Amundi Index MSCI Japan SRI PAB UCITS ETF DR - HEDGED GBP (C)
| Issuer: Amundi ETF |
| Asset Class: Equity |
| TER: 20bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 25 Sep 2017 |
| Ticker: JPXX |
| ISIN: LU1646359619 |
This investment vehicle offers targeted exposure to the Japanese equity market, with a strong emphasis on sustainability and climate action. The strategy is designed to replicate the performance of a specialized index that selects companies based on stringent Environmental, Social, and Governance (ESG) criteria. It specifically focuses on Japanese firms that demonstrate strong sustainability profiles while excluding those involved in sectors such as controversial weapons, tobacco, and fossil fuels. This approach provides a portfolio of leading Japanese corporations that are considered to be at the forefront of responsible business practices, appealing to those who wish to align their investments with their ethical values.
Beyond its core socially responsible investing (SRI) mandate, the fund incorporates a forward-looking climate strategy by adhering to the principles of a Paris-Aligned Benchmark (PAB). This means the portfolio is constructed to be compatible with the long-term goals of the Paris Agreement, aiming for a significant reduction in greenhouse gas emissions and a clear decarbonization trajectory. The methodology seeks to overweight companies that are contributing to the transition to a low-carbon economy and underweight those with higher carbon footprints.
Furthermore, this particular share class includes a currency hedging mechanism. This feature is designed to neutralize the impact of exchange rate movements between the underlying assets, denominated in the local currency, and the investment currency. By mitigating this currency risk, the fund aims to deliver returns that more closely reflect the performance of the Japanese companies themselves, rather than being influenced by foreign exchange market volatility. This makes it a suitable option for investors seeking a more direct and less volatile way to access Japan's most sustainable companies.
