UBS launches socially responsible Japan ETF

Aug 28th, 2015 | By | Category: Equities

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UBS, a leading European provider of exchange-traded funds, has expanded its suite of socially responsible ETFs with the launch of the UBS ETF – MSCI Japan Socially Responsible ETF on the London Stock Exchange, Xetra and Börse Frankfurt. The new ETF offers investors exposure to Japanese companies meeting strict environmental, social and governance (ESG) criteria.

UBS lists socially responsible Japan ETF

UBS unveils socially responsible Japan equity ETF.

By avoiding companies exposed to social and environmental risks, and targeting those with strong corporate governance systems, the fund offers the potential for long-term sustainable returns whilst adhering to sound socially responsible values.

“Investors are increasingly looking to access companies whose business activities are in harmony with social values and whose approach to managing environmental, social and corporate governance risks is first-rate”, said Andrew Walsh, Head of UBS ETF Sales UK & Ireland. “It follows that deciding to invest in a sustainable way isn’t about following a trend. On the contrary, the investment decision is primarily about striving for values and sustainability.”

According to UBS, socially responsible investment, performance and diversification are not mutually exclusive.

The ETF is based on the MSCI Japan Socially Responsible IndexWhilst this index holds fewer constituents than the parent MSCI Japan index, a function of the socially responsible index’s exclusion criteria, it has tracked the parent index quite closely over the past five years and has actually performed slightly better through that period.

The index aims to include those companies with the highest ESG ratings in their own sectors. By doing this, it seeks to ensure that only companies operating in ways that are socially and environmentally beneficial are included. The ratings are generated by MSCI and are based on an analysis of each company’s management of its ESG performance. Through negative screening, the index excludes companies that are inconsistent with specific values based on criteria such as mainstream religious beliefs, moral standards or ethical views.

The ETF has a total expense ratio of 0.40%.

The new ETF enhances the existing UBS SRI offering tracking the MSCI Global SRI Index family.

The full list of UBS SRI ETFs is below (LSE listings quoted):

Name  TER AuM £m ISIN Bloomberg Sedol
UBS ETF – MSCI Japan SRI UCITS ETF  0.40% 7 LU1230561679 JPSR LN BYQDZ49
UBS ETF – MSCI World SRI UCITS ETF  0.38% 68 LU0629459743 UC44 LN B8NZ739
UBS ETF – MSCI Emerging Markets SRI UCITS ETF  0.53% 23 LU1048313891 UC79 LN BMPHGM3
UBS ETF – MSCI Europe & Middle East SRI UCITS ETF  0.28% 22 LU0629460675 UB39 LN B7TLNN6
UBS ETF – MSCI North America SRI UCITS ETF  0.33% 100 LU0629460089 UC46 LN B6YRHS5
UBS ETF – MSCI Pacific SRI UCITS ETF  0.40% 16 LU0629460832 UB45 LN B6VJTX3
UBS ETF – MSCI United Kingdom IMI SRI UCITS ETF  0.28% 29 IE00BMP3HN93 UKSR LN BMP3HN9
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