SA国际传谋

This financial product is passively managed and tracks an Index, indicators for adverse impacts on sustainability factors are taken into account by the Index provider as appropriate to the Index family.

Indicators for adverse impacts on sustainability factors are taken into account by the Index provider as appropriate to the Index family The indices incorporate the MSCI ESG Controversies score, screening out on a timely basis any issuers in significant breach of ESG norms. MSCI ESG Controversies are designed to provide timely and consistent assessments of ESG controversies involving issuers. Any issuer with a “Red” MSCI ESG Controversies Score (score less than 1) is excluded from Sustainability indices. The Controversy Score measures an issuer’s in-volvement in major ESG controversies and how well the issuer adheres to international norms and principles. The financial product excludes investments in companies involved directly in the use, development, manufacturing, stockpiling, transfer or trade of cluster munitions and/or anti-personnel landmines, nuclear weapons, biological weapons or chemical weapons.

The MSCI ESG Controversies tool monitors company involvement in notable ESG controversies related to the company’s operations and/or products, possible breaches of international norms and principles such as the UN Global Compact, and performance with respect to these norms and principles. https://www.msci.com/documents/1296102/14524248/MSCI+ESG+Research+Controversies+ Executive+Summary+Methodology+-++July+2020.pdf/b0a2bb88-2360- 1728-b70e-2f0a889b6bd4

The following characteristic(s) are promoted by the financial product:

1. tracks/tracking of a benchmark with a sustainability profile (ESG Score) that is higher than the parent benchmark’s sustainability profile

2. The portfolio seeks to have a weighted Scope 1 and 2 average carbon intensity that is below the weighted average carbon intensity of the benchmark.

The Reference Benchmark designated for the purpose of attaining the characteristic promoted by the financial product is the MSCI Emerging Markets SRI Low Carbon Select 5% Issuer Capped Index (Net Return).

The above characteristic(s) is / are measured using the following indicators respectively:

1. MSCI ESG Score (Key issues scores and weights combine to an overall ESG score (0-10) Relative to industry peers) Weighted average carbon intensity (Scope 1+2) MSCI

2. a Carbon Intensity (1, 2) emissions indicator lower than parent benchmark (MSCI)

The following binding element(s) of the investment strategy is / are used to select the investments to attain the characteristic(s) promoted by this financial product:

1. A sustainability profile (MSCI ESG Score) that is higher than the parent benchmark’s sustainability profile

2. A Carbon Intensity (1 and 2) emissions indicator that is lower than parent benchmark (MSCI)

The calculations do not take account of cash, derivatives and unrated investment instruments.

The characteristic(s), the minimum proportion of sustainable investments and the minimum proportion of investments used to meet the environmental and/or social characteristics promoted by the financial product are calculated at quarter end using the average of all of business days’ values in the quarter.

Assessment of good governance practices of the investee companies are performed by the index provider. MSCI ESG Ratings analysis begins with an evaluation of each company’s Corporate Governance, taking into consideration the company’s ownership and control structures, the composition and effectiveness of its board, the effectiveness of its incentive practices and the integrity of its accounting. Corporate Behavior is also monitored, including any controversies that might have a significant negative impact on the company’s value.

The minimum proportion of the investments used to meet the environmental and/or social characteristics promoted by the financial product is 90%. The minimum proportion of sustainable investments of the financial product is 20%.

The financial product tracks an ESG index and may replicate the performance of the index by the use of derivatives. Derivatives will only be used in case that a) the investment objective cannot be achieved by investments index components, in particular in order to reflect the performance of a currency hedge where a sub-fund replicates a currency-hedged index, or b) to generate efficiencies in gaining exposure to the constituents of the index, in particular where there are legal or practical obstacles to gaining direct access to a market to which the index refers. The financial product may namely enter into a range of index related swaps (excluding funded swaps) and derivative instruments (futures, forwards, currency swaps, p-notes, options, warrants and foreign exchange contracts) in order to replicate the index.

The methodology of the construction of the Index can be found in the annex to the prospectus or supplement.

The data sources used to attain the stated environmental or social characteristics are as follows:

The MSCI ESG Score, supplied by the index provider

Data is consumed from leading provider(s)

We apply a minimum coverage threshold for the data sources used to attain the stated environmental or social characteristics of the financial product, these thresholds ensure that the binding targets can be monitored and measured. Accuracy of data is dependent on 3rd party providers, coverage of data sources can be less than 100% due to uncovered asset types, incomplete or inconsistent data and gaps in the coverage of these 3rd party providers.

