UBS Launches Socially Responsible Japan ETF

UBS Global Asset Management has launched an exchange traded fund (ETF) that focuses on Japanese companies with high standards of social responsibility, adding to the breadth of so-called environmentally friendly funds for investors.

The UBS MSCI Japan Socially Responsible UCITS ETF (JPY) (ticker JPSR) physically replicates an index which screens out certain companies that don’t meet certain environmental, social and corporate governance (ESG) criteria. The index also positively screens for those companies that have the highest ESG ratings in their sectors.

The fund has an annual total expense ratio (TER) of 0.40 percent and currently has around £7 million in assets under management. There are six other ESG ETFs in the UBS range, covering global, emerging markets, European, pacific and UK equities, and have a total AUM of £265 million.

Andrew Walsh, head of UBS ETF sales UK and Ireland said that investors are increasingly looking at companies whose business activities are in harmony with social values.

“It follows that deciding to invest in a sustainable way isn’t about following a trend. On the contrary, the investment decision is primarily about striving for long-term values and sustainability,” he said.

The launch follows a similar move by Deka, whose new ETF tracks ESG-rated European companies and also has a TER of 0.40 percent.