UBS (Lux) Equity SICAV - Engage for Impact Fund
SRI Style:
Sustainable Style
SDR Labelling:
Not eligible to use label (out of scope)
Product:
SICAV/Overseas
Fund Region:
Global
Fund Asset Type:
Equity
Launch Date:
13/10/2017
Last Amended:
Oct 2024
Dialshifter (
):
Fund/Portfolio Size:
£555.86m
(as at: 30/11/2025)
Total Screened Themed SRI Assets:
£168400.00m
(as at: 31/03/2024)
Total Responsible Ownership Assets:
£326400.00m
(as at: 31/03/2024)
Total Assets Under Management:
£1011000.00m
(as at: 30/03/2024)
ISIN:
LU1679116845, LU1679117140, LU2393191064, LU1679117819, LU1815428377, LU1679117579
Sustainable, Responsible
&/or ESG Overview:
No response when requested update from fund manager
UBS Asset Management categorises this sub-fund as an Impact Fund. This sub-fund promotes environmental and/or social characteristics and complies with Article 8 of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR”).
To achieve its investment objective, UBS Asset Management’s ('AM') Engage for Impact Strategy ('the Strategy') invests in companies based on various financial factors, material sustainability factors such as environmental, social and governance ('ESG') performance and on the current and potential ability of such companies to have a positive impact on human well-being and environmental quality, therefore promoting the United Nations Sustainable Development Goals (UN SDGs), such as clean water and sanitation, clean energy, treatment of disease, food security and people empowerment. Through engagement, we aim to encourage companies to enhance their positive impact in their operations and supply chain but also via their products and services.
Primary fund last amended:
Oct 2024
Information directly from fund manager.
Fund Filters
Sustainability - General
Has policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See individual entry information.
Has a significant focus on sustainability issues
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity
Use the UN Global Compact to inform or help direct where they can or cannot invest. Will typically not invest in companies with significant breaches (low standards) - strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/
Aim to invest (and manage assets) in ways that help to address all or some of the UN's Sustainable Development Goals (SDGs). See https://sdgs.un.org/goals).
Environmental - General
Has policies which relate to environmental issues. These will typically set out their stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary.
Options that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Strategies vary.
Aims to invest in companies with strong or market leading environmental policies and practices. Strategies vary. See individual entry information for more detail.
Climate Change & Energy
Avoid investment in major coal, oil and/or gas (extraction) companies. Strategies vary.
Avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary.
Encourage the transition to lower carbon activities through asset selection and / or responsible ownership activity.
Invest in renewable energy companies and / or companies where renewable energy is a significant part of their business. Strategies vary.
Has a policy which describes the avoidance or limited investment in the nuclear industry. Strategies vary.
Social / Employment
Aims to invest in assets with high social values - this may include strong human rights, labour standards and equal opportunities or safety related practices.
Has policies or themes that set out their approach to health and wellbeing issues, typically aims to invest in companies with high standards - or encourage high standards.
All mining companies excluded
Ethical Values Led Exclusions
Companies are excluded if they make more than 5% of their revenue from the manufacture, sale or distribution of tobacco products including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Has a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.
Avoids companies that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Avoids companies that derive significant income from pornography and related areas. Strategies vary.
Meeting Peoples' Basic Needs
Have policies or themes that set out the position on investment in the water sector and/or sanitation. Strategies vary.
Has a responsible food production or agriculture theme or strand of investment. May have a single or many themes.
Banking & Financials
Can include banks as part of their holdings / portfolio.
Governance & Management
Has policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary.
Avoids investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards.
Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list
Has policies explaining how managers will respond to assets / companies that do not comply with relevant anti-bribery and anti-corruption standards or laws. Strategies vary; options include stewardship/ engagement and divestment - or a combination.
Encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Product / Service Governance
Find fund / asset managers that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.
Asset Size
Invests in a combination of small, medium and larger (potentially multinational) companies / assets.
