UBS ETF (IE) MSCI United Kingdom IMI Socially Responsible UCITS ETF
| Issuer: UBS |
| Asset Class: Equity |
| TER: 23bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 29 Oct 2014 |
| Ticker: UKSR |
| ISIN: IE00BMP3HN93 |
This fund provides targeted exposure to the UK equity market while adhering to strict Socially Responsible Investing (SRI) principles. It aims to replicate the performance of a specialized index that includes UK companies demonstrating strong environmental, social, and governance (ESG) characteristics. The underlying index is comprehensive, covering a wide range of market capitalizations, from large to small companies, offering a broad representation of the UK's publicly traded corporate landscape.
The investment strategy is built on a 'best-in-class' approach combined with exclusionary screening. The parent index is first filtered to remove companies involved in controversial activities such as certain weapons, tobacco, thermal coal, and oil sands. From the remaining universe, only companies with a high MSCI ESG rating are selected. Furthermore, the index methodology applies a low carbon tilt, reducing exposure to companies with high carbon emissions and fossil fuel reserves. This dual-screening process results in a portfolio that not only aligns with ethical values but also seeks to mitigate risks associated with climate change and poor corporate governance. The final portfolio is physically replicated, meaning the fund holds the actual shares of the constituent companies.
This product is suitable for investors seeking core exposure to UK equities but who also want to integrate sustainability into their portfolio. It offers a solution for those looking to invest in a manner that reflects their personal values without sacrificing broad market diversification within the UK. By focusing on ESG leaders and incorporating a low-carbon screen, the fund may appeal to those concerned about long-term sustainability risks and opportunities. The currency-hedged nature of this specific share class is an additional feature designed to minimize the impact of fluctuations between the fund's base currency and the investor's local currency, providing a more stable return profile for those investing from a sterling perspective.
