SA国际传谋

This financial product promotes environmental or social characteristics, but does not have as its objective sustainable investment.

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 involvement in major ESG controversies and how well the issuer adheres to international norms and principles

The financial product exclude 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 nota- ESG controversies related to the company’s operations and/or prod-, possible breaches of international norms and principles such as the UN Global Compact, and performance with respect to these norms and principles.

The following characteristics are promoted by the financial product:

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

The Reference Benchmark designated for the purpose of attaining the characteristic pro-moted by the financial product is the J.P. Morgan ESG CEMBI Broad Diversified Con-strained Index.

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

The FUND_ESG_QUALITY_SCORE

This financial product seeks to promote the characteristic(s) described in this annex through Index selection and passive asset management

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. The Index which is stated by the index provider to be screened against environmental, social or governance criteria and any methodology used by the index provider to assess sustainability characteristics and risks of the constituents of the index can be found on the website of the index provider.

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

Characteristic 1):

A sustainability profile (MSCI ESG Score) that is higher than the parent bench-mark’s sustainability profile.

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

The binding element(s) 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 per-formed by the index provider.

MSCI ESG Ratings analysis begins with an evaluation of each company’s Corpo-rate 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 im-pact 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 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 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 manage

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 Reference Benchmark designated for the purpose of attaining the characteristic promoted by the financial product is the J.P. Morgan ESG CEMBI Broad Diversified Constrained Index.

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 Investment 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 investment 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 J.P. Morgan ESG CEMBI Broad Diversified Constrained Index tracks liquid Dollar-denominated emerging market fixed and floating-rate debt instruments issued by corporates. The J.P. Morgan ESG CEMBI Broad Diversified Constrained Index is based on the flagship J.P. Morgan CEMBI Broad Diversified Index. Country weights are capped at 5%. Corporate bonds rated lower than B- are excluded from the index and their respective weight in the underlying J.P. Morgan CEMBI Broad Diversified is allocated to BB rated securities. The index applies an ESG scoring and screening methodology to tilt toward issuers ranked higher on ESG criteria and green bond issues, and to underweight and remove issuers that rank lower. The returns and statistics for the J.P. Morgan ESG CEMBI Broad Diversified CCC removal BB bump up (5% Capping) are available since December 2015.

The methodology of the construction of the Index can be found in the fund factsheet of the prospectus.