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FOR IMMEDIATE RELEASEWorld’s Largest Asset Owner, Japan’s Government Pension Investment Fund, Selects New Gender
Diversity Index Launched by Morningstar in Collaboration with Equileap
New index weights constituents based on 19 gender equality criteria provided by Equileap
TOKYO, Dec. 18, 2020 -- 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 the data and scoring methodology of Equileap, a global provider of dataand insights on gender equality for investors.
Seeking long-term better risk-adjusted returns, Japan’s Government Pension Investment Fund (GPIF), theworld’s largest pension fund with approximately $1.5 trillion in assets under management as of June 2020,incorporates not only financial factors but also environmental, social, and governance (ESG) factors in 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 todeveloped market companies exhibiting strong gender diversity policy and practices, leveraging the Equileap
Gender Equality Scorecard™. Investor demand for ESG has increased drastically in the last decade;Morningstar research shows global assets in sustainable funds hit a record high of $1.2 trillion as ofSeptember 2020.
Ron Bundy, president of Morningstar Indexes, said: “During a tumultuous year consumed by a global
health and economic crisis in which research shows working women pay a disproportional toll, transparent
practices and policies that advance gender representation should be top of mind for companies. We arethrilled to be working with Equileap and GPIF on a meaningful endeavor that we believe will have thepotential to not only act as a catalyst to shape corporate behavior but also help investors achieve theirfinancial goals.”
Yu-Tsung Chang, president of Ibbotson Associates Japan, Inc., a wholly owned Morningstar company
in Japan that worked on this initiative, said: “It’s a privilege to work with GPIF on this initiative to drive
greater awareness of gender equality in corporate culture. Over the past 20 years since we established ourpresence in Asia, Morningstar has continuously aimed to empower investor success by providing an
independent perspective and sharing insights on issues important to investors, such as gender equality.”
Diana Van Maasdijk, chief executive officer of Equileap, said: “Given the state of the world today, it ismore important than ever for companies to advance social justice issues, including gender equality. The factthat the largest pension fund in the world is investing with a gender-lens is a clear message for companies
to step up their game. It is also an inspiration for all investors who care about increasing share price, as well
as a more inclusive and robust economy. ”
A Gender Equality Report by Morningstar and Equileap
To build on the interest in the area of gender equality, Morningstar and Equileap today published a whitepaper highlighting gender disparity in the corporate sphere, “Investing Inclusively: Building Shareholder
Value Through Gender Diversity.”
The report highlights that companies that foster gender diversity and create inclusive cultures are tapping
into the potential of the full population and are positioned to benefit from the effects of cognitive diversity.
They are not only advancing the cause of human rights but also have the potential to maximize shareholder
value. However, many barriers still exist on the road to gender equality. Insights from the report include:••1
2

The Morningstar Developed Markets Gender Diversity Index allocates above-market weight to both
Australia and the U.K. Equileap attributes Australia’s high scores to Australian legislation in placesince 2012 requiring companies to publish comprehensive public reports on their gender equality
performance on a yearly basis and cites Australia as an example of how enforced transparency canmotivate improved performance over time. The U.K., for its part, is recognized for having one of theworld’s highest levels of female workforce participation, along with France, Hong Kong,Switzerland, and the U.S.1
As a point of comparison, Japan stands out as having low female representation across a variety ofcompanies. With an average of 7% women on corporate boards, 2% at the executive level, 4% insenior management, and 25% in the workforce, Japanese companies fall far below all 23 countries
researched by Equileap. 2

Page 10, Gender Equality Global Report & Ranking, 2019 Edition, Equileap
Page 10, Gender Equality Global Report & Ranking, 2019 Edition, Equileap

•From an economic sector perspective, the index maintains above-market weight to the utilities
sector. Equileap found utilities to be high scoring for gender equality. Financial services, a sector
that has long struggled with female underrepresentation, 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 theMorningstar Developed Markets ex-Japan Large-Mid Index, which includes large- and mid-capitalization
equities from the U.S., Canada, Western Europe, Israel, Australia, Hong Kong, New Zealand, and Singapore.
The constituents are weighted according to 19 gender equality criteria, including gender balance across theworkforce, the gender pay gap, paid parental leave, and anti-sexual harassment policies. So, in addition toproviding a similar risk/return profile to the broad market, the index is built to provide exposure to publicly
traded companies with strong gender diversity policies embedded in their corporate culture and that ensure
equal opportunities to employees, irrespective of their gender.
Companies which are part of the Equileap Alarm Bell controversy list are ineligible for the index. The
remaining companies are weighted according to both their Equileap gender equality score and their floatadjusted market capitalization. Individual constituent weights are capped at five percent, and the index isreconstituted annually. The methodology for the construction of the Morningstar Developed Markets exJapan Gender Diversity Index is available here. Additional information about the Equileap Gender Equality
Scorecard is available here.
The Morningstar Developed Markets Ex-Japan Gender Diversity Index joins Morningstar Indexes’ growing
offering of sustainable indexes including the Morningstar Minority Empowerment Index, the Morningstar
Low Carbon Index Family, Morningstar Women’s Empowerment Index, among others. Learn more about thelineup of Morningstar Indexes here.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe,Australia, and Asia. The Company offers an extensive line of products and services for individual investors,financial advisors, asset managers, retirement plan providers and sponsors, and institutional investors in thedebt and private capital markets. Morningstar provides data and research insights on a wide range ofinvestment offerings, including managed investment products, publicly listed companies, private capital
markets, debt securities, and real-time global market data. Morningstar also offers investment management
services through its investment advisory subsidiaries, with approximately $215 billion in assets underadvisement and management as of Sept. 30, 2020. The Company has operations 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 insights on gender equality in the corporate sector. Launched in2016 in Amsterdam, the social enterprise aims to accelerate progress towards gender equality in theworkplace. Equileap researches over 3,500 public companies globally using its comprehensive Gender
Equality Scorecard™ with 19 criteria, including gender balance across the workforce, the gender pay gap,
paid parental leave and anti-sexual harassment policies. Its data and indices are used by dozens of financial
institutions globally. For more information, visit www.equileap.com. Follow Equileap on Twitter @equileap.
Disclaimers
The Morningstar® Developed Markets ex-Japan Gender Diversity IndexSM is created and maintained byMorningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote Japan’s Government
Pension Investment Fund and bears no liability with respect to the fund or any security. Morningstar® is a
registered trademark of Morningstar, Inc. Morningstar® Developed Markets ex-Japan Gender Diversity
IndexSM is a service marks of Morningstar, Inc.
The information included in this document is issued by Equileap Investment Services Support (“Equileap”)
and is intended for information and discussion purposes only and is not intended, and should not beinterpreted as promotional material or investment advice or an offer to acquire units in any investment
vehicle or company. Equileap does not provide any investment advice and is not registered as anundertaking for collective investment in transferable securities nor as an alternative investment fund. | ©
Equileap ®, 2020. All rights reserved.
###MORN-P©2020 Morningstar, Inc. All Rights Reserved.