ACSI Scores as Financial Indicators

ACSI scores act as a strategic tool for gauging the competitiveness of individual firms and predicting future profitability. Research using ACSI data demonstrates the relationship between customer satisfaction and the financial performance of individual firms. An organization’s customer satisfaction performance, as measured by ACSI’s methodology, can predict how well the firm will perform in terms of corporate revenue and earnings growth.

Moreover, ACSI data show that customer satisfaction is directly linked to stock market performance. Specifically, companies with high scores and/or improving scores on the American Customer Satisfaction Index produce higher stock returns than their competitors and greatly outperform market indexes.

The following charts depict the actual performance, before fees and expenses, of an actively-managed long/short portfolio of stocks that are selected based on ACSI score data (the “Long/Short Portfolio”). The Long/Short Portfolio reflects investment decisions guided by ACSI data used to identify companies with the highest ACSI scores (for long positions) and lowest ACSI scores (for short positions). The Long/Short Portfolio does not reflect the performance of all companies scored by the ACSI.

Long/Short Portfolio vs. S&P 500

Long/
Short Portfolio vs. S&P 500

The preceding information is an indication of the performance of one account and is not an offer to purchase any security or investment product. The ACSI does not recommend the purchase or sale of securities issued by companies scored by the ACSI. Although the information is based on the actual performance of the Long/Short Portfolio, the Long/Short Portfolio companies were selected according to the manager’s discretion and not a rules-based investment model. The performance of other accounts based on ACSI score data may vary materially, and the Long/Short Portfolio’s performance should not be considered an indication of future results. If the Long/Short Portfolio’s performance reflected the fees and expenses of managing the Long/Short Portfolio, including expenses associated with the Long/Short Portfolio’s short positions, performance would have been lower. The Long/Short Portfolio reflects the short sales of certain securities, which may pose significant risks, including that losses from such securities sold short may exceed the original amount invested in such securities.

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