Issue:
April
2007
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KLD Sees Continued Demand for Climate Change Investment Solutions

KLD is pleased to announce that it has recently licensed the KLD Global Climate 100 Index ("GC100"), the world's first global index focused on the climate solutions value chain, for a unit investment trust (“trust”).  Fixed Income Securities, L.P., acting through its Advisors Asset Management division, will sponsor the trust with an anticipated launch date of late April 2007.  The trust will seek to provide above average total return primarily through capital appreciation by investing in a portfolio of the stocks included in the GC100 Index. 

“Our clients have been asking us to bring a product to market that has the potential to benefit from society’s desire to limit its impact on the planet,” said Mike Boyle, senior vice president of Advisors Asset Management.  “Until now we have been unable to find a solution that was adequately researched and diversified.  We believe that a trust based on the KLD Global Climate 100 Index should be a compelling investment option.”

KLD launched the GC100 Index on July 1, 2005 in response to growing demand from institutions and individuals for investment strategies that address the risks and opportunities associated with global warming.  KLD developed the index in partnership with GENI

The GC100 is based on the concept of the climate solutions value chain.  Companies in the climate solutions value chain are positioned to benefit from increasing constraints on carbon, high fossil-fuel prices, rising energy demand and a growing acknowledgement of climate risk.  The index is constructed to form a basket of companies that provides exposure to companies providing climate solutions.

The Index seeks to include companies representing a range of corporate responses to climate change, including a group of large-, mid-, and small-cap companies representing sectors ranging from energy and utilities to industrials and consumer products.  GC100 companies are leaders in providing solutions to global warming through activities in renewable energy, clean technology and resource efficiency, and/or alternative fuels. 

Since inception through February 28, 2007, the GC100 has produced a 39.30% cumulative total return with a standard deviation of 12.71 and a Sharpe Ratio of 1.39.  As of March 2007, GC100 constituents represent 15 countries, 9 sectors and over USD 2 trillion in market capitalization.

KLD Indexes, a division of KLD Research & Analytics, Inc., provides indexes that are accepted as the standard for defining strategies and benchmarking investments that integrate environmental, social and governance factors.  KLD’s indexes are designed to be transparent, representative and investable.  More than $9.5 billion is invested in funds based on these indexes.

For further information please visit www.KLDIndexes.com and www.aamportfolios.com.

 

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KLD Signs Investors’ Call for Climate Action

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