What is Rank-Adjusted Weight % and how is it calculated?

Rank-Adjusted Weight is a metric that recalibrates the portfolio or holding weight of securities according to their relative ranking within a given Investment Theme. Rather than treating all securities equally, this measure provides a more precise representation of a portfolio's effective thematic exposure by attributing greater weight to higher-ranked securities β€” those most central to the theme β€” while proportionally discounting lower-ranked securities that maintain a more peripheral association with the theme.

Formula

π‘…π‘Žπ‘›π‘˜π΄π‘‘π‘—π‘’π‘ π‘‘π‘’π‘‘π‘Šπ‘’π‘–π‘”β„Žπ‘‘ = π‘Šπ‘’π‘–π‘”β„Žπ‘‘β‹…π‘ƒπ‘’π‘Ÿπ‘π‘’π‘›π‘‘π‘–π‘™π‘’π‘…π‘Žπ‘›π‘˜

Where

Percentile Rank = (Total Companies in the Investment Theme - Company Rank + 1) / Total Companies in the Investment ThemeΒ 

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