Fundamental Indexing

RAFI Constituents

The table below compares the current constituents of the FTSE/JSE RAFI^® Top 40 Index to Dibanisa's Old Mutual RAFI^® 40 Tracker Fund.

RAFI Index Design

1. Ranking by the factors: The JSE universe of companies are ranked by each of the four factors, namely sales, cash flow, book value and dividends. The four factors have an equal weighting.
2. Total Ranking: A total fundamental value is given to each company by taking the average  weighting of each fundamental measure. If a company has a zero dividend percentage then the average of the other three factors is taken.
3. Index Weighting: The RAFI® total fundamental value for each company is then divided by the free-float market capitalisation to create the individual weightings.