RobecoSAM and S&P Dow Jones Indices launch DJSI Diversified Family
31 May 2013
By Asia Asset Management
RobecoSAM and S&P Dow Jones Indices have launched the Dow Jones Sustainability Diversified Indices Family (DJSI Diversified Family). The new offering provides investors with a family of indices designed to have risk/return characteristics similar to standard global equity benchmarks, but with significantly greater representation to more sustainable companies.
A practical mainstream option the DJSI Diversified Family is designed for investors who measure their performance against a standard benchmark, but also value the integration of sustainability criteria. Sustainable companies from the S&P Global LargeMidCap Index or regional subindices are selected while seeking to ensure that the resulting index has a low tracking error by avoiding any regional, size or industry bias.
Guido Giese, head of indices, RobecoSAM, said: “We launched the Diversified Family in response to increasing demand we have seen in the market for a sustainability index that gives investors the opportunity to gain exposure to sustainability without taking on too much risk relative to their standard benchmark. It is an optimal solution for passive investors looking to integrate sustainability into their portfolios while remaining close to the benchmark in terms of asset allocation.”
Alka Banerjee, managing director of global equity indices at S&P Dow Jones Indices, added: “The DJSI Diversified Indices measure the performance of the world’s sustainability leaders while ensuring geographic diversification and reducing tracking error to traditional global benchmarks. We are excited to again work with RobecoSAM in launching new sustainability indices.”
Sustainability against the standard
The DJSI Diversified Family follows the same construction approach used in standard benchmark index families. It covers 26 developed market and 20 emerging market countries and replicates the regional and sector allocation of the S&P Global LargeMidCap Index while taking sustainability performance into account. Companies’ sustainability profiles are evaluated using RobecoSAM’s proprietary Corporate Sustainability Assessment (CSA) methodology.
New indices complement established DJSI family
The DJSI Diversified Family leverages the same research capabilities used to construct the existing DJSI. In addition, the DJSI Diversified Family uses specific rules to ensure country, sector and size diversification. Due to the fact that sustainability score distributions differ depending on company size, the DJSI Diversified Family makes use of a size-adjusted relative score (rather than an absolute Total Sustainability Score as is used for the DJSI).
Overview of DJSI Diversified index family (effective as per May 30, 2013):
Dow Jones Sustainability World Diversified Index
Dow Jones Sustainability World Developed Diversified Index
Dow Jones Sustainability Emerging Markets Diversified Index
Dow Jones Sustainability Europe Diversified Index
Dow Jones Sustainability North America Diversified Index
Dow Jones Sustainability Asia Pacific Diversified
Dow Jones Sustainability Emerging Markets Plus Diversified Index
Dow Jones Sustainability World Developed ex Korea Diversified Index
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