• ETFs

    ESGI - Register your interest

    Arian Neiron, Managing Director
    11 February 2018
     

    VanEck, one of the world’s largest ETF providers has partnered with MSCI, the world’s leading ESG index provider and will soon launch an International Sustainable Equity ETF on ASX under the trading code ‘ESGI’.

    Pre-register your interest in 'ESGI' today - click here

    VanEck Vectors MSCI International Sustainable Equity ETF (ESGI)

    • ESGI is designed to provide investors with an all-encompassing and true-to-label sustainable international equity investment portfolio, incorporating both values-based and impact investing.
    • ESGI will track a state of the art index that takes a multi-layered approach and screens companies based on:
      • Fossil fuel reserves
      • Socially responsible activities
      • ESG performance
      • Carbon emissions.

    MSCI provides ESG research and ratings on more than 6,400 companies on a ‘AAA‘ to ‘CCC’ scale according to their exposure to industry specific ESG risks and their ability to manage those risks relative to peers. VanEck has joined over 1,800 signatories representing US$68 trillion in assets under management to the Principles for Responsible Investment (PRI).

    ESGI is in the final stages of preparation and following its launch, investors will be able to access this international opportunity via a simple trade on ASX.

    The Index: MSCI World ex Australia ex Fossil Fuel Select SRI and Low Carbon Capped Index (ESGI Index)

    A four step process is followed to select securities out of the MSCI World ex Australia Index.

    1. Fossil fuels exclusion
      Companies that have proved and probable coal reserves and/or oil and natural gas reserves used for energy purposes are excluded.

    2. Socially Responsible Investing (SRI) exclusion and high rating ESG inclusion
      Those companies whose businesses are involved in or exposed to the following activities are excluded:
      • alcohol
      • gambling
      • tobacco
      • military weapons
      • civilian firearms
      • nuclear power
      • adult entertainment
      • genetically modified organisms.

      MSCI ESG Research data is then used to include only the leading ESG performers in each GICS sector.  

    1. High carbon emitters excluded
      The remaining companies from step 2 are then ranked by carbon emission intensity and the top 20% by number are excluded. The cumulative weight of securities excluded from any GICS sector is capped at 30% of the weight of the sectors from step 2 so that sector weights are not excessively disrupted.
      Securities are also excluded until the cumulative potential carbon emissions of the excluded companies reaches 50% of the sum of the potential carbon emissions of the constituents remaining from step 2.

    2. Capping
      The remaining securities are then weighted by their Free Float Market Capitalisation subject to a 5% weighting cap.

    Pre-register your interest in 'ESGI' today - click here

     

    This information is prepared in good faith by VanEck Investments Limited ABN 22 146 596 116 AFSL 416755 ('VanEck') as the responsible entity and issuer of VanEck Vectors MSCI International Sustainability ETF ARSN 623 953 177 ("the Fund"). Units in the Fund are not currently available. The Fund has been registered with ASIC and VanEck has lodged an application with ASX for units in the Fund to be admitted to trading status on ASX.

    This information is general in nature and not financial advice. It does not take into account any person's individual objectives, financial situation or needs. Before making an investment decision investors should read the product disclosure statement and with the assistance of a financial adviser consider if it is appropriate for their circumstances. A copy of the PDS is available from VanEck’s offices at Level 4, Aurora Place, 88 Phillip Street, Sydney, NSW, 2000. The PDS is subject to review by ASIC during the exposure period which is expected to commence on 12 February 2018 and therefore subject to change.

    This information is believed to be accurate at the time of compilation but is subject to change. VanEck does not represent or warrant the quality, accuracy, reliability, timeliness or completeness of the information. To the extent permitted by law, VanEck does not accept any liability (whether arising in contract, tort, negligence or otherwise) for any error or omission in the information or for any loss or damage (whether direct, indirect, consequential or otherwise) suffered by any recipient of the information, acting in reliance on it.

    The Fund is subject to investment risk, including possible loss of capital invested. Past performance is not a reliable indicator of future performance. No member of the VanEck group guarantees the repayment of capital, the payment of income, performance, or any particular rate of return from the Fund.

    ESGI is indexed to a MSCI index. ESGI is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to ESGI or the MSCI Index. The PDS contains a more detailed description of the limited relationship MSCI has with VanEck and ESGI.