First Republic launches FRC Founders Index Fund
First Republic Investment Management, a subsidiary of First Republic Bank, has launched the FRC Founders Index Fund, which seeks to provide investment results that correspond generally to the total return performance, before fees and expenses, of the First Republic Founders Index.
“We believe the FRC Founders Index FundSM distinctively captures the drive, resilience, and commitment to culture and a long-term vision that founder-led and -influenced companies inherently possess,” says Jim Herbert, Founder, Chairman and CEO of First Republic. “Initial performance of the First Republic Founders IndexSM supports our thesis that founder-led and -influenced companies generate superior results.”
Since its launch on 7 October, 2019, and through close on 27 July, 2020, the First Republic Founders IndexSM (Bloomberg:FRCFDR) is up 16.0 per cent, compared to the S&P 500 up 12.0 per cent, the Russell 3000® up 11.7 per cent, and the Russell 1000 Equal Weight up 4.7 per cent.
“The First Republic Founders Index isolates the founder influence factor in a unique way,” says Bob Thornton, President of Private Wealth Management at First Republic. “We believe our research team has been able to capture and quantify the positive attributes and strategic advantage of founder-led and -influenced companies.”
FRCFDR is an equal weighted benchmark of publicly traded companies in which the founder or founders are actively involved and a key influence in their company’s strategy. Highlights of the Index include pure exposure to founder-led and founder-influenced strategy; broad representation, with companies historically delivering higher gross margins across most sectors; and an objectively driven and rules-based approach to capture unique characteristics and potential outperformance.
The FRC Founders Index Fund (Bloomberg:FNDRX) is offered exclusively to First Republic clients, through its Private Wealth Management subsidiaries.