Sage launches new credit index to track high-liquidity ESG securities

By Sarah Lizee

Olympia, Wash., Sept. 28 – Sage Advisory Services launched the Sage ESG Intermediate Credit Index, according to a company release.

The company said the index is designed to maximize exposure to positive environmental, social and governance characteristics while maintaining a high level of liquidity.

The index uses a three-pronged approach to select between 100 and 120 investment-grade securities with a minimum tranche size of $500 million from the Barclay’s Intermediate Credit Bond Index. Bonds mist have been issued within the last three years.

To be selected, securities must meet a proprietary ESG score, fall within the top third of the group to which Sage categorizes them and meet a controversy rating that flags to investors potential environment and social risks associated with the security.

“ESG is rapidly gaining traction within both institutional and individual investors, and we’re seeing the positive impact of these conscious investments across a wide range of sectors and causes,” Robert G. Smith, president and chief investment officer at Sage, said in the release.

“With the Sage ESG Intermediate Credit Index, we’ll achieve our goal of providing an institutional quality index that further accelerates the momentum gained to date.”

Wilshire Associates is the index consultant and calculation agent.

Sage is an Austin, Texas-based fixed-income investment management firm.

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