Fund Size: £1132.00m

Total screened & themed / SRI assets: £168400.00

Total Responsible Ownership assets: £326400.00

Total assets under management: £1011000.00

As at: 31/03/24

Overview

Filters

Fund information

Policy

The ETF is passively managed and aims to replicate the performance of its benchmark index. As such, the approach taken in relation to the consideration of ESG criteria is the one taken by the index provider and therefore dependent on the methodology defined by a third party.

The index is constructed as follows:

• Exclusion of companies associated with civilian, controversial, conventional and nuclear weapons as well as adult entertainment, tobacco, alcohol, gambling, genetically modified organisms and nuclear power.
• Exclusion of companies that derive revenue from fossil fuel extraction, fossil fuel power generation and fossil fuel reserves.
• Lower carbon exposure than the market capitalization weighted index (the “Parent Index”).
• High Environmental, Social and Governance (ESG) ratings relative to their sector peers by targeting 25% free float-adjusted market capitalization coverage of each Global Industry Classification Standard (GICS®) sector by selecting constituents based on ESG rating, the trend in that rating and the company’s industry adjusted ESG Score.
• The Index also achieves diversification and avoids concentration risk by capping securities to a maximum security weight of 5%.

Please refer to the MSCI SRI Low Carbon Select Indexes Methodology for further details on the index construction process and the exclusions.

Process

The fund aims to replicate the performance of its benchmark index. The portfolio fully replicates the index and is rebalanced to ensure close tracking in accordance with our prescribed tolerances, following the rebalancing schedule of the underlying index.

Resources, Affiliations & Corporate Strategies

The UBS Asset Management (“UBS AM”) Sustainable Investing and Impact team (“SI team”) is an integrated function within our Investments area. The Head of Sustainable Investing and Impact role sits on the Investment Management team. The SI team is led by Lucy Thomas, who reports directly to the Head of Investments, Barry Gill, who is a member of UBS AM’s Management Team, reporting to Aleksandar Ivanovic, President of UBS AM. The goal of this governance structure is to provide clear oversight from the President of UBS AM through to our specialist SI team and alignment across investment areas.

The SI team comprises 45 professionals as of end March 2024. The team’s background is very diverse and includes professionals who have worked in the asset management, finance, services industries and for asset owners. Team members are located in Zurich, London, Amsterdam, Krakow, Hong Kong, Singapore, New York and Chicago.

The SI team is currently structured in the following pillars: Active Ownership, SI Governance, SI Specialists, SI Quant Analytics and SI Portfolio Integration.

In addition, we have a dedicated governance structure in place through the SI Methodology Forum, SI Prioritization Forum and Stewardship Committee to oversee our activities in sustainable investing:

• The SI Prioritization Forum provides oversight of the SI strategic program, setting key priorities and strategic direction; makes key decisions of commercial relevance and ensures regulatory compliance and a successful delivery of the SI Program.
• The SI Methodology Forum provides oversight of SI policies and guidelines, data and methodologies as well as investment process criteria applied in the Sustainable Investing framework (including exclusions, ESG integration, sustainable focused and impact offering) across investment areas.
• The Stewardship Committee oversees the proxy voting standards, process, and corporate governance practices as well as engagement program activities (including exclusion decisions). It also oversees the research process on UNGC Global Compact credible corrective action and Sustainability and Climate Risk (SCR) Watchlist cases. The Stewardship Committee is the representative body for approving membership of industry organizations related to stewardship.

For a list of our memberships and involvement, please refer to the UBS Sustainability Report 2023 – Supplementary Information available via https://www.ubs.com/global/en/sustainability-impact/sustainability-reporting.html.

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Dialshifter

Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by…

UBS AM is committed to helping our clients achieve their decarbonization goals and to supporting the work of governments around the world in their transition to a low-carbon economy in alignment with the objectives of the Paris Agreement.

We are a founding signatory of the Net Zero Asset Managers initiative and have a group-wide ambition to achieve net zero greenhouse gas emissions across scope 1 and 2, and specified scope 3 activities by 2050. In 2023, we made progress toward delivering our 2030 target of aligning 20% of our total AuM with net zero, using science-based portfolio alignment approaches.

Literature

• Fund overview & literature (including factsheet)

Last amended: 29/01/24 06:45