Invest
The powerful, growing measure of company performance
Intangible assets are becoming increasingly important for investors measuring the value of their portfolios, according to new research.

The powerful, growing measure of company performance
Intangible assets are becoming increasingly important for investors measuring the value of their portfolios, according to new research.

Traditionally, investors look at the fundamentals of a business as well as financial results, such as the balance sheet of a corporation, before investing money into it.
However, a study by US-based research and ratings firm Ocean Tomo found that up to 84 per cent of the value in a stock is in its intangible assets. These are essentially assets to the corporation that are not physical, including reputation, copyrights and intellectual property.
According to the firm AMO Strategic Advisors, important factors that drive up the value of intangible assets include the quality of financial management and how a company’s people are managed.
Angus Maitland, co-chairman of AMO and founder of Maitland AMO, believes corporate reputation is becoming a powerful indicator of how a company may perform in its market.
“In a world of growing complexity and rapid-fire stock market volatility, investors are increasingly sensitive to the strength of a company’s reputation as they assess their models,” said Maitland.
Anthony Tregoning, managing director of financial and corporate relations, believes that, in Australia following the royal commission, this has become even more important.
“Australian companies can achieve disproportionate impact by changing perceptions in just a small number of reputation drivers, obtaining higher returns on their investment in communication,” said Mr Tregoning.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author

About the author


Stock market
Beware the reversal of the sharemarket rally, expert says
The companies that offer the greatest risk for investors in 2021 are somewhat ironically many of the same companies that have provided the greatest return to investors in 2020, an expert has warned. ...Read more

Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more

Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more

Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more

Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more

Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more

Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more

Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more

Stock market
Beware the reversal of the sharemarket rally, expert says
The companies that offer the greatest risk for investors in 2021 are somewhat ironically many of the same companies that have provided the greatest return to investors in 2020, an expert has warned. ...Read more

Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more

Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more

Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more

Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more

Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more

Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more

Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more