DAX 50 ESG Index licenced to Raiffeisen Centrobank
28 August 2020 Frankfurt
Image: anathomy / Shutterstock
Deutsche Boerse’s Qontigo has licenced the DAX 50 environmental social and governance (ESG) Index to the Austrian Raiffeisen Centrobank as an underlying for a certificate.
The DAX 50 ESG tracks the performance of the 50 largest, most liquid German market stocks that have comparably good performance based on its ESG criteria.
The index employs two complementary approaches to incorporate ESG principles into the selection criteria: standardised negative screens for companies that are involved in controversial or unsustainable activities; and positive screening based on ESG scores.
The index was introduced in March as a new standard for the growing pool of investors integrating ESG principles into their investment approach and looking for a liquid German equity benchmark.
It will be the first time this index is used as an underlying for a certificate.
Qontigo combines Deutsche Boerse’s indices STOXX and DAX and Axioma’s portfolio-construction and risk analytics tools.
According to Phillip Arnold, head of structured products sales at Raiffeisen Centrobank, the DAX 50 ESG index sends a positive signal that sustainability and investment returns go hand-in-hand.
“Our certificates universe will become even more appealing now to investors looking for a German market ESG index,” he explains.
Further, the companies must have passed standardised ESG screens related to Global Standards Screening, as well as to their involvement in controversial weapons, tobacco production, thermal coal, nuclear power and military contracting.
The base universe of the index is the HDAX universe which comprises the joint set of companies included in DAX, MDAX and TecDAX.
Elsewhere, German fintech giant Wirecard is set to be the first DAX 30 Index member to be removed due to insolvency following a multi-billion euro fraud accusation.
The DAX 50 ESG tracks the performance of the 50 largest, most liquid German market stocks that have comparably good performance based on its ESG criteria.
The index employs two complementary approaches to incorporate ESG principles into the selection criteria: standardised negative screens for companies that are involved in controversial or unsustainable activities; and positive screening based on ESG scores.
The index was introduced in March as a new standard for the growing pool of investors integrating ESG principles into their investment approach and looking for a liquid German equity benchmark.
It will be the first time this index is used as an underlying for a certificate.
Qontigo combines Deutsche Boerse’s indices STOXX and DAX and Axioma’s portfolio-construction and risk analytics tools.
According to Phillip Arnold, head of structured products sales at Raiffeisen Centrobank, the DAX 50 ESG index sends a positive signal that sustainability and investment returns go hand-in-hand.
“Our certificates universe will become even more appealing now to investors looking for a German market ESG index,” he explains.
Further, the companies must have passed standardised ESG screens related to Global Standards Screening, as well as to their involvement in controversial weapons, tobacco production, thermal coal, nuclear power and military contracting.
The base universe of the index is the HDAX universe which comprises the joint set of companies included in DAX, MDAX and TecDAX.
Elsewhere, German fintech giant Wirecard is set to be the first DAX 30 Index member to be removed due to insolvency following a multi-billion euro fraud accusation.
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