Reputation as an investment criterion

commsLAB applies reputation information as an investment criterion and for decisions on investments in the stock markets. The active investment strategies focus on the leading Swiss companies in terms of reputation.

commsLAB AG’s benchmark-oriented investment approach “Reputation-based Asset Allocation” (RB2A) is founded on the analysis and evaluation of reputation-relevant information on listed Swiss companies with a high level of resonance.

Value adding factor

Reputation is a key value adding factor: companies with a good reputation achieve a better economic performance. → Learn more

Investment focus

Investments are made in companies with sustainable positive reputational effects that are potentially not already priced in.

Excess returns

Through an active, reputation-weighted investment strategy, sustainable excess returns can be achieved, with the potential for further increases depending on the focused narrative.

Reputation premium

Our measurements (SRI® model) show that reputation in the Swiss equity market is a relevant risk factor to explain equity returns. → Learn more

Execution and investment profiles

Regression-analytical evaluations of reputation and stock market data show the following, according to the research of Prof. Dr. Manfred Schwaiger, Institut für Marktorientierte Unternehmensführung, Ludwig-Maximilians-Universität München:

Investment effect

Investments in reputation-building activities over a longer period of time have a positive effect on the company’s value (stock market value).

Shares with an above-average reputation therefore generate significant excess returns.

Performance effect

The company’s overall reputation depends not only on its ability to innovate and communicate, but also on financial success.

An improvement in financial performance therefore leads to an improvement in reputation, regardless of the starting level.

Reputation-based Stock Selection

The reputation-based investment strategies of commsLAB AG invest in companies that have sustained positive reputation effects overall. As a significant value-adding factor, reputation is therefore systematically used as an investment criterion, with the aim of achieving long-term excess returns over traditional portfolio approaches.

Methodological information

commsLAB’s reputation-based investment strategies are based on the monitoring and assessment of around 100 of the most responsive exchange-listed Swiss companies. They provide the basis for outperforming the major benchmark indices on a reputation-weighted basis (SMI/SLI/SPI), or for focusing via stock-picking procedures on those securities that promise additional excess returns.

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RB2A Investment Approaches

Investment approach 1 – Swiss Performance Reputation Selection (Benchmark SPI)

The investment approach “Swiss Performance Reputation Selection” has the objective of selecting the 20 best-reputated companies from around 100 companies listed on the Swiss Stock Exchange on a weekly basis and to display these companies in a reputation-weighted manner. The weighting criterion is the reputation (SRI®) of the individual companies. The chart shows the historical simulation of this investment approach. → Learn more

Details investment approach 1

Basis Reputation data commsLAB/fög-UZH. Stock price information from SIX Financial Information
Reputation data (1) Corporate Reputation / (2) Economic Reputation / (3) Locational Responsibility / (4) Personalized Reputation
Distributions None. Net dividends (65%) are reinvested
Stock selection The prerequisites for reputation coding by commsLAB are: Sufficient presence of the company in publicly available sources, a market capitalization of at least CHF 200 million and an average daily trading volume of at least CHF 2 million. At any time, 20 companies are represented in the portfolio (stock picking)
Selection criterion Sedimented resonance and listed on the Swiss stock exchange
Frequency Weekly adjustment of weightings (each Friday at closing prices)
Weighting Balanced-weighted: Fixed portfolio weightings, with an overweight of positive reputation. See ‘Current positions’ for effective weights.