LONDON - Xtrackers (IE) plc, an investment company, has announced updates to the reference indices and Environmental, Social, and Governance (ESG) exclusion criteria for a suite of its exchange-traded funds (ETFs). The changes, informed by index administrator MSCI Limited, took effect on Monday, following an ordinary index review.
The ETFs affected include Xtrackers MSCI World ESG UCITS ETF, MSCI USA ESG UCITS ETF, MSCI Japan ESG UCITS ETF, MSCI Europe ESG UCITS ETF, MSCI EMU ESG UCITS ETF, and MSCI Emerging Markets ESG UCITS ETF. Each fund's reference index has been renamed to reflect a new 'Low Carbon SRI Selection Index' title, replacing the previous 'Low Carbon SRI Leaders Index'.
In addition to the renaming, the index methodology now incorporates enhanced ESG exclusion criteria, applying stricter screens based on the MSCI ESG Business Involvement Screening Research (MSCI BISR). These screens exclude companies involved in industries with high potential for negative environmental, health, or social impacts. Specifically, the updated criteria have introduced an enhanced oil & gas screen, further excluding involvement in alcohol, tobacco, gambling, adult entertainment, genetically modified organisms, civilian firearms, nuclear weapons, thermal coal, fossil fuel, and fossil fuel-based power generation, as well as companies with any involvement in controversial weapons.
The funds' investment objectives, policies, risk profiles, and fees remain unchanged despite these updates. Shareholders have been advised that revised supplements reflecting these changes are available on the company's website as of the effective date.
For further details, shareholders are directed to consult the index administrator's website or contact Xtrackers for additional information. The company also reminds shareholders to seek independent financial advice if any aspects of the changes are unclear.
This announcement is based on a press release statement from Xtrackers (IE) plc.
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