The KLD Global Climate 100 Index (GC100) is now investable in the U.S.
The GC100 is the world’s first global index – a basket of companies that provide solutions to climate change. It tracks 100 leading, global public companies of all sizes that are engaged in decarbonization.
Companies in the climate solutions value chain are positioned to benefit from increasing constraints on carbon, high fossil-fuel prices, rising energy demand, and a growing acknowledgement of climate risk.
KLD Research & Analytics, Inc. announced that Fixed Income Securities, L.P (FIS) has licensed the GC100 Index) for a unit investment trust (UIT).
The UIT is alled the KLD Global Climate 100 Index Portfolio, Series 1 (ADT 127). The trust will seek to provide above average total return primarily through capital appreciation by investing in a portfolio of the stocks included in the GC100 Index.
“Our clients have been asking us to bring a product to market that has the potential to benefit from society’s desire to limit its impact on the planet,” said Mike Boyle, Senior Vice President of Advisors Asset Management. “Until now we have been unable to find a solution that was adequately researched and diversified. We believe that a trust based on the KLD Global Climate 100 Index should be a compelling investment option.”
“While the companies in the GC100 Index alone won’t solve global warming, the Index focuses investors’ attention on where the possibilities lie,” said Peter Kinder, president of KLD. “Increasingly, institutional and individual investors recognize that climate change is an investment issue – not just an environmental issue.”
The KLD Global Climate 100 Index was created in response to the growing demand from institutions and individuals for investment strategies that address the risks and opportunities associated with global warming. Initially developed in partnership with GENI, the Global Energy Network Institute, KLD launched the GC100 Index on July 1, 2005. Since inception through March 31, 2007, the GC100 Index has produced a 42.4% cumulative total return, with a standard deviation of 12.41 and a Sharpe Ratio of 1.45. As of March 2007, GC100 Index constituents represent 15 countries, nine sectors and over $2.3 trillion in market capitalization.
About KLD Indexes
Since launching the Domini 400 SocialSM Index in 1990, the first SRI index, more than $9.5 billion is now invested in funds based on KLD’s family of six indexes. KLD Indexes is a division of KLD Research & Analytics, Inc. http://www.KLDIndexes.com
FIS/AAM Advisor’s Asset Management (AAM) is a division of Fixed Income Securities LP (FIS), a broker/dealer, member NASD, SIPC and registered investment advisor. Through its AAM division, FIS sponsors Unit Investment Trusts (UITs) termed Advisors Disciplined Trusts or ADTs. With over $2.7 billion in assets under supervision, AAM provides financial professionals efficient access to the financial markets. .
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