Solactive indices target greenhouse gasses

Green energyGerman index firm Solactive has launched a range of low-carbon indices that exclude companies with high greenhouse gas emissions. The firm’s low-carbon equity range of indices covers global and regional exposures to carbon and include a smart beta option. The indices exclude companies with comparatively high greenhouse gas emissions, with emissions analysed on a sector-per-sector basis to account for varying carbon intensity. Companies without “meaningful” climate risk mitigation or adaptation strategies are also excluded. Hence, only the top 50% companies showing the best carbon emission numbers compared to their respective sector are included. Components are weighted according to market capitalisation. The smart beta versions are constructed by using a high dividend, low volatility approach. Steffen Scheuble, chief executive officer of Solactive, said: “Global warming is a big challenge, but also a great opportunity. Investors now have the chance to take action on climate, mitigate risks and capitalise on the opportunities created by smart companies who pursue low-carbon investment strategies.” ©2016 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.