New Finvex Ethical & Efficient Europe 30 launched in collaboration with oekom research
In collaboration with oekom research, the Brussels-based Finvex Group has launched the Finvex Ethical & Efficient Europe 30 sustainability index. The index comprises a total of 30 European companies, which, in a two-stage process, are selected from the largest European companies by market capitalization. In the first stage, oekom research identifies those companies which, based on its analyses, are amongst the companies operating most sustainably in their industries and have therefore been awarded oekom Prime Status. The companies must also meet stringent exclusion criteria.
In the second stage, Finvex analyses the liquidity and risk of the equities selected in this way. Using a model developed by Finvex and already tried out by other indexes, it examines aspects such as their volatility and possible correlation risks. At the beginning of each month, the composition of the index is reviewed in this way.
“This combination of stringent sustainability criteria and a proven risk management system is the stand-out feature of the Index” says Benedict Peeters, CEO of Finvex, explaining the concept of the Finvex Ethical & Efficient Europe 30. “Working together with oekom research, we have defined the exclusion criteria in such a way that they comply in particular with the requirements of church investors.”
Based on the Index, Société Générale has developed a structured bond which will be issued at the end of August 2014. “The E-bond will enable investors to invest indirectly in the sustainability index and, with capital protection of 95 per cent, to share in the success of the Index when it is performing positively”, says Philip Piltz, Head of Retail & Private Banks Distribution, Germany & Austria, at Société Générale, explaining the principle of the bond. The product is aimed at investors who, over the term of approximately seven years, expect the sustainability index to show price gains, but wish to limit their maximum loss to five per cent in the event of a decline in the performance of the Index’s underlying assets.
The bond (ISIN: DE000A1UN6B8) is licensed for distribution Germany and Austria.