iShares Europe - ISHARES MSCI WORLD ESG ENHANCED UCITS ETF USD (ACC)- Bridge

Issuer: iShares

Asset Class: Equity

TER: 20bps

Trading Currency: GBP

Pays Income: False

Listing Date: 22 Nov 2019

Ticker: EGMW

ISIN: IE00BHZPJ569

This investment product offers broad exposure to global developed market equities while integrating environmental, social, and governance (ESG) criteria into its core strategy. It is designed to track the performance of an ESG-enhanced index, which tilts exposure towards companies demonstrating strong sustainability profiles and either underweights or excludes firms with weaker profiles or involvement in controversial business sectors such as tobacco, thermal coal, and certain weapons manufacturing. This approach provides a core equity holding for investors seeking to align their portfolio with their values without forgoing the benefits of wide diversification across various industries and developed economies.

The underlying index employs a rules-based methodology that re-weights the constituents of its parent broad market index to maximize its overall ESG score, while aiming to maintain a risk and return profile that is similar to the broader market. This 'enhanced' framework differs from simple negative screening strategies by actively favoring ESG leaders within each sector. Consequently, investors gain access to a portfolio of large- and mid-capitalization companies from numerous developed countries that are deemed better positioned to manage long-term ESG risks and capitalize on related opportunities. The accumulating share class structure ensures that any dividends paid by the underlying holdings are automatically reinvested, which can enhance the effects of compounding returns over time, making it suitable for growth-focused investors.

This fund can serve as a foundational component for a globally diversified, ESG-conscious investment portfolio. It is tailored for investors with a long-term horizon who wish to participate in the growth potential of the world's developed economies through a sustainable framework. The strategy's focus on companies with robust ESG practices may also offer a degree of resilience against certain non-financial, long-term risks. It effectively combines the advantages of comprehensive market exposure with a systematic and transparent approach to responsible investing.