BNP Paribas Easy ESG Enhanced Japan UCITS ETF
| Issuer: BNP Paribas Asset Management |
| Asset Class: Equity |
| TER: 15bps |
| Trading Currency: EUR |
| Pays Income: False |
| Listing Date: 10 Jul 2025 |
| Ticker: AJAS |
| ISIN: IE000YARBD10 |
This fund offers targeted exposure to the Japanese equity market with a strong emphasis on sustainability, aiming to replicate the performance of the MSCI Japan ESG Enhanced Focus Index. The strategy involves investing in a portfolio of large and mid-capitalisation Japanese companies that demonstrate robust Environmental, Social, and Governance (ESG) practices. By employing a physical replication method, the fund directly holds the underlying securities of the index, providing transparent exposure. The index construction methodology is designed to enhance the portfolio's overall ESG profile compared to the parent MSCI Japan Index, while maintaining similar risk and return characteristics.
The investment process is rooted in a comprehensive ESG integration framework. The underlying index selects and re-weights constituents based on their MSCI ESG Ratings, tilting the portfolio towards companies with superior sustainability credentials. Furthermore, it applies a series of negative screens to exclude firms involved in controversial sectors, such as tobacco, controversial weapons, thermal coal, and oil sands. Companies that violate the principles of the United Nations Global Compact are also excluded. This dual approach of positive tilting and negative screening results in a portfolio that is aligned with responsible investment principles.
This product is designed for investors seeking long-term capital growth from Japanese equities while aligning their investments with sustainability objectives. It serves as a core component for a diversified portfolio, providing access to one of the world's major developed economies through an ESG-conscious lens. The fund follows a capitalising dividend policy, meaning all income generated by the underlying holdings is reinvested back into the fund, which supports the potential for long-term compound growth.
