MSCI Emerging Markets ESG Leaders IndexThe solution employs a traditional index-tracking approach to replicate the constituents of the MSCI Emerging Markets ESG Leaders Index. This index is compiled using an environmental, social and governance (ESG) methodology to select those securities in the MSCI World Index (parent index) with the highest ESG ratings. The index aims to be both sector and region neutral relative to the weights of its parent index, which limits the systematic risk potentially introduced by the ESG selection process.
This strategy is suitable for investors requiring low-cost MSCI emerging market exposure with the additional benefit of an ESG overlay. In the emerging market space, this can provide attractive outperformance relative to the parent index.
Benchmark: MSCI World ESG Leaders Index
Objective: The portfolio aims to deliver performance in line with its benchmark.