LONDON - Xtrackers (IE) plc, an investment company, has announced updates to the reference indexes and exclusion criteria for a series of its exchange-traded funds (ETFs). The changes, which were informed to the company by MSCI Limited, the index administrator, took effect on Monday. The updates involve renaming the reference indexes of six Xtrackers MSCI ESG UCITS ETFs, including those tracking world, USA, Japan, Europe, EMU, and emerging markets. The new names reflect a shift to "Low Carbon SRI Selection Index" from "Low Carbon SRI Leaders Index" for each fund. Alongside the renaming, the index methodology now includes enhanced Environmental, Social, and Governance (ESG) exclusion criteria. These criteria utilize MSCI ESG Business Involvement Screening Research to identify and exclude companies with significant negative environmental or social impacts. The new criteria include an enhanced oil & gas screen, excluding industries such as alcohol, tobacco, gambling, adult entertainment, genetically modified organisms, civilian firearms, nuclear weapons, thermal coal, fossil fuel, and power generation based on fossil fuels. Companies involved in controversial weapons are also explicitly excluded. The changes are aligned with the requirements laid out in the Commission Delegated Regulation (EU) 2020/1818, also known as PAB Exclusions. The company has updated the supplements for each fund to reflect these changes. Despite the modifications in reference indexes and exclusion criteria, the investment objectives, policies, risk profiles, and fees of the funds remain unaltered. Shareholders can access the revised fund supplements on the company's website and may obtain copies at the registered office or through the offices of foreign representatives. Xtrackers advises shareholders to seek advice from their financial advisors if any aspect of the changes is unclear. The company also notes that these products are based overseas and are not subject to UK sustainable investment labelling and disclosure requirements. The information for this update is based on a press release statement from Xtrackers (IE) plc.

Xtrackers ETFs update indexes and exclusion criteria

Xtrackers (IE) plc, an investment company, has updated the reference indexes and exclusion criteria for a series of its exchange-traded funds (ETFs) based on information from MSCI Limited. The changes include renaming the indexes to reflect enhanced ESG criteria and excluding companies with significant negative environmental or social impacts.