Bosera International Climate-Related Risk Pre-Disclosure
Author: Bosera Date: 27/04/2023
Carbon Footprint Calculation
The climate-related risks analysis and carbon footprint measurement of Bosera International’s fund holdings as of December 31, 2022 depend on the disclosure of carbon emissions information of the underlying assets we have invested in. According to the issuers’ annual reports and ESG reporting disclosure cycle, FY22 data disclosure will be generally finalized by April 30, 2023. Issuers (the “investees”) have not yet completed the annual report update or basic information disclosure at this point, and therefore, the current climate-related information disclosure is still based on the investees’ FY21 carbon data with consideration of time consistency and data availability.
To better keep our clients aware of our climate-related information, Bosera International referred to the material climate-related risks results concluded from last year and conducted the carbon footprint calculation for portfolios based on the holdings as of the end of 2022, where data is available and could be reasonably estimated. Retail portfolios with carbon footprint results have been presented as below.
Fund Name | Carbon Footprint (tCO2e/million RMB) | Coverage (Take the fund's NAV ratio as a reference) |
Bosera Greater China Bond Fund | 31.71 | 51.64% |
Bosera Zeal Hong Kong Equity Plus Fund | 12.05 | 78.13% |
Bosera Greater China Enhanced Return Bond Fund | 16.47 | 82.48% |
Bosera Global Income Opportunities Fund | 4.19 | 56.22% |
Bosera-Aberdeen Standard Emerging Opportunities Bond Fund | 32.12 | 55.44% |
Issuers would generally finalize the FY22 reports before April 30. From the perspectives of the most updated data availability and assessment results effectivity, Bosera International expects to make comprehensive updates on climate-related risks analysis and disclose the portfolio carbon footprint results accordingly fully based on FY22 carbon data on our official website no later than June 30.
Reevaluate the funds assessed as irrelevant of climate-related risks in 2022
Based on our climate assessment results in 2022, Bosera Internatonal conducted the reevaluation for climate risks relevance between our funds investment and risks management processes. We assess if climate-related risks would make impact in terms of the nature of the investments type, strategy, time horizon and risks of the investments.
After reevaluation, we keep the same conclusion that climate-related risks are irrelevant to the portfolios shown as below.
· KraneShares SSE STAR Market 50 Index ETF
· KraneShares Bosera MSCI China A Share ETF
Bosera International take investment management responsibility as sub-managers, and we are not responsible for overall operation of the fund (“ROOF”). Two ETFs Funds adopt the passive fund strategies and invest in index constituents or financial instruments with similar economic characteristics. The overall strategy bears high similarity and follows basically the same logics of full replication with almost the same constituents and weightings allocation compared to the benchmark index. Besides, fund managers also have to minimize and limit the tracking errors as well.
No significant adjustments for investment strategies have occurred at this point, and therefore, we conclude that climate-related risks are irrelevant to the portfolios.
· Bosera STAR 50 Index ETF
The ETF adopts the full replication strategy which requires buying all the index constituents. Determination of the holdings weightings depends on the index design methodology. Under such circumstances, climate-related risks exposure would not be directly influenced by the investment and risks management procedures. There are limitations for fund managers exercising investment discretion over index funds or adjust the index constituents regarding climate-related impact. Based on the rationales above, we keep the same assessment conclusion that climate-related risks are irrelevant to the portfolio.