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 ex-Japan Gender Diversity Index℠. , a new index powered by data and scoring methodology from Equileap, a global provider of gender equality data and insights for investors.

Search for better long-term risk-adjusted returns, from Japan Government Pension Investment Fund (GPIF), the largest pension fund in the world with approximately $1.5 trillion of assets under management at June 2020, incorporates not only financial factors, but also environmental, social and governance (ESG) factors into its investment decisions and now tracks the Morningstar Developed Markets ex-Japan Gender Diversity Index. The Morningstar Developed Markets ex-Japan Gender Diversity Index is designed to provide exposure to companies in developed markets with strong gender diversity policies and practices, using the Equileap Gender Equality Scorecard™. Investor demand for ESG has grown significantly over the past decade; Morningstar research shows global assets in sustainable funds hit an all-time high of $1.2 trillion from September 2020.

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

Yu Tsung Changpresident of Ibbotson Associates Japan, Inc.a company 100% owned by Morningstar Japan who worked on this initiative, said, “It is a privilege to work with GPIF on this initiative to raise awareness of gender equality in corporate culture. Over the past 20 years since we established our presence in Asia, Morningstar has always strived to help investors succeed by providing an independent perspective and sharing insights on issues important to investors, such as gender equality. »

Diana Van Maasdijk, Managing Director of Equileap, said, “Given the current state of the world, it is more important than ever for businesses to advance social justice issues, including gender equality. The fact that the world’s largest pension fund is investing with a gender perspective is an obvious message to companies to step up their game. action, as well as a more inclusive and robust economy.

A report on gender equality by Morningstar and Equileap

To heighten interest in the area of ​​gender equality, Morningstar and Equileap today released a white paper highlighting gender disparity in the corporate sphere, “Investing Inclusively: Creating Value for shareholders through gender diversity”.

The report highlights that companies that promote 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. Not only do they advance the cause of human rights, but they also have the potential to maximize shareholder value. However, many obstacles remain on the road to gender equality. Report information includes:

• The Morningstar Developed Markets Gender Diversity Index assigns above-market weighting to both Australia and UK Equileap attributes australia scores high on Australian legislation in place since 2012 requiring companies to publish comprehensive public reports on their gender equality performance on an annual basis and cites Australia as an example of how enhanced transparency can motivate improved performance over time. The United Kingdom, for its part, is recognized for having one of the highest levels of female participation in the labor market in the world, as well as France, hong kong, Switzerlandand the United States¹
• As a point of comparison, Japan is distinguished by a low female representation in various companies. With an average of 7% women on boards, 2% at executive level, 4% in senior management and 25% in the workforce, Japanese companies are well below the 23 countries studied by Equileap. ²
• From an economic sector perspective, the index maintains an above-market weighting for the utilities sector. Equileap found that utilities scored high on gender equality. Financial services, a sector that has long struggled with the underrepresentation of women, is underrepresented 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 Zealandand Singapore. Constituents are weighted against 19 gender equality criteria, including gender balance in the workforce, gender pay gap, paid parental leave, and gender policies. sexual harassment. So, in addition to providing a similar risk/reward profile to the wider market, the index is designed to provide exposure to publicly listed companies with strong gender diversity policies embedded in their corporate culture and that guarantee equal opportunities for employees, regardless of gender. .

Companies that are part of the controversial Equileap Alarm Bell list are not eligible for the index. The remaining companies are weighted by both their Equileap Gender Equality Score and their float-adjusted market capitalization. Individual constituent weights are capped at five percent and the index is replenished annually. The Morningstar Developed Markets ex-Japan Gender Diversity Index construction methodology is available here. Additional information on the Equileap Gender Equality Dashboard is available here.

The Morningstar Developed Markets Ex-Japan Gender Diversity Index adds to the growing offering of sustainable indices from Morningstar indices, including the Morningstar Minority Empowerment Index, the Morningstar Low Carbon family of indices, Morningstar for Women Empowerment Index, among others. Learn more about the range of Morningstar indices here.

About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australiaand Asia. The Company offers a broad range of products and services to individual investors, financial advisors, asset managers, pension plan providers and sponsors, and institutional investors in the private debt and capital markets. Morningstar provides research data and insights on a wide range of investment offerings, including managed investment products, publicly traded companies, private capital markets, debt securities and market data world in real time. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $215 billion in assets under advisory and management worldwide. September 30, 2020. The Company operates in 29 countries. For more information, visit www.morningstar.com/company. 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, the social enterprise aims to accelerate progress towards professional equality between women and men. Equileap studies more than 3,500 public companies around the world using its comprehensive Gender Equality Scorecard™ with 19 criteria, including gender balance in the workforce, pay gap between gender, 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® Developed Markets ex-Japan Gender Diversity Index^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 contained herein is issued by Equileap Investment Services Support (“Equileap”) and is intended for informational 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 investment vehicle or company. Equileap does not provide 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, Gender Equality Global Report & Ranking, 2019 Edition, Equileap
² Page 10, Gender Equality Global Report & Ranking, 2019 Edition, Equileap

Media Contacts

The morning star:
Sarah Wirt+1 312 244 7358, [email protected]
Stephanie Ho+852 2973 4655, [email protected]
Equileap:
Barbara Mahé, +41 78 683 89 38, [email protected]
Coraline Bardinat, 06 81 91 38 01, [email protected]

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