LONDON - Xtrackers II, an investment company with variable capital, announced that its ESG Global Aggregate Bond UCITS ETF will undergo changes in its Environmental, Social, and Governance (ESG) exclusion criteria. The modifications, set by Bloomberg Index Services Limited, the index administrator, will take effect on Monday, following the scheduled ordinary index review.
The ETF, which tracks the Bloomberg MSCI Global Aggregate Sustainable and SRI Currency Neutral Index, will implement enhanced ESG Exclusion Criteria. These will include stricter guidelines on controversies, climate change metrics, and controversial activities. Specifically, companies that fail to adhere to the United Nations Global Compact Principles, have a low MSCI ESG Controversies Score, or are not assessed by MSCI ESG Controversies will be excluded. The same applies to firms not evaluated under the MSCI Climate Change Metrics methodology or those involved in certain controversial activities exceeding specific revenue thresholds.
The updated criteria also exclude companies with any involvement in controversial weapons. These changes align with the requirements of the Commission Delegated Regulation (EU) 2020/1818, known as PAB Exclusions.
Despite these updates, the Sub-Fund's investment objective, policy, risk profile, and fees will remain the same. Shareholders can expect to access the revised Prospectus on the company's website around the Effective Date. It will also be available at the registered office of the Company or through its foreign representatives.
Shareholders seeking clarity or advice on the changes are encouraged to consult with their financial advisors. The announcement does not affect the UK's sustainable investment labeling and disclosure requirements, as the product is based overseas.
This update is part of Xtrackers II's ongoing efforts to align its investment products with evolving ESG standards and investor expectations. The information is based on a press release statement from Xtrackers II.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.