UBS Fund Management (Luxembourg) S.A.
Sustainability related disclosures
Summary document
Statement on principal adverse impacts of investment advice on sustainability factors
Statement on principal adverse impacts of investment advice on sustainability factors
Principal adverse impacts (“PAIs”) are the most significant negative impacts of investment decisions on sustainability factors relating to environmental, social and employee matters, respect for human rights, anti‐corruption, and anti‐bribery matters. UBS Fund Management (Luxembourg) S.A. (hereinafter also known as “UBS-FML” or “the management company”) acknowledges the need for transparency of principal adverse impacts of investment decisions on sustainability factors. The management company carries out investment advisory services exclusively in the meaning of marketing / distribution of funds managed by UBS Asset Management (UBS-AM). The consideration of PAIs applies to financial products UBS-FML advises on, that make sustainability-related disclosures in accordance with SFDR. In line with the funds classification outlined in its pre-contractual and periodic disclosures (funds which promote environmental and /or social characteristics (Article 8 SFDR) or which have sustainable investments as their objective (Article 9 SFDR), UBS-FML prioritizes PAI Indicators at the investment strategy level. The extent to which adverse impacts are considered depends on the individual product features and the client preferences obtained through the investment advisory assessment process.
The adverse impacts considered by UBS-AM may include one or more of the following measures:
Standard exclusions to industries with unacceptable adverse impacts. The UBS-AM Exclusion Policy lays out the details of the product scope to which exclusions are applied. The following PAI indicators, as set out in SFDR RTS Annex I Table 1, are considered by means of exclusions from the investment universe:
“Exposure to companies active in the fossil fuel sector”:
- Companies that exceed a certain revenue threshold (as per the UBS AM Sustainability Exclusion Policy) from thermal coal mining and its sale to external parties or from oil sands extraction are excluded
- Companies that exceed a certain revenue threshold (as per the UBS AM Sustainability Exclusion Policy) from thermal coal-based power generation are excluded.