Swiss Bond Index (SBI) as a Basis
To date, there is no broadly diversified benchmark for the Swiss bond market that takes ESG criteria into account. SIX has therefore decided to change this. The SBI is the basis of the new SBI ESG Indices which will significantly simplify sustainable investment in the Swiss bond market.
The Swiss bond market is an important asset class due to its size – it contains Swiss franc bonds worth CHF 500 billion – and its high credit quality. The Swiss Bond Index (SBI) is one of the most widely used benchmark indices in this market segment. The index has been published since 2007 and, as of December 2020, contains over 1,500 CHF bonds from domestic and foreign issuers. The SBI is a traditional benchmark of investment grade bonds and currently does not pursue ESG objectives.
Launched on 1 Feb 2021
History available since 30 Dec 2016
Key Product Information
Performance
SBI ESG and Subindices
The SBI is the basis of the new SBI ESG Index, which significantly simplifies sustainable investing in the Swiss franc bond market. The SBI ESG Index measures the performance of Swiss franc bonds based on the ESG ratings provided by Inrate. The index consists of those components of the Swiss Bond Index (SBI) that have an ESG rating of at least C+ on a scale of A+ to D– and, generally, less than 5% turnover in controversial sectors. In addition, index candidates need to fulfill the United Nations Global Compact (UNGC) assessment and must not be on the exclusion list of the Swiss Association for Responsible Investments (SVVK). At the end of the month, the then current ESG data from Inrate is used for the SBI constituents. If Inrate already covers the issuer of a new issue, the ESG data of the issuer is used. If Inrate does not currently cover the issuer of a new issue, Inrate will conduct an ad hoc analysis to determine whether the bond is eligible for the SBI ESG.
In addition to the broad SBI ESG Index, SIX provides further sub-indices. This allows market participants to focus on specific segments or specific maturities.
SBI ESG Screened AAA-BBB
The SBI ESG Screened measures the performance of Swiss franc bonds based on ESG data provided by Inrate. The index consists of those components of the Swiss Bond Index (SBI) that have an ESG rating of at least C+, are rated "medium" or lower in Inrate's controversy score and have low turnover in controversial sectors. Companies that are on the SVVK exclusion list or do not meet the UNGC criteria according to Inrate are not included in the index. At the end of the month, the then current ESG data from Inrate is used for the SBI constituents. For new issues where Inrate already covers the issuer, the ESG data of that issuer is used.
For new issues where Inrate does not currently cover the issuer, Inrate will perform an ad hoc analysis to determine whether the bond is eligible for SBI ESG Screened. The index has been launched as per March 29, 2021.
Overview: ESG Bond Indices
SBI ESG AAA-BBB
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI) and may be domiciled globally
SBI ESG AAA-BBB 1-5
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), may be domiciled globally and have a residual term of between 1 and 5 years
SBI ESG AAA-BBB 1-10
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), may be domiciled globally and have a residual term of between 1 and 10 years
SBI ESG AAA-AA
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), may be domiciled globally and have an SBI composite rating of AAA or AA
SBI ESG AAA-A
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), may be domiciled globally and have an SBI composite rating of AAA, AA or A
SBI ESG Domestic AAA-BBB
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI) and are domiciled in Switzerland or Liechtenstein
SBI ESG Domestic AAA-BBB 1-5
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), are domiciled in Switzerland or Liechtenstein and have a residual term of between 1 and 5 years
SBI ESG Domestic AAA-BBB 1-10
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), are domiciled in Switzerland or Liechtenstein and have a residual term of between 1 and 10 years
SBI ESG Domestic AAA-AA
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), are domiciled in Switzerland or Liechtenstein and have an SBI composite rating of AAA or AA
SBI ESG Domestic AAA-A
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), are domiciled in Switzerland or Liechtenstein and have an SBI composite rating of AAA, AA or A
SBI ESG Foreign AAA-BBB
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI) and are domiciled outside of Switzerland/Liechtenstein
SBI ESG Foreign AAA-BBB 1-5
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), are domiciled outside of Switzerland/Liechtenstein and have a residual term of between 1 and 5 years
SBI ESG Foreign AAA-BBB 1-10
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), are domiciled outside of Switzerland/Liechtenstein and have a residual term of between 1 and 10 years
SBI ESG Foreign AAA-AA
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), are domiciled outside of Switzerland/Liechtenstein and have an SBI composite rating of AAA or AA
SBI ESG Foreign AAA-A
Bonds of sustainable issuers that are included in the Swiss Bond Index (SBI), are domiciled outside of Switzerland/Liechtenstein and have an SBI composite rating of AAA, AA or A.
SBI ESG Corporate
Bonds of sustainable companies that are included in the Swiss Bond Index (SBI) and may be domiciled globally.
SBI ESG Corporate 1-5
Bonds of sustainable companies that are included in the Swiss Bond Index (SBI), may be domiciled globally and have a residual term of between 1 and 5 years
SBI ESG Corporate 1-10
Bonds of sustainable companies that are included in the Swiss Bond Index (SBI), may be domiciled globally and have a residual term of between 1 and 10 years
SBI ESG Corporate AAA-AA
Bonds of sustainable companies that are included in the Swiss Bond Index (SBI), may be domiciled globally and have an SBI composite rating of AAA or AA
SBI ESG Corporate AAA-A
Bonds of sustainable companies that are included in the Swiss Bond Index (SBI), may be domiciled globally and have an SBI composite rating of AAA, AA or A
SBI ESG Screened AAA-BBB
The SBI ESG Screened measures the performance of Swiss franc bonds based on ESG data provided by Inrate.
For more information on these indices and their performance, go to the Index Explorer.