About the Index
The Climate Advisers Better Palm Oil Index (Ticker: CABPLM) is an equity index designed to serve as an equity benchmark for globally traded stocks of companies that are members of the RSPO.
The index will help investors effectively track the performance of companies that are factoring sustainability objectives into their operations, helping them manage risks and take advantage of opportunities in the palm oil sector.
CABPLM contains 18 stocks selected from a universe of equity securities traded on recognized stock exchanges across the globe.
The selection criteria include requirements that companies must be principally engaged in “primary” agriculture operations, must have stock traded on a recognized stock exchange, and must derive more than 20 per cent of its revenues from activities directly related to palm oil. The companies must also be members of the RSPO and meet certain investability criteria, which include having a minimum float percentage of 10 percent and a minimum market capitalization of $25 million.
The index is rebalanced quarterly; it is available for licensing through S-Network Global Indexes.
Selection (Snapshot date – Last business day of the month prior to the rebalancing month)
- Company in must be in the RSPO
- Constituent stock must have R-Score — three-month average daily trading volume (ADTV) in thousands divided by Float-adjusted market capitalization in millons — greater than or equal to 0.5
- Company’s full market capitalization must be greater than or equal to $25 Million
- Constituent stock’s Free Float Percentage must be greater than or equal to 10%
Weighting (Weight Date – The Thursday prior to the second Friday of the rebalancing month)
- Constituents are weighted by their float-adjusted market capitalization
- Weight is capped at 20% for any single constituent
- Sum of all individual constituent weights that are greater than 5% must be less than or equal to 45% of the total index weight
The rules are applied quarterly (in March, June, September and December). Drops may be made intraquarter in the event that a company leaves the RSPO, effective the next business day after we are notified. Companies that join the RSPO are not added immediately, but are eligible for investability screening at the next quarterly reconstitution.
For more information, please contact:
Matt Pitorowski, Senior Analyst, Climate Advisers — firstname.lastname@example.org
Gregg Sgambati, Director, S-Network — email@example.com