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RAFI™ Diversity & Governance Indices

DATA AS OF: 12-31-2018

RAFI Diversity & Governance combines the Fundamental Index™ methodology with measures of gender diversity, governance, financial discipline, and low volatility to allocate to well-managed companies.

Rulebook

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Available Indices

RAFI Diversity & Governance Developed Index — RADGDEVT

RAFI Diversity & Governance Europe Index — RADGEURT

RAFI Diversity & Governance US Index — RADGUST

AT A GLANCE

Uses metrics which identify companies to have sound management practices and a healthy company culture.

Emphasizes measures that determine a firm’s commitment to women in management, the management, in the c-suite, and  on company boards.

Systematically rebalances to fundamental weight to achieve excess returns consistent with contrarian investing.

Index Construction

RAFI Diversity & Governance integrates gender-diversity metrics with empirically robust return drivers that are linked to good governance and financial discipline. 

 

The RAFI Diversity & Governance Index series is designed for investors who seek to embrace the benefits of diversity while preserving the potential for positive long-term performance and/or risk reduction. 

 

The index series incorporates four measures of financial discipline that are aligned with long-term value creation and sustainable growth: high profitability, low investment, low issuance and dilution, and low accounting accruals.

 

The index series uses the proprietary gender leadership diversity methodology developed by LeaderXXchange℠, a change-driven organization that advises and promotes diversity and sustainability in governance, leadership, and investment. The methodology uses public data companies disclose as well as proprietary databases from environmental, social, and governance data provider Vigeo Eiris.

 

The strategy is built using the Fundamental Index™ approach, which has historically been shown to deliver outperformance versus a cap-weighted benchmark.

Performance

As of 12/31/2018 in USD

Source: FactSet | Data: As of 12/31/2018 in USD | Inception Date: 09/28/2018

*Inception to Date (ITD) uses the first full month of returns after inception date. **Simulated returns begin April 2015. All returns prior to inception are simulated. Please see disclosures for important information regarding simulated performance.

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RAFI Indices is built with the research, insights, and strategies of our sister company: Research Affiliates, LLC