Introduction to Fund Name Changes
Dear Shareholders,
We are reaching out to inform you about important changes coming to certain sub-funds of WisdomTree Issuer ICAV (the “ICAV”). These changes are driven by new guidelines set forth by EMSA, focusing on the use of ESG and sustainability-related terms in fund names. These guidelines aim to protect investors by ensuring that fund names accurately reflect their environmental and social characteristics.
The New Guidelines by EMSA
The Board of Directors wishes to clarify the requirements imposed by the EMSA guidelines. Specifically, these guidelines dictate how environmental-related terms can be used in fund names. To meet these standards, a fund must demonstrate that at least 80% of its investments support its declared environmental or social goals. Furthermore, it must adhere to exclusionary criteria outlined in specific regulations.
Environmental and Transition Terms
To include the term "environmental" in a fund's name, the fund must comply with the aforementioned threshold and exclusion criteria. For the term "transition," the investments need to demonstrate a clear path toward environmental or social improvements while also focusing on providing financial returns.
Requirements for Sustainability-Related Terms
When it comes to sustainability-related terms, funds must not only meet the 80% threshold but also invest at least 50% of their assets in recognized sustainable investments as defined in the Sustainable Finance Disclosure Regulation (SFDR).
Changes to Specific Funds
As a direct consequence of these regulations, the Board has decided that several funds must undergo name changes to comply with the criteria outlined. Notably, the following changes are proposed and will take effect from 16 April 2025, pending approval from the Central Bank of Ireland:
Details of Fund Name Changes
Below are the funds affected by the name change:
- Current name: WisdomTree Recycling Decarbonisation UCITS ETF
New name: WisdomTree Recycling UCITS ETF - Current name: WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF
New name: WisdomTree Strategic Metals and Rare Earths Miners UCITS ETF
Impact on Fund Operations
All other essential features of the funds will remain unchanged. The adjustments to fund names will be reflected in their respective Supplements, KIIDs, and marketing materials. For clarity, the fund’s classification under the SFDR as Article 8 will not be affected, nor will the investment strategies or tracking error ratios.
The Role of WisdomTree, Inc.
In connection with these name changes, WisdomTree, Inc. serves as the index provider for the WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF. They have also updated the index name in line with the proposed changes, with this update set to occur on the same date, 16 April 2025.
Adjustment to Index Methodology
Specifically, for the fund named “WisdomTree Global Sustainable Equity UCITS ETF,” an update to the index methodology is also required. This index will now include the necessary exclusions to align with the PAB exclusions.
While these updates will alter the index's underlying components upon its rebalance on 16 May 2025, it’s crucial to note that all key features of the fund will stay intact, and its classification as Article 9 under the SFDR will remain unchanged.
Further Inquiries
We understand that these changes may prompt questions. Should you have any inquiries or require further clarification regarding the information shared above, please reach out to WisdomTree UK Limited at Europesupport@wisdomtree.com.
Sincerely,
Director
WisdomTree Issuer ICAV
Frequently Asked Questions
What changes are being made to the fund names?
The fund names are being updated to align with EMSA guidelines, removing terms like “Decarbonisation” and “Energy Transition” for better accuracy.
Why are these changes necessary?
These changes are designed to enhance investor protection by ensuring that fund names accurately reflect their sustainability efforts.
When will these changes take effect?
The proposed changes are set to take effect on 16 April 2025, pending necessary approvals.
Will the fund's performance be affected by these name changes?
No, the overall performance and key features of the funds will remain unchanged despite the name alterations.
How can I get more information about these changes?
For more details, you can contact WisdomTree UK Limited or refer to the updated fund documents that will be made available post the changes.
