UBS MSCI World Socially Responsible UCITS ETF (USD) A-dis
| Issuer: UBS |
| Asset Class: Equity |
| TER: 19bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 13 May 2020 |
| Ticker: SRIW |
| ISIN: IE00BK72HH44 |
This fund offers a targeted approach to sustainable investing by providing exposure to large and mid-capitalization companies across developed global markets that demonstrate strong environmental, social, and governance (ESG) performance. The investment strategy is designed to track a benchmark that employs a 'best-in-class' selection process, meaning it includes companies with the highest ESG ratings relative to their sector peers from the parent MSCI World index. This methodology ensures the portfolio is composed of sustainability leaders from a diverse range of industries, offering a broad yet responsible market exposure.
The underlying index applies a rigorous set of exclusionary screens to align with the values of socially responsible investors. It removes companies with significant business involvement in controversial sectors such as civilian firearms, tobacco, thermal coal, and controversial weapons. Furthermore, companies that are not in compliance with the principles of the United Nations Global Compact are also excluded. Beyond these screens, the index incorporates a low-carbon tilt, aiming to significantly reduce the portfolio's carbon footprint compared to the standard market index. A 5% cap on individual holdings ensures adequate diversification and mitigates concentration risk.
By investing in this product, individuals can build a core global equity position that is intentionally aligned with sustainability objectives. It is suitable for those seeking to generate long-term capital growth while supporting companies that are leaders in corporate responsibility and are better positioned to manage the risks and opportunities arising from the transition to a low-carbon economy. The fund's physical replication method ensures direct ownership of the underlying securities, providing transparency and a direct link to the performance of these high-rated ESG companies.
