Zug (Sept. 24 2019) – Qontigo’s global index provider STOXX Ltd. has licensed the iSTOXX® Global Cities of Tomorrow Select 30 Index to Citi to serve as an underlying for structured products.
The index allows a targeted investment in the sustainable smart city megatrend. It is comprised of 30 liquid stocks with low volatility and high dividend yield. The components are selected from a pool of companies that are addressing the needs of the cities and citizens of the future.
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“With more than two thirds of the world population projected to live in urban areas by 2050 according to the United Nations, cities will face several challenges that need to be anticipated. Connectivity, smart buildings, environmental sustainability, urban support services and smart mobility stand out as key priorities. In the context of a growing demand for thematic investing driven by ESG criteria, the iSTOXX® Global Cities of Tomorrow Select 30 Index delivers an innovative and unprecedented opportunity to play this topical theme in structured products. Thanks to this partnership with STOXX, Sustainalytics and FactSet, Citi enhances its current ESG footprint and offers unique access to their clients,” said Alexandre Isaaz, EMEA Head of Equity Structuring, Citi.
“The iSTOXX® Global Cities of Tomorrow Select 30 Index includes companies which provide a diverse set of solutions for growing urban population, limited natural resources and increasing focus on environmental sustainability. Moreover, eligible companies are screened by ESG scores to result in a selection of leaders with regards to environmental, social and governance criteria. This index is an innovative addition to our unique thematic offering,” said Willem Keogh, STOXX Head of ESG, Thematic and Factor Solutions.
Revere (RBICS) data allow a detailed breakdown of the revenue sources of the eligible companies, helping the iSTOXX® Global Cities of Tomorrow Select 30 Index to select companies with substantial exposure to the sustainable smart city megatrend.
In the selection process of the index, industry, region and country filters are applied to ensure diversification. Companies that are in contravention of the UN Global Compact Principles or are involved in Controversial Weapons activities, as identified by Sustainalytics, are excluded. Additionally, companies are excluded which are involved in Weapons (Small Arms and Military Contracting), Gambling, Adult Entertainment, Unconventional Oil & Gas (Arctic Oil and Gas Exploration, Oil Sands and Shale Energy), Conventional Oil & Gas, Thermal Coal, Nuclear Power, Tobacco, Aerospace and Defense.
