Sustainable, Responsible &/or ESG Policy:

Objectives and Investment Policy

The Fund aims to provide a return (gross of charges) on your investment (generated through an increase in the value of the assets held by the Fund and/or income received from those assets) by tracking closely the performance of the MSCI World Select Fossil Fuel Screened Index (the "Index").

The Fund invests in equity securities (e.g. shares) of companies that make up the Index. There may be occasions where direct investment in equity securities is not possible or in investors’ best interests, however it is expected that the usage of indirect investment (e.g. through financial derivative instruments (i.e. investments the prices of which are based on one or more underlying assets) and other funds) by the Fund will be limited.

The Index measures the performance of a subset of equity securities within the MSCI World Index (the Parent Index) which comply with the Index provider’s environmental, social and governance (ESG) screens. The Parent Index measures the performance of large and mid-capitalisation stocks across developed markets globally.

The Index seeks to limit and/or exclude companies from the Parent Index which have exposure to, or other ties with, certain business lines/activities including but not limited to (i) thermal coal, (H) oil sands, (it) oil and gas (excluding certain issuers that derive at least half of their revenue from renewable energy and alternative fuels), (iv) fossil fuel reserves, (v) controversial and nuclear weapons, (vi) civilian firearms or small arms ammunition, and (vii) tobacco. The Index also intends to exclude issuers which are classified as violating the United Nations Global Compact principles (which are widely accepted corporate sustainability principles that meet fundamental responsibilities in areas such as anti-corruption, human rights, labour and environmental)..

The Fund will take into account ESG screens only when selecting the securities to be held directly by the Fund. The Fund may obtain indirect exposure (e.g. through financial derivative instruments and other funds) to securities considered not to satisfy these ESG screens.

The Index is a free float-adjusted market capitalisation weighted Index. Free float-adjusted means that only shares readily available in the market rather than all of a company’s issued shares are used in calculating the Index. Free float-adjusted market capitalisation is the share price of a company multiplied by the number of shares readily available in the market.

The Fund is passively managed and the investment manager has limited discretion to select the Fund’s investments and in doing so will take into consideration the Index.

The Fund's investments will, at the time of purchase, comply with the ESG screens of the Index. Where the securities no longer meet such requirements, the Fund may continue to hold them until they cease to form part of the indIx and it is practicable to sell them. 

(Source: KIID, as at January 2025)

 

 

SDR Labelling:

Unlabelled with sustainable characteristics

SDR Literature:

• Fund Consumer Facing Disclosure