woman in front of solar panel

Zurich Carbon Neutral US Equity Fund

Support the move to a climate neutral economy with your investment in US equities – thanks to the fund’s low carbon investment strategy and carbon offsetting. Let’s make a positive impact together.

This is a marketing communication. Please refer to the Prospectus of Zurich Invest ICAV and the Supplement of Zurich Carbon Neutral US Equity Fund and to the KIID/KID before making any final investment decisions. The Zurich Carbon Neutral US Equity Fund is classified as an Article 8 product under Regulation (EU) 2019/2088 (SFDR) and commits to have a minimum proportion of 25% of sustainable investments.

The funds described herein are indexed to an MSCI index.

What is the investment objective of the fund?

The Zurich Carbon Neutral US Fund seeks to achieve a diversified portfolio of US equities using a passive management approach. In addition, the fund places particular emphasis on meeting its sustainability-related ambition which is expressed as follows:



Reduce the carbon footprint of its investments

By creating a portfolio of investments that is aligned with the 1.5°C target of the Paris Agreement. In addition, the estimated carbon footprint of the fund is offset with carbon credits.1



Avoid investments in controversial businesses

By excluding investments in companies whose products or services have a negative social or environmental impact. Examples include companies involved in weapons, gambling, or tobacco.



Move away from fossil fuel-linked companies

By no longer investing in companies in the fossil fuel sector. For example, companies involved in the exploration and production of oil and gas, coal, or consumable fuels.

Investing in the Zurich Carbon Neutral US Equity Fund may involve above average risk. Please see the “Key risks” section for further information. For more information on the disclosures required pursuant to Regulation (EU) 2019/2088 (SFDR) please see www.carnegroup.com/zurich

1 After carbon offsetting, the companies you invest in still create CO2-equivalent emissions, but these financed emissions are being compensated for through carbon offsetting.
2 Clean technology companies derive large parts of their revenues from environmentally beneficial products and services. The applicable MSCI business categories are: alternative energy, energy efficiency, green building, pollution prevention, and sustainable water & agriculture.

What are the sustainability characteristics of the fund?

The attainment of the investment objective is measured by monitoring the fund’s key sustainability characteristics1 compared to a traditional investment in US equities (MSCI USA Index). Further details on the characteristics of the fund can be found by clicking on the tabs below.

Carbon footprint (scope 1+2 emissions)

picto carbon footprint
29
02

Clean technology (green) companies

16.7%
42.9%

Controversial business involvement

picto exclusion business light
15.2%
0.0%

Fossil fuel sector (brown) companies

picto oil disinvest light
8.9%
0.0%3
  • MSCI World Index
  • Zurich Carbon Neutral US Equity Fund

Sources: MSCI, State Street. Data as of 30.09.2024.

1 Please refer to the glossary at the bottom of the page for a definition of each metric (carbon footprint, controversial business involvement, clean technology companies, fossil fuel sector companies).
2 After carbon offsetting, the companies you invest in still create 8 metric tons of scope 1+2 CO2-equivalent emissions per year per million dollars invested, but these financed emissions are being compensated for. Data as of 30.09.2024.
3 The benchmark index of the Zurich Carbon Neutral US Equity Fund is periodically reviewed and rebalanced. As a result, there may be smaller exposures to fossil fuel sector companies between index rebalancing dates.

Fund attribute Zurich Carbon Neutral US Equity Fund
Asset class Equity
Geographical focus United States of America
Currency of Fund USD
Legal structure of Fund ICAV
Fund type UCITS
Fund domicile Ireland
SFDR classification Article 81
Fiscal year end 30 November
Dealing frequency Daily
Anti-dilution adjustment Yes
Total fund assets (USD) 638,632,230
Benchmark MSCI USA Climate Paris Aligned Ex Select Business Involvement Screens index
MSCI ESG Fund Rating (AAA-CCC) AA
Investment manager DWS International GmbH
Management company Carne Global Fund Managers (Ireland) Limited
Administrator State Street Fund Services (Ireland) Limited
Depositary State Street Custodial Services (Ireland) Limited

Sources: MSCI, State Street. Data as of 30.09.2024.

1 As additional information becomes available, and as further guidance is issued by the Irish Central Bank and the European Supervisory Authorities in this regard, the classification of the Fund under SFDR may be subject to change and in such event, will be updated accordingly.

How has the fund performed historically?

The Zurich Carbon Neutral US Equity Fund has changed its benchmark (MSCI USA Climate Paris Aligned Ex Select Business Involvement Screens Index) on September 24, 2024. Since inception of the new benchmark, the fund has performed1 similarly to a traditional investment in US equities (MSCI USA Index).

Source: MSCI. Data as of 30.11.2024.

