Weekly Reputation Index Metrics
The RepuStars® Variety Corporate Reputation Index calculated by Dow Jones Indexes launched into widespread distribution on November 1, 2011. Previously calculated by Steel City Re and available only on the Mission Intangible blog of the Society, it is the first-ever composite equity index measuring the impact of corporate reputation on share price. The RepuStars Variety Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR.
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At the close of trading 25 Nov 2011, REPUVART and REPUVAR stood at 2353.51 and 2050.11 respectively. Over the past four weeks, the former has decreased by 12.14%, while the latter has decreased by 12.28%. The benchmark S&P500 Composite Index stood at 1009.22 (31 Dec 2001=1000) and has decreased over the past four weeks by 9.84%. Over the trailing twelve months, REPUVART and REPUVAR have, respectively, lost 2.24% and 3.64% respectively; the S&P500 Composite Index has lost 2.58%. Since January 2009, the REPUVART and REPUVAR have gained 88.08% and 78.51% respectively; the S&P 500 Composite Index has gained 24.35%. Other interval changes in the magnitude of the indices are shown below.
The RepuStars Variety Corporate Reputation Index is the first index based on a quantitative model for analysts, investors, and company managers to determine the actual impact of reputation on corporate equity prices. The companies selected for the RepuStars Variety Index are chosen algorithmically to capture the disparity between value at which a company is currently trading and its value as calculated by Steel City Re’s reputational metrics.
The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to their metrics as measured by Steel City Re’s proprietary Corporate Reputation Index™, which tracks 5500 companies weekly. In using the RepuStars Index as an investment strategy, investors can take advantage of this price disparity. The principles behind Steel City Re's reputation metrics are discussed in the book, Mission:Intangible (see below).
The RepuStars indices are reconstituted annually in the first week of January. The Indices were last reconstituted 6 Jan 2011. Click here for additional information on the index.
Reputation, Risk and FinanceReputation management through superior control of a company's intangible assets may be one of the best paths to value creation today. If it is not on your agenda, perhaps it should be. Here are several things you can do right now to start creating value for your organization:
1. Become better informed. Participate in our regular Mission Intangible Monthly Briefings held on the first Friday of every month or read the book, Mission: Intangible. Managing risk and reputation to create enterprise value, available at the IAFS Store, specialty finance sector retailers, or other leading online book retailers.
2. Become a member of the Intangible Asset Finance Society and engage.
3. Join our community on Linked-In and stay in the information flow.