Royal Bank of Scotland has partnered with Joel Greenblatt, managing partner of Gotham Capital International, to develop a new family of indices designed to give access to fundamental value investing principles based on Gotham’s accounting data.

The Gotham Enhanced Value Index Series was designed by Gotham to be traded by RBS through an exclusive partnership. It is independently calculated by Standard & Poor’s and offers daily liquidity and transparency to investors via certificate and structured note formats offered by RBS in Europe, the Middle East, Asia and Latin America.

All the indices invest in liquid stocks across a range of industries. The Gotham US Enhanced Value Index invests in US shares, the Gotham Global Enhanced Index invests worldwide, and the Gotham International Enhanced Index invests worldwide excluding the US. The global and international indices incorporate regional and country limitations loosely based on gross domestic product, as well as industry concentration limits. 

Gotham’s accounting analysts use company filings and announcements to calculate the return on capital and earnings yield for companies to determine which ones are undervalued by the market. 

“In an environment where the stock market is still exhibiting volatility, fundamental value investing creates an opportunity for investors to gain exposure to undervalued stocks with profit potential,” said David Moroney, co-head of retail products structuring at RBS.