FTSE, CSAG DEBUT TERROR-FREE COMPANY INDEX FOR INSTITUTIONAL
INVESTORS
Posted March 26, 2008
NEW YORK
– Global index company FTSE Group and research provider Conflict
Securities Advisory Group (CSAG) have launched the FTSE CSAG Terror-Free
Index Series, which is based on the FTSE Global Equity Index Series. The
new indexes will begin disseminating on March 31.
“FTSE and CSAG identified demand from institutional investors in the US for the option to invest
terror-free and have introduced this new index series to meet it,” say
Jerry Moskowitz, President, FTSE Americas, and Roger Robinson, President
and Chief Executive, CSAG, in a joint statement. “The FTSE CSAG
Terror-Free Index Series is also tradable and suitable for the creation
of retail investment products such as ETFs and mutual funds.”
The index series applies CSAG’s screening process to FTSE’s
All-World ex-US, All-World Developed ex-US and All-World Emerging ex-US
indexes, screening out companies with active or current non-humanitarian
business ties in or with countries deemed global security risks,
including Iran, Sudan, Syria and North Korea.
Companies excluded from the FTSE CSAG Terror-Free indexes were
informed prior to finalizing the construction and given a chance to
respond to CSAG’s assessment of their business operations.
In the US, 19 states
have proposed or enacted legislation requiring state plan sponsors to
divest from international companies with active business ties to
terror-sponsoring countries. US state governments, public and private
organizations have adopted exclusion requirements, which led to FTSE and
CSAG’s creation of the index series.
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