FTSE Custom MPF Developed Selected Countries ESG Low Carbon Select Hedged Index

The FTSE Custom MPF Developed Selected Countries ESG Low Carbon Select Hedged Index is comprised of large and mid-cap companies from selected developed markets under the FTSE All-World Index Series. The index reflects Mandatory Provident Fund (MPF) regulatory requirements including permissible investment markets and asset classes.

The index hedges currency back into Hong Kong dollars for use by market participants in Hong Kong. The total net return index is calculated net of withholding tax rates applicable to MPF fund.

The FTSE Custom MPF Developed Selected Countries ESG Low Carbon Select Hedged Index is constructed using the FTSE Russell Target Exposure methodology and targets 50% reduction in operational carbon emissions intensity, 50% reduction in fossil fuel reserve intensity and 20% uplift in ESG ratings on the index level at annual rebalances, relative to the underlying FTSE Custom MPF Developed Selected Countries Index.

The index excludes companies involved with controversial product activities, including weapons, thermal coal, tobacco, nuclear power generation, gambling, adult entertainment and companies involved with controversies related to the UN Global Compact Principles.

For our standard MPF product offering under the FTSE MPF Index Series launched in 2001 by FTSE Russell in collaboration with Willis Towers Watson (WTW) and Hong Kong Investment Funds Association (HKIFA).