Deutsche Bank has listed its hedge fund exchange-traded fund on the London Stock Exchange. The listing of the Ucits III compliant ETF, based on the db Hedge Fund Index, which follows the launch of a euro-hedge version on the Xetra Frankfurt in March, is offered in a sterling and a US dollar hedged form. “Within four months the euro-hedged version of the hedge fund ETF raised assets of €205 million, attracting interest from a wide range of investors across Europe,” says Deutsche in a release issued yesterday.
Each of the index strategies (equity hedge, market neutral, credit and convertible, systematic macro and event driven) is reflected by a sub-index which is represented in the main index according to recognised industry asset weightings.
The index is calculated on a total return basis and started on 31 December 2008. Both the sterling and US dollar ETF have an all-in fee of 90 basis points. “The structure of the hedge fund managed account platform means that all the funds in the ETF index are subject to Deutsche Bank’s daily risk monitoring process,” says Stephane Farouze, global head of hedge fund derivatives at Deutsche.
Deutsche also broke new ground last week with the London Stock Exchange (LSE) listing, on July 15, of the first Carbon ETF, which tracks the S&P US Carbon Efficient Index on the LSE. The index Index has been developed by Standard & Poor’s in collaboration with Deutsche Bank and TruCost, and access to the Index is available exclusively via Deusche’s ETFs.
“This is the first time that investors have had the opportunity to track the S&P 500 with a 50% lower Carbon Footprint and 60% lower Greenhouse Gas emissions,” says Manooj Mistry, head of db x-trackers in London.
The index weightings will be determined by a process which looks at the carbon footprint of each company, but also operates within guidelines to ensure the new carbon efficient version tracks the original S&P 500 index as closely as possible. The db x-trackers S&P US Carbon Efficient ETF has an all-in fee of 0.50% pa and can be traded on the LSE in both sterling and dollars.
“With the launch of the S&P US Carbon Efficient Index, Standard & Poor’s is the first independent index provider to offer a broad-based US market index with an environmental focus,” says Robert Shakotko, managing director of Index Services at S&P.