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Bloomberg Unveils Screened Choice Equity Indices

In a significant move aimed at investors seeking customization in ethical investments, Bloomberg has launched its Screened Choice Indices. This comprehensive suite of market cap-weighted equity benchmarks enables users to integrate their values-based exclusions into investment portfolios seamlessly. By offering flexibility in screening preferences, Bloomberg aims to meet the diverse needs of investors who want sustainable investment options.

Innovative Features

"The launch of Screened Choice Indices illustrates Bloomberg Indices' commitment to enhancing our equity offerings while providing transparent and customizable sustainable investment solutions," commented Zarina Nasib, the Global Head of Sustainable Indices Index Product at Bloomberg Index Services Limited.

Investors are now able to employ these benchmarks or tailor their screening in accordance with personal choices, thus catering to both standard exclusion policies and individual preferences. This latest product release is a response to the growing demand for ethically and sustainably oriented investment strategies in today’s market.

Modular Approach

The indices are structured around a modular methodology, which allows investors to incorporate exclusions in a way that reflects their specific mandates and ethical considerations. These exclusions are categorized into six prevalent themes:

1. Core: Establishes baseline criteria for sustainable investments and excludes companies involved in thermal coal, tobacco production, and controversial weaponry.
2. Fossil Fuels and Non-Renewable Energy: Targets common exclusions related to fossil fuel involvement.
3. Fossil Fuels Enhanced: Specifically eliminates companies deeply entrenched in fossil fuel production, extraction, or related services.
4. Vice Products: Excludes businesses engaged in adult entertainment, alcohol production, gambling, and tobacco.
5. Weapons: Removes companies involved in controversial or conventional weapon manufacturing and military contracting.
6. Controversial Conduct: Excludes firms that have violated UNGC principles or are linked with significant ESG issues.

These customizable modules can be individually chosen or combined, allowing for a tailored approach to meet distinct investment desires.

Diverse Indices Offering

Upon inception, Bloomberg has rolled out 66 predefined indices based on three module configurations:

• - Bloomberg Select Indices (Core module),
• - Bloomberg Select FossilEX Indices (Combining Core and Fossil Fuels modules), and
• - Bloomberg Screened Choice Indices (Utilizing all six modules).

This new offering is underpinned by Bloomberg's sophisticated technical architecture and advanced entity mapping capabilities, ensuring precise and credible screening processes. Additionally, the indices leverage the Bloomberg Industry Classification System (BICS), enhancing accuracy by categorizing over 60,000 listed equities based on shared economic activities, thereby providing up to seven levels of sector granularity.

Global Accessibility

Available in both USD and EUR, these indices feature global coverage, spanning across 11 regions which include developed and emerging markets, Eurozone, and others. They present themselves as vital tools for benchmarking and asset allocation in varying investment strategies.

Conclusion

As with all of Bloomberg's indices, the Screened Choice Indices can be utilized for various purposes, including product creation and comprehensive asset allocation strategies. Investors can conveniently access this complete suite on the Bloomberg Terminal. All related research and methodologies can be explored on the Bloomberg Indices Documentation page, ensuring transparency and in-depth understanding of the screening processes employed.

Bloomberg Index Services Limited is known for its track record of creating innovative and tailored indices across several asset classes. The launch of the Screened Choice Indices signifies a bold step towards catering to the evolving demands of socially responsible investing, allowing clients to align their investments with their values effectively.

For further details about this new offering, visit Bloomberg Indices.