Return On Trust: The "State Of Trust" 2016

In the short-term “low trust” businesses can be very profitable. Corporate executives who “legally” cheat, steal, lie, avoiding paying taxes, and stay just on the “right side” of compliance may produce the profits that both their Board and shareholders crave, but these “business as usual” trust violations are not conducive to long-term business success. That long-term success is built by embracing trust as both a business “imperative” and long-term strategy. This translates to practicing “trust” on a daily basis by treating your customers and suppliers “right”, by having superior products, great service, high performing teams, low employee turnover, and a high degree of innovation.

Now in its seventh year, our proprietary FACTS® Framework measures the trust "worthiness" of America's largest public companies (over 2000). We define trustworthy as those companies with the strongest culture and core values, including good citizenship. The following are some of the “fast facts” drawn from our larger study.

Chart #1 

During the three-year period from February 2013-February 2016 America's most trustworthy public companies outperformed the S&P 500.

This was not a "test" but rather “real” money under management, followed by an independent audit verifying the returns. Trust works as a business strategy.

FACTS® Managed Accounts were independently audited from Feb.1, 2013-Jan.31, 2016. Prepared by FACTS Asset Management LLC

 FACTS® is our model of identifying America’s Most Trustworthy Companies by applying FACTS strategy parameters. The composite results translate to 50.09% for FACTS® and 28.1% for the S&P 500 cumulative percentage return shown above, or 16.7% average annualized for FACTS® vs. 9.5% for the S&P 500 over the same period.  The audited Composite Performance results shown above may not be indicative of future results.  Full audit documents available upon request.

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FACTS® Managed Accounts were independently audited from Feb.1, 2013-Jan.31, 2016. Prepared by FACTS Asset Management LLC

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