Impact Methodologies
Has policies that aim to help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary.
Aims to measure the positive real world environmental and / or social benefits that are associated with their investment strategy. Investments that aim to deliver positive impacts and measure those impacts may be referred to as 'Impact' - although impact measurement is not restricted to Impact investments. Strategies vary.
Investments which are specifically marketed as ‘Impact investments' and work to deliver both financial performance and specific, measurable positive, real world social and/or environmental benefits. Strategies vary.
Specifically sets out to help deliver positive environmental impacts, benefits or 'real world' outcomes.
Specifically states that they aim to deliver positive social (i.e. people related) impacts and/or outcomes.
Directs investment towards companies where a major part of their business is about solving environmental challenges. e.g. companies helping to address climate change.
Invest in companies where a major part of their business is specifically aimed at helping to address social challenges. e.g. companies helping to address poverty.
Specifically sets out to invest in companies that are regarded as 'disrupting' existing business practices - typically through the development of innovative (sustainability aware) products and/or practices.
Aims to deliver positive environmental and or social impacts (real world benefits) through its engagement with investee assets
Policy explains the ways in which the manager believes things need to change in order to deliver a more sustainable future, which they are working to help achieve.
How The Fund/Portfolio Works
Focuses on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Has principle 'ethical approach' to avoid companies by using negative screening criteria. Strategies vary.
Aims to avoid companies that do significant harm. This originates from the EU’s sustainable finance ‘DNSH’ (do no significant harm) work, which is not necessarily used by UK investors.
Invests in assets which can be 'mapped' (reviewed) their investment selection and management strategies to identify which of the UN Sustainable Development Goals (SDGs) the fund is helping to address.
Investment selection process uses internationally agreed 'norms' (e.g. United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) alongside additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.
Invests in assets which have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) together with additional criteria such as positive and/or negative screens, themes and stewardship strategies.
Considers both the 'positive' and 'negative' aspects of company behaviour and makes balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
Uses internationally agreed standards, conventions and 'norms' to help direct investment decisions (e.g. the UN Global Compact, UN Sustainable Development Goals).
Focuses on the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies).
Intended Clients & Product Options
Designed to meet the needs of individual investors with an interest in sustainability issues.
Designed to meet the needs of individual investors with an interest in ‘Impact investment’ which help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies regarded as beneficial to people and / or the planet. Strategies vary.
Labels & Accreditations
Find options classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics together with high governance. These rules do not currently apply to UK products so many managers may leave this field blank.
Sustainable, Responsible &/or ESG Policy:
Our impact investment philosophy is to translate the SDGs global mission into investment decisions, constructing a portfolio targeting real-world positive impact. Our approach is built around the 3 criteria for impact investing defined by the Operating Principles for Impact Management (OPIM):
- Intentionality: The impact universe is designed to identify companies that we believe generate positive social and environmental impact via products and technologies that are deemed to be aligned with supporting the SDGs and the Strategy’s specific impact categories: Climate, Health, Food, Water and People Empowerment. Our stock selection process seeks to identify securities within the universe that have a positive impact, are attractive based on their fundamental and valuation profile, in addition to evaluating specific sustainability (ESG) factors, as well as the ability for engagement with the company management on impact and environmental/social risks and opportunities. Each holding has an impact thesis and the impact is assessed and monitored at portfolio level over time.
- Additionality: We engage with companies to support and encourage the company to improve the management of environmental and social risks and opportunities in their supply chain and operations and to enhance their impact. We track progress to inform investment decision making and engagement objectives mainly across the supply chain, direct operations and in some occasions products and services.
- Measurement: Measurement is a critical component of impact investing because it provides the basis for demonstrating the difference impact investing can have on the world. The impact of portfolio holdings is reviewed periodically and measured in changes in human well-being and changes in environmental quality (e.g. reduction in air pollution, hospitalizations and biodiversity loss). To do so, we leverage our science-based impact measurement methodology but also collect outputs and impact as per reported by companies, in particular in the People Empowerment theme.
