Bloomberg Introduces Innovative Indices for Sustainable Investing
Bloomberg Launches Screened Choice Equity Indices
Bloomberg has unveiled an exciting suite of investment tools known as the Bloomberg Screened Choice Indices. These indices are tailored to assist investors in integrating their ethical preferences into their portfolios, allowing them to align investments with personal values around sustainability.
Customizable Investment Strategies
The newly introduced indices provide a framework that enables users to craft their investment strategies by incorporating various exclusions. This means investors can select which factors are significant to them, whether they prefer to avoid companies involved in certain industries or those that do not adhere to specific ethical standards.
Innovative Modular Approach
The Bloomberg Screened Choice Indices are distinct in that they offer a modular approach. Investors can customize their indices by selecting from different exclusion categories, creating a personalized investment path in a simple and organized manner. The modules cover a range of exclusion themes that are frequently applied in ethical investment strategies, striking the balance between sustainability and profitability.
Unpacking the Exclusion Modules
These modules include:
- Core: Excludes companies involved in controversial sectors like thermal coal, tobacco, and offensive weaponry, making it a sound choice for mainstream investors.
- Fossil Fuels and Non-Renewable Energy: Eliminates firms engaged in fossil fuel production, which is increasingly a priority for ethical investors.
- Fossil Fuels Enhanced: Takes this a step further by refusing investment in any companies involved directly or indirectly in fossil fuel industries.
- Vice Products: Stands against industries linked to adult entertainment, alcohol, tobacco, and gambling.
- Weapons: Excludes defense contractors and manufacturers of controversial weapons.
- Controversial Conduct: Removes firms that have been involved in significant environmental, social, or governance scandals.
Comprehensive Index Offerings
Initially, Bloomberg is providing 66 pre-configured indices based on combinations of the aforementioned modules. Investors can choose from the Bloomberg Select Indices, Bloomberg Select FossilEX Indices, or go with the complete set of the Bloomberg Screened Choice Indices. This array ensures that there is an index suitable for various investor needs, whether for benchmarking or asset allocation strategies.
Advanced Technology and Global Reach
Leverage the power of Bloomberg’s proprietary analytics and data solutions has been vital in constructing these indices. By utilizing their advanced entity mapping capabilities, the indices ensure precision in filtering out companies that don’t meet the established criteria.
Moreover, the integration of the Bloomberg Industry Classification System (BICS) allows for enhanced screening accuracy, organizing over 60,000 listed equities into defined categories for efficient management and comparison.
Availability
The Screened Choice Indices are offered in both USD and EUR. They cover a diverse range of markets, including Developed, Emerging, and specific regional sectors, ensuring that investors have ample choice to suit their geographical investment strategies.
Acknowledging Bloomberg's Commitment
As with all of its offerings, the Bloomberg Screened Choice Indices are crafted with transparency in mind, allowing clients to easily access the full suite through the Bloomberg Terminal. Clients can also explore detailed research and methodologies directly from the official Bloomberg documentation.
About Bloomberg Index Services Limited
Bloomberg Index Services Limited possesses significant expertise in creating top-tier indices that span various asset classes. Their indices aim to meet the evolving needs of investors while maintaining a strong focus on reliable technologies and trusted data for increased efficiency in asset management.
About Bloomberg
Bloomberg stands as a leading force in the financial information sector, leveraging advanced technology to furnish essential data and insights that aid market participants in making informed investment decisions. Their commitment to transparency and innovation continues to foster collaboration across the financial ecosystem.
Frequently Asked Questions
What are the Bloomberg Screened Choice Indices?
The Bloomberg Screened Choice Indices are customizable equity benchmarks designed to help investors align their portfolios with their ethical preferences and exclusions.
How do the exclusion modules work?
Investors can choose specific modules that dictate which companies are excluded based on ethical or sustainability criteria, allowing highly personalized investment strategies.
What types of exclusions are available?
Exclusions cover industries such as fossil fuels, tobacco, adult entertainment, and controversial weapons among others, ensuring options for diverse ethical standards.
Where can investors access these indices?
Investors can access the Bloomberg Screened Choice Indices through the Bloomberg Terminal, where comprehensive research and methodologies are also available.
What additional information does Bloomberg provide about these indices?
Bloomberg offers detailed documentation regarding the methodologies and configurations of these indices, ensuring transparency and thorough understanding for investors.
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