Swiss Reputation Selection AMC

SWISS REPUTATION SELECTION
INVESTMENT CRITERION

The financial boutique Brevalia AG and the research-based consulting boutique commsLAB AG launch the first reputation-based investment solution in Switzerland.

The certificate issued by Zürcher Kantonalbank under the name “ZKB Tracker Certificate Dynamic on Swiss Reputation Selection Basket” identifies the 20 best-reputed companies out of around 100 companies listed on the Swiss stock exchange and ranks them by reputation. The aim is to generate a sustainable excess return over the benchmark SPI (Swiss Performance Index). Stock selection and weighting are based on the Sedimented Reputation Index® (SRI®) developed by commsLAB AG and the fög – University of Zurich.

All relevant information on the certificate can be found under the following link: https://brevalia.ch/amc-reputation

Successful stock selection

Reputation allows a differentiation between companies that consistently meet publicly expressed expectations and those with negative fulfillment of expectations. In addition to economic expectations, Reputation also reflects the social contribution and the uniqueness of the company.

Selection criteria

Prerequisites for a reputation rating are the sufficient exposure of the company in publicly available sources, a market capitalization of at least CHF 200 million and an average daily turnover of at least CHF 2 million.

Reputation is tangible

The SRI® developed by commsLAB and the fög -Research Centre Public and Society of the University of Zurich serves to model the historically grown reputation anchored in public memory and allows the presentation of long-term developments.

Relevance for Swiss business location

The investment solution rewards companies that are publicly regarded as particularly trustworthy and sustainable for Switzerland as a business location. It is designed in particular for investors who are looking for promising investment strategies for stock market companies with relevance for the Swiss economy.
From around 100 companies listed on the Swiss Stock Exchange, the 20 best-reputated companies are identified each month and weighted according to reputation. The following video shows stocks and underlying sectors covered by the index for the period 2006 to 2020:

Reputation as an investment criterion

commsLAB applies reputation information as an investment criterion and for investment decisions on the stock markets.

The benchmark-oriented investment approach “Reputation-based Asset Allocation” (RB2A) is based on the contextual analysis, structuring and evaluation of reputation-relevant, publicly available information on Swiss listed companies with a strong resonance.

The result is a unique and completely stand-alone weighting strategy that reflects long-term positive reputation effects of companies via overweights in the active investment strategy.

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