1 The performance shown is at benchmark level and, as a consequence, does not take into account the ongoing charges, and any entry, exit or switching charge associated with an investment in the fund. For share class level performance including ongoing charges and any other fees charged to the fund, please refer to the fund fact sheets available at: Zurich - Carne Group Financial Services. The benchmark index of the fund, MSCI USA Climate Paris Aligned Ex Select Business Involvement Screens Index, was launched on June 21, 2024. Past performance is not a guarantee of future performance. The value of your investment may go down as well as up and you may not get back the amount you originally invested.


Key risks


There is no guarantee that techniques used by the Fund to offset the estimated carbon footprint will be achieved. The actual carbon footprint of the portfolio of investments of the Fund may therefore be higher or lower than the estimated carbon footprint due to circumstances beyond control of Zurich Invest ICAV or its delegates. Attention is drawn to the risk that the value of the principal invested in the Fund may fluctuate.

The SFDR (meaning Regulation 2019/2088 of the European Parliament and of the Council of 27 November 2019) has been subject to a phased implementation process, which commenced on 10 March 2021 and imposes additional disclosure obligations on financial market participants. As additional information becomes available, and as further guidance is issued by the Central Bank and the European Supervisory Authorities in this regard, such SFDR related disclosures in this Supplement, the Fund's marketing materials and in website disclosure in respect of the Fund and/or the classification of the Fund as an Article 8 fund under SFDR may be subject to change and in such event, will be updated accordingly.

The Fund may invest in financial derivative instruments to hedge against risk and/or to increase return. There is no guarantee that the Fund’s use of derivatives for either purpose will be successful. Derivatives are subject to various risks including but not limited to counterparty risk (including potential loss of instruments), liquidity risk, correlation risk and legal risk and are highly sensitive to underlying price movements, interest rates and market volatility and therefore come with a greater risk than directly investing in the underlying securities themselves.

Transaction costs and other fees and expenses to be borne by the Fund and exchange rate factors where the underlying equities are denominated in a different currency to the Fund's base currency or currency of any class of shares are likely to affect the ability of a Fund to track the performance of the Index.

ADRs and GDRs do not always perform in line with the underlying security and there is no guarantee that a similar outcome will be achieved to that if it were possible to hold the securities directly. In the event of the suspension or closure of a market(s) on which the underlying securities are traded, there is a risk that the value of the ADR/GDR will not closely reflect the value of the relevant underlying securities. Additionally, there may be some circumstances where the Fund's investment manager cannot, or it is not appropriate to, invest in an ADR or GDR, or the characteristics of the ADR or GDR do not exactly reflect the underlying security.

Changes in the exchange rate between the base currency and such denominated currency of an unhedged currency share class may lead to a depreciation of the value of such shares as expressed in the denominated currency. Fluctuations in the exchange rate between the currencies of the Fund's underlying assets and the currency of a share class may lead to currency risk for the holders of shares in the relevant class. Shareholders of hedged share classes should be aware that they may be substantially limited from benefiting if the denominated currency rises against the base currency.

For more information on the risks associated with the Zurich Carbon Neutral US Equity Fund (the ‘Fund’), please see the section entitled ‘Risks Factors’ in the Prospectus of the ICAV and Supplement of the Fund and the Key Investor Information Document.

Downloads


Please find more Downloads on the Carne Group website.

