Wednesday, September 26, 2018 / 02:32
PM / MSCI Inc
• Indexes designed for investors who seek to exclude stocks involved in the production of tobacco
MSCI Inc. (NYSE: MSCI), a leading provider of indexes and portfolio construction and risk management tools and services for global investors, announced today the launch of a suite of Global Ex Tobacco Involvement Indexes.
The new indexes are free float-adjusted market capitalization weighted indexes designed to be used as a benchmark for investors who seek to exclude stocks involved in tobacco production. The indexes exclude all companies classified as producers of tobacco and also exclude companies deriving 5 percent or more aggregate revenue from distribution, retail and supply of tobacco related products.
MSCI, the world’s largest provider of environmental social and governance (ESG) indexes1 and research2 , has longstanding experience in developing tobacco exclusion custom indexes for global clients. Building on nearly 20 years of expertise, these new Ex Tobacco Involvement Indexes will become a part of the standard offering in MSCI’s ESG index module.
“There is growing demand for exclusionary indexes globally, including interest among the world’s largest pension and endowment funds for tobacco exclusion benchmarks,” said Deborah Yang, Global Head of ESG Indexes. “We are pleased to announce today the launch of a suite of Ex Tobacco Involvement Indexes, which combined with our existing ESG indexes, provide global clients with an array of tobacco exclusion solutions. By making this suite of indexes part of the standard ESG index module offering, it makes a tobacco exclusion investment strategy easier to implement, and keeps the cost of adoption low, reducing hurdles to removing tobacco for both passive and active portfolios.”
MSCI has launched an initial suite of Tobacco Exclusion Indexes:
• MSCI ACWI ex Tobacco Involvement Index
• MSCI World ex Tobacco Involvement Index
• MSCI EAFE ex Tobacco Involvement Index
• MSCI Japan ex Tobacco Involvement Index
• MSCI EM ex Tobacco Involvment Index