HSBC AM lists two MSCI Japan Islamic ETFs on the LSE

HSBC Asset Management (HSBC AM) has launched two new MSCI Japan Islamic ETFs on the London Stock Exchange

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By ETFWorld.co.uk

Olga de Tapia, Global Head of ETF & Indexing Sales, HSBC Asset Management

HSBC MSCI Japan Islamic ESG UCITS ETF

The Fund aims to track as closely as possible the returns of the MSCI Japan Islamic ESG Universal Screened Select Index, while integrating environmental, social and governance (ESG) metrics. The Fund will invest in or gain exposure to shares of companies which make up the Index.

Investment Policy:

The Index is a subset of the MSCI Japan Islamic Index, and is made up of large and mid-cap companies (as measured by the market value of their shares) based in the Japanese equity market, that comply with Shariah investment principles, as defined by the Index Provider.

In replicating the performance of the Index, the Fund promotes certain environmental, social and/or governance (ESG) characteristics and has been categorised as an Article 8 fund for the purpose of the SFDR.

The Index is constructed by applying values- and climate-based exclusionary criteria, and excludes companies with exposure to:
controversial and nuclear weapons, adult entertainment, alcohol, gambling, tobacco, thermal coal power, thermal coal mining, oil sands extraction, pork-related products, conventional financial services, civilian firearms and oil sands reserve ownership. Companies breaching the United Nations Global Compact (UNGC) principles are also excluded.

The Index also applies the MSCI ESG Universal Indexes methodology to achieve its ESG objective: the Index excludes the securities with the weakest ESG profile from the Parent Index; an ESG re-weighting factor is defined that reflects an assessment of both the current ESG profile, based on the current MSCI ESG Rating, as well as the trend in that profile; and re-weights securities from the free-float market cap weights of their Parent Index. The Index is rebalanced on a semi-annual basis.

Source: ETFWorld.co.uk