UBS ETF MSCI Japan SRI JPY A dis

Issuer: UBS

Asset Class: Equity

TER: 19bps

Trading Currency: GBX

Pays Income: False

Listing Date: 28 Aug 2015

Ticker: JPSR

ISIN: LU1230561679

This investment vehicle offers targeted exposure to the Japanese equity market with a robust socially responsible investing (SRI) framework. It is designed for investors who wish to align their portfolios with strong environmental, social, and governance (ESG) principles without foregoing access to one of Asia's largest developed economies. The fund achieves this by physically replicating an index that screens Japanese large and mid-cap companies, selecting only those with leading ESG profiles. The methodology specifically excludes firms involved in controversial sectors such as tobacco, alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power, and weapons.

The underlying index employs a 'best-in-class' approach, selecting the top-ranking companies on ESG metrics relative to their sector peers. A further layer of screening is applied to incorporate a low-carbon tilt, which favors companies with lower carbon emissions and less exposure to fossil fuel reserves. This dual focus on broad SRI criteria and climate change considerations results in a portfolio of high-quality Japanese firms that are positioned to navigate the risks and opportunities of a transitioning global economy. To ensure adequate diversification, the index also caps the weight of any single company at 5%.

By investing in this fund, individuals can gain core exposure to Japan while integrating a values-based strategy. It serves as a tool to potentially enhance long-term returns by focusing on sustainable business practices, which may mitigate risks related to environmental liabilities, social controversies, and poor corporate governance. The distributing share class structure also provides the potential for a regular income stream, making it a suitable component for a diversified, globally-conscious portfolio.