FTSE Russell announced the creation of the FTSE Women on Boards Leadership Index Series, which increases exposure to companies based on the strength of their gender diversity leadership at the board level in addition to how well they manage their wider social impact.
This is achieved by adopting a factor based approach, tilting stocks to overweight or underweight depending on their gender diversity at board level and social impact score.
The initial indexes created within the series are the FTSE All-Share Women on Boards Leadership Index and the Russell 1000 Women on Boards Leadership Index. . These initial indexes are based on the FTSE UK All-Share® and Russell 1000®, incorporating a universe of almost 900 companies and can be used by market participants to increase their exposure towards companies demonstrating leadership in this space.
The constituent weightings in the underlying indexes are adjusted based on two measures: the “Gender Diversity Adjustment” and the “Social Impact Adjustment.”
The Gender Diversity Adjustment is a ratio of female board members to total number of board members in excess of the ICB Industry average. The Social Impact Adjustment is based on the Social Pillar score (out of five) as calculated in FTSE Russell’s ESG Ratings data model.
According to Mark Makepeace, CEO of FTSE Russell, “By using a factor-based methodology, we can adopt a positive approach highlighting leadership, promoting awareness and improving inclusive environments at all levels”.
Orion Launches Direct-Indexing Service
Orion Advisor Services announced that its direct-indexing tool – Advisor Strategy and Tax Return Optimization (ASTRO) – will become available to all financial advisors on the Orion platform on March 1.
With ASTRO, advisors can create customized, separately managed account (SMA) portfolios for all of their clients, faster and with less expense than ever.
The new tool will allow advisors to build tax-efficient non-qualified accounts, replicate indexes with customized tilts, incorporate legacy stock positions into model portfolios, accommodate environmental, social, and governance (ESG) requests, and receive notifications when an account is out of tolerance, all with built in automated tax-loss harvesting.
ASTRO’s intuitive interface and proposal capabilities are extended to advisors via Orion’s Insight App, making this capability accessible through CRM integration partners Salesforce and Redtail.
ASTRO also lets advisors view the risk and diversification characteristics of the optimized portfolio relative to the advisor’s benchmark replication portfolio.
AssetMark Launches J.P. Morgan Blended Active/Passive Strategy
AssetMark, Inc. launched the J.P. Morgan Global Flexible strategy, which is the only core market global solution on AssetMark’s platform to offer broad-based market exposure through a combined active and passive approach.
The new strategy is currently only available on AssetMark’s platform. It features a blend of J.P. Morgan institutional-share class mutual funds and ETFs that offers advisors “greater flexibility to capitalize on immediate opportunities and adjust portfolio allocations, while managing risk more efficiently at a lower all-in cost,” according to AssetMark.
The J.P. Morgan Global Flexible strategy brings actively-managed mutual funds together with “strategic beta” ETFs.
Advisors can choose from six Global Flexible Model Portfolios within the solution, each with a unique growth objective ranging from conservative to aggressive. All portfolios include the option to adjust the risk and return potential based on the current investing environment, as well as clients’ specific financial objectives and life goals.
Grameen America Enters Impact Investing Space With Social Business Fund