Exchange Traded Products
SocGen launches charity ETN
Joe McGrath, 31 March 2011
Société Générale has launched an exchange-traded note on the London Stock Exchange where all fees received will be donated to the Teenage Cancer Trust.
The self-styled SocGen Socially Responsible Investment ETN aims to track a basket of 25 stocks on a one-for-one basis including EasyJet, Barclays and oil and gas company OMV.
SocGen claims that its team identified the 25 companies by assessing their environmental, social and governance (ESG) record.
The launch follows a report published by the bank’s research team on the growing importance of integrating ESG metrics into investment research.
Its listing on the London Stock Exchange means investors can buy or sell units of £100 or €100 at any time during normal market trading with an annual management charge of 0.5 per cent.
Other companies that will also be included in the investment replication basket are Anglo American, EADS, Daimler, Saipem, Novartis, Diageo, Verbund, Saint Gobain, Land Securities Siemens, Next, BASF, Iberdrola, Danone, Logica, L’Oreal, Ericsson, Aviva, Swisscom, Reed Elsevier, Ansaldo and Suez Environmental.
Investors should note they are exposed to credit risk from Société Générale if the company is unable to fulfill its obligations, investors can lose some or all of their investment.
Société Générale is also the only market maker, which may affect liquidity.
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