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The HSBC Pacific Index fund aims to track the FTSE World Pacific ex Japan index of stockmarket performance. The FTSE World ex Japan index comprises a range of companies quoted on the region's stock exchanges. It is designed to match the index by investing in a representative sample of shares, representing all major industries in the Pacific region economy, including Australia and New Zealand, but excluding Japan.
HSBC is a large and diversified banking and financial services group, based in London. It offers a comprehensive range of index tracking funds in addition to a range of actively managed funds. The fund invests in a representative sample of the constituent companies within the FTSE World Pacific ex Japan index, reflecting each company's weighting within the index. This technique is known as "partial replication" and often can lead to a greater degree of difference between the fund's performance and that of the index. However, for indices with large numbers of constituents, this is the only practical method. The fund is aligned with the sector weightings of the FTSE World Pacific ex Japan index, shown below.
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