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Socially responsible UBS fund “first in Europe” to exceed €1bn AuM

Zurich-headquartered UBS Asset Management saw assets under management (AuM) in its socially responsible exchange-traded fund (ETF) surpass the €1 billion mark in July, in what the firm called a first for Europe.

Focused on environmental, social and governance (ESG) criteria, the fund gives access to the shares of companies in 23 countries, aiming to assure a “varied basket of stocks” and diversification in its portfolio.

The Ucits ETF exceeded €1.23 billion in July, according to the fund giant.

There was strong asset growth of sustainability-focused ETFs in Europe throughout the first half of this year, it said, with total assets under management reaching €17 billion – an increase of 70% compared to the end of 2018.

Equity instruments were most attractive to investors, representing 84% of total assets, but the fixed income sector is “gaining momentum”. Large inflows over the last 12 months saw assets double to nearly €3 billion.

Launched in 2011, the “UBS ETF (LU) MSCI World Socially Responsible Ucits ETF” tracks the MSCI World Socially Responsible 5% Issuer-capped Total Return Index.

This includes companies that represent the top quartile on ESG criteria, according to the index's methodology.

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