Societe Generale has launched its first Socially Responsible Investment Exchange Traded Note (SRI ETN) on the London Stock Exchange (LSE) donating all the management fees to Teenage Cancer Trust.
The launch followed a report published by the bank’s Research team on the growing importance of integrating Environmental, Social & Governance (ESG) metrics into investment research. The integration of ESG as an assessment of a company’s management quality and risk governance is increasingly becoming part of an Asset Manager’s fiduciary responsibility.
The SRI ETN is a highly flexible, transparent investment which tracks a diversified basket of 25 SRI stocks on a one-for-one basis. By combining ESG metrics with financial and stock performance data, Societe Generale’s Research team has identified one company from 25 different sectors, considered to be leaders in their sector for ESG management, offering the best combination of financial as well as ESG performance, (please refer to Notes to Editors for full listing).
Enhancing the SRI aspect of the product the Annual Management Charge (0.50%) of the SRI ETN will be donated to Teenage Cancer Trust, Societe Generale’s UK Charity of the Year, chosen by its employees in the UK and the Channel Islands.
Like all Societe Generale Exchange Traded Products, the SRI ETN benefits from live pricing on the LSE, which means investors can buy or sell units of GBP100 or EUR100 at any time during normal market hours. In the same way as a direct holding, capital is at risk.
Investors in the SRI ETN must be aware that they are taking on credit risk to Societe Generale. If Societe Generale is unable to fulfill its obligations, investors can lose some or all of their investment. Societe Generale is the only market maker which may affect liquidity. The SRI Tracker can be bought in GBP or EUR versions. Currency risk exists where the stock is listed in a currency different to that of the SRI Tracker.