INDICES AND ETFS

Nummus.Info was instrumental in the creation of this instrument. In partnership with ICE Bofa Merrill Lynch, it contributed to the creation of the underlying index, the ICE Catholic Principles ESG Emerging Markets External Sovereign Index.

The latter, in fact, was born from the decoding into factors of the Guidelines on the “management of financial resources” elaborated by the Italian Episcopal Conference.

Franklin Templeton Investments, a global leader in asset management, has decided to launch an ETF that physically replicates the composition of the ICE Catholic Principles ESG Emerging Markets External Sovereign Index.

On 30 June 2022, the ETF was listed on the Italian Stock Exchange and is fully compliant with the Guidelines issued by the Italian Bishops’ Conference (CEI).
Thus, the Franklin Catholic Principles Emerging Markets Sovereign Debt UCITS ETF was born, an innovative ETF that allows investors to integrate Catholic values into their investment portfolio.

The ETF aims to provide exposure to euro- and US dollar-denominated sovereign debt issued by emerging market countries.

The ETF’s approach

A combination of moral-value-based exclusions and a rigorous screening process identify the investable universe of the fund’s benchmark index.

Watch the video of the expert interview

  • Many investors value these principles and want their investments to adhere to and align with Catholic values
  • Ethical finance is a fundamental principle for investing according to CEI guidelines
  • Taking care of the Earth (the home of us all) and its ecosystem is a key issue.
  • Countries are analysed according to specific eligibility criteria and standards based on values
  • Countries with deteriorating fundamentals that practice activities not compatible with Catholic principles are excluded
  • Countries practising the death penalty and considered ‘not free’ are the first to be excluded.

  • Certain thresholds and scores must be met for inclusion in the index
  • Countries must meet specific criteria and pass all screening and selection criteria set by the index provider to be included.

Investors gain exposure to countries that work towards sustainability and carbon reduction and strive to have a positive environmental impact.

features

  • ISIN: IE000YZIVX22
  • Ticker Bloomberg: CATHEM IM Equity
  • Reference index: ICE Catholic Principles ESG Emerging Markets External Sovereign Index
  • Ticker reference index: EMCV
  • Instruments invested: Emerging Country government bonds
  • Dividend policy: Reinvestment

The ETF is characterized by 3 main elements:

Catholic principles in investment. It integrates ethics and moral values into investment standards.

It is the only emerging market debt ETF that aims to reduce carbon emissions by at least 30% less than the parent index.

Investing in emerging debt at a competitive cost Seize the opportunities of emerging-market sovereign debt consistent with Catholic principles through a single ETF, with an TER of 0.35%.

Visit the dedicated web page and download the ETF presentation

MSCI World Select Catholic Principles ESG Universal and Environment Index

The MSCI World Select Catholic Principles ESG Universal and Environment Index is designed to represent the performance of a strategy that aims to select companies with low carbon exposure and high ESG performance compared to general market, excluding companies that are involved in controversial business such as, for example, weapons, gambling, adult entertainment, environmental and social disputes. The index also excludes companies involved in abortion and contraceptives, animal testing, embryonic and fetal stem cell research.

ESG investments are more profitable

L’indice MSCI World Select Catholic Principles ESG Universal and Environment outperformed both the comparative global indices (MSCI World Index and MSCI World ESG Leaders Index), showing that it can bring real benefits to the investment portfolio both economically and socially.

Index-building

The Index was born in 2020 from the partnership between MSCI, global leader in index construction, and Nummus.info. It constitutes the factor decoding of the Guidelines on the “management of financial resources” elaborated by the Italian Episcopal Conference.

Using the MSCI ESG Research methodology, the Index identifies companies that demonstrate the ability to manage risks and opportunities related to ESG factors, excluding those who in the future could incur unforeseen costs related to increased exposure to sustainability risks.

The Index is built from the MSCI World index, after which several criteria are applied to build the ESG index.

The ESG screenings applied are:

Inclusion of companies with an MSCI ESG Rating of "BB" or higher

Inclusion of companies with an MSCI ESG Controversies Score of 3 or higher

Companies not rated are excluded from the index.

Companies involved in controversial businesses such as weapons, controversy, embryonic and foetal stem cells, nuclear weapons, gambling, abortion, adult entertainment and animal testing, alcohol and tobacco are excluded.

Inclusion of companies with low carbon exposure, with regard to carbon intensity and potential emissions.

Increased exposure to companies with a strong ESG profile and/or a tendency to improve this profile.

ETF Lyxor MSCI World Catholic Principles ESG

Lyxor Asset Management, european provider of Exchange Traded Fund (ETF), decided to launch an ETF that physically replicates the composition of the MSCI World Select Catholic Principles ESG Universal and Environment index. On 30 September 2020 the ETF was listed on Borsa Italiana and is fully compliant with the Guidelines issued by the Italian Bishops’ Conference (CEI).

features

  • ISIN: LU2216829809
  • Ticker Bloomberg: CATH IM
  • rreference index: MSCI World Select Catholic Principles ESG Universal and Environment Net USD
  • Ticker reference index: MXWOCATH
  • Investment instruments: International actions Developed countries
  • Dividend policy: Reinvestment

This has several advantages for the investor, which we can summarize as follows:

Accessibility for all investors

Exposure to the global stock market

Portfolio replication of a financial index

Constant compliance with CEI Guidelines

Transparency and cost containment

Visit the dedicated web page and download the ETF presentation

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