Per our firm’s Sustainable Investment Policy, impact strategies invest with the intention to contribute to measurable positive social and environmental impact alongside financial returns. They meet the minimum criteria of sustainability focused strategies and additionally include a verifiable impact measurement. The UN Sustainable Development Goals (SDGs) create the framework for impact investing.
ESG Integration:
ESG Integration is driven by taking into account material ESG risks as part of the research process. ESG integration enables the Portfolio Manager to identify financially relevant sustainability factors that impact investment decisions and to incorporate ESG considerations when implementing investment decisions, and allows ESG risks to be systematically monitored and compared to risk appetite and constraints. It also assists in portfolio construction through securities selection, investment conviction and portfolio weightings.
- For corporate issuers, this process utilizes an internal UBS ESG material issues framework which identifies the financially relevant factors per sector that can impact investment decisions. This orientation toward financial materiality ensures that analysts focus on sustainability factors that can impact the financial performance of the company and therefore investment returns. ESG integration can also identify opportunities for engagement to improve the company’s ESG risk profile and thereby mitigate the potential negative impact of ESG issues on the company’s financial performance. The Portfolio Manager employs an internal UBS ESG risk dashboard that com-bines multiple internal and external ESG data sources in order to identify companies with material ESG risks. An actionable risk signal highlights ESG risks to the Portfolio Manager for incorporation in their investment decision making process.
- For non-corporate issuers, the Portfolio Manager applies a qualitative or quantitative ESG risk assessment that integrates data on material ESG factors.
The analysis of material sustainability/ESG considerations can include many different aspects, such as the following among others: the carbon footprint, health and well-being, human rights, supply chain management, fair customer treatment and governance.
Fund specific exclusions:
The sub-fund excludes companies with a sustainability profile that indicates a severe ESG risk.
Sustainability Exclusion Policy:
The Sustainability Exclusion Policy of the Portfolio Manager outlines the exclusions applied to the investment universe of the financial product. The link to the Sustainability Exclusion Policy can be found in the section headed “Sustainability Exclusion Policy” in the main body of the Sales Prospectus.
Process:
This actively managed sub-fund invests at least 90% of its net assets in equities and other equity interests of companies in developed and emerging markets worldwide that are aligned to specific United Nations Sustainable Development Goals (UN SDGs), as defined by the Portfolio Manager’s proprietary impact universe. The Portfolio Manager uses a traditional intrinsic valuation framework to identify companies with an attractive valuation. The Portfolio Manager uses quantitative and qualitative factors to define a universe of companies that offer or manufacture products or services that meet the UN SDGs, such as clean water and sanitation products, clean energy, energy saving, treatment of disease, sustainable food system and food security, access to finance or education services. The Portfolio Manager uses the UN SDGs to guide and frame engagement activities with invested companies. The sub-fund uses the benchmark MSCI AC World (net div. reinvested) for performance measurement and risk management purposes. The benchmark is a broad market index which does not assess or include constituents according to environmental and/or social characteristics and therefore is not intended to be consistent with the characteristics promoted by the sub-fund. The investment strategy and monitor-ing process ensures that the environmental or social characteristics of the product are taken into account. The Portfolio Manager may use discretion when constructing the portfolio and is not tied to the benchmark in terms of investment selection or weight. This means that the investment performance of the sub-fund may differ from the benchmark. As the sub-fund invests in multiple currencies due to its global orientation, the investment portfolio or parts of it may be subject to currency fluctuation risks.
Investment Universe
We anchor our universe construction approach to the Sustainable Development Investments Asset Owner Platform (SDI AOP) Taxonomy which is an asset-owner interpretation of the SDGs. As a starting point for the universe creation, we set the minimum revenue threshold at 20%. It may also include companies whose impact potential, indicated by metrics such as research and development (R&D) spend are aligned with the impact categories described above. The investment team can add companies to this universe at its own discretion to allow for investments in IPOs and spin-offs, emerging technologies or impact categories, as well as data gaps. This screening process enables the creation of the Impact universe with approximately 1000 companies.
