Transparency Index™

EXCLUDED Industry:
TOBACCO

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

Tobacco industry is comprised of companies that manufacture cigarettes, cigars, snuff, chewing tobacco,
e-cigarettes, vapes and all other smokable or non-smokeable products containing nicotine.

Tobacco industry, as defined by GICS sub-industry classification, includes manufacturers of cigarettes and other tobacco products.

Reason for Exclusion

  1. Tobacco industry failed two transparency factors: Terms and Conditions and Trust
  2. Causes 8 million deaths annually.
  3. Negatively impacts performance.

Harmful Impact

Investment in tobacco production and use have adverse impacts on people and societal well-being.
  • 8 Million Deaths Annually due to harmful use of tobacco.1
  • $300B Annual Healthcare Costs associated tobacco and smoking.2
  • +5,000 Chemicals in Cigarette Smoke – 70 known to cause cancer.3
  • 766,571 Metric Tons Cigarette Butts found in environment every year.4
  • ~600 Million Trees Chopped Down by tobacco industry every year.5 (1 tree = only 15 packs of cigarettes)

Performance Impact

The Transparency Index 5-year cumulative dollarized return is more than 1.9 time higher than the S&P 500 Index and 5.1 times higher than the S&P 500 Tobacco Industry Index.

Transparency Index Performance Impact vs. S&P 500 - Tobacco 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.