Back in 1975, over 80% of the S&P 500’s market value came from physical, tangible assets. Fast forward to 2020 and that number has dropped to just 10%. The other 90%? Intangible assets.
These are things like brand, culture, systems, content, data, relationships and IP. You won’t find them on a balance sheet, but they’re driving real commercial outcomes. The catch is: most organisations still don’t communicate them with the clarity or conviction they deserve.
That’s where belief comes in.
Believability is the invisible engine of investability
When the most valuable assets are intangible, perception becomes pivotal. If stakeholders can’t see, feel or explain it, then they can’t value it. So, it’s not enough to just build intangible assets – you have to make them believable.
This is the challenge facing most enterprises today: bridging the gap between what they know is valuable internally, and how that value is understood externally by investors, regulators, customers and employees.
At Jones+Palmer, we describe this as turning invisible value into investable belief.
Our frameworks were developed precisely to solve this problem, helping companies articulate the connection between their most powerful (but often overlooked) assets and the external confidence needed to unlock growth, capital and influence.
The FTSE is no different
It’s easy to assume this shift is just a US trend. But we’re seeing the same story in the UK and across Europe.
A study by WIPO puts the UK’s intangible asset intensity at 84%. Ocean Tomo found the S&P Europe 350 had jumped from 71% to 74% intangible between 2015 and 2020. These aren’t anomalies: it’s how the economy works now.
Even the asset-heavy sectors, intangibles are the differentiator
It might be tempting to think this shift doesn’t apply to industries grounded in physical assets such as oil and gas, real estate investment trusts (REITs) or other commodity-based enterprises. After all, their value often appears straightforward: barrels in the ground, properties on the balance sheet, tonnage, throughput. But in markets where competitors do largely the same thing, it’s not the asset that sets them apart, it’s the story around it. Reputation, governance, sustainability credibility, operational excellence and the trust placed in leadership all become deciding factors. Believability, here too, determines investability. Investors are increasingly asking: who do we believe will steward these assets best in a complex, fast-changing world?
The numbers don’t lie, but they no longer tell the whole story
If 90% of value lies in intangibles, then you could say the traditional reporting model is 90% blind. That’s why modern investor relations, corporate reporting and sustainability disclosures must evolve. Not just to meet regulation, but to make the unseen seen.
The organisations winning trust today are those that:
- explain their brand, culture and purpose, not as slogans, but as strategic assets;
- communicate data, insight and impact in a connected, credible way;
- use storytelling and systems thinking to show how everything fits together; and
- recognise that reputation isn’t just earned – it’s designed and directed.
Reporting hasn’t caught up
Most reporting frameworks are still grounded in tangible thinking: inputs, outputs, throughputs (and we often observe that reporting, typically, supports an enterprise’s wider approach to how it articulates its place and impact in the world). This, of course, all sounds logical, but leaves stakeholders with only part of the story.
To move forward, we need to make the invisible visible. And that starts by showing:
- how your brand, people and systems generate value;
- why your culture and governance support better decision making;
- where your insight, content and relationships give you an edge; and
- what your strategy really means beyond bullet points and tabular formatting.
What you measure matters. What you believe in moves markets.
As we shift deeper into an intangible-first economy, the ability to shape belief will define the next generation of enterprise value. That’s not just a creative challenge; it’s a strategic necessity.
The significance of investability through believability
If 90% of your value is in things people can’t see, then shaping belief is non-negotiable. Not hype. Not spin. Belief that’s earned through substance, clarity and alignment.
The numbers are already there. The story just needs telling.
If you’re already thinking and discussing strengthening your investability story, and need support in these volatile times, we’d love to talk. We’re working with leaders like you to elevate their strategic communications, making their proposition more believable to ensure their business becomes more investible.
