Irish Life Indexed Ethical Global Equity

The Indexed Ethical Global Equity Fund invests in global equities and aims to track the MSCI World ESG Screened ex Select Conventional Weapons Index. It seeks to match the average return of the shares in that customised index rather than trying to outperform it. The fund is therefore broadly diversified across major markets and sectors worldwide.

The Indexed Ethical Global Equity Fund excludes companies involved in thermal coal, controversial and conventional weapons, tobacco, and other controversial industries subject to specified revenue limits. These exclusions are part of the ESG screening applied to the customised index it follows. In simple terms, that means the fund avoids certain business activities considered inconsistent with its environmental, social and governance standards.

The Indexed Ethical Global Equity Fund tracks a customised MSCI World ESG Screened Index that targets at least a 30% reduction in carbon emission intensity versus the full MSCI World Index. That means the portfolio is designed to have lower carbon emissions intensity than the broader market benchmark. Carbon emission intensity is a measure of how much carbon a company produces relative to its size or output.

The Indexed Ethical Global Equity Fund carries equity market risk because it invests in shares, so its value can rise and fall with global stock markets. It also uses securities lending, which can add risk even though it may help generate extra return. Securities lending means the fund temporarily lends some holdings to another party in exchange for income, but there is a small risk the borrower does not return them on time.

The Indexed Ethical Global Equity Fund may suit investors who want broad global equity exposure with ESG screens and index-style tracking. It follows a rules-based approach and aims, as far as possible, for full replication of the index constituents in line with ILIM's indexation approach. Investors should be comfortable with global equity volatility and with the fact that the fund will reflect the characteristics of the benchmark it tracks.