New Index Caters To Market Demand for a Broader Sustainability Investing Universe
Further Expansion of Pioneering Sustainability Index Family
Index Subset Allows for Exclusion of Certain Sectors
NEW YORK (November 22, 2010) - SAM, the investment boutique focused exclusively on sustainability investing, and Dow Jones Indexes, a leading global index provider, today announced the creation of the Dow Jones Sustainability World Enlarged Index (DJSI World Enlarged). The new index will be launched on November 30, 2010, and is designed to accommodate increasing investor demand for a broader sustainability benchmark. As such, the DJSI World Enlarged tracks the performance of the most sustainable 20% of companies out of the largest 2,500 companies in the Dow Jones Global Total Stock Market Index.
In keeping with all Dow Jones Sustainability Indexes, the components for the DJSI World Enlarged are selected according to SAM’s systematic Corporate Sustainability Assessment, which analyzes company performance in terms of economic, environmental and social criteria. The new index has 513 components, is reviewed on an annual basis, and is weighted according to free float market capitalization. Additionally, there will be a subset index of 459 components that excludes companies from the following sectors: tobacco, alcohol, gambling, armament and firearms, and adult entertainment.
“SAM Indexes has repeatedly received inquiries for a more extensive investment universe from institutional investors managing sustainability portfolios. It is inspiring to see the increasing importance investors attribute to sustainability criteria and we are looking forward to providing this benchmarking tool, while continually expanding our unique Sustainability Investing platform” said Rodrigo Amandi, managing director, SAM Indexes.
“This index launch represents another important milestone in our efforts to continually advance our joint index family,” said Michael A. Petronella, president, Dow Jones Indexes. “It reflects both our awareness of market demand and our readiness to respond to changing investor requirements. We are also pleased that inclusion in the index continues to be an important barometer for companies that strive for long-term sustainability improvements,” noted Petronella.
The DJSI World Enlarged appeals to investors desiring a broader global gauge for their sustainability investments. Additionally, the new index further complements the Dow Jones Sustainability Indexes family, which has become a strategic reference point for Sustainability Investing since the launch of the first index in 1999, the DJSI World. Today, the index series comprises a variety of broad and blue-chip geographical benchmarks as well as additional subsets.
More than USD 8 billion in assets under management is currently linked to the DJSI, as well as a broad range of financial products such as mutual funds, separate accounts, notes, and futures and exchange-traded funds. Furthermore, SAM’s research shows that a growing number of asset owners are using the DJSI family for their investments and more and more companies define index inclusion as a corporate goal.
DJSI World Enlarged Index Quick Reference:
Launch date: November 30, 2010
Market capitalization: USD 11.5 trillion (as of November 17, 2010)
- HSBC Holdings PLC (UK Reg)
- Nestle S.A.
- Procter & Gamble Co.
- International Business Machines Corp.
- Johnson & Johnson
- General Electric Co.
- Chevron Corp.
- BHP Billiton Ltd.
- Vodafone Group PLC
- Novartis AG