First Republic Founders Index

“We believe founders’ leadership, drive, clarity of vision, and strong focus on clients and culture are key strategic advantages in generating superior performance.”

- Jim Herbert, Chairman, CEO & Founder, First Republic Bank

Founded in 2019

The First Republic Founders IndexSM is an equity benchmark of more than 300 publicly traded companies (1) in which the founder or founders are actively involved and a key influence in its strategy. Active involvement is defined as the founder or founders serving in a key executive role and/or on the company’s board of directors.

As a founder-led firm, First Republic has first-hand experience in understanding the strength of the entrepreneur’s focus on client satisfaction, culture, and longer-term results.

The First Republic Founders IndexSM is intended to track founder-influenced companies that display certain consistent characteristics including:

  • Ability to move quickly and innovate
  • Commitment to client satisfaction
  • Focus on culture
  • Long-term view of the business

By applying a rules-based, equal-weighted approach, the First Republic Founders IndexSM is designed to capture these characteristics of founder-influenced success.

Back-testing, conducted in conjunction with independent third-party support, found that the First Republic Founders IndexSM over a 15-year time period (2004 through 2019) would have outperformed the Russell 3000 Index by almost two times (1.74X) had it been in existence during that period.(2)

 

Link to full press release.

Index value:

FRCFDR

$106.61

  1.69%

1.83

As of market close on: May 28, 2020

  1. As of October 7, 2019, the First Republic Founders Index included 329 companies. 
  2. Back-testing is presented for illustrative purposes only. Back-testing found that over the 15-year period from June 30, 2004 through June 28, 2019, the cumulative performance of the First Republic Founders IndexSM was approximately 448%, or 1.74X the Russell 3000 Index, which had a cumulative performance of approximately 258%, and 1.68X the S&P 500 Equal Weight Index, which had a cumulative performance of approximately 267%. Performance figures assume reinvestment of dividends in the Index, and assume data regarding founders’ status is available without a lag. Back-tested index performance does not reflect actual performance of any managed account and, as an index, does not take into consideration any expenses, or trading or latency costs, which reduce performance results.

The Index commenced on October 7, 2019 and has limited performance history. It is uncertain how it will perform over longer time periods. Any retrospective closing levels are simulated based on a rules-based approach only. All back-tested data must be considered hypothetical and used for illustrative purposes only. The actual performance of the Index may be materially different from the results presented in any simulated history relating to the Index. Past performance should not be considered indicative of future performance. This information is not an offering, solicitation or recommendation for any security nor does it constitute an offer to provide investment advisory or other services. It is not possible to invest directly in an unmanaged index without fees or expenses.