Dynamic brands accelerate superior shareholder returns
BrandZ™ Portfolios outperform
the S&P 500 Index and the MSCI
BrandZ™ portfolios significantly outperformed the stock market during the past 12 years. Between April 2006 and April 2018, the value of the BrandZ™ Strong Brands Portfolio increased 172.1 percent, and the BrandZ™ Strong & Innovative Brands Top 20 Portfolio increased 226.7. The S&P 500 and MSCI World Index grew only 102.0 percent and 50.3 percent, respectively.
The exceptional performance of the BrandZ™ Portfolios relative to two well-regarded indexes affirms that valuable, Meaningfully Different brands deliver superior returns over time. The performance also shows how Innovative and Different brands build value despite market disruptions.
In concrete terms, $100 invested in 2006 would be worth $150 today based on the MSCI World Index growth rate, and $202 based on the S&P 500 growth rate. That $100 invested in the BrandZ™ Strong Brand Portfolio would have almost tripled in value to $272. Invested in the BrandZ™ Strong and Innovative Brands Portfolio, $100 would be worth $327 today.
The key takeaways for brand owners and brand marketers are: companies that invest in building valuable brands grow their topline faster; and organic top-line growth is the greatest determinant of total shareholder return.