Brand Finance launches brand value indices
Business valuation and strategy consultancy Brand Finance has launched two indices, in collaboration with Frankfurt-based Solactive, to show how brand value correlates with stock market performance.
The new indices – Solactive BrandFinance® European Leaders Select 30 Index and the Solactive BrandFinance® European Leaders Low Risk 30 Index – give investors the opportunity to be exposed to companies deemed to have a strong brand value, according to Henning Kahre, Solactive’s head of research.
As stated by Brand Finance, the indices are a unique concept because they focus on intangible assets (brand value) that can generate competitive advantage and benefit companies’ performance. It added that academic research has shown that brand value can be associated with pricing premiums, greater customer loyalty and market share.
Alex Haigh, Brand Finance head of research, said: “Through our analysis, we have found that the return on investment is consistently higher for companies with brands that make up a large proportion of their total business value. To allow investors to capitalise on the trend, we have teamed up with Solactive AG to create indices that can be invested in directly.
“We hope that we can help investors obtain higher returns through more intelligent analysis, just as we have helped companies get more from their marketing for the last 20 years.”