Invesco MSCI Pacific ex Japan ESG Universal Screened UCITS ETF Acc
| Issuer: Invesco |
| Asset Class: Equity |
| TER: 19bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 12 Jan 2021 |
| Ticker: ESPJ |
| ISIN: IE00BMDBMT65 |
This investment vehicle offers targeted exposure to the developed equity markets of the Pacific region, specifically excluding Japan. It aims to replicate the performance of a benchmark index comprising large and mid-capitalization companies across four key markets: Australia, Hong Kong, Singapore, and New Zealand. By investing in this fund, individuals gain access to a diversified portfolio of established businesses in these economically significant areas. The strategy is implemented through physical replication, meaning the fund directly holds the underlying stocks of the index, providing a transparent and straightforward investment structure. It is designed for those looking to tap into the growth potential of the Asia-Pacific region while maintaining a focus on developed economies.
A key differentiator of this fund is its integration of Environmental, Social, and Governance (ESG) criteria. The underlying index employs a screening process based on ESG principles, aiming to select companies that demonstrate strong sustainability practices. This involves excluding businesses involved in controversial activities such as controversial weapons, tobacco, and thermal coal, while also applying screens for violations of United Nations Global Compact principles. The methodology favors companies with higher ESG ratings, thereby tilting the portfolio towards more socially responsible investments.
This product is particularly suitable for investors seeking to diversify their global equity holdings with a specific allocation to the developed Pacific markets, but who also wish to align their investments with their ethical and sustainability values. The exclusion of Japan offers a more concentrated play on the other major economies in the region, such as the resource-rich Australian market and the financial hubs of Hong Kong and Singapore. The accumulating share class structure means that any dividends received are automatically reinvested, which can aid in compounding returns over the long term, making it an efficient option for capital growth-oriented portfolios.
