New York / San Francisco – Investors seeking positive environmental, social and human benefits as well as strong financial performance have had limited choices for their portfolios – until now.
The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), CRD Analytics and HIP Investor Inc. on April 19 announced the availability of the NASDAQ OMX CRD Global Sustainability Index (Nasdaq:QCRD) as an investable portfolio, offered as a managed account to both institutional and individual investors.
Launched in June 2009, the NASDAQ OMX CRD Global Sustainability Index includes the top 100 global companies leading in transparency and the realization of quantitative results through superior financial, environmental, social and governance (ESG) performance. These leading indicators of performance tend to create a portfolio that seeks to provide attractive risk-adjusted returns and an overall positive impact on society.
“Many mutual funds and exchange traded funds (ETFs) focus on excluding the negative companies, rather than focusing on the leaders in positive performance,” said Michael Muyot, President of CRD Analytics and co-creator of the NASDAQ OMX CRD Global Sustainability Index. “This investable index prioritizes those global firms best positioned for success – financially, environmentally and socially.”
NASDAQ OMX Global Index Group helped pioneer the NASDAQ OMX CRD Global Sustainability Index in June 2009, while rival indexers used older methodologies. “As a premier full-service index provider, we have a proven track record of designing innovative indexes that can drive growth and contribute to a better world,” said John Jacobs, Executive Vice President of NASDAQ OMX. “Companies in the NASDAQ OMX CRD Global Sustainability Index, now available as a managed account at HIP Investor Inc., are leaders in voluntarily disclosing their current ESG risks, as well as their revenue opportunities, which can lead to improved financial performance.”
Institutional and individual investors seeking positive ESG impacts for their portfolios along with potentially favorable financial performance now have choices to fill that need.
“Investors are seeking to diversify their portfolios with leading companies that help address human needs like healthcare, eco-efficient solutions and access to finance, which can lead to revenue growth,” said R. Paul Herman, CEO of HIP Investor Inc., a registered investment adviser and portfolio manager of the NASDAQ OMX CRD Global Sustainability Index managed account. “The companies in this index rack and manage their sustainability metrics in their operations and supply chains, and typically integrate sustainability in multiple aspects of their decision-making.”
The sustainability-focused portfolio is available as a managed account available to institutional and individual investors and investment advisors via HIP Investor Inc. on the FOLIOfn® Investments institutional model-manager exchange platform and the Charles Schwab Institutional®‘s Managed Account Platform and Marketplace.
The NASDAQ OMX CRD Global Sustainability Index is an equal-weighted equity index that serves as a benchmark for stocks of companies that are taking a leadership role in sustainability performance and reporting and are traded on a major U.S. stock exchange. The Index is made up of companies that are leaders in disclosing and managing their carbon footprint, energy usage, water consumption, hazardous and non-hazardous waste, employee safety, workforce diversity, management composition and other sustainability leading indicators.
About NASDAQ OMX Global Index Group
NASDAQ OMX Global Index Group is engaged in the design, development, calculation, licensing, and marketing of NASDAQ OMX Indexes. NASDAQ OMX Global Index Group specializes in the development of indexes focusing on NASDAQ OMX’s brand themes of innovation, technology, growth, and globalization. NASDAQ OMX Global Index Group also provides custom index services and design solutions as a third-party provider to selected financial organizations. For more information, visit www.nasdaq.com/indexes.
