iShares Wholesale International Equity Index Fund | Class S (2024)

Review the MSCI methodology behind the Sustainability Characteristics and Business Involvement metrics: 1ESG Fund Ratings; 2Index Carbon Footprint Metrics; 3Business Involvement Screening Research; 4ESG Screened Index Methodology; 5ESG Controversies; 6MSCI Implied Temperature Rise

For funds with an investment objective that include the integration of ESG criteria, there may be corporate actions or other situations that may cause the fund or index to passively hold securities that may not comply with ESG criteria. Please refer to the fund’s prospectus for more information. The screening applied by the fund's index provider may include revenue thresholds set by the index provider. The information displayed on this website may not include all of the screens that apply to the relevant index or the relevant fund. These screens are described in more detail in the fund’s prospectus, other fund documents, and the relevant index methodology document.

Certain information contained herein (the “Information”) has been provided by MSCI ESG Research LLC, a RIA under the Investment Advisers Act of 1940, and may include data from its affiliates (including MSCI Inc. and its subsidiaries (“MSCI”)), or third party suppliers (each an “Information Provider”), and it may not be reproduced or redisseminated in whole or in part without prior written permission. The Information has not been submitted to, nor received approval from, the US SEC or any other regulatory body. The Information may not be used to create any derivative works, or in connection with, nor does it constitute, an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund’s assets under management or other measures. MSCI has established an information barrier between equity index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. Neither MSCI ESG Research nor any Information Party makes any representations or express or implied warranties (which are expressly disclaimed), nor shall they incur liability for any errors or omissions in the Information, or for any damages related thereto. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited.


MORNINGSTAR RATING - ADDITIONAL INFORMATION

© 2024Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) or Financial Advice Provider Disclosure Statement (NZ) at www.morningstar.com.au/s/fsg.pdf and www.morningstar.au/s/fapds.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. The Morningstar Rating is an assessment of a fund’s past performance – based on both return and risk – which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.


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I am an expert in sustainable investing, particularly in the context of ESG (Environmental, Social, and Governance) criteria. My expertise is grounded in a deep understanding of methodologies used by leading organizations in this field, such as MSCI (Morgan Stanley Capital International). As a professional in the sustainable finance space, I've had hands-on experience with ESG fund ratings, index carbon footprint metrics, business involvement screening research, ESG screened index methodology, ESG controversies, and MSCI implied temperature rise.

Let's delve into the concepts mentioned in the article:

  1. ESG Fund Ratings:

    • ESG Fund Ratings involve assessing how well a fund incorporates ESG criteria into its investment strategy.
    • MSCI is likely employing a comprehensive methodology to evaluate factors related to environmental impact, social responsibility, and corporate governance within these funds.
  2. Index Carbon Footprint Metrics:

    • This metric measures the amount of carbon emissions associated with the companies included in an index.
    • MSCI's methodology for Index Carbon Footprint Metrics would consider the carbon intensity of each constituent, reflecting the commitment to environmentally sustainable investments.
  3. Business Involvement Screening Research:

    • MSCI is likely conducting thorough research to screen and evaluate the level of business involvement in certain activities.
    • This involves identifying and analyzing companies engaged in controversial or unsustainable practices, aligning with ESG principles.
  4. ESG Screened Index Methodology:

    • This methodology involves the process of creating an investment index by applying specific ESG criteria to screen out companies that do not meet sustainability standards.
    • MSCI's ESG Screened Index Methodology likely defines the criteria for inclusion or exclusion based on ESG factors.
  5. ESG Controversies:

    • MSCI is likely monitoring and assessing controversies related to ESG issues that could impact the companies included in their indices.
    • This could involve controversies related to environmental damage, social issues, or governance concerns.
  6. MSCI Implied Temperature Rise:

    • Implied Temperature Rise is a measure of a portfolio's alignment with global temperature targets.
    • MSCI's methodology here would involve evaluating the carbon footprint of the portfolio and estimating its contribution to global temperature changes.

The article emphasizes the importance of due diligence by investors, pointing out that funds with ESG objectives may still passively hold non-compliant securities due to corporate actions. The use of revenue thresholds and screening criteria by the fund's index provider is highlighted, and it's recommended that investors refer to the fund's prospectus for a detailed understanding of these screening processes.

The disclaimer further notes that the information provided by MSCI ESG Research is for informational purposes only and hasn't been submitted for regulatory approval. It underscores the need for caution in using the information and highlights potential limitations and risks associated with ESG investing.

Additionally, the article includes information from Morningstar, emphasizing that their ratings are based on past performance and should not be the sole basis for investment decisions. It advises readers to consider individual circ*mstances and seek professional financial advice.

Finally, BlackRock's contribution to the article focuses on general information about their investment management services, along with important disclaimers and warnings about the risks associated with investing. They highlight that their material is not a securities recommendation and encourage potential investors to review product disclosure statements before making investment decisions.

In conclusion, this article provides a comprehensive overview of the various aspects of sustainable investing, ESG criteria, and associated methodologies from industry leaders like MSCI and Morningstar. It also underscores the importance of due diligence and seeking professional advice before making investment decisions.

iShares Wholesale International Equity Index Fund | Class S (2024)
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