FTSE Global Choice Index Series
FTSE Russell has launched the FTSE Global Choice Index Series, the first FTSE Russell standard index family to incorporate several categories of ESG-related exclusions in its design. Increasingly, investors are looking to exclude stocks from their portfolios based on the impact of companies’ products and conduct on society and the environment. In addition to the standard index family, clients can construct bespoke ‘Choice’ indexes using an innovative ‘building blocks’ approach, to customise alignment with their particular values and investment objectives.
The FTSE Global Choice Index Series is a market capitalisation weighted index series with a rules-based methodology for defining how the products and conduct of a company impact society and the environment. The result is a framework for applying robust and customisable values-based exclusions to a broad market index.
The FTSE Global Choice Index Series consists of the following indexes:
- FTSE Global All Cap ex US Choice Index.
- FTSE US All Cap Choice Index.
- FTSE Developed ex Australia ex Non-Renewable Energy/Vice Products/Weapons Index.
The index series includes negative screens in three product categories and two conduct categories:
The product-related screening criteria covers:
- Non-Renewable Energy (Fossil Fuels and Nuclear Power).
- Vice Products (Adult Entertainment, Alcohol, Gambling and Tobacco).
- Weapons (Civilian Firearms, Controversial Weapons and Conventional Military Weapons).
The conduct-related screening criteria covers:
- Controversies (based on the UN Global Compact Principles).
- Diversity practices
The FTSE Global Choice Index Series is part of FTSE Russell’s extensive sustainable investment index and data offering which includes the Smart Sustainability indexes, FTSE4Good indexes, Green Revenues data model and ESG Ratings.
Millennials and female investors seeking ESG products: Q&A with FTSE Russell's Arisa Kishigami & Vanguard's Rachel White
FTSE Russell has launched a new range of ESG indices, the FTSE Global Choice Index Series, of which one index has been used by Vanguard for their new Vanguard Ethically Conscious Funds. Industry Moves speaks to FTSE Russell head of ESG Asia Pacific, Arisa Kishigami (L), and Vanguard product strategy manager Rachel White (R) about the inception of the indices and the funds and the increasing demand they are seeing from investors for funds that align with their values.
Head of Business Development Aus & NZ
t: +61 (0)2 8823 3523