The impact universe also excludes companies that are in breach or believed to be in breach of the UN Global Compact Principles. In addition, we apply exclusion criteria for companies involved in coal (extraction or energy generation), plus companies deriving 5% or more turnover from the sale of alcohol, tobacco, defence and weapons, nuclear, gambling and adult entertainment.
Investment Process
The investment decision-making process integrates traditional fundamental analysis with an evaluation of a company’s impact and ESG factors material to value creation. Stocks are selected from an investment universe of companies whose products or services create meaningful impact within specific impact categories (such as climate change, air pollution, clean water and water scarcity, treatment of disease, food security and people empowerment). In this universe, we seek to invest in companies that we believe are attractively valued and that can generate additional impact via engagement targeting improvements in its operations or supply chain, and in some occasions in terms of product impact. Our goal is to be able to generate excess returns to support our clients’ financial objectives and to ensure that the companies we hold unlock the full potential of their impact on the environment and society.
We construct an impact profile for each company in the portfolio, covering the impact investment thesis (also called “theory of change”), links to the investment thesis, an analysis of the ESG risks, opportunities and subsequent engagement goals. To do so, we rely upon impact measurement methodologies that UBS Asset Management developed in partnership with leading academics from the fields of earth sciences and public health science. We aim to measure the impact of invested companies in terms of changes in human well-being and changes in environmental quality (e.g., air pollution, biodiversity loss). In areas where we do not have the ability to measure the impact of a company, we aim to assess it with output metrics, such as the number of people receiving higher education or loans for small enterprises’ green investment. Our assessment of the ability of public companies to generate impact is also based on a careful analysis of SDG-enhancement opportunities in the supply chain and operations, as well as an assessment of our ability to influence the company on its practices. Our success is dependent on the achievement of our engagement goals, which are tracked and reported to investors.
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.
SDR Labelling:
Not eligible to use label (out of scope)
| Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
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|---|---|---|---|---|---|---|---|---|
UBS (Lux) Equity SICAV - Engage for Impact Fund |
Sustainable Style | Not eligible to use label (out of scope) | SICAV/Overseas | Global | Equity | 13/10/2017 | Oct 2024 | |
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Fund/Portfolio Size: £555.86m (as at: 30/11/2025) Total Screened Themed SRI Assets: £168400.00m (as at: 31/03/2024) Total Responsible Ownership Assets: £326400.00m (as at: 31/03/2024) Total Assets Under Management: £1011000.00m (as at: 30/03/2024) ISIN: LU1679116845, LU1679117140, LU2393191064, LU1679117819, LU1815428377, LU1679117579 |
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Sustainable, Responsible &/or ESG OverviewNo response when requested update from fund manager
UBS Asset Management categorises this sub-fund as an Impact Fund. This sub-fund promotes environmental and/or social characteristics and complies with Article 8 of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR”). To achieve its investment objective, UBS Asset Management’s ('AM') Engage for Impact Strategy ('the Strategy') invests in companies based on various financial factors, material sustainability factors such as environmental, social and governance ('ESG') performance and on the current and potential ability of such companies to have a positive impact on human well-being and environmental quality, therefore promoting the United Nations Sustainable Development Goals (UN SDGs), such as clean water and sanitation, clean energy, treatment of disease, food security and people empowerment. Through engagement, we aim to encourage companies to enhance their positive impact in their operations and supply chain but also via their products and services.
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Primary fund last amended: Oct 2024 |
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Information received directly from Fund Manager |
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Fund FiltersSustainability - General
Sustainability policy
Has policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See individual entry information.
