Frankfurt-based Solactive AG is launching an index that will provide investors with exposure to companies from around the world that exhibit boardroom gender diversity and low volatility.
The Solactive global gender diversity index is comprised of 50 equally weighted companies, which will be chosen based on research by Amsterdam-based Sustainalytics, a provider of environmental, social and governance (ESG) research, ratings and analytics.
The development of the index comes in an environment in which regulators in many Western countries are encouraging higher representation of women in senior positions and corporate boards and research continues to suggest that companies with a significant number of women leaders are very profitable, notes Solactive’s announcement released Tuesday.
“The Solactive global gender diversity index allows investors to be one step ahead by providing exposure to companies whose governance models are in line with new gender legislations,” says Astrid Ludwig, head of indexing at Solactive AG, in a statement. “In addition, the index enables investors to benefit from potential superior performance of gender diverse companies while supporting the cause of women’s representation in corporate leadership positions.”
The new index will be licensed to Zurich-based UBS Group AG, which will use it as the basis for the construction of index certificates.
“Investors to whom gender diversity is important can add this part of the socially responsible investment universe to their portfolios with our index certificates,” says Steffen Kapraun, structured products expert with UBS, in a statement. “Just as for other fields of sustainable investing, there’s convincing evidence that investing in accordance with societal values does not necessarily harm returns.”
The Solactive global gender diversity index is available in euros, U.S. dollars and Swiss francs and is is readjusted quarterly
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