Description

This index aims to mirror the performance of a specific segment of the bond market: U.S. dollar-denominated corporate debt. It includes bonds from both U.S. and non-U.S. issuers, provided they are classified as investment grade. For inclusion, bonds must have a minimum remaining maturity of three years and an outstanding issue amount of at least $750 million. To ensure diversification, no single issuer can account for more than 2% of the index's weight. A strong environmental, social, and governance (ESG) focus is central to this index. Only bonds from companies that achieve an MSCI ESG rating of 'BBB' or higher, and an MSCI ESG Controversy score of 1 or above, are eligible. Furthermore, the index is designed with a decarbonization pathway, initially reducing absolute greenhouse gas (GHG) emissions by 50% relative to the parent universe, followed by an annual 7% reduction in absolute GHG emissions. Certain industries and activities are explicitly excluded: companies involved in alcohol, tobacco, gambling, adult entertainment, genetically modified organisms (GMOs), nuclear power, civilian firearms, and specific types of military weapons, as outlined in the detailed index exclusion criteria. For comprehensive information on the index and its methodology, please refer to the index administrator's website at https://www.bloombergindices.com/.