HSBC Asia Pacific Ex Japan Sustainable Equity UCITS ETF USD (Dist)

Issuer: HSBC

Asset Class: Equity

TER: 25bps

Trading Currency: GBP

Pays Income: False

Listing Date: 06 Jul 2022

Ticker: HSAS

ISIN: IE000P1WR081

This investment vehicle offers targeted exposure to the dynamic equity markets of the Asia-Pacific region, deliberately excluding Japan to provide a more focused regional play. The strategy is built on a foundation of sustainability, providing a way to access the growth potential of both developed and emerging economies like Australia, China, Taiwan, and India through a responsible investing lens. By physically holding the underlying securities, the fund aims to closely mirror the performance of its specific benchmark, ensuring transparency and a direct investment in the constituent companies. It is designed for those seeking to diversify their portfolio geographically while aligning their capital with environmental, social, and governance principles.

The core of the strategy involves a multi-layered screening process. The underlying index first selects large and mid-capitalization companies from the region and then applies rigorous ESG filters. Companies with significant involvement in controversial sectors such as tobacco, thermal coal, and certain types of weapons are excluded. Furthermore, the methodology favors companies with better ESG ratings and lower carbon emissions relative to their industry peers. This dual-focus approach on both positive ESG characteristics and reduced carbon intensity results in a portfolio that not only seeks financial returns but also aims to contribute to a more sustainable global economy, making it suitable for investors with a long-term, conscientious outlook.