{"id":20515,"date":"2019-11-20T11:00:10","date_gmt":"2019-11-20T11:00:10","guid":{"rendered":"http:\/\/starthostunlimiteddmffassi-ss.stackstaging.com\/etfworld.co.uk\/?p=20515"},"modified":"2020-03-23T14:47:03","modified_gmt":"2020-03-23T14:47:03","slug":"solactive-releases-new-euro-ig-corporate-index-with-esg-integration","status":"publish","type":"post","link":"https:\/\/www.etfworld.com\/co.uk\/solactive-releases-new-euro-ig-corporate-index-with-esg-integration\/","title":{"rendered":"Solactive releases new Euro IG Corporate Index with ESG Integration"},"content":{"rendered":"

Solactive releases new Euro IG Corporate Index with ESG Integration developed by SD-M..<\/span><\/p>\n

Sign up to our free newsletters<\/a><\/strong><\/p>\n

\n

Timo Pfeiffer, Chief Markets Officer at Solactive<\/strong><\/p>\n

\n

ESG remains the big topic in the year of 2019 since more and more investors emphasize this exciting and future-oriented topic.<\/strong><\/p>\n

The ESG incorporation methodologies are manifold, and for each purpose, ETF providers and asset managers can find their benchmark.<\/p>\n

The variety of screening-practices can appear overmuch to some individuals.<\/p>\n

Therefore, German ESG provider SD-M developed a straightforward and robust classification model focusing on three standardized material key performance indicators for respective industries and sectors.<\/strong><\/p>\n

Solactive takes advantage of SD-M\u2019s approach to create the Solactive Euro IG Corporate SD-KPIndex\u00ae, tailored to investors, in need of a reliable and accessible ESG Benchmark in the investment-grade corporates space.<\/p>\n

The Solactive Euro IG Corporate SD-KPIndex\u00ae builds upon the industry-wide used Solactive Euro IG Corporate Index that mirrors the performance of investment grade bonds denominated in EUR.<\/strong><\/p>\n

The new index utilizes its parent\u2019s index market-cap based index universe as its starting point but furthermore over- and underweights its constituents in correspondence to the SD-KPIndex\u00ae\u2019s methodology, rendering the ESG incorporation a so-called ESG-integration approach: On selection day, index constituents are segmented in different quintiles based on SD-KPIntegration\u00ae Scoring.<\/p>\n

The method assigns the top-20 percent a 50% overweight in the index, whereas the second twenty percent receive 25% overweight, the medium quintile remains unchanged, and both the lower twenty percent quintiles receive an underweight of 25% or 50% respectively.<\/p>\n

SD-M\u2019s proprietary SD-KPI Standard 2016-2021 consist of three industry-specific ESG-indicators, based on extensive research and developed with support from the German Federal Ministry of the Environment, global investors and analysts as well as the Sustainability Accounting Standards Board (SASB).<\/strong><\/p>\n

Solactive\u2019s collaboration with SD-M comprises two more fixed income indices, including the Solactive USD IG Corporate SD-KPIndex\u00ae for the USD corporate bond space as well as the Solactive GBP IG Corporate SD-KPIndex\u00ae for GBP denominated indexable corporate debt.<\/p>\n

Timo Pfeiffer, Chief Markets Officer at Solactive comments: \u201c<\/strong>As capital markets continue to realize the importance of integrating ESG metrics into portfolio construction, we are proud to bring them a new bond index in collaboration with SD-M. This index adequately integrates industry-specific ESG metrics in the European Corporate Bond market, focusing on those companies incorporating ESG into their business practices, while maintaining exposure to the broad market.\u201d<\/p>\n

Dr. Axel Hesse, Founder and Shareholder of SD-M comments:<\/strong> \u201cSD-M is delighted that investors could now also address the important asset class of corporate bonds using the Solactive Investment Grade Corporate SD-KPIndex\u00ae. Furthermore, the backtest of the EUR index version showed attractive 8 basis points of outperformance per year since 2010.\u201d<\/p>\n

The index design allows for versatile customizing to meet clients\u2019 specific demands and requirements. Further adjustments, such as currency hedges, can be incorporate into the index efficiently.<\/p>\n

Source : ETFWorld.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"

Solactive releases new Euro IG Corporate Index with ESG Integration developed by SD-M..<\/p>\n","protected":false},"author":4,"featured_media":20014,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"telegram_tosend":false,"telegram_tosend_message":"","telegram_tosend_target":0,"footnotes":"","_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[24],"tags":[304,232],"class_list":["post-20515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-indices","tag-esg","tag-solactive"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/20515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/comments?post=20515"}],"version-history":[{"count":1,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/20515\/revisions"}],"predecessor-version":[{"id":20516,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/20515\/revisions\/20516"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media\/20014"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media?parent=20515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/categories?post=20515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/tags?post=20515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}