Due diligence is carried out on index providers and/or data providers. This financial product is passively managed and seeks to track the performance and the ESG profile of the Index. Sustainability characteristics and risks are considered as part of the Index selection process.

In terms of passive strategies tracking sustainability indexes as is the case with this financial product, the engagement process helps us to identify companies where material ESG and sustainability factors may present a future negative risk. While the UBS AM engagement program is across all asset classes and portfolios, the impact on passively managed fixed income strategies might be reduced, mainly due to the lack of voting rights and that companies which failed in UBS AM's engagement process are typically not excluded due to the passive management style. Nevertheless, passively managed fixed income assets are part of the engagement with senior management, as all other assets the firm manages, in order to achieve the biggest possible impact.

The financial product has initially selected the reference benchmark for its relevance to its investment strategy and the attainment of the characteristics it seeks to promote. The Index rebalances on a monthly basis. More details on the index methodology applied by the index provider can be found below.

The alignment of the investment strategy with the methodology of the index is ensured on a continuous basis as the index provider rebalances the index on a regular basis and the Portfolio manager tracks the Index in line with the limits set out in the investment policy of Fund. The financial product has initially selected the reference benchmark for its relevance to its investment strategy and the attainment of the characteristics it seeks to promote. The investment strategy of the fund is to track the benchmark’s return and its characteristics, including ESG characteristics, as closely as reasonably possible. The portfolio manager reviews the index methodology when the product is set up and the Index provider may be contacted if the Index methodology is no longer in line with the investment strategy of the financial product.

The MSCI Emerging Market SRI Low Carbon Select 5% Issuer Capped Index is a free float-adjusted market capitalization index with a weighting cap of 5 percent. The MSCI Emerging Market SRI Low Carbon Select 5% Issuer Capped Index excludes companies that are inconsistent with specific values based criteria such as religious beliefs, moral standards or ethical views, and targets companies with high ESG ratings relative to their sector peers. The Index is constructed in two stages. First, securities of companies involved in nuclear power, tobacco, alcohol, gambling, military weapons, civilian firearms, genetically modified organisms and adult entertainment are excluded. Then, MSCI’s best?in?class selection process is applied to the remaining universe of securities in the principal parent index, being the MSCI Emerging Markets Index, to target the top 25% companies in each sector according to their ESG ratings (thus eliminating 75% of the least well-rated securities). These ESG ratings are provided by the MSCI (the MSCI ESG Ratings”). The companies must have the following MSCI ESG Ratings: i) an MSCI ESG rating above 'BBB' and ii) the MSCI ESG controversies score greater than 3 to be considered as a high ESG ratings companies. The MSCI ESG Rating calculates a weighted average key issue score for each company based on the risks, opportunities and controversies identified for the company. The weights of selected key issues are determined by the industry's impact on environmental and social factors and the expected timeframe for risks and opportunities to materialise. Each company's final industry-adjusted score corresponds to a rating between best (AAA) and worst (CCC). The factors used to rate a company are, amongst others, carbon emissions, water stress, biodiversity and land use, labour management, human capital development, board diversity, etc. (non-exhaustive list). At least 90% of the securities have an ESG rating. As the investment policy of the MSCI Emerging Markets Socially Responsible UCITS ETF sub-fund is to track the Index, the portfolio management of the sub-fund is passive. As a result, the approach taken in relation to the consideration of ESG criteria is the one taken by MSCI and therefore dependent on the approach and methodology defined by a third party. The consideration of ESG criteria varies from one asset to the other because material key issues are industry-specific and do not affect all the assets equally. Consequently, MSCI sets the weights that determine each key issue's contribution to the overall ESG rating, based on the level of contribution of the industry to environmental or social impact and the expected time frame for risk/opportunity to materialise. Securities are free float adjusted, classified in accordance with the Global Industry Classification Standard (GICS®), and screened by size, liquidity and minimum free float. The index is rebalanced on a quarterly basis and may also be rebalanced at other times in order to comply with applicable investment restrictions or to reflect corporate activity such as mergers and acquisitions. The methodology of the construction of the Index can be found in the fund factsheet of the prospectus.