics and artificial intelligence
technology could face increasing regulatory scrutiny in the future, which may
limit the development of this technology and impede the growth of companies
that develop and/or utilize this technology. Similarly, the collection of data
from consumers and other sources could face increased scrutiny as regulators
consider how the data is collected, stored, safeguarded and used. Robotics
& Artificial Intelligence companies face increased risk from trade
agreements between countries that develop these technologies and countries in
which customers of these technologies are based. Lack of resolution or
potential imposition of trade tariffs may hinder on the companies' ability to
successfully deploy their inventories. The customers and/or suppliers of
Robotics & Artificial Intelligence companies may be concentrated in a
particular country, region or industry. Any adverse event affecting one of
these countries, regions or industries could have a negative impact on
Robotics & Artificial Intelligence companies. Through its portfolio
companies' customers and suppliers, the Fund is specifically exposed to Asian
Economic Risk and European Economic Risk.
Currency Risk: The Fund may invest in securities denominated in foreign
currencies other than in the Base Currency of the Fund. Because the Fund's NAV
is determined in U.S. dollars, the Fund's NAV could decline if currencies of
the underlying securities depreciate against the U.S. dollar or if there are
delays or limits on repatriation of such currencies. Currency exchange rates
can be very volatile and can change quickly and unpredictably. As a result,
the Fund's NAV may change quickly and without warning, which could have a
significant negative impact on the Fund.
Risks Related to Investing in the Industrials Sector: Companies in the
industrials sector are subject to fluctuations in supply and demand for their
specific product or service. The products of manufacturing companies may face
product obsolescence due to rapid technological developments. Government
regulation, world events and economic conditions affect the performance of
companies in the industrials sector. Companies also may be adversely affected
by environmental damage and product liability claims. Companies in the
Industrial Sector face increased risk from trade agreements between countries
that develop these technologies and countries in which customers of these
technologies are based. Lack of resolution or potential imposition of trade
tariffs may hinder on the companies' ability to successfully deploy their
inventories.
Risks Related to Investing in the Information Technology Sector: Companies in
the information technology sector are subject to rapid changes in technology
product cycles; rapid product obsolescence; government regulation; and
increased competition, both domestically and internationally, including
competition from foreign competitors with lower production costs. Information
technology companies and companies that rely heavily on technology tend to be
more volatile than the overall market and also are heavily dependent on patent
and intellectual property rights. In addition, information technology
companies may have limited product lines, markets, financial resources or
personnel.
Risks Related to Investing in the Machinery Industry: The machinery industry
is capital-intensive. Working capital and cash flow management can be crucial
to a company's success, as investments in research and development and
acquisitions may be important to maintain sales and earnings. A long capital
investment cycle can add challenges to management decisions regarding the
expansion of capacity, which may limit a company's ability to grow during
periods of increasing demand and may result in overcapacity during periods of
decreasing demand. The performance of the machinery industry may therefore
be highly dependent on the business cycle and highly correlated with the
performance of the broader equity market. Machinery industry companies with
large barriers to entry based on proprietary technology may face potentially
rapid product obsolescence. Conversely, machine industry companies that
produce commodity-like offerings are likely to face thin margins and must
maintain expansive distribution and support networks in order to maintain
adequate volume.
RISK MANAGEMENT
The Fund's global exposure, being the incremental exposure and leverage
generated by the Fund through its use of FDI, shall be calculated on at least
a daily basis using the commitment approach and, in accordance with the
requirements of the Central Bank, may at no time exceed 100% of the Fund's Net
Asset Value. As noted in the "Investment Policy" section above, the Fund's use
of FDI is an ancillary element of the investment policy in that it is an
alternative means of gaining exposure to the Index, or one or more of the
constituents of the Index, in circumstances where direct investment in the
constituents of the Index is not possible, practicable or desirable.
Regardless of whether exposure to the underlying constituents is obtained by
direct investment in the constituents, or by gaining exposure to the
constituents through the use of FDI, the same notional value shall be
committed to the investment by the Fund. Accordingly, it is not expected that
the Fund will be leveraged.
THE INDEX
General Description
The Indxx Global Robotics & Artificial Intelligence Thematic v2 Index is
designed to provide exposure to exchange-listed companies in developed markets
that are involved in the development of robotics and/or artificial
intelligence, including companies involved in developing industrial robots and
production systems, automated inventory management, unmanned vehicles,
voice/image/text recognition, and medical robots or robotic instruments
(collectively, "Robotics & Artificial Intelligence Companies"), as defined
by Indxx, LLC, the provider of the Indxx Global Robotics & Artificial
Intelligence Thematic v2 Index.
