LONDON - Xtrackers (IE) plc, an investment company with variable capital, has announced updates to the Environmental, Social, and Governance (ESG) exclusion criteria for two of its exchange-traded funds (ETFs). These changes were implemented following an announcement by MSCI Limited, the index administrator for the funds' reference indices.
The funds affected by the updates are the Xtrackers MSCI World High Dividend Yield ESG UCITS ETF and the Xtrackers MSCI USA High Dividend Yield ESG UCITS ETF. The changes, which came into effect on November 26, 2024, introduce enhanced oil & gas and power generation screens to the existing ESG Exclusion Criteria of each fund's reference index.
The updated criteria will now exclude companies that are unrated or lack coverage by MSCI ESG Research, have an MSCI ESG Rating of CCC (WA:CCCP), are involved in controversial weapons, or breach certain revenue thresholds in controversial activities. These activities include civilian firearms, nuclear weapons, tobacco, adult entertainment, alcohol, conventional weapons, gambling, genetically modified organisms, nuclear power, and fossil fuel-related sectors. Companies that fail to comply with the United Nations Global Compact principles or have insufficient MSCI ESG Controversies Scores related to environmental controversies will also be excluded.
The investment objectives, policies, risk profiles, and fees of the funds remain unchanged despite the updated index methodology. Shareholders seeking clarity on the changes or their personal investment implications are advised to consult independent financial advisors.
Revised supplements for each fund reflecting the new ESG Exclusion Criteria are available on the Xtrackers website. This update is based on a press release statement and does not reflect any UK sustainable investment labelling and disclosure requirements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.