Glossary

AuM Assets under management.
Benchmark index An index that can be used by an investment fund as the basis of comparison for assessing the performance achieved.
Carbon footprint Total CO2-equivalent financed emissions in metric tons per year per million dollars invested. The CO2-equivalent carbon intensity (emissions per million dollars invested) is calculated based on EVIC (Enterprise Value including Cash).
Carbon offsetting Funding a reduction or removal of CO2-equivalent emissions to compensate for the carbon emissions associated with a particular activity (e.g., operating a business).
Clean technology (‘green’) companies Aggregate exposure to companies that derive 20% or more revenue from alternative energy, energy efficiency, green building, pollution prevention, or sustainable water (MSCI clean technology themes).
Controversial business involvement Aggregate exposure to companies with any ties to controversial weapons, companies engaged in civilian firearms activities, companies with any ties to nuclear weapons, companies flagged for involvement in tobacco, companies engaged in the production, distribution and retail of adult entertainment materials, companies engaged in the production, distribution, retail and supply of alcohol-related products, companies producing conventional weapons and components, companies engaged in gambling-related business activities, companies deriving 5% or more revenue from Genetically Modified Organisms (GMO) activities, companies engaged in nuclear power activities, companies with evidence of owning proven and probable coal reserves and/or proven oil and natural gas reserves used for energy purposes, companies deriving any revenue from thermal coal mining or unconventional oil and gas extraction, and companies deriving 5% or more revenue from thermal coal-based power generation.
Fossil fuel sector (‘brown’) companies Aggregate exposure to companies that derive any revenues from (i) the exploration, mining, extraction, distribution or refining of hard coal and lignite; (ii) the exploration, extraction, distribution (including transportation, storage and trade) or refining of liquid fossil fuels; and (iii) exploring and extracting fossil gaseous fuels or from their dedicated distribution (including transportation, storage and trade).
MSCI USA Index The MSCI USA Index captures large and mid-cap securities of companies in the United States. The Index covers approximately 85% of the free float-adjusted market capitalization in the US.
MSCI USA Climate Paris Aligned Ex Select Business Involvement Screens Index The Index is designed to support investors seeking to reduce their exposure to transition and physical climate risks and who wish to pursue opportunities arising from the transition to a lower-carbon economy while aligning with the Paris Agreement requirements. The Index is designed to exceed the minimum standards of the EU Paris-Aligned Benchmark. Additionally, the Index applies certain values-based exclusion criteria. The Index is constructed from the MSCI USA Index(‘Parent Index’) following an optimization-based approach.
Paris Agreement The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at the 21st UN Climate Change Conference (COP21) in Paris on December 12, 2015 and entered into force on November 4, 2016.
(Share of) EU taxonomy-aligned investments Percentage allocation to investments defined as environmentally sustainable under Article 2, point (1) EU Taxonomy Regulation (meaning Regulation 2020/852 of the European Parliament and of the Council of June 18, 2020).
(Share of) sustainable investments Percentage allocation to investments defined as sustainable under Article 2, point (17) SFDR (meaning Regulation 2019/2088 of the European Parliament and of the Council of November 27, 2019).
Verified Emission Reduction Certificates Carbon credits generated by carbon offset projects that have been developed according to internationally recognized standards. A carbon credit corresponds to an avoidance, or a removal of one metric ton of CO2-equivalent emissions.

For details in respect of key investor rights, please refer to the prospectus of the Zurich Invest ICAV and the supplement of the Zurich Carbon Neutral US Equity Fund which can be obtained free of charge by all investors or potential investors on this website www.carnegroup.com/zurich.

Further, the impact of costs [and currency used to calculate them] of investing into the Zurich Carbon Neutral US Equity Fund are described in the offering documentation and key information document ('KID'), available on the following website www.carnegroup.com/zurich.

Investment decisions should only be made after a thorough reading of the current versions of the prospectus of the Zurich Invest ICAV, the supplement of the Zurich Carbon Neutral US Equity Fund and the latest key investor information document ('KIID') available at www.carnegroup.com/zurich.

This fund is not sponsored, endorsed, sold or promoted by MSCI Inc. (“MSCI”), any of its affiliates, any of its information providers or any other third party involved in, or related to, compiling, computing or creating any MSCI index (collectively, the “MSCI Parties”). The MSCI index names are service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes. None of the MSCI Parties makes any representation or warranty, express or implied, to the issuer or owners of this fund or any other person or entity regarding the advisability of investing in funds generally or in this fund particularly or the ability of any MSCI index to track corresponding stock market performance. MSCI or its affiliates are the licensors of certain trademarks, service marks and trade names and of the MSCI indexes which are determined, composed and calculated by MSCI without regard to this fund or the issuer or owners of this fund or any other person or entity. None of this MSCI Parties has any obligation to take the needs of the issuer or owners of this fund or any other person or entity into consideration in determining, composing or calculating the MSCI indexes. None of the MSCI Parties is responsible for or has participated in the determination of the timing of, prices at, or quantities of this fund to be issued or in the determination or calculation of the equation by or the consideration into which this fund is redeemable. Further, none of the MSCI Parties has any obligation or liability to the issuer or owners of this fund or any other person or entity in connection with the administration, marketing or offering of this fund. Although MSCI shall obtain information for inclusion in or for use in the calculation of the MSCI indexes from sources that MSCI considers reliable, none of the MSCI Parties warrants or guarantees the originality, accuracy and/or the completeness of any MSCI index or any data included therein. None of the MSCI Parties makes any warranty, express or implied, as to results to be obtained by the issuer of the fund, owners of the fund, or any other person or entity, from the use of any MSCI index or any data included therein. None of the MSCI Parties shall have any liability for any errors, omissions or interruptions of or in connection with any MSCI index or any data included therein. Further, none of the MSCI Parties makes any express or implied warranties of any kind, and the MSCI Parties hereby expressly disclaim all warranties of merchantability and fitness for particular purpose, with respect to each MSCI index and any data included therein. Without limiting any of the foregoing, in no event shall any of the MSCI Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
For more information about MSCI indexes visit www.msci.com.