Transparency Index™

EXCLUDED Industry:

Summary of Methodology

Transparency Index™ methodology applies the exclusionary screening process to filter out industries that do not align with a positive impact on investment performance and the well-being of people.

Description of Industry

Banking industry is comprised of companies that provide business loans, accept deposits and offer basic investment products to both individuals and private businesses.

Banking industry, as defined by the GICS industry classification includes Banks, Consumer Finance, Credit Services, Diversified Financial Services, Mortgage Real Estate Investment Trusts, and Thrifts & Consumer Finance.

Reason for Exclusion

  1. Banking industry failed two transparency factors: Terms and Conditions and Trust
  2. Lack of fiduciary behavior results in ~17B in losses for clients.
  3. Negatively impacts performance.

Harmful Impact

Banking industry has adverse impacts on humans and societal well-being.
  • Lack of Fiduciary Behavior Linked to Backdoor Payments & Hidden Fees = $17 Billion Annual Losses for working families.1
  • 33% Banks Lack User Data Privacy Mechanisms putting customers at risk.2
  • Estimated $30 Billion Bank Overdraft Fees Collected in 2020 impacting customer well-being.3
  • Predatory Credit Card Fees Harm Users: 16.22% Average Interest Rate4 $12.7B Interest Payments5 $787B Existing Credit Card Debt6

Performance Impact

The Transparency Index 5-year cumulative dollarized return is more than 1.9 times higher than the S&P 500 Index and 3 times higher than the S&P 500 Banking Industry Group Index.

Transparency Index Performance Impact vs. S&P 500 - Banking Industry
  • The graph shows cumulative returns for the period from January 1, 2017 to December 31, 2021
  • Starting value $10,000 hypothetical investment, assuming no withdrawal and no dividends
  • Past performance is not an indicator of future performance
  • View Annualized Returns*

*The Transparency 100 Index (the “Index”) commenced on June 16th, 2021 following the market close. All information presented prior to this date is back-tested. Back-tested performance is hypothetical performance, not actual performance. Back-tested performance is prepared by retrospectively applying the Index methodology to historical information with the benefit of hindsight.  Back-tested performance, therefore, does not reflect the results of actual trading.  Back-tested, as well as actual performance, are not indicative of future results.  The back-tested performance uses the same methodology that was in effect when the Index officially launched on June 16th, 2021. The back-tested performance shown in this presentation are unaudited, and do not reflect the investment of dividends or other earnings. The Index does not reflect the reinvestment of dividends.