Our proprietary FACTS® methodology identifies responsible companies with strong core values and ethical cultures based on a quantitative, holistic and cross-functional stock screening process. The methodology blends financial stability with forensic accounting, corporate governance, transparency, and sustainability metrics for the largest and most liquid companies.
FACTS® also identifies profitable companies whose focus is on building long-term trustworthy relationships with all of their stakeholders. The “short-term” focus that is plaguing the stock markets, while simultaneously rewarding management is alleviated in our model.
It is one thing to talk about organizational trust and quite another to attempt to measure it. The founders of FACTS® Asset Management, LLC have spent almost a decade constructing and refining this corporate trust measurement methodology.
Our audited performance over the past three years point in the direction that trust works.
FACTS® is an acronym that identifies America’s most trustworthy public companies
Financial Stability and Strength- assesses the company’s financial and market performance. Companies that maintain high rankings have been shown to have better stock performance over time.
Accounting Stability- analyzes the company’s transparency of earnings and reporting conservativeness. Companies ranking highly over time have conservative ratings and are shown to have less regulatory actions.
Corporate Integrity- assesses the company’s overall governance risk, board independence and composition, and compensation policies and risks. The focus is on real-world value and risk, not just “check-the-box” practices.
Transparency- analyzes the company’s financial and nonfinancial clarity including disclosure, environmental management and climate change, diversity, human rights and workforce composition.
Sustainability- shows how well the company is performing in regard to the environment and climate change, workforce, community impact and human rights, among other metrics.