The eligible universe of the Indxx Global Robotics & Artificial
Intelligence Thematic v2 Index includes among the most liquid and investable
companies in accordance with the standard market capitalization and liquidity
criteria associated with developed markets, as defined by Indxx, LLC. As of
13 March 2023, companies must have a minimum market capitalization of $300
million and a minimum average daily turnover for the last 6 months (or since
the initial public offering launch date for "Significant Initial Public
Offerings" as defined by the Index Provider or 3 months, in the case of other
initial public offerings) greater than or equal to $2 million in order to be
eligible for inclusion in the Indxx Global Robotics & Artificial
Intelligence Thematic v2 Index. As of 13 March 2023, components from the
following countries were eligible for inclusion in the Indxx Global Robotics
& Artificial Intelligence Thematic v2 Index: Australia, Austria, Belgium,
Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy,
Japan, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Singapore,
South Korea, Spain, Sweden, Switzerland, Taiwan, the United Kingdom and the
United States.
From the eligible universe, Indxx, LLC identifies Robotics & Artificial
Intelligence Companies by applying a proprietary analysis that consists of two
primary components: theme identification and company analysis. As part of
the theme identification process, Indxx, LLC analyzes industry reports,
investment research and consumer data related to the robotics and artificial
intelligence industry in order to establish the themes that are expected to
provide the most exposure to the growth of the robotics and artificial
intelligence industry. As of 13 March 2023, Indxx, LLC has identified the
following four robotics and artificial intelligence themes: (1) Industrial
Robotics and Automation, (2) Unmanned Vehicles and Drones, (3) Artificial
Intelligence and (4) Non-Industrial Robotics (collectively, "Robotics &
Artificial Intelligence Themes"). In order to be included in the Indxx
Global Robotics & Artificial Intelligence Thematic v2 Index, a company
must be identified as having significant exposure to these Robotics &
Artificial Intelligence Themes, as determined by Indxx, LLC. In the second
step of the process, companies are analyzed based on two primary criteria:
revenue exposure and primary business operations. A company is deemed to
have significant exposure to the Robotics & Artificial Intelligence Themes
if (i), it derives a significant portion of its revenue from the Robotics
& Artificial Intelligence Themes, (ii), it has stated its primary business
to be in products and services focused on the Robotics & Artificial
Intelligence Themes, as determined by Indxx, LLC.
The Indxx Global Robotics & Artificial Intelligence Thematic v2 Index is
weighted according to a modified capitalization weighting methodology and is
reconstituted and rebalanced annually. At the annual rebalance, a capping
methodology is applied to reduce concentration in individual securities and
increase diversification of the Indxx Global Robotics & Artificial
Intelligence Thematic v2 Index. The Indxx Global Robotics & Artificial
Intelligence Thematic v2 Index may include large-, mid- or
small-capitalization companies, and components primarily include industrials
and information technology companies.
The Index is weighted as follows:
· Components are weighted based on their security-level market
capitalization.
· The Index is modified market cap-weighted at the time of
reconstitution. A single security weight cap of 8% and single security floor
of 0.3% is applied.
· The aggregate weight of all the components with a weight greater
than 5% is capped at 40%. All remaining securities are capped at 4.5%.
The information set out above is a summary of the principal features of the
Index and does not purport to be an exhaustive description. Further
information can be found in "Indxx Global Robotics & Artificial
Intelligence Thematic v2 Index Methodology" (the "Index Methodology") which is
available, along with the constituents and weights of the Index at:
https://www.indxx.com/indxx-global-robotics--artificial-intelligence-thematic-v2-index-tr
(https://protect-eu.mimecast.com/s/pkIPC0gAJFgQwzjF97-8-?domain=indxx.com) .