Sustainability focus
Has a significant focus on sustainability issues
Encourage more sustainable practices through stewardship
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity
UN Global Compact linked exclusion policy
Use the UN Global Compact to inform or help direct where they can or cannot invest. Will typically not invest in companies with significant breaches (low standards) - strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/
UN Sustainable Development Goals (SDG) focus
Aim to invest (and manage assets) in ways that help to address all or some of the UN's Sustainable Development Goals (SDGs). See https://sdgs.un.org/goals). Environmental - General
Environmental policy
Has policies which relate to environmental issues. These will typically set out their stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary.
Limits exposure to carbon intensive industries
Options that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Strategies vary.
Favours cleaner, greener companies
Aims to invest in companies with strong or market leading environmental policies and practices. Strategies vary. See individual entry information for more detail. Climate Change & Energy
Coal, oil & / or gas majors excluded
Avoid investment in major coal, oil and/or gas (extraction) companies. Strategies vary.
Fracking & tar sands excluded
Avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary.
Encourage transition to low carbon through stewardship activity
Encourage the transition to lower carbon activities through asset selection and / or responsible ownership activity.
Invests in clean energy / renewables
Invest in renewable energy companies and / or companies where renewable energy is a significant part of their business. Strategies vary.
Nuclear exclusion policy
Has a policy which describes the avoidance or limited investment in the nuclear industry. Strategies vary. Social / Employment
Favours companies with strong social policies
Aims to invest in assets with high social values - this may include strong human rights, labour standards and equal opportunities or safety related practices.
Health & wellbeing policies or theme
Has policies or themes that set out their approach to health and wellbeing issues, typically aims to invest in companies with high standards - or encourage high standards.
Mining exclusion
All mining companies excluded Ethical Values Led Exclusions
Tobacco & related products - avoid where revenue > 5%
Companies are excluded if they make more than 5% of their revenue from the manufacture, sale or distribution of tobacco products including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Armaments manufacturers avoided
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Civilian firearms production exclusion
Has a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.
Alcohol production excluded
Avoids companies that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Gambling avoidance policy
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Pornography avoidance policy
Avoids companies that derive significant income from pornography and related areas. Strategies vary. Meeting Peoples' Basic Needs
Water / sanitation policy or theme
Have policies or themes that set out the position on investment in the water sector and/or sanitation. Strategies vary.
Responsible food production or agriculture theme
Has a responsible food production or agriculture theme or strand of investment. May have a single or many themes. Banking & Financials
Invests in banks
Can include banks as part of their holdings / portfolio. Governance & Management
Governance policy
Has policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary.
Avoids companies with poor governance
Avoids investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards.
UN sanctions exclusion
Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list
Anti-bribery & corruption policy
Has policies explaining how managers will respond to assets / companies that do not comply with relevant anti-bribery and anti-corruption standards or laws. Strategies vary; options include stewardship/ engagement and divestment - or a combination.
Encourage board diversity e.g. gender
Encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Encourage higher ESG standards through stewardship activity
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity Product / Service Governance
ESG integration strategy
Find fund / asset managers that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature. Asset Size
Invests in small, mid & large cap companies / assets
Invests in a combination of small, medium and larger (potentially multinational) companies / assets. Impact Methodologies
Aims to generate positive impacts (or 'outcomes')
Has policies that aim to help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary.
Measures positive impacts
Aims to measure the positive real world environmental and / or social benefits that are associated with their investment strategy. Investments that aim to deliver positive impacts and measure those impacts may be referred to as 'Impact' - although impact measurement is not restricted to Impact investments. Strategies vary.
Described as an ‘impact investment’
Investments which are specifically marketed as ‘Impact investments' and work to deliver both financial performance and specific, measurable positive, real world social and/or environmental benefits. Strategies vary.
Positive environmental impact theme
Specifically sets out to help deliver positive environmental impacts, benefits or 'real world' outcomes.
Positive social impact theme
Specifically states that they aim to deliver positive social (i.e. people related) impacts and/or outcomes.
