Solactive has launched the Solactive UBS Development Bank Bond Index Family, a new family of financial benchmarks targeting the World Bank and other high-grade development bank debt. The family is the result of a partnership between Solactive and UBS and follows the launch of an increasing number of ESG strategies by the German index engineer.
The Solactive UBS Development Bank Bond Index Family focuses on a field of sustainable investment that has not been widely explored before: that of development banks.
Development banks are supranational institutions that gather funds for development projects with positive social and environmental impact. Purposes of these projects can vary greatly, however, the majority are covered in the United Nations 2030 Agenda for Sustain-able Development and its 17 Sustainable Development Goals.
Thanks to the indices, investors will be able to support an economic development agenda by investing in large baskets of fixed income instruments issued by high-grade financial institutions. In addition, the family can be used as a transparent benchmark for active managers interested in the performance of the development bank sector.
The index family is currently composed of 36 total return indices engineered to mirror the performance of USD-denominated bonds issued by entitled development banks. The indices can be subdivided into three groups: indices covering bonds issued by development banks, bonds issued by multilateral development banks, and bonds issued by the World Bank.
For each of these three groups, shorter maturities versions of the indices are available. The in-dices are denominated in four different currencies (CHF, EUR, GBP, USD). Composition is market-cap-weighted and readjusted monthly. The family will be expanded to also include price return and hedged versions of the indices.