SMAs

Institutional separate accounts are used by the following types of investors who have a minimum of $25 million to invest, or their investment policy statement requires the use of separate accounts:

Pension funds	Endowments
Foundations	Public funds (states & local governments)
Insurance companies	Mutual funds
Family offices	Hedge funds

Customization

Transparent Value can customize a new index or leverage our innovative index family for your institutional separate account needs. The innovative rules based index construction methodology employed by Dow Jones strives to combine the liquidity and transparency of passive investment techniques with the alpha generating capability potential of fundamental analysis provided through the RBP process that strives to avoid the emotion or inconsistencies associated with active portfolio management.

International services:

Institutional Re-Marketing - Transparent Value licenses the Dow Jones RBP Indexes^SM to qualified international institutions looking to re-market our indexes under there own brand name in their domestic market.

Guided Architecture - In partnership with Transparent Value, Dow Jones and a local firm, Transparent Value builds localized versions of the RBP^® index. These indexes are then used to create investments products in the respective country.

Please contact us to inquire about licensing agreements and fees. No product or service will be offered where unlawful under applicable law.

RBP^®

The revenue growth necessary to support the current stock price. Required Business Performance^® is used as a benchmark against which to measure management’s ability to perform in the future. It is calculated using a reverse discounted cash flow valuation model that uses the current stock price as the primary input.

RBP^® Probability

The likelihood that management will deliver the Required Business Performance^® to support the stock price. It is calculated by fitting the company’s historical revenue growth to a distribution, then finding the company’s Required Business Performance within this historical distribution.
In the hypothetical example below, the company’s RBP^® Probability, represented by green, is 35% while its Behavioral Risk Indicator, represented by red, is 65%. RBP® Probability

Behavioral Risk Indicator

The likelihood that investors’ systematic behavioral biases have caused misalignment between the stock price and management’s ability to deliver. The Behavioral Risk Indicator is designed to capture the impact that human psychology has on the subjective valuation process used by investors. It is defined as one minus the RBP^® Probability.
In the hypothetical example below, the company’s RBP^® Probability, represented by green, is 35% while its Behavioral Risk Indicator, represented by red, is 65%.

RBP^® Methodology

A system of fundamental stock analysis that uses a reverse discounted cash flow valuation model to determine what the stock’s current price implies in terms of future free cash flow and revenue (Required Business Performance^® ) as well as the calculation of the likelihood that management can deliver the Required Business Performance^® , known as RBP^® Probability.

RBP^® Platform

The Transparent Value decision support tool consisting of an interactive database containing the proprietary data produced by Transparent Value. Included are the Required Business Performance^® (RBP^® ) values, RBP^® Probabilities and Behavioral Risk Indicators for more than 2,000 global stocks, the Transparent Value mutual fund rating system providing coverage of more than 3,000 funds, and also broad market indicators.

RBP^® Snapshot

Provides updated company-specific RBP^® information based on the company's most recent quarterly financial data. The RBP^® Snapshot consists of the RBP^® probability and RBP^® values for a particular company.