Fund Complex: UBS Funds
Management Company: UBS Asset Management (Americas) Inc.
Funds Affected: UBS International Sustainable Equity Fund
Sustainable Investing Strategy: ESG Integration, Exclusions
The advisor will employ both a positive and negative screening process with regard to securities selection for the fund. The negative screening process will exclude securities with more than 5% of sales in alcohol, tobacco, defense, nuclear, GMO (Genetically Modified Organisms), gambling and pornography from the fund’s portfolio. The adviser believes that this negative screen reduces the global universe by about 7% by market capitalization and the advisor does not expect it to have a material impact on portfolio construction or strategy. The advisor may modify the above list of negative screens at any time, without prior shareholder approval or notice.
The positive screening process will identify securities of companies that are attractive based on their fundamental and valuation profile in addition to evaluating specific sustainability factors.
These sustainability factors are material factors that help the advisor evaluate and compare the environmental, social and governance performance of the investable universe.