iShares MSCI World SRI UCITS ETF GBP Hedged (Dist)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 23bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 15 Oct 2020 |
| Ticker: SGWS |
| ISIN: IE00BMZ17T93 |
This investment vehicle offers exposure to a curated portfolio of European companies that demonstrate strong Environmental, Social, and Governance (ESG) performance. It is designed for those who wish to align their investments with sustainability principles by focusing on firms with leading ESG ratings within their respective sectors. The strategy explicitly excludes companies involved in controversial activities, such as the production of controversial weapons, tobacco, thermal coal, and oil sands extraction. By employing a 'best-in-class' approach, the fund selects companies that are not only compliant with ethical standards but are also leaders in sustainable practices, aiming to capture the potential long-term growth associated with responsible corporate behaviour.
A key feature of this specific share class is its currency-hedging mechanism. It is structured to minimise the impact of exchange rate fluctuations between the fund's underlying European assets and the British pound. This is particularly beneficial for investors whose home currency is sterling, as it helps to isolate the portfolio's performance from foreign exchange volatility, providing a more direct exposure to the equity performance of the selected companies. This strategic hedging can be crucial in managing overall portfolio risk, especially during periods of currency market instability.
The underlying portfolio provides diversified exposure across various developed European markets and sectors, including financials, healthcare, and consumer staples. By concentrating on companies that adhere to stringent socially responsible investing (SRI) criteria, the fund offers a way to participate in the European equity market while supporting sustainable business models. This approach may appeal to investors seeking not only financial returns but also a positive societal and environmental impact, reflecting a growing demand for investment solutions that contribute to a more sustainable global economy.
