Home Business News New ETF highlights the value of cultivating strong brands

New ETF highlights the value of cultivating strong brands

by LLB Finance Reporter
28th Sep 23 10:52 am

Brand Finance, the world’s leading brand valuation consultancy, today announced its partnership with Legal & General Investment Management (LGIM) to launch the L&G Global Brands UCITS ETF, an Exchange-Traded Fund.

The new ETF is the first of its kind to integrate brand value. The new fund echoes business magnate and fundamental investor Warren Buffet’s belief that a company’s brand is one of its core financial assets.

The ETF showcases the importance of cultivating a strong brand, acting as evidence for marketeers that positive brand valuation can help brands engage with financial audiences. This highlights the untapped potential for brands and will continue the conversation around brand valuation in the boardroom.

Between 2016 and 2022, companies within Brand Finance’s top 100 global brands list have, on average, exhibited 23% higher shareholder yield, 19% higher return on equity and 18% higher operating margin when compared to mega cap peers in the MSCI World.

Richard Haigh, Managing Director, Brand Finance said, “A business’s brand is one of its most important financial assets. Used correctly, strong brands can unlock cast financial value for businesses and shareholders.

“Brand Finance is excited to partner with LGIM to launch this ETF and demonstrate the added value that brands bring. This will continue to reaffirm the role of brand in the boardroom.”

Aanand Venkatramanan Head of ETFs, EMEA at Legal & General Investment Management (LGIM) added, “From the phones in our pockets to the cars we drive, we are all familiar with brands and we have an instinctive grasp of their commercial value.

“We hope that the launch of this ETF will enable investors seeking exposure to such brands and companies that own them, gain access to a diversified portfolio of higher quality names that have historically demonstrated greater earnings resilience.

“We are pleased to partner with Brand Finance whose research-based modelling and analysis is fundamental to this innovative and transparent investment proposition.”

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