December 22, 2008
New Mutual Fund will be First in US to Track Dow Jones Sustainability Index
by Robert Kropp
Dreyfus Fund will include companies listed on Dow Jones Sustainability World Index.
The new Dreyfus Global Sustainability Fund, introduced by Dreyfus, an asset management company currently managing more
than $300 billion in mutual funds, is the first mutual fund offered in the United States that
includes companies comprising the Dow Jones Sustainability World Index (DJSI World).
The Fundís portfolio managers will rank select stocks within geographic regions,
countries and economic sectors based on several characteristics, including the value of a stock
relative to its perceived intrinsic value; the sustainability or growth of earnings; and financial
profile, which measures the financial health of a company. Not an index fund, the fund is an
actively managed one in which the component companies of the index are traded.
1999 by Dow Jones Indexes, a
leading global index provider, and Sustainable
Asset Management (SAM), an asset management company exclusively focused on sustainability
investments, the Dow Jones Sustainability World Index measures the performance of global
Following SAMís latest global analysis of corporate sustainability
leadership, completed in September, 33 companies will join the index, while 25 firms will be
deleted Ė increasing the number of component companiess to 320 from 312.
DJSI World is a
member of the Dow Jones Sustainability Indexes (DJSI), which are tied to more than 70 licenses in
16 countries comprising assets of more than $7 billion.
The Dow Jones Sustainability
Indexes follow a best-in-class approach and include sustainability leaders from each industry on a
global level. The annual review of the DJSI family is based on the comprehensive SAM assessment
process that identifies the leading companies through analysis of corporate economic, environmental
and social performance, assessing issues such as corporate governance, risk management, branding,
climate change mitigation, supply chain standards and labor practices. This assessment measures
general as well as industry-specific sustainability criteria in 57 industrial sectors.
Many companies included in the DJSI have defined such inclusion as a corporate goal.