Invests in environmental solutions companies
Directs investment towards companies where a major part of their business is about solving environmental challenges. e.g. companies helping to address climate change.
Invests in social solutions companies
Invest in companies where a major part of their business is specifically aimed at helping to address social challenges. e.g. companies helping to address poverty.
Invests in sustainability / ESG disruptors
Specifically sets out to invest in companies that are regarded as 'disrupting' existing business practices - typically through the development of innovative (sustainability aware) products and/or practices.
Aim to deliver positive impacts through engagement
Aims to deliver positive environmental and or social impacts (real world benefits) through its engagement with investee assets
Publish ‘Theory of Change’ explanation
Policy explains the ways in which the manager believes things need to change in order to deliver a more sustainable future, which they are working to help achieve. How The Fund/Portfolio Works
Positive selection bias
Focuses on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Negative selection bias
Has principle 'ethical approach' to avoid companies by using negative screening criteria. Strategies vary.
Significant harm exclusion
Aims to avoid companies that do significant harm. This originates from the EU’s sustainable finance ‘DNSH’ (do no significant harm) work, which is not necessarily used by UK investors.
Assets mapped to SDGs
Invests in assets which can be 'mapped' (reviewed) their investment selection and management strategies to identify which of the UN Sustainable Development Goals (SDGs) the fund is helping to address.
Combines norms based exclusions with other SRI criteria
Investment selection process uses internationally agreed 'norms' (e.g. United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) alongside additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.
Combines ESG strategy with other SRI criteria
Invests in assets which have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) together with additional criteria such as positive and/or negative screens, themes and stewardship strategies.
Balances company 'pros and cons' / best in sector
Considers both the 'positive' and 'negative' aspects of company behaviour and makes balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
Norms focus
Uses internationally agreed standards, conventions and 'norms' to help direct investment decisions (e.g. the UN Global Compact, UN Sustainable Development Goals).
ESG risk mitigation focus
Focuses on the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
SRI / ESG / Ethical policies explained on website
Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies). Intended Clients & Product Options
Intended for clients interested in sustainability
Designed to meet the needs of individual investors with an interest in sustainability issues.
Intended for clients who want to have a positive impact
Designed to meet the needs of individual investors with an interest in ‘Impact investment’ which help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies regarded as beneficial to people and / or the planet. Strategies vary. Labels & Accreditations
SFDR Article 8 fund / product (EU)
Find options classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics together with high governance. These rules do not currently apply to UK products so many managers may leave this field blank. Sustainable, Responsible &/or ESG Policy:Our impact investment philosophy is to translate the SDGs global mission into investment decisions, constructing a portfolio targeting real-world positive impact. Our approach is built around the 3 criteria for impact investing defined by the Operating Principles for Impact Management (OPIM):
Per our firm’s Sustainable Investment Policy, impact strategies invest with the intention to contribute to measurable positive social and environmental impact alongside financial returns. They meet the minimum criteria of sustainability focused strategies and additionally include a verifiable impact measurement. The UN Sustainable Development Goals (SDGs) create the framework for impact investing. ESG Integration: ESG Integration is driven by taking into account material ESG risks as part of the research process. ESG integration enables the Portfolio Manager to identify financially relevant sustainability factors that impact investment decisions and to incorporate ESG considerations when implementing investment decisions, and allows ESG risks to be systematically monitored and compared to risk appetite and constraints. It also assists in portfolio construction through securities selection, investment conviction and portfolio weightings.
