iShares MSCI Japan ESG Screened UCITS ETF USD (ACC)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 15bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 23 Oct 2018 |
| Ticker: SAJP |
| ISIN: IE00BFNM3L97 |
This fund offers a targeted approach to investing in the Japanese stock market by focusing on companies with superior environmental, social, and governance (ESG) credentials. The strategy is designed for investors who want to align their financial goals with their personal values, providing exposure to Japanese firms that demonstrate strong sustainability practices. By tracking a Socially Responsible Investing (SRI) index, the fund systematically screens out companies involved in controversial sectors such as tobacco, controversial weapons, and thermal coal. This values-based screening process aims to create a portfolio of high-quality, responsible companies poised for long-term growth in one of the world's largest developed economies.
The underlying portfolio is composed of large and mid-capitalisation Japanese equities that pass the index's rigorous ESG criteria. A key feature is its specific exclusion of companies with significant ties to fossil fuels, making it an attractive option for climate-conscious investors. The fund provides diversified exposure across various sectors, including industrials, information technology, consumer discretionary, and healthcare, reflecting the broad composition of Japan's corporate landscape. This diversification helps to mitigate concentration risk while capturing the performance of Japan's leading sustainable businesses. The investment vehicle is physically replicated, meaning it directly holds the underlying securities of the index, offering transparency to investors.
For portfolio construction, this product can serve as a core Japanese equity holding or a satellite position for those looking to enhance the ESG profile of their global allocation. It is suitable for investors with a long-term investment horizon seeking capital appreciation. By integrating ESG factors, the fund aims not only to generate competitive returns but also to invest in companies that are potentially better equipped to handle long-term risks and opportunities, which may contribute to more resilient performance over a full market cycle.
