Nestle S.A. (NESN.VX), Novartis AG (NYSE: NVS), and IBM (NYSE: IBM) are among the top holdings in the newly created Dow Jones Sustainability World Enlarged Index (DJSI World Enlarged).
The fund, created by SAM and Dow Jones Indexes will launch on November 30, 2010, and is designed to accommodate a "broader sustainability benchmark". As such, the DJSI World Enlarged tracks the performance of the most sustainable 20% of companies out of the largest 2,500 companies in the Dow Jones Global Total Stock Market Index.
The components of the fund are selected according to SAM's systematic Corporate Sustainability Assessment, which analyzes company performance in terms of economic, environmental and social criteria. The new index has 513 components, is reviewed on an annual basis, and is weighted according to free float market capitalization. Additionally, there will be a subset index of 459 components that excludes companies from the following sectors: tobacco, alcohol, gambling, armament and firearms, and adult entertainment.
"SAM Indexes has repeatedly received inquiries for a more extensive investment universe from institutional investors managing sustainability portfolios. It is inspiring to see the increasing importance investors attribute to sustainability criteria and we are looking forward to providing this benchmarking tool, while continually expanding our unique Sustainability Investing platform," said Rodrigo Amandi, managing director, SAM Indexes.
The DJSI World Enlarged appeals to investors desiring a broader global gauge for their sustainability investments. Additionally, the new index further complements the Dow Jones Sustainability Indexes family. Today, the index series comprises a variety of broad and blue-chip geographical benchmarks as well as additional subsets. More than $8 billion in assets under management is currently linked to the DJSI.
Top holdings in the DJSI World Enlarged Index are:
- HSBC Holdings PLC (HSBA.L)
- Nestle S.A. (NESN.VX)
- Procter & Gamble Co. (NYSE: PG)
- International Business Machines Corp. (NYSE: IBM)
- Johnson & Johnson (NYSE: JNJ)
- General Electric Co. (NYSE: GE)
- Chevron Corp. (NYSE :CVX)
- BHP Billiton Ltd. (NYSE: BHP)
- Vodafone Group PLC (Nasda: VOD)
- Novartis AG (NYSE: NVS)