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Japan gets first green index fund

June 2006

Plans have been announced for the creation of the first environmental index fund for socially responsible investors in Japan.

The Chikyu Ondanka Boushi Kanrenkabu Fund will be run by Tokyo-based Shinko Investment Trust Management and will be indexed to the KLD Global Climate 100 Index, a global index focused on companies that work on solutions to climate change.

The new fund – nicknamed Chikyuryoku (and whose full Japanese name is translated as Global Warming Prevention Equity Fund), aims to maximize investor exposure to global companies providing renewable energy such as solar and wind, fuels such as natural gas and hydrogen, and new technologies that help reduce emissions of greenhouse gases. The International Energy Agency estimates that $10 trillion will be invested in such energy systems in the next three decades to meet growing global demand.

Peter Kinder, president of KLD, said: ‘While these companies alone won't solve global warming, the Index focuses investors' attention on where the possibilities lie.’

The initial subscription period for the fund begins on 5 June and the launch date is scheduled for 30 June 30.




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