sustainability indexes - rising interest in asia
DESCRIPTION
Kathelijne Marritt Alers, Regional Director - SAM Indexes - SwitzerlandTRANSCRIPT
Dow Jones Sustainability Indexes
A cooperation of Dow Jones Indexes, STOXX Ltd. and SAM
Kathelijne Marritt Alers May 2010
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Content
• SAM - Insights
• Sustainability Investing – Market Developments
• SAM Research
• Dow Jones Sustainability Indexes
• Theme Indexes
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SAM at a Glance
• Investment boutique focused exclusively on Sustainability Investing since 1995
• Offering complementary capabilities of Sustainability Investing
• Integration of ESG criteria in company valuation
• Powering Dow Jones Sustainability Indexes since 1999
• Member of Robeco (part of AAA-rated Rabobank Group)
• EUR 10.3 billion total assets (as per 31.12.2009)
• Servicing a global and diversified client base
• Approx. 100 employees based in Zurich, Switzerland
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• Focus: Exclusive focus on exploiting sustainability foresight
• Methodology: Leading, proprietary research methodology
• Experience: In-depth knowledge in sustainability investing since 1995
• Database: One of the world‘s largest databases on corporate sustainability
• People: Unique, cross-disciplinary investment team with financial and scientific background
Sustainabilityforesight
Understandand interpretthe business case
Long-term outstandinginvestment results
SAM’s Core CompetencesLeading in translating sustainability foresight into outstanding investment results
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Sustainability Investing
Integration
Engagement
Sustainability Theme
Investing
Best in
Class
• Integration aims to incorporate EES factors into the investment decision-making process
• Best-in-Class is an investment approach based on selecting the sustainability leaders
• Sustainability Theme Investing is focused on companies providing solutions for global trends
• Engagement entails entering into an active dialogue with companies on important EES issues
Sustainability Investing means striving to achieve enhanced risk return profiles by also considering Economic, Environmental and Social (EES) criteria
SustainabilityInvestingby SAM
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Key Facts – SAM Credentials
…
Source: UN PRI Report on Progress 2009.
Source: AkzoNobel Press Release
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Sustainability Investing – Market Developments
Source: Robeco/Booz: Responsible Investing: A Paradigm Shift. From Niche to Mainstream. RI=Responsible Investing
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%
Total Industry Criteria GeneralCriteria
Social Dimension
Environmental Dimension
Economic Dimension
57%33%
20%
100%
43%
33%
33%
Actual weightings for the economic, environmental and social dimension may differ between industry groups to reflect the sector’s specific exposure to certain sustainability trends. The graph above is illustrative of the approximate weightings.
SAM Research
Assessment Criteria
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Key Facts – SAM Indexes
• Cooperation with Dow Jones Indexes and STOXX for the publication and licensing of the Dow Jones Sustainability Indexes (DJSI). Launch in 1999.
• Broad family of DJSI benchmarks including Global, European, Eurozone, North American, US, Asia Pacific, and Japanese indexes.
• Over 8 billion USD in DJSI-based investment vehicles.
• Compiling the Australian SAM Sustainability Index (AuSSI) and further customized theme indexes (e.g. World Water Index, World Solar Energy Index)
• Launched the DJSI Korea in partnership with the Korea Productivity Centre in October 2009.
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Dow Jones Sustainability Indexes (DJSI)
• Integrated assessment of economic, environmental and social criteria with a strong focus on long-term shareholder value.
• Consistent rules-based methodology, primary research (direct contact to companies).
• Focus on best-in-class companies. Yearly review and continuous monitoring of companies.
• Assurance of the assessment process by Deloitte.
