The New BrandTransact 50 Index Consistently Outperforms All Major Wall Street Indexes by Using Brand Metrics and Stock Price to Identify Undervalued Large Cap Securities

An ETF tracking the new index will be the first in a series of investment vehicles to be launched in a new product category focusing on brands and intangible assets.

NEW YORK--()--The BrandTransact 50 Unrealized Value Index (BTW50) created by BrandTransact Worldwide, Inc.® and calculated by Wilshire Associates® shows compelling up- and down-capture performance that consistently outperforms the S&P 500, FTSE Russell 1000, FTSE Russell 2000, the Wilshire 5000, Wilshire Large-Cap Index and the Guggenheim S&P 500 Equal Weight. The BTW50 index is first to combine brand metrics with Wall Street analytics to create a fully passive, rules-based methodology to identify companies whose share value is not fully recognized in the US stock market.

The BTW50 index is primarily a Large Cap portfolio that provides the benefits of intelligent security selection of active management in a passive format and shows a high correlation to the broad US equity market but consistently outperforms it. The proprietary methodology identifies companies with unrealized brand value that have high potential for margin expansion and consistently produces a spread between Up and Down Capture that is better than most active managers have been able to achieve:

  • The BTW50 index outperformed the S&P 500 by over 500 basis points on the upside with less risk on the downside over five years ending March 31, 2016.
  • It showed an annualized return of 27.3% over the past seven years through August, 2015.
  • The BTW50 significantly out-performed the S&P 500 in market recovery in 2009 with a 47% annualized return versus 26.5%, and in 2013 with a 51% annualized return versus 32.4%.
  • It identifies Blue Chip companies before they become one.
  • The index applies proprietary brand realization metrics that create a very stringent Buy and Sell discipline.
  • It allows investors a systematic way to target investments consistent with Warren Buffett’s “Moat” investment philosophy.

According to statistics published in 2015 by intangible asset advisory firm Ocean Tomo, 84% of the value of the S&P 500 is made up of intangible assets including brand value. “It’s perplexing how everyone seems to ignore this elephant in the boardroom. It makes little sense that such a huge chunk of market cap value is not considered a factor in the traditional ways that stocks are analyzed or how companies operate,” comments Bill Zabit, founder and CEO of BrandTransact Worldwide, a Wall Street-based advisory firm that exclusively addresses the issues and opportunities related to key intangible assets and how they impact the current and future value of US companies.

“With the launch of our BTW50 index, we have shown that the correlation between brand metrics and stock price provides the keys to unlock unrealized value on Wall Street. It’s now time to pay attention,” Zabit continues.

Dr. Robert Shapiro, former US Undersecretary of Commerce for Economic Affairs and renowned economic adviser to world leaders and top corporate executives is the chief strategist for BrandTransact Worldwide. “I congratulate BrandTransact for their business focus on brands and intangible assets. And I am pleased to participate in their important mission,” commented Shapiro.

The underlying analysis of the BTW50 index includes a cross reference to historical brand value metrics provided by Tenet Partners, a highly recognized authority on brand measurement and valuation that currently analyzes over 1,000 US publicly traded companies. Tenet uses a highly stable, quantitative benchmark tracking system with a proprietary model correlating corporate brand to market capitalization. Tenet has been compiling quarterly brand data for US companies consistently since 1994.

“Wilshire Analytics is thrilled to extend the Powered by Wilshire index family to include the BrandTransact 50. Wilshire’s calculation and analytical expertise combined with BrandTransact’s innovative, proprietary approach in creating an index that can help investors uncover unrealized market value is in the true spirit of the Powered by Wilshire brand,” commented Robert J. Waid, Managing Director at Wilshire Associates.

With the launch of the BTW50 index by BrandTransact Worldwide, Inc. a new company called BrandTransact Investments, LLC (BTI) was formed that has exclusive licensing rights to create investment products based on the BTW50 index. BTI also owns the IP for future related indexes that are in queue to be published. According to Larry Medin, CEO of BTI, the first in a family of products to be launched is an ETF that tracks the BTW50 index.

“The financial services industry has been slicing and dicing traditional financial data for years looking for ways to create portfolios that will provide additional returns while attempting to manage or reduce portfolio risk. BTI’s unique approach separates us from the traditional pack by flushing out non-traditional data. In so doing we have identified a new investment product category related to brands and intangible assets. And the results speak for themselves,” states Medin.

About BrandTransact Worldwide, Inc. (BTWW)

BrandTransact Worldwide specializes in advising corporate boards, the C-Suite, private equity firms and other trusted advisors on how brands and intangible assets impact the critical pre- and post-deal stages of corporate transactions, transformation events and capitalization opportunities. The company focuses on corporate and product brands, intellectual property, reputation of brand and leadership, management and leadership talent, employee engagement and branded assets. They are the only single-source firm that exclusively addresses the issues and opportunities related to this full complement of intangible assets and how they strategically and financially impact key lifecycle events a company faces. For more about BTWW visit www.brandtransact.com. For more about the BTW50 index visit http://wilshire.com/indexinfo/poweredbywilshire/BrandTransact50Index.html.

About Wilshire Associates

Wilshire Associates (Wilshire®), a leading global financial services firm founded in 1972, provides consulting services, analytics solutions and customized investment solutions to plan sponsors, investment managers and financial intermediaries. Its business units include, Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and Wilshire Private Markets. The firm was founded in 1972, providing revolutionary technology and acting as an early innovator in the application of investment analytics and research to investment managers in the institutional marketplace. Wilshire also is credited with helping to develop the field of quantitative investment analysis that uses mathematical tools to analyze market risks. All other business units evolved from Wilshire’s strong analytics foundation. Wilshire calculates and distributes indexes Powered by Wilshire based on third-party supplied methodology and makes no representation about the intended purpose or methodology used to construct them. For more about Wilshire Associates, visit www.wilshire.com. Follow on Twitter: @WilshireAssoc

Contacts

For BrandTransact Worldwide, Inc.
Dan Carlson
610.517.6901 (c)
844.986.7700 (o)

Release Summary

The new BrandTransact 50 index consistently outperforms all major Wall Street indexes by using brand metrics and stock price to identify undervalued Large Cap securities.

Contacts

For BrandTransact Worldwide, Inc.
Dan Carlson
610.517.6901 (c)
844.986.7700 (o)