ABN AMRO is launching an index tracker which references a new eco-index. The tracker will launch in Asia this week, with subscription open until the end of March. U.S. and European rollout is to follow shortly.
The firm is also looking at offering more complicated structures linked to the index, including a capital-protected version of the tracker using constant proportion portfolio insurance.
The index, structured with Standard & Poor's, breaks down a selection of global environmental stocks into three segments and their sub-sectors: the reduction of carbon dioxide through renewable energy, soil improvements through water and waste management, and air quality improvement through emissions reduction. Weightings are assigned to each of the sub sectors semi-annually based on ABN's expectations for future growth.
Miles Ashton, Asian head of private investor product sales in Hong Kong, said with the weight of public opinion and corporations being pressured by governments to be more ecologically aware, this is a hot topic.