KLD Indexes and Jantzi Research, Inc. have announced the introduction of the Global Environment 60sm Index. KLD and Jantzi developed the GE60 to support investment strategies that help build a more sustainable global economy. Canada’s Claymore Investments Inc. plans to offer an exchange-traded fund to individual and institutional investors based on the Global Environment 60.
The Global Environment 60 is designed to address global trends that will have a profound impact on capital markets, including demographic shifts, industrialization of the developing world, and climate change. These trends have already increased both demand for and prices of commodities (including water, energy, food and other natural resources) and consumer goods.
The Global Environment 60 constituents are pure-play global companies that derive 50% or more of their business from products or services related to one of five environmental themes: sustainable water, alternative energy, clean technology, green building and pollution prevention.
KLD Indexes and Jantzi select the top 12 companies (by float-adjusted market capitalization) from each of the five themes. The Global Environment 60 aggregates these 60 companies into a highly liquid, investable index.
The Global Environment 60(GE60) is the first of the Global Environment Indexsm (GEI) series, which will also include an index based upon each GEI theme and a benchmark index that will aggregate all constituents of the five themed indexes.