UBS ETF (IE) MSCI United Kingdom IMI Socially Responsible UCITS ETF (hedged to GBP) A-acc
| Issuer: UBS |
| Asset Class: Equity |
| TER: 28bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 18 Nov 2025 |
| Ticker: UKSA |
| ISIN: IE00BMP3HM86 |
This financial product offers investors a targeted approach to the UK equity market, focusing on companies that adhere to stringent socially responsible investment (SRI) criteria. It aims to replicate the performance of the MSCI United Kingdom IMI SRI Low Carbon Select 5% Issuer Capped Index, which provides broad exposure to UK-based large, mid, and small-capitalization companies. The core of the strategy is to select constituents that exhibit strong environmental, social, and governance (ESG) profiles while excluding those involved in controversial business activities, thereby aligning the portfolio with sustainable values.
The underlying index employs a multi-layered screening process to construct its portfolio. Initially, it excludes companies with business interests in sectors such as controversial weapons, tobacco, thermal coal, and oil sands. Following this, it applies a best-in-class approach, selecting companies with the highest ESG ratings within their respective sectors. A further screen is applied to reduce carbon exposure by targeting companies with lower carbon emissions and fossil fuel reserves. To ensure portfolio diversification and mitigate concentration risk, a 5% cap is imposed on any single issuer's weight within the index. This rigorous methodology results in a portfolio tilted towards more sustainable UK businesses.
This instrument is particularly suitable for investors seeking to integrate ethical and environmental considerations into their core UK equity allocation. It provides a means to invest in the UK market while actively avoiding companies with negative societal or environmental impacts. The fund's focus on sustainability may appeal to those looking for long-term growth potential from companies that are better positioned to manage ESG-related risks and opportunities. As an accumulating share class, any dividends paid by the underlying companies are automatically reinvested back into the fund, which supports the potential for capital growth through compounding over time.
