Large gains from ‘brand’ investing

Investors would have seen a 97% return between 2007-2015 had they invested in an index related to the brand value of companies, the creators of the index claim. This compares to the average return of 49% for index funds linked to the S&P 500. The Solactive BrandFinance European Leaders Select 30 Index, and a low-risk variation of it, are launched by Frankfurt-based Solactive, an index provider, and BrandFinance, a brand consultant and valuation specialist. The firms say there is a strong link between brand value and stock market performance due to a link between a company’s brand, its pricing premium, customer loyalty and market share. Brand Finance said intangible assets – such as brand – account for 47% of a company’s total global enterprise value and 52% of total European enterprise value. “The brands selected for inclusion within the two indices are a clear indication that properly managed brands can become solid investment opportunities,” the firms say. ©2016 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.