Announcing the Launch of the Customer Value Index 200:Identifying the Leading Customer Engagement Companies

Thu Jan 17, 2013 8:00am EST

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NEW YORK--(Business Wire)--
The Porter Group, Brady Capital Research (, and wRatings
Corporation ( today announced the launch of the Customer Value
Index 200 ( This innovative index offers investors an
opportunity to capture the value offered by companies that have historically
delivered high quality economic profits and developed deeply emotional customer
relationships based on cultures of transparency, authenticity, and engagement.
By combining a patented approach to identifying companies with superior
competitive positions and harnessing the power of social media the CVI 200
offers a play on the appreciating value of "social capital" over the next decade
and the real value creating powers of strong core values, dynamic corporate
cultures, and stakeholder community focus. 

The CVI 200 is a research-based analysis that provides investors with exposure
to the top 10% of North American-listed companies with a market capitalization
over $1 billion that score the highest in terms of competitive strength, social
attributes, and authentic core values. The investment thesis of the CVI 200
rests upon the premise that engaged and loyal customers are amongst the most
powerful determinants of a company`s ability to generate long-term sustainable
cash flow. 

Our assessment methodology identifies the leading customer engagement companies
through the following three-tier process:

1 Competitive Strength and Social Strength Screening℠. Using 
        wRating’s patented customer research methodology, we identified 
        economically profitable companies with the highest level of 
        competitive strength by uncovering how companies are meeting customer 
        functional and emotional needs (measured in regard to moat barriers 
        created in their supply, product, and delivery chain). Through a 
        proprietary back-tested algorithm, we identified a subset of 9 of the 
        17 customer needs we track that most closely associate with social 
      2 Social Attributes Assessment℠. Our proprietary Social 
        Attributes Assessment℠ acts as a listening post to measure the quality 
        with which companies are using social media to enhance customer 
        relationships, organizational culture, and community relationships. It 
        uses a Likert Scale of 30 social “attributes” that seek to measure the 
        firm’s level of transparency, authenticity, and engagement.
      3 Ranking by Social Capital Score℠. To select the CVI 200, we 
        combine the Strength Analysis℠ with the Social Attributes Assessment℠ 
        to arrive at our proprietary Social Capital Score℠. This ranks the 
        final list of companies based on how well they are generating economic 
        profit through customer engagement and a business built on a broader 
        social purpose.

On a back-dated basis, the CVI 200 outperformed the S&P 500 Index since the
beginning of 2007, generating a 10.7% annualized rate of return (compared to
-0.7% for the S&P 500). Please note that historical performance is not
indicative of future performance. Since live calculation of the Index began on
November 15, 2012, the CVI 200 is up 11.2% versus 8.6% for the S&P 500, an
outperformance of 260 basis points over the two-month period. 

Jeff Cherry, CEO and Managing Partner of The Porter Group, LLC, said, "We
believe a stakeholder focus and dynamic organizational cultures are the
foundation for long-term growth, sustainability and value creation. The CVI 200
represents the culmination of many years of research into the dynamic nature of
the relationships between companies and customers. We think this analysis can
give investors deep insight into a company`s ability to manage intangible assets
and generate long-term shareholder and societal value." 

Barbara Gray, Co-Founder of Brady Capital Research, added "For the last few
years, I have been driven by a dream: to create a way for people to invest in
"good" companies and play the appreciating value of the new form of equity I
call social capital." 

"The world has changed and has become so customer-driven, yet investors don`t
have any product that truly focuses on who is creating that new value," says
Gary A. Williams, Founder & CEO of wRatings Corporation. "We`ve been tracking
competitive strength for over a decade now, and we can clearly see the power of
social capital and its impact on financial results through the CVI 200.Better
yet, investors can see it now, too." 

The Customer Value Index 200 is a rules-based, equal-weighted Index that is
calculated on a daily basis by Structured Solutions, AG, a leading global index
provider based in Frankfurt, Germany. To be included in the Index, a company
must trade on a U.S. or Canadian exchange and have a market capitalization of at
least $1 billion. Relative to the S&P 500, the Index is overweight small-to-mid
cap growth-oriented companies operating in the consumer and information
technology sectors. The Index is rebalanced on a monthly basis and includes
leading companies such as Starbucks (NASDAQ: SBUX), Chipotle Mexican Grill
(NYSE: CMG), and Whole Foods Market (NASDAQ: WFM). 

Investors can discover more about the CVI 200 at the Index`s website,

Please contact us to receive a copy of our whitepaper "Customer Engagement,
Social Media and the New Paradigm in Long-Term Value Creation".

About The Porter Group

The Porter Group (TPG) is a boutique investment consultancy and private
investment bank founded by Jeff Cherry (
and based in New York City. TPG provides an interconnected set of investment and
strategic advice services to support investors, investment managers, hedge
funds, private equity partnerships and executives who want to create
extraordinary financial as well as societal value. 

About Brady Capital Research

Brady Capital Research is an investment research firm based in Vancouver, Canada
founded by Barbara Gray, CFA (, a former
top-ranked Equity Analyst, and Greg Scott
(, an entrepreneur focused on company
culture and social media. For the past three years, they have been developing
their social capital investment thesis on how social media is leading to the
creation of a new form of equity called social capital that will change
companies` underlying risk/growth profiles and accelerate the value
creation/erosion process. For more information, visit 

About wRatings Corporation

The wRatings Corporation is an independent stock research firm based in metro
Washington DC. The company was founded by Harvard Business Review author, Gary
A. Williams ( He and his team
continually study customer buying behavior to project the future earnings
performance of companies. Since 1999, their original set of leading indicators
uses a common framework to measure the competitive strength of companies. For
more information, visit 

An investor cannot invest directly in an index. Returns reflect past performance
of the Index and do not guarantee future results. Results reflect the
reinvestment of dividends and capital gains, if any. Index returns do not
represent Fund returns. The Index does not charge management fees or brokerage
expenses, nor does the Index lend securities, and no revenues from securities
lending were added to the performance shown.

The Porter Group
Jeff Cherry, 646-561-6751
wRatings Corporation
Gary A. Williams, 703-581-8208
Founder & CEO

Copyright Business Wire 2013