BrandLoyalties confirms "Brand Luminosity" Global Excess Returns

NEW YORK - Sept. 13, 2022 - PRLog -- Index One, a leading tech-based index provider, is proud to announce that BrandLoyalties has successfully verified its Brand Luminosity strategy, validated by Quant Pioneers and independently back tested by Index One.

With the increasing demand for index customization and flexible calculation, Index One is a pioneer in providing data and research providers with affordable and flexible tools to back test and construct indices in a cost-efficient and timely manner. The passive investment industry is being molded by solutions that employ technology and systematic approaches to deliver client-focused solutions, and Index One is playing a big role in this transformation.

For a number of years BrandLoyalties, Inc. has had a group of actively  managed quantitative indexes for US listed consumer equities. Their brand popularity based investment strategy (called "Brand Luminosity" and peer reviewed in The Journal of Investing, June 2019) has produced outstanding and persistent excess returns for those indexes in back tests that start in 2008.

BrandLoyalties' "Brand Luminosity" based metrics rank global consumer equities according to the growth rates of consumer interest in their respective brands. Their indexes started as simple proof-of-concept portfolios demonstrating the value of investing selectively in equities with the fastest growing brand popularity. The indexes are actively (and quantitatively) reconstituted and rebalanced each quarter to include only equities currently within the best quartile of brand luminosity growth.

Herbert Blank has recently worked with BrandLoyalties to test a subset of consumer equities with above-average ESG ratings. Mr. Blank notes that "the excess returns and robust Sharpe ratios on the ESG sample were consistent with the published studies from 2019 using the entire US luminosity-score universe provided by BrandLoyalties. The study (https://quantpioneers.com/wp-content/uploads/2022/08/Bran...) was conducted using the Index One platform and combined historical data from both BrandLoyalties and IdealRatings for the 2008 through 2022 time period.

While BrandLoyalties clients have been utilizing their "Brand Luminosity" data for over 10 years, it is only now, using the Index One platform, that the active management strategy has been documented to also work for ex-US and global indexes.

Alexander Berg, CEO of Index One: "We are very impressed by the quantitative metrics produced by BrandLoyalties, and we are proud to assist in the creation, validation, and proliferation of these novel investment strategies."

Tony Seker, President of BrandLoyalties: "The real value of the Index One platform was not just that it helped us prove that our quantitative management strategy works globally, but it also enabled us to quickly expand our index offerings four-fold -- from our traditional group of US only indexes to a much wider range of similarly themed US, Global, European and Asian indexes."