LGBTQ-Inclusive Stock Basket Outperforms: Credit Suisse

The video discusses the importance of diversity in companies, particularly focusing on the LGBTQ community. It highlights the challenges in measuring inclusivity and the need for better disclosure from companies, especially outside the US. The performance of gender diversity indexes is analyzed, noting their underperformance compared to the S&P. The video also explores investment opportunities in inclusive businesses, emphasizing the US market's openness. Finally, it notes the growing interest in companies with strong social policies, driven by broader ESG trends.

Why is diversity considered significant for companies?

• It ensures equal pay for all employees.

• It helps companies tap into a broader consumer base.

• It reduces operational costs.

• It guarantees higher profits.

What is one of the main challenges in measuring LGBTQ inclusivity?

• Lack of interest from companies.

• Insufficient technological tools.

• Difficulty in accessing financial data.

• Complexity in defining and measuring inclusivity.

Which external source is used to assess LGBTQ inclusivity in the UK?

• HRC Corporate Equality Index

• Stonewall Employers Survey

• Bloomberg Gender-Equality Index

• FTSE4Good Index

What adjustment is made to diversity indices to address sector biases?

• Excluding financial sector companies.

• Focusing only on US companies.

• Adjusting market cap weights.

• Increasing the number of tech companies.

Why are US companies more prominent in diversity indices?

• They have larger market capitalizations.

• They are more profitable.

• They disclose more about their diversity policies.

• They have more employees.

What percentage of companies in the discussed diversity index are from North America?

• 95%

• 70%

• 50%

• 88%

What has been the trend in investor interest in companies with strong social policies?

• Fluctuating interest

• Rapidly increasing interest

• Stable interest

• Decreasing interest