HSBC AM lists two FTSE EPRA ETFs on the LSE

HSBC Asset Management (HSBC AM) has launched two new FTSE EPRA ETFs on the London Stock Exchange

Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy

By ETFWorld.co.uk

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

HSBC FTSE EPRA DEV ISLAMIC ETF USD (ACC)

The Fund aims to track as closely as possible the returns of the FTSE EPRA Nareit IdealRatings Developed Islamic Index.

Investment Policy:

The Index is a subset of the FTSE EPRA Nareit Developed Index (Parent Index), includes REITs and Real Estate Holding and Developing companies in developed markets, that comply with Shariah investment principles, as defined by the Index Provider.

The Fund will aim to replicate the net total return performance of the Index.

The Index is constructed by applying Business Activities and Financial Screening according to the FTSE IdealRatings Islamic Indexes Screening Guide to the Parent Index. By applying Business Activities Screening, investment will not be permitted in companies deriving more than 5% of their total revenue, or in REITs generating income, through tenants operating in specific business activities, such as, companies with exposure to: defense or weapons, adult entertainment, alcohol, gambling, tobacco, pork-related products, music, conventional finance services.

By applying Financial Screening and Shariah investment principles, investment will not be permitted in: companies with conventional debt divided by average daily market capitalisation for the prior 24 months exceeding 33%; companies where the sum of cash and short-term interest-bearing securities divided by average daily market capitalisation for the prior 24 months exceeds 33%; fixed income preferred shares or trust units.

Source: ETFWorld.co.uk