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In addition to the usual risks referring to market fluctuations, securities and index type, the investor has to be aware that the funds detailed in this document are also exposed to other risks, such as: secondary market negotiations, differences between NAV and market prices, calculation changes, differences in publications of the index on behalf of the index provider, risks connected to the listing of the index components on different markets, risks connected to the use of derivatives.

There are also further risks these funds that replicate equity or bond indexes are exposed to. The investor is therefore required to have an adequate tolerance and capacity to bear such risks.

For a complete analysis of all the risks described we recommend to read carefully the prospectus.

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UBS ETF (IE) MSCI ACWI Climate Paris Aligned UCITS ETF (USD) A-acc

Net asset value 13.792USD

Last update

07.02.2023

ISIN: IE00BN4Q0P93

Asset Class: Equities

Sustainability-related disclosures

No sustainable investment objective

  • It promotes Environmental/Social (E/S) characteristics and while it does not have as its objective a sustainable investment, it will have a minimum proportion of 20 % of sustainable investments with an environmental objective in economic activities that do not qualify as environmentally sustainable under the EU Taxonomy.
  • This financial product is passively managed and tracks an Index, indicators for adverse impacts on sustainability factors are taken into account by the Index provider as appropriate to the Index family. Indicators for adverse impacts on sustainability factors are taken into ac-count by the Index provider as appropriate to the Index family.
  • The indices incorporate the MSCI ESG Controversies score, screening out on a timely basis any issuers in significant breach of ESG norms.
  • MSCI ESG Controversies are designed to provide timely and consistent assessments of ESG controversies involving issuers. Any issuer with a “Red” MSCI ESG Controversies Score (score less than 1) is excluded from Sustainability indices. The Controversy Score measures an issuer’s involvement in major ESG controversies and how well the issuer adheres to international norms and principles.
  • The financial product excludes investments in companies involved directly in the use, development, manufacturing, stockpiling, transfer or trade of cluster munitions and/or anti-personnel landmines, nuclear weapons, biolog-ical weapons or chemical weapons.
  • The MSCI ESG Controversies tool monitors company involvement in nota-ble ESG controversies related to the company’s operations and/or products, possible breaches of international norms and principles such as the UN Global Compact, and performance with respect to these norms and principles.
  • https://www.msci.com/documents/1296102/14524248/MSCI+ESG+Research+Controversies+Executive+Summary+Methodology+-++July+2020.pdf/b0a2bb88-2360-1728-b70e-2f0a889b6bd4

Environmental or social characteristics of the financial product

  • The following characteristics are promoted by the financial product:
  • a Carbon Intensity (1, 2) emissions indicator lower than parent benchmark
  • The Reference Benchmark designated for the purpose of attaining the characteristic promoted by the financial product is the MSCI ACWI Climate Paris Aligned Index (Net Return. The above ESG characteristics are measured using the following indicators respectively:
  • • Weighted average carbon intensity (Scope 1+2) MSCI

Investment strategy

  • This financial product seeks to promote the characteristic(s) described in this annex through Index selection and passive asset management.
  • This financial product is passively managed and seeks to track the performance and the ESG profile of the Index. Sustainability characteristics and risks are considered as part of the Index selection process. The Index which is stated by the index provider to be screened against environmental, social or governance criteria and any methodology used by the index provider to assess sustainability characteristics and risks of the constituents of the index can be found on the website of the index provider.
  • The following binding element(s) of the investment strategy are used to select the investments to attain the characteristic(s) promoted by this financial product:
  • Characteristic:
  • a Carbon Intensity (1, 2) emissions indicator lower than parent benchmark (MSCI)
  • The binding element(s) are calculated at quarter end using the average of all of business days’ values in the quarter.
  • Assessment of good governance practices of the investee companies is performed by the index provider.
  • MSCI analysis begins with an evaluation of each company’s Corporate Governance, taking into consideration the company’s ownership and control structures, the composition and effectiveness of its board, the effectiveness of its incentive prac-tices and the integrity of its accounting. Corporate Behavior is also monitored, in-cluding any controversies that might have a significant negative impact on the company’s value.

Proportion of investments

  • The minimum proportion of the investments used to meet the environmental and/or social characteristics promoted by the financial product is 80%. The minimum proportion of sustainable investments of the financial product is 20%.
  • The financial product tracks an ESG index and may replicate the performance of the index by the use of derivatives. Derivatives will only be used in case that a) the investment objective cannot be achieved by investments index components, in particular in order to reflect the performance of a currency hedge where a sub-fund replicates a currency-hedged index, or b) to generate efficiencies in gaining exposure to the constituents of the index, in particular where there are legal or practical obstacles to gaining direct access to a market to which the index refers.
  • The financial product may namely enter into a range of index related swaps (excluding funded swaps) and derivative instruments (futures, forwards, currency swaps, p-notes, options, warrants and foreign exchange contracts) in order to replicate the index.

Methodologies

The performance of the indicators used to measure the environmental or social characteristics promoted by the financial product are measured daily, assessed quarterly and reported annually.

Due diligence

Due diligence is carried out on index providers and/or data providers. This financial product is passively managed and seeks to track the performance and the ESG profile of the Index. Sustainability characteristics and risks are considered as part of the Index selection process.

