MSCI Inc (NYSE: MSCI), a provider of indexes and portfolio construction and risk management tools and services for global investors, has launched a suite of Global Ex Tobacco Involvement Indexes.
The new indexes are free float-adjusted market capitalisation 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 per cent or more aggregate revenue from distribution, retail and supply of tobacco related products.
“There is a growing demand for exclusionary indexes globally, including interest among the world’s largest pension and endowment funds for tobacco exclusion benchmarks,” says Deborah Yang (pictured), Global Head of ESG Indexes. “We are pleased to announce 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.”
The suite of Tobacco Exclusion Indexes are as follows:
• 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.
