Jensen Investment Management Launches Rules-Based U.S. Quality Index, Screening for a Decade of Consistent Profitability

New benchmark identifies companies that have consistently generated at least 15% return on equity for ten consecutive years.

LAKE OSWEGO, Ore.--(BUSINESS WIRE)--Jensen Investment Management (“Jensen”) today announced the launch of the Jensen U.S. Quality Index (ticker: JQUI), a rules-based benchmark built around a long-term definition of business quality.

To meet Jensen’s highly selective definition of quality, companies must generate a return on equity (ROE) of at least 15% in each of the previous ten fiscal years. Out of thousands of publicly traded U.S. companies, fewer than 315 currently satisfy this standard, creating a narrow universe of businesses that have demonstrated consistent profitability through multiple market and economic environments.

From this universe, the Index selects the 100 largest qualifying U.S. companies based on free float market capitalization. Constituents are weighted using a modified market capitalization methodology designed to moderate concentration in the largest holdings while preserving meaningful exposure to market leaders. The Index is independently calculated and administered by VettaFi and is reconstituted and rebalanced semiannually.

"Many quality strategies evaluate companies using a snapshot of current financial characteristics," said Allen Bond, Managing Director – Head of Research & Portfolio Manager at Jensen Investment Management. "Our philosophy has always been that quality is demonstrated over time. By requiring companies to generate at least a 15% return on equity for ten consecutive years, the Jensen U.S. Quality Index translates that 35-year investment philosophy into a distinctive, transparent rules-based benchmark."

This benchmark produces a universe that typically demonstrates more stability, with constituents changing gradually rather than turning over each year. That consistency shows up in the current Index sector mix. As of June 30, 2026, technology, industrials, and healthcare account for over 60% of the Index, while financial services and utilities, which are more exposed to interest rate and regulatory shifts, are underrepresented.

Jensen intends for the Jensen U.S. Quality Index to serve as the benchmark for new investment products.

Jensen U.S. Quality Index at a Glance

• Minimum 15% return on equity
• 10 consecutive fiscal years
• Out of thousands of U.S. companies, fewer than 315 currently qualify
• Top 100 qualifying companies selected by free float market capitalization
• Modified market capitalization weighting designed to moderate concentration
• Semiannual reconstitution and rebalance
• Independently calculated and administered by VettaFi

About Jensen Investment Management

Founded in 1988, Jensen Investment Management is an employee-owned investment management firm headquartered in Lake Oswego, Oregon. For more than 35 years, the firm has applied a disciplined investment philosophy centered on identifying businesses capable of generating consistently high returns on shareholder equity over extended periods. That philosophy now serves as the foundation for the firm's proprietary index methodology. For more information, please visit www.jenseninvestment.com

Jensen Investment Management, Inc. is an investment adviser registered under the Investment Advisers Act of 1940. Registration with the SEC does not imply any level of skill or training.

© 2026 Jensen Investment Management. The Jensen Quality Universe is a trademark of Jensen Investment Management. All rights reserved.