ROBO

The ROBO Global subsectors are grouped by technology and applications.

Technology captures the critical intelligent systems that interact with the human world, including actuation, sensing, computing and integration.

Applications refer to specific and evolving areas of industry and society where this technology is deployed, including food and agriculture, 3D printing, security, healthcare, material handling, manufacturing, energy and consumer products.

ROBO is sector-agnostic, spanning many different types of businesses across multiple sectors and regions.

The ROBO index is weighted in proportion to each company ROBO score.

The ROBO score is a score between 1 to 100 that is based of the following:

• The level of revenue a company makes from robotics and automation activities
• The level of investment a company makes in robotics and automation
• The extent the company has market and technology leadership in the robotics and automation universe. A score of 50 or higher means the company is eligible for inclusion in the ROBO Global Robotics and Automation Index. Companies in the index are weighted according to the ROBO score divided by the sum of all constituents’ ROBO scores.

ROBO may be used as a tool to express long-term strategic or short-term tactical views on the growing trend for robotics, automation and artificial intelligence.

It can also aid portfolio diversification via investment in emerging industries that are largely not present in the Australian market.

ROBO fits in the framework of core-satellite portfolios. It allows investors who have conviction in RAAI to express their views in their portfolios.

Since the inception of the ROBO Global Robotics and Automation Index, the ROBO Global Classification Committee has classified members of the index selection universe as “Bellwether” (BW) or “Non-Bellwether” (NBW) by evaluating factors such as revenue purity, market and technology leadership, and company investments in robotics and automation technologies. With the more recent launches of the ROBO Global Artificial Intelligence Index (August 2018) and the ROBO Global Healthcare Technology and Innovation Index (April 2019), the classification committee has calculated an index score for each company, evaluating the same factors of revenue purity, leadership, and investments, but on a more granular level than the BW/NBW approach.

The ROBO Global Index Management Committee has implemented a change to the methodology for the ROBO Global Robotics and Automation Index Series, where each company in the classification universe is assigned a 1-100 “ROBO Score” based on the factors mentioned above. Companies that score 50 or above would be eligible for the indices, with the security weight determined by the security’s ROBO Score in relation to the summation of all eligible security scores.