Solactive and Brand Finance launch Brand Leaders indices
Index provider Solactive has joined forces with Brand Finance in order to launch tow equity indices focussing on brand value, the Solactive BrandFinance European Leaders Select 30 Index and Solactive Brand Finance European Leaders Low Risk 30 Index.
Focussing on branding as an intangible asset to generate competitive advantage, both indices are Euro denominated and select the top 200 European companies and rank them according to Brand / Enterprise Value. They differ in their weighting scheme, treatment of volatility and dividend payments.
Solactive BrandFinance European Leaders Select 30 Index is based on 1000 at the close of trading on the start date of February 15th 2006 and is composed of 30 equally-weighted stocks. The index components are readjusted monthly.
Solactive BrandFinance European Leaders Low Risk 30 Index is based on 100 at the close of trading on the start date of 3rd of February 2006 and is composed of 30 stocks weighted to achieve minimal portfolio volatility.
In both cases, index components are rebalanced quarterly. Each sector is capped at 25% for both indices to avoid concentration.
Henning Kahre, head of Research, Solactive AG, comments on the collaboration: Strong brands generate customer loyalty and this can lead to better performance. Solactive BrandFinance European Leaders Select 30 Index and 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 Brand Finance plc.”