{"id":84031,"date":"2019-11-25T23:24:00","date_gmt":"2019-11-25T22:24:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/innovation\/solactive-releases-new-euro-ig-corporate-index-with-esg-integration-developed-by-sd-m\/"},"modified":"2019-11-25T23:24:00","modified_gmt":"2019-11-25T22:24:00","slug":"solactive-releases-new-euro-ig-corporate-index-with-esg-integration-developed-by-sd-m","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/innovation\/solactive-releases-new-euro-ig-corporate-index-with-esg-integration-developed-by-sd-m\/","title":{"rendered":"Solactive releases new Euro IG Corporate Index with ESG Integration developed by SD-M"},"content":{"rendered":"

ESG remains the big topic in the year of 2019 since more and more investors emphasize this exciting and future-oriented topic. The ESG incorporation methodologies are manifold, and for each purpose, ETF providers and asset managers can find their benchmark. The variety of screening-practices can appear overmuch to some individuals. 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. 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.<\/strong> <\/em><\/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. 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. 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).<\/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: \u201cAs 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<\/em><\/p>\n

Dr. Axel Hesse, Founder and Shareholder of SD-M comments: \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<\/em><\/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","protected":false},"excerpt":{"rendered":"

ESG remains the big topic in the year of 2019 since more and more investors emphasize this exciting and future-oriented topic. The ESG incorporation methodologies are manifold, and for each purpose, ETF providers and asset managers can find their benchmark…<\/p>\n","protected":false},"author":20,"featured_media":84029,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1471],"tags":[1655,1718,1849,1671,1826,1682,1651,1437,1691,1453,2234,2103,1720,1685],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/84031"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=84031"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/84031\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/84029"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=84031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=84031"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=84031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}