Overview
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DJSI Assets
Assets based on DJSI (in million USD)
-
1'000.00
2'000.00
3'000.00
4'000.00
5'000.00
6'000.00
7'000.00
8'000.00
9'000.00
12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09
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DJSI Licensees
as of April 30, 2010
Aegon (NL) Landesbank Berlin (DE)Ahorro Corporacion Gestion (ES) MEAG Munich Ergo (DE)Allianz Global Investors (UK) Metzler Asset Management (DE)Banca IMI S.p.A. (IT) Nikko Asset Management (JP)Bancaja (ES) Nordea Bank Finland (FI)Banca Monte dei Paschi di Siena (IT) PRIMA sgr (IT)Barclays Capital (UK) Rabo Bank (UK)BCGE Asset Management (CH) Raiffeisen Centrobank (AT)BFT Gestion (FR) Robeco (NL)BlackRock Asset Management (DE) SAM Sustainable Asset Management (CH)BNL Gestioni (IT) Skandinaviska Enskilda Banken (SE)BT Financial Group (AU) Seligson & Co Fund Management (FI)Chicago Climate Exchange (US) Sella Gestioni (IT)Credit Suisse Asset Management (CH) Shinhan BNP Paribas Asset Management (KR)Credit Suisse (CH) Sparinvest (DK)Danske Bank (SE) State Street Global Advisors (US)Danske Capital, Sampo Bank (FI) Storebrand Kapitalforvaltning (NO)Danske Invest (DK) TD Asset Management (CA)Deutsche Postbank (DE) The Dreyfus Corporation (US)Dresdner Kleinwort (UK) Theodoor Gilissen Bankiers (NL)Folksam Sak (SE) UBS Deutschland AG (DE)Fortis Investment Management (BE) Volksbank AG (AT)Generali Investments Italy SpA (IT) Vontobel (CH)Hyundai Investments (KR) VZ VermögensZentrum (CH)Intesa Sanpaolo Group (IT) West AM (DE)Invesco (DE) West LB (DE)Kepler Fonds (AT) Yurie Asset Management (KR)Kutxa (ES)
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DJSI World – Index Range
DJSI World 317 Components
DJSI World ex Alcohol 308 Components
DJSI World ex Tobacco 315 Components
DJSI World ex Gambling 302 Components
DJSI World ex Armaments & Firearms 313 Components
DJSI World ex Alcohol, Tobacco, Gambling, Armaments & Firearms 287 Components
DJSI World ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entertainment 279 Components
DJSI World 80 80 Components
DJSI World ex US 266 Components
DJSI World ex US 80 80 Components
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DJSI World – Selection
Dow Jones Global Total Stock Market Index
2,500 largest companies
57 DJSI sectors
51 countries
Component Selection
Top 10% of companies in terms of sustainability in each DJSI sector
15% target market cap coverage in each supersector
317 Components
57 DJSI sectors
27 countries
Annual Review 09: 33 Adds (9.2% of mcap), 33 Deletes (3.5% of mcap)
DJSI World
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DJSI World – Performance
Since Launch, 08/99 – 04/10 (USD, Total Return)
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DJSI Asia Pacific – Index Range
DJSI Asia Pacific 130 Components
DJSI Asia Pacific ex Alcohol, Tobacco, Gambling, Armaments & Firearms 109 Components
DJSI Asia Pacific 40 40 Components
DJSI Japan 40 40 Components
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DJSI Asia Pacific – Selection
Dow Jones Global Total Stock Market Index
600 largest companies from the developed Asia Pacific countries
43 DJSI clusters
Component Selection
Top 20% of companies in terms of sustainability in each DJSI sector
45% target market cap coverage in each super sector
130 Components
39 DJSI clusters
DJSI Asia Pacific
Annual Review 09: 21 Adds (14.1% of mcap), 13 Deletes (9.2% of mcap)
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DJSI Asia Pacific – Performance
Since Launch, 01/09 – 04/10 (USD, Total Return)
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DJSI Asia Pacific 40 – Selection
DJSI Asia Pacific
130 Components
Sustainabilitly Leaders of the developed Asia Pacific countries
Component Selection
Largest 40 components out of the DJSI Asia Pacific(maximum 5 per super sector)
40 components weighted by sustainability score
DJSI Asia Pacific 40
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DJSI Asia Pacific 40 – Performance
09/08 – 04/10 (USD, Total Return)
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DJSI Japan 40 – Selection
DJSI Asia Pacific
130 Components
Sustainabilitly Leaders of the developed Asia Pacific countries
Component Selection
Largest 40 Japanese components out of the DJSI Asia Pacific(maximum 5 per super sector)
40 components weighted by sustainability score
DJSI Japan 40
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DJSI Japan 40 – Performance
09/08 – 04/10 (USD, Total Return)
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SAM IndexesJosefstrasse 218
8005 ZurichSwitzerland
Phone: +41 44 653 1803Fax: +41 44 653 1810
E-Mail: [email protected],
www.sustainability-indexes.com
SAM Indexes