FTSE/JSE RAFI® 40 IndexThis solution aims to achieve long-term capital growth by mirroring the shares that make up the FTSE/JSE RAFI® 40 Index. The RAFI methodology selects and weights securities by fundamental measures of company size, as opposed to market capitalisation. To quantify a company’s size or economic footprint, it uses fundamental measures of sales, book value, cash flows and dividends.
This has the effect of allocating more to undervalued companies and less to overvalued companies relative to traditional market capitalisation weighted indices.
The solution should not display significant deviations from the benchmark index as it aims to replicate the benchmark’s performance while minimising total costs.
It is suited to investors wanting to grow capital over the long term and who can tolerate stock market volatility.
Benchmark: FTSE/JSE RAFI® 40 Index, gross of fees
Objective: The solution aims to generate a total return in line with the index.