Brandometry™ White Paper Reveals Strong Brands with Unrealized Value Deliver Superior Performance in Long Term
NEW YORK--(BUSINESS WIRE)--Nov 26, 2018--Acting on its mission to help investors identify companies with strong brands when their price is depressed, Brandometry ™ has commissioned a groundbreaking new white paper titled, “ Converting Brand Power into Investment Returns.” The study, developed by The Smart Cube, a global provider of research and analytics solutions, examines how intangible assets, particularly brand, have become the primary indicators of corporate market value.
“Current accounting frameworks fail to capture the full worth of intangible assets, underscoring the need for investors to look beyond financial statements and consider innovative ways to incorporate brand value into their investment strategies,” says Bhavna Khurana, Director and Global Head of Financial Services Client Solutions at The Smart Cube. “In this paper, we studied how investors can use brand as a determinant to achieve higher risk-adjusted returns.”
Intangible assets are a dominant feature of today’s idea-driven economy, encompassing 84 percent of the market value of S&P 500 companies in 2015. This represents an astounding five-fold increase since 1975.
The Smart Cube identified the EQM Brand Value Index, launched with Brandometry in June, as the only index of its kind to capture expert perception of brands and identify undervalued brands in its investment approach. The firm’s assessment of this index found that it:Generates non-traditional alpha over the S&P 500 and provides exposure to multiple sectors (not just consumer-centric companies). Identifies companies with strong balance sheets that generate superior market returns. Is less volatile and has lower drawdown risk than the S&P 500. Performs strongly on environmental, social and governance (ESG) parameters.
The EQM Brand Value Index has outperformed every major benchmark over the past 10 years, with comparative indices including the S&P 500, S&P 500 Equal Weight, S&P 500 Growth, S&P 500 Value, and the Russell 1000 Value.
“A strong brand is a leading indicator of future performance,” said Larry A. Medin, Founder and Chief Executive Officer of Brandometry. “Recognizing which companies have strong brands and are also undervalued can markedly improve a value investment strategy. Our philosophy isn’t just about investing in the strongest brands. What drives performance is knowing when to own strong brands.”
Brandometry provides research for advisors and clients striving for alpha performance by signaling when to own leading brands. Brandometry has pioneered a new, non-traditional index based on “Brand.” The EQM Brand Value Index identifies companies worthy of investment that share high value potential and positive brand resonance. The Index uses a rules-based methodology to identify strong brands that maintain brand equity value not reflected in share price.
About The Smart Cube
The Smart Cube is a global provider of research and analytics solutions, primarily serving the CPG, financial services, retail, life sciences, energy and industrials sectors. Addressing the needs of businesses in the intelligence age, their customized solutions provide a truly connected approach, delivered by talented minds and strengthened by Amplifi, their organizational intelligence platform. The Smart Cube works with one-third of companies in the Fortune 100, helping them make smarter decisions, accelerate value and gain a competitive edge.
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CONTACT: Gregory FCA for Brandometry
Leah Katsanis, 610-228-2117
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES ACCOUNTING CONSULTING FINANCE RETAIL COMMUNICATIONS MARKETING PUBLIC RELATIONS/INVESTOR RELATIONS OTHER RETAIL
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PUB: 11/26/2018 09:00 AM/DISC: 11/26/2018 09:01 AM