Each of the seven new funds track the MSCI Climate Paris Aligned indices
UBS Asset Management has launched a suite of equity ETFs aligned with the Paris Agreement on climate change.
The UBS MSCI Climate Paris Aligned UCITS ETFs qualify under Article 9 of the EU Sustainable Finance Disclosure Regulation and seek to benefit from “opportunities arising from the shift to a lower-carbon economy”.
Each of the seven new funds track the MSCI Climate Paris Aligned indices, which exclude companies involved in controversial weapons, tobacco and thermal coal and firms which derive revenue from oil and gas-related activities.
In addition to exclusions, the funds aim to reduce exposure to physical risk arising from extreme weather events by at least 50%, increase weightings to companies exposed to climate transition opportunities and those with credible carbon reductions, and align with the UN Task Force on Climate-related Financial Disclosures and a 1.5°C climate scenario.
Suni Harford, president of UBS Asset Management, said: “As the world transitions to a lower carbon economy, our goal is to be at the forefront of the transformation, providing the solutions investors need to align their portfolios with their chosen glidepath.
“We are pleased to further expand our extensive offering of sustainable ETFs with the launch of this new suite of Paris-aligned products that enable clients to proactively address climate risks and also benefit from opportunities arising from decarbonisation.”
Clemens Reuter, global head of ETF and index fund client coverage at UBS Asset Management, added: “This suite of Paris-aligned ETFs offers investors portfolio building blocks with the added benefit of restricting CO2 emissions to limit the global temperature rise to 1.5°C. This launch demonstrates our strength in providing solutions that meet the highest sustainability standards from emerging regulations.”
The suite offers investors access to seven global and regional funds with management fees ranging from 0.12% to 0.23%.
The UBS ETF (IE) MSCI USA Climate Paris Aligned UCITS ETF is available for a fee of 0.12%, while both the Economic and Monetary Union (EMU) and Europe funds cost 0.18%.
The Japan and World focused ETFs have a fee of 0.2%, the ACWI fund will charge 0.22% and the emerging markets offering will cost investors 0.23%.