UBS ETF MSCI Emerging Mkts SRI USD A dis

Issuer: UBS

Asset Class: Equity

TER: 24bps

Trading Currency: GBX

Pays Income: False

Listing Date: 23 Sep 2014

Ticker: UC79

ISIN: LU1048313891

This investment fund provides targeted exposure to companies within emerging markets that demonstrate strong environmental, social, and governance (ESG) characteristics. It aims to replicate the performance of the MSCI Emerging Markets SRI Low Carbon Select 5% Issuer Capped Index, which is composed of large and mid-capitalization stocks from over 20 developing countries. The underlying index employs a rigorous screening process, excluding companies involved in controversial sectors such as weapons, tobacco, and thermal coal. Furthermore, it incorporates a low-carbon tilt by overweighting companies with lower carbon emissions and underweighting those with higher emissions, aligning the portfolio with the transition to a more sustainable economy.

The strategy is designed for investors who seek to capture the growth potential inherent in emerging economies while adhering to socially responsible investing principles. By focusing on firms with high ESG ratings, the fund may offer a more resilient portfolio, as these companies are often better managed and more prepared for future regulatory and environmental challenges. This approach allows investors to align their financial goals with their personal values, contributing to positive change without necessarily sacrificing returns. It offers a core holding for a diversified, ethically-minded portfolio seeking long-term capital appreciation from developing regions.

Utilizing a full physical replication methodology, the fund holds the actual securities of the index, ensuring a high degree of transparency and a direct investment in the underlying companies. As a distributing share class, it aims to pay out any dividends received from its holdings to investors on a semi-annual basis, which can provide a component of regular income. This structure makes it a straightforward and efficient vehicle for accessing a thoughtfully curated basket of ESG-screened emerging market equities.