S&P Indices licenses out ethical index for ETF
S&P Indices has licensed the S&P Ethical Pan Asia Select Dividend Opportunities Index (Ethical Pan Asia Select) to CIMB-Principal Asset Management (S) Pte Ltd (CIMB-Principal) for the creation and listing of an ETF based upon the index. The ETF will list on the Singapore Stock Exchange with an anticipated trading date of March 8, according to CIMB-Principal.
The S&P Ethical Pan Asia Select is designed to track the performance of ethically conscious, high dividend-yielding stocks from the pan Asia region. To be included in the index, stocks must have less than 5% revenue exposure to alcohol, gaming, and tobacco. The top 40 highest yielding stocks in the pan-Asia region that meet these criteria are represented in the index.
“Dividends form a highly important part of total returns and investment strategies for many investors,” said Alka Banerjee, vice president of strategy and global equity indices at S&P Indices. “The S&P Ethical Pan Asia Select is a central means of measuring dividend performance in Asia, and we are delighted to have licensed the index to CIMB-Principal to create and launch an ETF.”
“This ETF taps into the high-growth economic prospects of the pan-Asia region and aims to offer investors regular income and capital growth potential by investing in high dividend-yielding stocks in Asia-Pacific, excluding Japan,” added Ken Goh, chief executive officer, CIMB-Principal. “As one of the pioneers in listing and managing ETFs on the Singapore Stock Exchange, we are confident that CIMB-Principal’s track record offers the requisite strengths and expertise for a rewarding collaboration.”