Supporting Indexing Ventures: Cedargold’s Austrian Economics ESG Index
At BITA, we are happy to work with research firms, innovative investment advisors, and any organization looking to transform concepts into indexes, by providing them with the infrastructure to efficiently turn ideas into innovative investable indexes.
We basically can act as an accelerator of indexing ventures, helping organizations to build successful indexing businesses by leveraging our infrastructure and advice.
An example of such a cases is our collaboration with Cedargold for the launch of the Cedar Austrian Economics ESG Index (CAEEI). The CAEEI is an actively managed portfolio of companies that on one side have strong financials and fundamentals but on the other side exhibit ESG factor out performance, and a focus on positive impact.
The portfolio has a dual focus of helping society and the environment and targeting outperforming returns at the same time. This is evidenced by a clear outperformance over traditional ESG indexing concepts.
Index Overview
The traditional ESG indexing approach, based on ESG exclusion and passive tracking of ESG ratings, results in a selection of instruments that may have poor financial or appreciation potential.
The Cedar portfolio approach instead assesses seven quantitative factors and seven qualitative factors towards its dual focus of targeting a world-class ESG and sustainability portfolio with outperforming returns.
As a signatory to the United Nations Principles for Responsible Investment (UN PRI) initiative, the Cedar portfolio takes an integrated view of ESG, Socially Responsible and Impact Investing. The portfolio emphasizes successful businesses that implement the 17 UN Sustainable Development Goals (SDGs) into their processes and governance. Uniquely, the portfolio integrates an approach of market environmentalism, not environmentalism based on any political or governmental agendas.
The Cedar portfolio is based on the principles of the school of thought known as the Austrian School of Economics, developed initially by a group of economists in Vienna, Austria in the 1870s. This school of thought emphasizes businesses with minimal debt, positive high free cash flows, stable or decreasing shares outstanding, elements of scarcity, and innovation. This approach represents a powerful advantage in an era beset with excessive debt and leverage and also positioned for a secular long-term change in the investment environment from growth-based equities to value-based equities.
As Cedargold’s CEO Richard Bonugli emphasizes:
“This is the new investment paradigm — a focus on all stakeholders, not just shareholders, to help society and the environment, while targeting outperforming portfolio returns.”
The Cedar Austrian Economics ESG Index has approximately 40 constituents and can be licensed to investment funds, ETF issuers, pension funds, and HNWIs.
If you are interested in having an in-depth look and discovering more about this index, we invite you to check out the Cedar Austrian Economics ESG Index official Investor’s Guide or directly contact our partner at info@cedarportfolio.com to receive more information about this financial instrument.
BITA’s Index Services
The CAEEI has been developed through BITA’s fully managed indexing solution, designed to help clients to save time, capital, and internal resources. Our highly customizable service leverages our infrastructure to allow clients to launch successful licensing businesses while having to focus only on ideas, research, and intellectual property.
In case you want to discover more about our services, please visit: https://www.bitadata.com/index-services.html
About Cedargold
Cedargold is a global firm providing research and consulting services in ESG and Sustainability, and supporting the development of an exemplary model ESG portfolio.
To learn more about Cedargold, please visit https://cedarportfolio.com/ or contact them at info@cedarportfolio.com
About BITA
BITA is a German-based Fintech that provides enterprise-grade indexes, data, and infrastructure to institutions operating in the passive and quantitative investment space. Thanks to BITA’s innovative index software, designed to outperform other existing solutions in terms of flexibility and speed, BITA can provide independent, methodologically sound indexes that both are investable and replicable by customers and stakeholders.
The German Federal Financial Supervisory Authority (BaFin) has registered BITA as a benchmark administrator under the BMR. Details on BITA’s license can be found in the ESMA register of index administrators.
To learn more about BITA’s index services, please visit our website at http://www.bitadata.com or contact us at info@bitadata.com.