The analysis of material sustainability/ESG considerations can include many different aspects, such as the following among others: the carbon footprint, health and well-being, human rights, supply chain management, fair customer treatment and governance. Fund specific exclusions: The sub-fund excludes companies with a sustainability profile that indicates a severe ESG risk. Sustainability Exclusion Policy: The Sustainability Exclusion Policy of the Portfolio Manager outlines the exclusions applied to the investment universe of the financial product. The link to the Sustainability Exclusion Policy can be found in the section headed “Sustainability Exclusion Policy” in the main body of the Sales Prospectus. Process:This actively managed sub-fund invests at least 90% of its net assets in equities and other equity interests of companies in developed and emerging markets worldwide that are aligned to specific United Nations Sustainable Development Goals (UN SDGs), as defined by the Portfolio Manager’s proprietary impact universe. The Portfolio Manager uses a traditional intrinsic valuation framework to identify companies with an attractive valuation. The Portfolio Manager uses quantitative and qualitative factors to define a universe of companies that offer or manufacture products or services that meet the UN SDGs, such as clean water and sanitation products, clean energy, energy saving, treatment of disease, sustainable food system and food security, access to finance or education services. The Portfolio Manager uses the UN SDGs to guide and frame engagement activities with invested companies. The sub-fund uses the benchmark MSCI AC World (net div. reinvested) for performance measurement and risk management purposes. The benchmark is a broad market index which does not assess or include constituents according to environmental and/or social characteristics and therefore is not intended to be consistent with the characteristics promoted by the sub-fund. The investment strategy and monitor-ing process ensures that the environmental or social characteristics of the product are taken into account. The Portfolio Manager may use discretion when constructing the portfolio and is not tied to the benchmark in terms of investment selection or weight. This means that the investment performance of the sub-fund may differ from the benchmark. As the sub-fund invests in multiple currencies due to its global orientation, the investment portfolio or parts of it may be subject to currency fluctuation risks. Investment Universe We anchor our universe construction approach to the Sustainable Development Investments Asset Owner Platform (SDI AOP) Taxonomy which is an asset-owner interpretation of the SDGs. As a starting point for the universe creation, we set the minimum revenue threshold at 20%. It may also include companies whose impact potential, indicated by metrics such as research and development (R&D) spend are aligned with the impact categories described above. The investment team can add companies to this universe at its own discretion to allow for investments in IPOs and spin-offs, emerging technologies or impact categories, as well as data gaps. This screening process enables the creation of the Impact universe with approximately 1000 companies. The impact universe also excludes companies that are in breach or believed to be in breach of the UN Global Compact Principles. In addition, we apply exclusion criteria for companies involved in coal (extraction or energy generation), plus companies deriving 5% or more turnover from the sale of alcohol, tobacco, defence and weapons, nuclear, gambling and adult entertainment. Investment Process The investment decision-making process integrates traditional fundamental analysis with an evaluation of a company’s impact and ESG factors material to value creation. Stocks are selected from an investment universe of companies whose products or services create meaningful impact within specific impact categories (such as climate change, air pollution, clean water and water scarcity, treatment of disease, food security and people empowerment). In this universe, we seek to invest in companies that we believe are attractively valued and that can generate additional impact via engagement targeting improvements in its operations or supply chain, and in some occasions in terms of product impact. Our goal is to be able to generate excess returns to support our clients’ financial objectives and to ensure that the companies we hold unlock the full potential of their impact on the environment and society. We construct an impact profile for each company in the portfolio, covering the impact investment thesis (also called “theory of change”), links to the investment thesis, an analysis of the ESG risks, opportunities and subsequent engagement goals. To do so, we rely upon impact measurement methodologies that UBS Asset Management developed in partnership with leading academics from the fields of earth sciences and public health science. We aim to measure the impact of invested companies in terms of changes in human well-being and changes in environmental quality (e.g., air pollution, biodiversity loss). In areas where we do not have the ability to measure the impact of a company, we aim to assess it with output metrics, such as the number of people receiving higher education or loans for small enterprises’ green investment. Our assessment of the ability of public companies to generate impact is also based on a careful analysis of SDG-enhancement opportunities in the supply chain and operations, as well as an assessment of our ability to influence the company on its practices. Our success is dependent on the achievement of our engagement goals, which are tracked and reported to investors. Dialshifter (Fund)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. SDR Labelling:Not eligible to use label (out of scope) |
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