Credit Suisse has announced the launch on NYSE Arca of Elements exchange-traded notes linked to the Credit Suisse Global Warming Index, which aim to offer exposure to stocks of companies t
Credit Suisse has announced the launch on NYSE Arca of Elements exchange-traded notes linked to the Credit Suisse Global Warming Index, which aim to offer exposure to stocks of companies that have an increased focus on products or services related to minimising global warming.
The Suisse Global Warming Index, Exchange Series, is an equally weighted proprietary index of 50 stocks that is rebalanced every May and November and calculated by Standard & Poor’s as a total return index denominated in US dollars.
Credit Suisse identifies companies with business segments that are focused on minimising global warming, both in the area of managing energy demand (companies that provide solutions for efficient energy consumption) and improving the supply of energy-efficient technology and environmentally friendly power (companies that limit carbon dioxide emissions, are involved in electricity generation from renewable sources or create bio-fuels or fuel-cells).
These companies are systematically ranked according to the rules-based Holt Scoring Methodology and the 50 highest-ranking stocks are selected for inclusion in the index.
‘We believe that global warming is going to be one of the key investment themes of our generation,’ says Michael Clark, head of structured retail products for Credit Suisse in the Americas. ‘This product provides investors with easy access to the highest-ranking companies in this emerging sector.’
David Holland, managing director and co-head of Holt Valuation and Analytics, says: ‘The Holt Scoring Methodology is based on three categories. The operational category scores stocks according to corporate performance characteristics, the valuation category scores stocks according to Holt’s discounted cash flow model, and the momentum category scores stocks according to metrics that objectively measure market sentiment.’
Elements ETNs are designed to track the return of specific market measures and to provide convenient access to strategies and markets that traditionally have not been readily available to individual investors.
Credit Suisse has also launched the Elements MLCX Precious Metals Index ETN on NYSE Arca. The exchange-traded note is based on the MLCX Precious Metals Index, which is designed to provide a benchmark for the precious metals sector, including four physical commodities: gold, silver, platinum and palladium. The listings bring the number of ETNs on NYSE Arca to 43. At the same time, Credit Suisse has listed a third ETN, based on the MLCX Livestock Index – Total Return, on the American Stock Exchange.