LONDON - Xtrackers, an investment company with variable capital based in Luxembourg, has announced changes to the reference index of its Xtrackers MSCI UK ESG UCITS ETF (ISIN: LU0292097747). The modifications, which include a renaming of the index and the introduction of additional exclusion criteria, were applied on the scheduled MSCI ordinary index review, effective today.
The ETF's reference index, previously known as the MSCI United Kingdom (TADAWUL:4280) IMI (LON:IMI) Low Carbon SRI Leaders Select Index, has been renamed to the MSCI United Kingdom IMI Low Carbon SRI Selection Capped Index. In addition to the renaming, the Index Administrator, MSCI Limited, has implemented new exclusion criteria related to environmental, social, and governance (ESG) factors.
The updated index methodology now incorporates additional oil & gas and power generation screens, expanding the Environmental, Social, and Governance exclusion criteria. The index will now exclude companies involved in industries such as alcohol, tobacco, gambling, adult entertainment, genetically modified organisms, civilian firearms, oil & gas, nuclear weapons, thermal coal, fossil fuels, and fossil fuel-based power generation. Companies with any involvement in controversial weapons are explicitly excluded, aligning with the requirements outlined in Article 12(1)(a) to (g) of the Commission Delegated Regulation (EU) 2020/1818, also known as PAB Exclusions.
Despite these changes, the Sub-Fund's investment objective, investment policy, risk profile, and fees remain unchanged. The Product Annex will be updated to reflect these changes, and the revised Prospectus will be made available on the Xtrackers website. Shareholders are advised to consult their financial advisors for clarity on these changes and to understand the specific tax implications for their individual circumstances.
This announcement is based on a press release statement and provides information on the changes to the Xtrackers ETF. The product is not subject to UK sustainable investment labelling and disclosure requirements, and further information on these can be found on the UK FCA’s website.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.