BNP Paribas Easy MSCI Japan ESG Filtered Min TE UCITS ETF

Issuer: BNP Paribas Asset Management

Asset Class: Equity

TER: 20bps

Trading Currency: GBP

Pays Income: False

Listing Date: 14 Oct 2025

Ticker: EJAG

ISIN: LU3125583602

This financial instrument offers targeted exposure to the Japanese equity market with an integrated sustainability focus. It is designed to track the performance of the MSCI Japan ESG Filtered Min TE Index, which comprises large and mid-capitalisation Japanese companies. The underlying index employs a dual-objective strategy: it first applies a set of Environmental, Social, and Governance (ESG) filters to exclude companies involved in controversial business activities, such as controversial weapons, tobacco, and thermal coal. Subsequently, it utilizes an optimization process to minimize the tracking error relative to the parent MSCI Japan Index, aiming to deliver a risk-return profile that is closely aligned with the broader market while maintaining a superior ESG profile.

The fund is structured for investors who wish to establish a core holding in Japanese equities while adhering to responsible investing principles. Its minimum tracking error approach makes it particularly suitable for those who want to incorporate ESG factors without significantly diverging from the performance characteristics of the conventional market benchmark. By investing directly in the underlying securities through a physical replication method, the fund provides transparent ownership of stakes in some of Japan’s leading corporations. This structure can be appealing for investors who prefer direct asset ownership over derivative-based synthetic replication.

As a component of a diversified global portfolio, this product provides access to a key developed market known for its technological prowess, strong industrial base, and globally recognized brands. An allocation to Japan can offer valuable diversification from North American and European markets. The fund’s emphasis on ESG aligns with a growing investor preference for sustainable business models, which are often associated with robust corporate governance and enhanced long-term resilience. The accumulating share class automatically reinvests any dividends, making it an efficient vehicle for investors focused on long-term capital appreciation and the power of compounding.