ZUG (March 7, 2021) – Qontigo has licensed the iSTOXX MUTB Japan Low Carbon Risk 30 Index to Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (MUMSS). The index will be used as an underlying for an ETN to be listed on the Tokyo exchange on March 22. The iSTOXX MUTB Japan Low Carbon Risk 30 Index is derived from the iSTOXX MUTB Japan Quality 150 Index and tracks the performance of 30 Japanese securities which have the best Carbon Risk Rating scores.
“We are pleased to be able to list our third ESG themed ETN that utilizes a Smart Beta strategy. Following the listing of the ESG 30 and Empowering Women ETNs in November 2020, this product now provides investment opportunity in the “E: Environment” component. We will continue to strive to develop unique products”Hiroshi Ota, Head of Equity Group at MUMSS
“We enjoyed collaborating with MUMSS on this solution and we are happy to further strengthen our relationship. There is a growing demand for low carbon products in Japan, and our iSTOXX MUTB Japan Low Carbon Risk 30 Index will be an attractive solution for investors looking to limit their exposure to climate-related risks such as stricter regulations and physical damage while participating in low carbon economic growth.”Rick Chau, Qontigo’s Head of Asia/Pacific.
The iSTOXX MUTB Japan Low Carbon Risk 30 Index applies two screenings: companies that are non-compliant with the Global Standards Screening (GSS) or are involved in Controversial Weapons activities, as identified by Sustainalytics, are not eligible. In cases where more than one company has the same Carbon Risk Rating score at the 30th threshold, preference is given to the company with the highest composite quality score, as calculated for the iSTOXX MUTB Japan Quality 150 Index constituents. Securities are equal-weighted. An industry cap is applied to ensure diversification.
Qontigo offers a comprehensive family of Low Carbon Indices, with different solutions for diverse strategies.