GLOBAL 2016: Valuable brands deliver superior shareholder returns
BrandZ™ Portfolio outperforms the S&P 500 Index and the MSCI
The value of the BrandZ™ Strong Brands Portfolio increased 105.9 percent between April 2007 and April 2016, outperforming both the S&P 500, which grew 60.7 percent, and the MSCI World Index, which grew 20.1 percent. (The MSCI World Index is a weighted index of global stocks.)
The exceptional performance of the BrandZ™ Strong Brands Portfolio relative to two well- regarded indexes affirms that valuable brands deliver superior returns over time and regardless of market disruptions. It also demonstrates the positive return on money invested to build meaningfully different and salient brands.
In concrete terms, $100 invested in 2006 would be worth $120 today based on the MSCI World Index growth rate, and $161 based on the S&P 500 growth rate. But that $100 invested in the BrandZ™ Strong Brand Portfolio would have more than doubled in value, to $206.
Key take aways 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.
BrandZ™ Portfolio vs. the S&P and MSCI World Index
The value of the BrandZ™ Strong Brands Portfolio increased 105.9 percent from April 2007 to April 2016, outperforming both the S&P 500 and the MSCI World Index.
Source: BrandZ™ / Millward Brown
The BrandZ™ Strong Brands Portfolio is a subset of the BrandZ™ Top 100 Most Valuable Global Brands.