Custom Strategies

ET Index Research data can be used to create a variety of custom strategies to meet specific client needs.

Clients still benefit from a fully transparent, rankings-based approach to low carbon tilting of their customised portfolio, as well as engagement on behalf of clients with all constituent companies on how they can move up the Rankings. For example, should a client wish to maintain a certain country exposure, implement an exclusion list or add additional ESG metrics to their low carbon strategy, ET Index Research can integrate these approaches into a custom low carbon index strategy.

Case study: One of our clients desired a low carbon strategy based on a European equity benchmark. They required it to be fossil free, and to have low tracking error, but with a preference for low transactions fees over low tracking error. They desired the strategy to be of our Transition variety (target 75% reduction), but with an even greater carbon exposure reduction if possible (knowing tracking error would have to be increased to achieve this). ET Index customised our standard ET Global 300 Low Carbon Index for this client, creating a solution that exceeded all their requirements.

Example ways a strategy can be custom tailored:

  • Designed to match your fund’s unique tracking error requirements.
  • Strategies focused on selected sectors or countries.
  • Bespoke carbon exposure reduction requirements.
  • Best-in-class strategies based on the top ranked stocks in the ET Carbon Rankings.

ET Index Research data can be combined with any existing strategy to create a unique strategy that is optimised for low carbon outperformance, and that engages with its constituent companies via ET Index engagement.

Have unique requirements? Contact us to learn about how these services could benefit you and your clients.