LONDON - Xtrackers II, an investment company based in Luxembourg, has announced updates to the Environmental, Social, and Governance (ESG) exclusion criteria for its ESG Global Aggregate Bond UCITS ETF. The changes, informed by Bloomberg Index Services Limited, the index administrator, will take effect on Monday, enhancing the fund's approach to sustainable investing.
The ETF, which tracks the Bloomberg MSCI Global Aggregate Sustainable and SRI Currency Neutral Index, will implement revised ESG exclusion criteria starting from the scheduled ordinary index review on December 2, 2024. These enhanced criteria will exclude companies that fail to comply with the United Nations Global Compact Principles, have low MSCI ESG Controversies Scores, are not assessed by the MSCI Climate Change Metrics methodology, or are involved in controversial activities such as alcohol, tobacco, gambling, adult entertainment, and controversial weapons, among others.
The board of directors of Xtrackers II has confirmed that the Sub-Fund's investment objectives, policies, risk profile, and fees will remain unchanged despite the updates to the ESG criteria. The revised Prospectus reflecting these changes will be made available on the company's website around the effective date, and shareholders can obtain copies free of charge at the registered office or through foreign representatives once available.
Shareholders with queries or those seeking clarity are advised to consult with their financial advisors, including seeking specific tax implications under the laws of their respective countries. It is noted that this product, being based overseas, is not subject to UK sustainable investment labelling and disclosure requirements.
The announcement, based on a press release statement, aims to inform shareholders of the Sub-Fund about the forthcoming changes and provide them with the necessary resources to understand and adapt to these updates.
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