Index Rebalancing
The Index shall be rebalanced on an annual basis at the close of trading on
the second Friday of March. It is possible that additional companies not
presently represented in the Index will be added and that one or more
companies presently represented will be removed at the time of the annual
rebalance dates. The index is also reviewed semi-annually for new IPOs and for
corporate actions that may impact a constituent's business operations. During
the semi-annual review, the Index Provider reviews potential new IPOs to
determine if they meet the criteria for inclusion in the index. In addition,
the Index Provider reviews the existing index constituents to determine if any
corporate actions have occurred which might cause an existing constituent to
no longer meet the criteria for the index (for example, in circumstances where
there is: (i) a spin-off, whereby a business splits into two or more separate
organisations or (ii) a merger and acquisition, whereby a number of companies
combine in some form). Companies which were subject to an IPO in-between
Index rebalances, that meet index eligibility criteria, may be added during
this semi-annual review, while existing constituents that have experienced
corporate actions which cause them to no longer meet the index eligibility
criteria can be removed at this semi-annual review. This semi-annual process
is not a full reconstitution of the index.
Investors should note that the respective weights of each of the constituents
of the Index are expected to fluctuate in-between the periodic rebalance dates
of the Index. Please see the Prospectus section entitled "Circumstances where
the weighting of an Index constituent exceeds the applicable concentration
limits prescribed by the UCITS Regulations" for details of the procedure to be
adopted when the weighting of any constituent of the Index exceeds the
permitted investment restrictions.
Index Provider
The Benchmark Administrator is Indxx LLC and the Index is calculated by Indxx
LLC.
The Index is sponsored by Indxx LLC as the Index Provider, which is an
organisation that is independent of the Fund and Global X Management Company
LLC, the Investment Manager for the Fund. The Index Provider determines the
relative weightings of the securities in the Index and publishes information
regarding the market value of the Index.
TAXATION
German Investment Tax Act
The ICAV seeks to maintain "equity fund" status for the Fund pursuant to
Section 2 para. 6 and 7 of the German Investment Tax Act 2018.
Investors should consult their own professional advisers as to the
implications of the Fund maintaining "equity fund" status pursuant to the
German Investment Tax Act 2018.
As at the date of this Fund Supplement, at least 51% of the Fund's assets will
be continuously invested in equity assets as defined in Section 2. para. 8 of
the German Investment Tax Act 2018.
DISCLAIMERS
The ICAV is required to provide details of the Index Provider's website to
enable Investors to obtain further details of the Index (including its
constituents). Neither the ICAV nor the Investment Manager has any
responsibility for the contents of such website and are not involved in any
way in sponsoring, endorsing or otherwise involved in the establishment,
maintenance or contents of the website.
Indxx is a service mark of Indxx LLC ("Indxx") and has been licensed for use
for certain purposes by the Investment Manager. The Fund is not sponsored,
endorsed, sold or promoted by Indxx. Indxx makes no representation or
warranty, express or implied, to the owners of the Fund or any member of the
public regarding the advisability of investing in securities generally or in
the Fund particularly. Indxx has no obligation to take the needs
of the Investment Manager or the Shareholders of the Fund into
consideration in determining, composing or calculating the Index. Indxx is not
responsible for and has not participated in the determination of the timing,
amount or pricing of the Shares to be issued or in the determination or
calculation of the equation by which the Shares are to be converted into cash.
Indxx has no obligation or liability in connection with the administration,
marketing or trading of the Fund.
LISTINGS
Euronext Dublin and the London Stock Exchange Listings
Application has been made to Euronext Dublin/The London Stock Exchange for the
Shares of the Fund issued and available for issue to be admitted to the
Official List and to trading on the Regulated Market of Euronext Dublin/The
London Stock Exchange. Admission to listing is expected to become effective on
or about the date of this Fund Supplement or later date as the Directors may
determine subject to the prior notification to Euronext Dublin/The London
Stock Exchange. This document, together with the Prospectus shall constitute
listing particulars for the purpose of listing the Shares on Euronext
Dublin/The London Stock Exchange and includes all information required to be
disclosed by the code of listing requirements and procedures of Euronext
Dublin/The London Stock Exchange.
As of the date of this document the Fund does not have any loan capital
(including term loans) outstanding or created but unissued, and no outstanding
mortgages, charges, debentures or other borrowings under acceptances or
acceptance credits, hire purchase or finance lease commitments, guarantees or
other contingent liabilities.
At the date of this document, other than as disclosed below, no Director or
any persons closely associated with any Director, has any interest, beneficial
or non-beneficial, in the share capital of the ICAV, together with any options
in respect of such shares, or any material interest in the ICAV or in any
agreement or arrangement with the ICAV except that one or more of the
Directors may hold Subscriber Shares as a nominee of the Marketing Agent. The
Directors shall endeavour to ensure that any conflict of interest is resolved
fairly.
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