Index provider Bloomberg has made a foray into the equity index market for the first time with the launch of a US large cap suite.
The equity offering includes the Bloomberg US Large Cap index as well as growth, value and dividend indices.
Steve Berkley, global head of indices at Bloomberg, commented: “Building equity index capabilities was a natural extension of our existing suite of fixed income, commodity and currency indices.
“We are responding to requests from investors to offer comprehensive and competitive equity index solutions to help our existing index clients address their needs across asset classes.”
The indices will provide the basis for the launch of a new co-branded environmental, social and governance (ESG) range, the Bloomberg SASB ESG index suite.
R-Factor, an ESG scoring solution developed by State Street Global Advisors, will be used as the basis for the sustainable ratings.
The indices will have a focus on industry-specific ESG factors that are most likely to influence the financial performance of companies.
Building on the Sustainability Accounting Standards Board’s (SASB) market-informed materiality framework, Bloomberg will offer ESG policy benchmarks for asset owners and custom indices that maximise the R-Factor ESG score.
Janine Guillot, director of capital markets policy and outreach at SASB, said: “We have always viewed SASB standards as important market infrastructure and a valuable tool to help integrate ESG factors into investment decision making in a rigorous, scalable way.”
