STOXX ESG Impact Indices To Underlie Two Exchange-Traded Funds In The US
Andreas von Brevern
Phone: +49 (0) 69 211 14284
ZURICH (Jul. 14, 2016) - - STOXX Ltd., the operator of Deutsche Boerse Group’s index business, and a global provider of innovative and tradable index concepts, today announced that the newly launched STOXX Global ESG Impact and STOXX USA ESG Impact indices have been licensed to FlexShares, managed by Northern Trust, to underlie two exchange-traded funds (ETFs). The ETFs will be listed on NASDAQ Stock Market (NASDAQ) as of today. The STOXX ESG Impact Indices are tilted towards companies that perform superior with respect to a set of selected environmental, social, and governance (ESG) key performance indicators (KPIs).
“Sustainable investing is gaining momentum as an integral part of portfolio construction. According to The Forum for Sustainable and Responsible Investment (US SIF), nearly 7 trillion US dollar are invested in ESG strategies in the US, which is up from 3,7 trillion US dollar in 2012,” said Matteo Andreetto, chief executive officer, STOXX Limited. “The STOXX ESG Impact Indices are innovative and unique index solutions that allow market participants to effectively incorporate ESG factors into their investment decisions. These indices provide a broad exposure not only to the global developed markets but also to the US market separately. Based on a carefully selected set of well-known key performance indicators, they offer targeted access to the ESG theme and reduce certain risks.”
"Sustainable investing is a dynamic area of emphasis for our clients globally," noted Shundrawn A. Thomas, head of funds and managed accounts, Northern Trust. “Northern Trust manages over 60 billion US dollar of assets incorporating environmental, social and governance criteria. Our innovative solutions feature non-traditional index strategies and are designed to serve as strategic holdings for investment portfolios. The opportunity to collaborate with STOXX on the design of two innovative sustainable investing indices further bolsters our offering of investor-centric solutions."
The universe for the STOXX ESG Impact Indices is the STOXX Global 1800 Index. Only the US companies are included in the STOXX USA ESG Impact Index respectively. Coal miners, violators of United Nations Global Compact principles, and companies involved with controversial weapons are excluded from the universe to reduce headline risk. For the remaining companies an aggregate ESG score is calculated, determined by the following KPIs: CDP emission/energy reduction target, percentage of women on the board, percentage of independent directors, policy against child labor and golden parachute agreement. The companies are then ranked by their aggregated ESG score and the top 50% will be included in the composition list.
The indices are weighted by free-float market cap combined with a cap factor that depends on a company’s aggregate ESG ranking in the composition list. They are calculated in price, net return and gross return versions and are available in euro and US dollar. All components are subject to a cap of 5%. The indices are reviewed quarterly. The base date is May 18, 2016, with the base value set at 1,000.
Please visit www.stoxx.com for further information.
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Andrea Weidemann, firstname.lastname@example.org, Phone: +41 58 399 3568
Lara Atkinson, email@example.com, Phone: +49 69 211 12977
Note to Editors:
About STOXX Limited
STOXX Ltd. is a global index provider, currently calculating a global, comprehensive index family of over 7,500 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50, STOXX Europe 50 and STOXX Europe 600, STOXX Ltd. maintains and calculates the STOXX Global index family which consists of total market, broad and blue-chip indices for the regions Americas, Europe, Asia/Pacific and sub-regions Latin America and BRIC (Brazil, Russia, India and China) as well as global markets.
To provide market participants with optimal transparency, STOXX indices are classified into three categories. Regular “STOXX” indices include all standard, theme and strategy indices that are part of STOXX’s integrated index family and follow a strict rules-based methodology. The “iSTOXX” brand typically comprises less standardized index concepts that are not integrated in the STOXX Global index family, but are nevertheless strictly rules-based. While indices that are branded “STOXX” and “iSTOXX” are developed by STOXX for a broad range of market participants, the “STOXX Customized” brand covers indices that are specifically developed for clients and do not carry the STOXX brand in the index name.
STOXX indices are licensed to more than 500 companies around the world as underlyings for Exchange Traded Funds (ETFs), futures and options, structured products and passively managed investment funds. Three of the top ETFs in Europe and approximately 25% of all assets under management are based on STOXX indices. STOXX Ltd. holds Europe's number one and the world's number two position in the derivatives segment.
STOXX is part of Deutsche Boerse Group, and markets the DAX indices. www.stoxx.com
STOXX, Deutsche Boerse Group and their licensors, research partners or data providers do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data and exclude any liability in connection therewith. STOXX, Deutsche Boerse Group and their licensors, research partners or data providers are not providing investment advice through the publication of indices or in connection therewith. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX, Deutsche Boerse Group or their licensors, research partners or data providers on the merits of that company. Financial instruments based on the STOXX® indices, DAX® indices or on any other indices supported by STOXX are in no way sponsored, endorsed, sold or promoted by STOXX, Deutsche Boerse Group or their licensors, research partners or data providers.
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