Amundi MSCI Emerging Asia II UCITS ETF Acc
| Issuer: Amundi ETF |
| Asset Class: Equity |
| TER: 12bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 29 Mar 2018 |
| Ticker: LCAL |
| ISIN: LU1781541849 |
This investment vehicle offers targeted exposure to the equity markets of Emerging Asia, focusing on large and mid-capitalization companies poised for growth. Its core strategy is built around a robust Environmental, Social, and Governance (ESG) framework, specifically designed to align with the goals of a low-carbon future. The fund aims to replicate the performance of an index that qualifies as an EU Climate Transition Benchmark (CTB). This approach provides a solution for investors looking to participate in the economic dynamism of developing Asian economies while simultaneously managing climate-related risks and opportunities within their portfolios. It seeks to capture the performance of companies that are actively managing their transition towards a more sustainable business model.
The underlying benchmark employs a sophisticated methodology to achieve its climate and ESG objectives. It begins with the parent universe of Asian emerging market stocks and then applies a series of screens. Companies involved in controversial activities such as controversial weapons, tobacco, and thermal coal are excluded. Furthermore, the index utilizes an optimization process to significantly reduce its carbon footprint compared to the standard market benchmark, aiming for a self-decarbonization trajectory of at least 7% per year. This process overweights companies with superior ESG ratings, those demonstrating strong efforts in reducing carbon emissions, and firms generating 'green' revenues. The result is a portfolio tilted towards more sustainable businesses that are better prepared for the regulatory and physical risks associated with climate change.
This fund represents a compelling option for investors with a long-term horizon who believe in both the growth story of Emerging Asia and the importance of sustainable investing. It allows for a single-product solution to gain diversified exposure to key Asian markets like China, Taiwan, India, and South Korea, but through a lens that prioritizes climate action and corporate responsibility. By investing in this fund, one can align their capital with the global transition to a greener economy, potentially benefiting from the performance of companies that are leading this change, while also contributing to a more sustainable investment landscape.
