FTSE Russell and Research Affiliates Launch New ESG Smart Beta Indexes


Media Contacts:
U.S. & Canada:
Tucker Hewes
Hewes Communications, Inc.
Phone: 212-207-9451
hewesteam@hewescomm.com

EMEA:
JPES Partners (London)
Phone: +44 (0) 20 7520 7620
ra@jpespartners.com

  • Indexes are designed for investors with ESG investment objectives
  • Indexes build on the RAFI™ Fundamental Index™ methodology
  • Indexes provide systematic, smart beta approach to ESG investing


NEWPORT BEACH, California (December 8, 2016) – FTSE Russell, the global index provider, and Research Affiliates, LLC, a pioneer in smart beta strategies, today announced the launch of two new ESG (Environmental, Social and Governance) smart beta indexes: the FTSE4Good RAFI™ Indices and the FTSE RAFI™ ex Fossil Fuels Indices. Both indices can be used by a wide variety of market participants in creating responsible investment products.

The FTSE4Good RAFI™ Indexes are designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. They utilize existing FTSE RAFI Indexes and overlay the transparent and clearly defined ESG criteria used in the FTSE4Good Index Series.

The FTSE RAFI™ ex Fossil Fuels Indexes are designed to represent the performance of constituents of selected FTSE RAFI Indexes after the exclusion of companies that have a certain revenue and/or reserve exposure to fossil fuels.

Katrina F. Sherrerd, President & Chief Operating Officer, Research Affiliates, said:
“Over the years, many investors we’ve spoken with have expressed interest in a RAFI™ smart beta solution that reflects an environmental, social and/or governance (ESG) perspective. Through Research Affiliates’ continuing partnership with FTSE Russell, I am pleased to announce that we have developed a solution that meets these requirements, while also delivering on Research Affiliates’ mission to benefit investors. The new FTSE RAFI indices preserve the benefits of our leading smart beta franchise—a rules-based, transparent and low cost approach that offers the potential for outperformance—while consistently incorporating ESG investing principles.”

David Harris, ESG Director, FTSE Russell said:
“These new FTSE RAFI indexes offer investors an innovative approach to passive investing by combining a fundamental factor approach with a focused set of sustainability parameters. FTSE Russell has long been a pioneer in the development of ESG benchmarking tools and we are delighted to extend our well established partnership with Research Affiliates by launching these exciting new index products.”

As of 30 September 2016, investable products linked to indexes developed by FTSE Russell and Research Affiliates have approximately USD $95.5 billion of AUM.

For further information please contact:

Research Affiliates
US: Tucker Hewes, Hewes Communications, Inc., +1 (212) 207-9450, hewesteam@hewescomm.com
Europe: Matt Rogers, JPES Partners, +44 (0)20 7520 7624, ra@jpespartners.com

London Stock Exchange Press Office
Global: Ed Clark, +44 (0)20 7797 1222, newsroom@lseg.com
Global: Tim Benedict, +1 212 314 1199, newsroom@lseg.com

About Research Affiliates
Research Affiliates, LLC, is a global leader in smart beta and asset allocation. Founded in 2002 and based in Newport Beach, California, Research Affiliates is dedicated to creating value for investors, we seek to have a profound impact on the global investment community through our insights and products. Our investment strategies are built on a strong research base and are led by Rob Arnott and Chris Brightman. We deliver solutions in partnership with some of the world’s leading financial institutions, through their offerings of mutual funds, ETFs, separately managed accounts, and/or commingled accounts. As of September 30, 2016 about $165 billion in assets are managed worldwide using investment strategies developed by Research Affiliates.

Web: www.researchaffiliates.com
Twitter: @ra_insights

The Research Affiliates® trademark and corporate name and all related logos are the exclusive intellectual property of Research Affiliates, LLC and in some cases are registered trademarks in the U.S. and other countries. Neither Research Affiliates, LLC nor its related entities provide investment advice outside of the United States, Ireland and Canada and do not offer or sell any securities, commodities or derivative instruments or products. Any such business may only be conducted through registered or licensed entities and individuals permitted to do so within the respective jurisdiction and only in conjunction with the legally required disclosure documents and subject to all legally required regulatory filings and/or exemptions.

The trademarks Fundamental Index™, RAFI™, and the Research Affiliates™ trademark and corporate name and all related logos are the exclusive intellectual property of Research Affiliates, LLC, and in some cases are registered trademarks in the U.S. and other countries.  Various features of the Fundamental Index™ methodology, including an accounting data-based non-capitalization data processing system and method for creating and weighting an index of securities, are protected by various patents, and patent-pending intellectual property of Research Affiliates, LLC. (See all applicable US Patents, Patent Publications, Patent Pending intellectual property and protected trademarks located at https://www.researchaffiliates.com/en_us/about-us/legal.html#d, which are fully incorporated herein.)  Any use of these trademarks, logos, patented or patent pending methodologies without the prior written permission of Research Affiliates, LLC, is expressly prohibited.  Research Affiliates, LLC, reserves the right to take any and all necessary action to preserve all of its rights, title, and interest in and to these marks, patents or pending patents.

About FTSE Russell
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide.  FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $10 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.

FTSE Russell is wholly owned by London Stock Exchange Group.

For more information, visit www.ftserussell.com

© 2016 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.

FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.

All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this communication should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

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