HSBC MSCI AC Asia Pacific Ex Japan Climate Paris Aligned UCITS ETF
| Issuer: HSBC |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 12 Apr 2022 |
| Ticker: HPAJ |
| ISIN: IE000XFORJ80 |
This fund provides targeted exposure to large and mid-capitalization companies across both developed and emerging markets within the Asia Pacific region, specifically excluding Japan. Its core strategy is distinguished by its adherence to the climate objectives outlined in the Paris Agreement. The investment vehicle tracks an index designed to meet the stringent criteria of the EU's Paris-Aligned Benchmark (PAB) regulations. This involves a significant reduction in greenhouse gas emissions intensity compared to the broader market and the exclusion of companies involved in controversial activities or those deriving significant revenue from fossil fuels, thereby embedding a strong sustainability focus into its portfolio construction.
By adopting this climate-conscious approach, the fund allows investors to capitalize on the dynamic growth potential of the Asia Pacific economies while actively managing risks associated with climate change. The underlying index methodology systematically overweights companies that are leaders in the transition to a low-carbon economy and underweights or removes laggards. This forward-looking strategy offers a dual benefit: capturing regional growth opportunities and aligning investments with global decarbonization efforts. It appeals to investors seeking not only financial returns but also a positive environmental impact, providing a portfolio that is potentially more resilient to long-term climate-related financial risks.
This investment is particularly suitable for individuals aiming to diversify their equity holdings with international exposure, specifically focusing on the vibrant Asia Pacific region. It is an excellent choice for those who wish to integrate environmental, social, and governance (ESG) principles into their investment decisions, with a clear emphasis on climate action. By providing a transparent, rules-based method for investing in companies committed to a sustainable future, the fund serves as a compelling option for building a responsible and growth-oriented portfolio.
