New index weights components based on 19 gender equality criteria provided by Equileap

TOKYO, December 18, 2020 / PRNewswire / – Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today announced the launch of the Morningstar® Developed Markets Gender Diversity Index Excl.Japanâ„ , a new index powered by data and rating methodology from Equileap, a global provider of gender equality data and information for investors.

Seek better long-term risk-adjusted returns, from Japan Government Pension Investment Fund (GPIF), the world’s largest pension fund with around $ 1.5 trillion in assets under management at june 2020, incorporates not only financial, but also environmental, social and governance (ESG) factors in its investment decisions and now tracks the Morningstar Gender Diversity Index for Developed Markets Excluding Japan. Morningstar’s Developed Markets Ex-Japan Gender Diversity Index is designed to provide exposure to companies in developed markets that exhibit strong gender diversity policy and practice, leveraging the Equileap Gender Equality dashboard. Scorecard â„¢. Investor demand for ESG has increased dramatically over the past decade; Morningstar Research shows that global assets in sustainable funds have reached a record high of $ 1.2 trillion from September 2020.

Ron bundy, President of the Morningstar Indices, said: “In a tumultuous year consumed by a global health and economic crisis in which research shows working women pay a disproportionate price, transparent practices and policies advance gender representation should be a priority for businesses. We are excited to be working with Equileap and GPIF on a meaningful business that we believe will have the potential not only to act as a catalyst to shape business behavior, but also to help investors achieve their financial goals. “

Yu-Tsung Chang, President of Ibbotson Associates Japan, Inc., a company wholly owned by Morningstar in Japan who worked on this initiative, said, “It is a privilege to work with GPIF on this initiative to increase awareness of gender equality in the corporate culture. Over the past 20 years, since we established our presence in AsiaMorningstar has continually strived to foster investor success by providing an independent perspective and sharing ideas on issues important to investors, such as gender equality. “

The story continues

Diana Van Maasdijk, CEO of Equileap, said: “With the state of the world today, it is more important than ever for companies to advance social justice issues, including gender equality. The fact that the world’s largest pension fund invests with a gender lens is a message for companies to step up their game. It is also an inspiration to all investors keen to increase stock prices, as well as of a more inclusive and robust economy. “

A report on gender equality by Morningstar and Equileap

To capitalize on the interest in the area of ​​gender equality, Morningstar and Equileap today released a white paper highlighting gender disparities in the corporate world, “Investing inclusively: creating shareholder value through gender diversity. “

The report highlights that companies that foster gender diversity and create inclusive cultures harness the potential of the entire population and are well positioned to benefit from the effects of cognitive diversity. They not only advance the cause of human rights, but also have the potential to maximize shareholder value. However, many obstacles still exist on the road to gender equality. Lessons from the report include:

• Morningstar’s Developed Markets Gender Diversity Index places a higher market weighting on both Australia and UK Equileap attributes australia High scores on Australian legislation in place since 2012 requiring companies to publish comprehensive public reports on their gender equality performance on an annual basis and quotes Australia as an example of how enforced transparency can motivate performance improvement over time. The UK, for its part, is recognized for having one of the highest female participation rates in the world, as well as for France, Hong Kong, Switzerland, and the United States¹

• To compare, Japan is distinguished by a low representation of women in various companies. With an average of 7% women on boards, 2% at the executive level, 4% in senior management and 25% in the workforce, Japanese companies fall well below the 23 countries surveyed. by Equileap. ²

• From an economic sector perspective, the index maintains an above-market weighting for the utilities sector. Equileap found that public services scored high on gender equality. Financial services, a sector that has long struggled with the under-representation of women, is under-represented in the index.

Composition of the Morningstar® Developed Markets ex-Japan Gender Diversity Index??
The Morningstar Developed Markets ex-Japan Gender Diversity Index selected by GPIF is derived from the Morningstar Developed Markets ex-Japan Large-Mid Index, which includes large and mid-cap stocks from the United States, Canada, Western Europe, Israel, Australia, Hong Kong, New Zealand, and Singapore. Constituents are weighted according to 19 gender equality criteria, including gender balance in the workforce, the gender pay gap, paid parental leave, and gender policies. fight against sexual harassment. Thus, in addition to providing a risk / return profile similar to that of the broader market, the index is designed to provide exposure to publicly traded companies with strong gender diversity policies embedded in their corporate culture and which guarantee equal opportunities for employees, regardless of their gender. .

Companies that are on Equileap Alarm Bell’s controversial list are not eligible for the index. The remaining companies are weighted based on both their Equileap gender score and their free float-adjusted market capitalization. The weights of the individual constituents are capped at five percent and the index is reconstituted annually. The methodology for the construction of the Morningstar Developed Markets ex-Japan Gender Diversity Index is available here. Additional information on the Equileap Gender Equality Dashboard is available here.

The Morningstar Developed Markets Ex-Japan Gender Diversity Index joins the growing Morningstar Indexes’ growing offering of sustainable indices, including the Morningstar Minority Empowerment Index, the Morningstar Low Carbon family of indices, Morningstar Women Empowerment index, among others. Find out more about the Morningstar Index portfolio here.

About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent research into investing in North America, Europe, Australia, and Asia. The Company offers a wide range of products and services to individual investors, financial advisors, asset managers, pension providers and sponsors, and institutional investors in the debt and private equity markets. Morningstar provides data and research on a wide range of investment offerings, including managed investment products, publicly traded companies, private capital markets, debt securities and global time market data. real. Morningstar also provides investment management services through its investment advisory subsidiaries, with approximately $ 215 billion in assets under advice and management as of September 30, 2020. The Company operates in 29 countries. For more information visit www.morningstar.com/business. Follow Morningstar on Twitter @MorningstarInc.

About Equileap
Equileap is the leading provider of data and information on gender equality in the business sector. Launched in 2016 in Amsterdam, social enterprise aims to accelerate progress towards gender equality in the workplace. Equileap studies more than 3,500 SOEs around the world using its Comprehensive Gender Equality Dashboard â„¢ with 19 criteria, including gender balance in the workforce, gender pay gap, paid parental leave and anti-sexual harassment policies. Its data and indices are used by dozens of financial institutions around the world. For more information visit www.equileap.com. Follow Equileap on Twitter @equileap.

Disclaimer
Morningstar® Gender Diversity Index for Developed Markets Excl.Japan^SM is created and maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell or promote from Japan Government Pension Investment Fund and assumes no responsibility for the fund or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Developed Markets ex-Japan Gender Diversity Index^SM is a service mark of Morningstar, Inc.

The information included in this document is published by Equileap Investment Services Support (“Equileap”) and is intended for information and discussion purposes only and is not intended and should not be construed as promotional material or advice. investment or an offer to acquire shares in any vehicle or investment firm. Equileap does not provide any investment advice and is not registered as an undertaking for collective investment in transferable securities or as an alternative investment fund. | © Equileap®, 2020. All rights reserved.

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© 2020 Morningstar, Inc. All rights reserved.

¹ page 10, Global report and ranking on gender equality, 2019 Edition, Equileap
² page 10, Global report and ranking on gender equality, 2019 Edition, Equileap

Media contacts

The morning star:
Sarah wirth, +1 312 244 7358, [email protected]
Stephanie Ho, +852 2973 4655, [email protected]
Equileap:
Barbara Mahe, +41 78 683 89 38, [email protected]
Coraline Bardinat, +33 6 81 91 38 01, [email protected]

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SOURCE Morningstar, Inc.