Engagement policies

  • In terms of passive strategies tracking sustainability indexes as is the case with this financial product, the engagement process helps us to identify companies where material ESG and sustainability factors may present a future negative risk.
  • While the UBS AM engagement program is across all asset classes and portfolios, the impact on passively managed fixed income strategies might be reduced, mainly due to the lack of voting rights and that companies which failed in UBS AM's engagement process are typically not excluded due to the passive management style.
  • Nevertheless, passively managed fixed income assets are part of the engagement with senior management, as all other assets the firm manages, in order to achieve the biggest possible impact.

Data sources and processing

  • The data sources used to attain the stated environmental or social characteristics are as follows:
  • The MSCI ESG Score, supplied by the index provider
  • Data is consumed from leading providers, processed in accordance with defined guidelines and supplemented with analyst reccomendation.

Limitations to methodologies and data

We apply a minimum coverage threshold for the data sources used to attain the stated environmental or social characteristics of the financial product, these thresholds ensure that the binding targets can be monitored and measured. Accuracy of data is dependent on 3rd party providers, coverage of data sources can be < 100% due to uncovered asset types, incomplete or inconsistent data and gaps in the coverage of these 3rd party providers.

Designated reference benchmark

  • The financial product has initially selected the reference benchmark for its rele-vance to its investment strategy and the attainment of the characteristics it seeks to promote. The Index rebalances on an semi-annual basis. More details on the index methodology applied by the index provider can be found below.
  • The alignment of the investment strategy with the methodology of the index is ensured on a continuous basis as the index provider rebalances the index on a regular basis and the Investment Manager tracks the Index in line with the limits set out in the investment policy of Fund.
  • The financial product has initially selected the reference benchmark for its relevance to its investment strategy and the attainment of the characteristics it seeks to promote.
  • The investment strategy of the fund is to track the benchmark’s return and its characteristics, including ESG characteristics, as closely as reasonably possible.
  • The investment manager reviews the index methodology when the product is set up and the Index provider may be contacted if the Index methodology is no longer in line with the investment strategy of the financial product.
  • The Index (MSCI ACWI Climate Paris Aligned Index (Net Return)) is part of the MSCI Climate Paris Aligned Index series. The Index draws its constituents from the MSCI ACWI Index (the "Parent Index"), being an equity index calculated, maintained and published by international index supplier MSCI® and denominated in USD. The Index tracks the total return net dividend performance of large and mid-capitalisation US companies.
  • The methodology of the construction of the Index can be found in the fund supplement.
  • https://www.msci.com/eqb/methodology/meth_docs/MSCI_GIMIMethodology_Nov2022.pdf
  • https://www.msci.com/eqb/methodology/meth_docs/MSCI_IndexCalcMethodology_July2022.pdf
  • https://www.msci.com/eqb/methodology/meth_docs/MSCI_Climate_Paris_Aligned_Indexes.pdf

Attainment of the sustainable investment objective

  • MSCI ACWI Climate Paris Aligned Index
  • This benchmark qualifies as a Paris Aligned Benchmark

Disclaimer

For marketing and information purposes by UBS. UBS funds under Irish law. Arrangements for marketing fund units mentioned in this document may be terminated at the initiative of the management company of the fund(s). Representative in Italy for UBS funds, UBS Asset Management (Italia) – SGR S.p.A., Via del Vecchio Politecnico, n. 3, 20121 Milano (MI), Italy. Prospectuses, key information documents (KID), the articles of association or the management regulations as well as annual and semi-annual reports may be obtained in a language required by the local applicable law free of charge from UBS Asset Management (Italia) – SGR S.p.A., Via del Vecchio Politecnico, n. 3, 20121 Milano (MI), Italy and online at www.ubs.com/etf. The product described herein aligns to Article 9.3 Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector. Information on sustainability-related aspects pursuant to that regulation can be found on www.ubs.com/funds. The benchmark is the intellectual property of the respective index provider. The fund or the share class is neither sponsored nor endorsed by the index provider. The fund prospectus or supplemental prospectus contains the full disclaimer. Before investing in a product please read the latest prospectus and key information document carefully and thoroughly. Any decision to invest should take into account all the characteristics or objectives of the fund as described in its prospectus, or similar legal documentation. Investors are acquiring units or shares in a fund, and not in a given underlying asset such as building or shares of a company. The information and opinions contained in this document have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith, but is not guaranteed as being accurate, nor is it a complete statement or summary of the securities, markets or developments referred to in the document. Members of the UBS Group may have a position in and may make a purchase and / or sale of any of the securities or other financial instruments mentioned in this document. Units of UBS funds mentioned herein may not be eligible for sale in all jurisdictions or to certain categories of investors and may not be offered, sold or delivered in the United States. The information mentioned herein is not intended to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not a reliable indicator of future results. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units. If whole or part of the total costs to be paid is different from your reference currency, the costs may increase or decrease as a result of currency and exchange rate fluctuations. Commissions and costs have a negative impact on the investment and on the expected returns. If the currency of a financial product or financial service is different from your reference currency, the return can increase or decrease as a result of currency and exchange rate fluctuations. This information pays no regard to the specific or future investment objectives, financial or tax situation or particular needs of any specific recipient. Future performance is subject to taxation which depends on the personal situation of each investor and which may change in the future. The details and opinions contained in this document are provided by UBS without any guarantee or warranty and are for the recipient's personal use and information purposes only. This document may not be reproduced, redistributed or republished for any purpose without the written permission of UBS Asset Management Switzerland AG or a local affiliated company. Source for all data and charts (if not indicated otherwise): UBS Asset Management. A summary of investor rights in English can be found online at www.ubs.com/funds. More explanations of financial terms can be found at www.ubs.com/am-glossary.
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