Stockholm (NordSIP) – UBS Asset Management (UBS AM) launched a sustainable exchange-traded fund (ETF) tracking the MSCI World Small Cap SRI Low Carbon Select 5% Issuer Capped index on August 23rd.
Based on the MSCI World Small Cap investment universe, the index applies screening encompassing norms-based exclusions, values-based exclusions as well as climate-related exclusions that substantially reduce its carbon footprint. As a result, the index does not include companies found to be in violation of the UN Global Compact, or operating in the tobacco, controversial weapons, thermal coal, oil & gas, industries.
“Sustainability is a key focus area for UBS AM and over the past ten years we have built a strong track record of managing SRI ETFs,” says Florian Cisana, Head of ETF & Index Fund Sales Nordics at UBS Asset Management. “This latest solution provides investors with the opportunity to gain global developed small-cap exposure, together with a strong sustainability profile.”
By filtering out the highest emitting companies, the new index is able to provide a reduced carbon footprint compared to the parent index. The resulting ESG characteristics qualify the ETF as an Article 8 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
The UBS ETF (IE) MSCI World Small Cap Socially Responsible UCITS ETF is available in two share classes (USD A-dis and USD A-acc). An additional EUR-hedged share class (A-acc) will be launched in the coming weeks. Listings will be across key European exchanges, including LSE, Xetra, Borsa Italiana and SIX Swiss Exchange.
UBS AM manages a wide range of sustainable ETFs, including USD32 billion in Article 8 and 9 ETFs.