HSBC MSCI Japan Islamic Screened UCITS ETF USD Acc

The Fund aims to track as closely as possible the returns of the MSCI Japan Islamic Universal Screened Select Index (the 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 (Parent 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 to screen all securities, 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 further screening using 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. Please refer the Fund’s Supplement for more details on ESG exclusion criteria and MSCI ESG Universal Indices methodology. The Fund is passively managed and aims to invest in the shares of the companies in generally the same proportion as in the Index. There may be circumstances when it is not possible for the Fund to invest in all constituents of the Index and may gain exposure by using other Shariah compliant investments such as depositary receipts. The Shariah committee monitors the Fund periodically and issues an annual Shariah certificate on the Fund’s compliance with Shariah principles. This certificate is included in the annual report of the Fund as a confirmation of the Shariah compliance for that year. Before investing, please do check that this Fund meets your Shariah requirements, and if in any doubt please consult an adviser. The Fund may invest up to 35% of its assets in securities from a single issuer during exceptional market conditions. The Fund may only use Shariah-compliant foreign exchange contracts (including spot and forward contracts) for hedging purposes. The reference currency of the Fund is USD. The reference currency of this share class is USD. Income is reinvested. Authorised Participants only may deal in the Fund’s shares directly with the UCITS. The Fund’s shares are listed on one or more stock exchange(s). You may sell your investment on most working days. Recommendation: this Fund may not be appropriate for investors who plan to withdraw their money within a period of 5 years. This product is based overseas and is not subject to UK sustainable investment labelling and disclosure requirements