Solactive today announced the launch of a unique emerging markets index focusing on gender equality in partnership with Equileap, a leading data and insights company focused on advancing gender equality and diversity & inclusion in the corporate sector.
The index tracks firms from emerging markets that exhibit a strong performance with regard to gender equality. Equileap evaluates firms on gender equality criteria based on their comprehensive methodology, which takes into account factors such as the percentage of women in leadership and on the board, equality of compensation and work-life balance policies, gender pay gap and anti-sexual harassment policies. By applying a best-in-class approach across sectors, the index fosters a more balanced and equitable investment landscape in emerging markets while maintaining a similar risk profile compared to a standard broad emerging markets benchmark.
Historically, the index has outperformed its parent index, the Solactive GBS Emerging Markets Large & Mid Cap Index, on a risk-adjusted basis. While showing a similar risk profile, the annualized average return is approximately 3.87 percentage points higher compared to the parent index (based on the Net Total Return version).
Timo Pfeiffer, Chief Markets Officer at Solactive, said: “We are delighted to partner with Equileap on this index, which provides investors with an impactful tool to integrate social matters into their investment decision and promote gender diversity through their emerging markets exposure. By offering strong financial returns alongside meaningful consideration of important social issues, the index exemplifies our commitment to designing innovative solutions at the intersection of finance and sustainability.”
Diana Van Maasdijk, CEO at Equileap, commented: “We are proud to collaborate with Solactive on launching a benchmark for Gender Equality in Emerging Markets, a testament to our commitment to advancing gender equality globally. By providing investors with a groundbreaking tool to align their portfolios with their values, we are not only driving positive social change but also tapping into the immense potential of emerging markets. This index not only offers impressive financial performance but also fosters a more inclusive and equitable workplace. We encourage investors to seize this opportunity to invest in gender equality and contribute to a more sustainable and prosperous future for all.”
