The Hindu Business Line : UTI-SSgA plans fund tracking Dow Jones Sustainability index

The open-ended scheme, named UTI-SSgA Global Navigator Fund, will invest chiefly in stocks that form part of the benchmark. Their weightages, however, could be different from those in the index.

In normal circumstances, 90 per cent of the assets will be invested in equities or equity-linked instruments. UTI MF may invest in ADRs/GDRs and foreign securities subject to certain limits.

The Global Navigator Fund follows a similar plan mooted by UTI-SSgA in October. The maiden proposal, UTI-SSgA Global Titans 50 Index Fund, was also based on a Dow Jones benchmark (Global Titans 50).

Incidentally, UTI and SSgA had tied up earlier this year, following which State Street Global Advisors Asia Ltd was mandated as investment advisor.

SSgA is the investment management arm of the State Street group and is a leading institutional asset manager.

DJSI World, launched in 1999, is based on the principle of `corporate sustainability', an approach aimed at creating long-term shareholder value.

As things stand, DJSI World covers the "best global companies in terms of good corporate citizenship". It represents a diversified portfolio of stocks, both geographic and sectoral.

The index is also said to be the world's first equity benchmark to track the financial performance of sustainability leaders on an international scale.

Its objectives are twofold: Measurement of the global stock market performance of the top 10 per cent of the leading sustainability companies in all industry groups, and provision of a liquid base for a variety of financial products.