UBS ETF MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-acc

Issuer: UBS

Asset Class: Equity

TER: 23bps

Trading Currency: GBX

Pays Income: False

Listing Date: 23 Jun 2017

Ticker: UC48

ISIN: IE00B7WK2W23

This investment vehicle offers targeted exposure to the diverse and rapidly growing equity markets of Asia, deliberately excluding Japan to focus on other key regional economies. It is designed for investors seeking to capture the long-term growth potential of companies across various developed and emerging Asian nations. The fund passively tracks a market-capitalization-weighted index composed of large and mid-cap stocks, providing a broad and representative slice of the investment landscape. A core feature of this fund is its accumulating share class structure, meaning that any dividends paid by the underlying companies are automatically reinvested back into the fund, fostering potential for compounded growth over time. This makes it particularly suitable for investors with a long-term horizon who prioritize capital appreciation.

The fund's strategy is distinguished by its robust integration of Environmental, Social, and Governance (ESG) principles. It follows a socially responsible investing (SRI) methodology that applies specific ethical and sustainability screens to its underlying index. The index construction process excludes companies involved in controversial business activities such as civilian firearms, controversial weapons, tobacco, thermal coal, and oil sands extraction. Furthermore, it implements a "best-in-class" approach by selecting companies with the highest MSCI ESG Ratings within their respective sectors, while also aiming for a significant reduction in carbon emissions intensity and potential emissions from fossil fuel reserves compared to the broader market. This dual focus on ethical screening and positive ESG selection appeals to investors aiming to align their financial goals with their values.

By investing in this product, one gains diversified exposure to major Asian economies like China, Taiwan, India, and South Korea, which are hubs of technological innovation, manufacturing, and a rising consumer class. This positions the portfolio to benefit from the region's dynamic economic development. It can serve as a strategic core holding within an international equity allocation for those seeking focused Asian growth with an ESG overlay. The exclusion of Japan sharpens its focus on other high-growth areas, offering a distinct profile compared to broader pan-Asian or global equity funds. The combination of broad market access, a disciplined ESG framework, and a growth-oriented accumulating structure provides a compelling proposition for the modern, conscientious investor.