GLOBAL - HSBC has launched a global climate change benchmark index, and four investable global climate change sub indices.
The climate change benchmark index is a global reference index which has been designed to reflect and track the stock market performance of key companies best placed to profit from the challenges presented by climate change.
According to HSBC, the performance of the benchmark has been tracked back to 2004 and has outperformed the MSCI World Index by around 70%.
The four investable climate change sub-indices could be used to create portfolios for a range of investment needs such as long only funds, hedge funds, exchange traded funds, discretionary funds and structured products.
The indices include a Climate Change Index, a Low Carbon Energy Production Index, a Energy Efficiency & Energy Management Index and a Water, Waste & Pollution Control Index.
Joaquim de Lima, global head of quant research for equities, said: “What makes this different and exciting is the index structure which captures a highly diverse number of investment themes with very attractive risk return characteristics.
"The construction and stock selection of the indices is based purely on quantitative criteria such as value generation and liquidity and these factors will be regularly reviewed.”
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