LGIM broadens ETF suite with global brands strategy
The strategy aims to take advantage of the improved financial performance shown by firms, including the top brands globally across many industries, such as LVMH, Apple, Samsung and Visa.
The strategy will provide clients with access to a diversified portfolio of companies containing the «world's most valuable» brands. According to the firm, this is the first ETF of its kind to integrate brand value into the investment process.
To determine brand value, the ETF will leverage the expertise of brand valuation consultancy Brand Finance, which determines brand value according to five key metrics: brand investment, brand equity, brand performance, brand impact and forecast revenues.
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Brands in the Brand Finance Global 100 list are ranked by aggregate brand value. The ETF will track the performance of a basket of stocks based on those aggregate brand value scores, while also integrating liquidity, quality and ESG screens.
The strategy uses a «capped market-cap» weighting approach, which limits the weight of any company to a maximum of 5% on rebalancing days, in a bid to reduce portfolio concentration, LGIM explained.
The company's ‘Access' range, which provides exposures designed to serve as a «tactical or strategic tool» for investors keen to access non-traditional investment opportunities, will host the newly-launched ETF.
The fund's investment strategy takes advantage of the improved financial performance shown by firms, including the top brands globally across many industries, such as LVMH, Apple, Samsung and Visa.
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Aanand Venkatramanan, head of ETFs, EMEA at LGIM, said: «We hope that the launch of this ETF will enable
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