The responsible investment labeling of funds and managed accounts distributed in France will probably evolve in 2024. One of the areas where rules will become considerably more demanding is ESG Engagement. Among other things, asset managers will be required to establish a process to ensure that each engagement action is clearly addressed to the relevant issuer, with a goal and timeline. Implementing these requirements with Excel or another commonly available… Read More »New French Rules for Responsible Investment Labelling under Consultation
It is not uncommon to hear that the admin work of an analyst consumes a significant part of his/her time, which cannot be used to engage new issuers, further develop existing engagements, and make sense of the information collected. The admin work includes:⦁ Collecting engagement data across the organization⦁ Standardizing the incoming data for a coherent representation of your engagement activity⦁ Updating and producing reports with multidimensional views to meet… Read More »Augment the impact of ESG Engagements by Lowering your Admin Burden
With margins increasingly under pressure due to passive investments, and market conditions, among other reasons, the need to reduce costs has become an everyday challenge. One of the solutions, if not the solution, is to leverage a technology platform like Microsoft’s or Google’s and bring in highly integrated add-ons that expand that technology platform to the management of financial and ESG content, data, and activities. Every unit spent in the annual budget… Read More »No Need to Reinvent the Wheel to Lower Technology Costs & Improve Margins
In a new paper released by the Swedish Presidency of the EU Council (attached for easy reference), it is proposed that payments for research and execution services can be bundled by investment firms. This represents an important evolution of the controversial research unbundling imposed by MiFID II on how research can be paid. Currently, if using clients’ funds to pay for research services investment firms can only pay for research… Read More »Green Light for the Rebundling of Payments for Research & Execution Commissions
The complexity of reference data (a.k.a static data) is an ever-growing problem and cost center for most investment firms. Every day thousands of new legal entities, securities, and listings are created across the globe that need to be considered. The rise of ESG has been of no help to the problem, as ESG data may be reported on different layers of corporate structure with different identifiers. This is also a… Read More »Addressing the Shenanigans of Financial and ESG Reference Data
Since the implementation of research unbundling under MiFID II on 3 Jan 2018, client practices and needs have significantly evolved, and positively so. Back in 2017 and 2018 many believed that research consumption would become granular, with users picking and choosing the exact package and service they wanted to use. Five years on and the reality is substantially different. Increasingly, research service providers and asset managers set up contractual relationships… Read More »Research Management V2 – Simplifying, Reducing Costs & Creating Value
Technology decision-makers in our industry, are facing the challenge of reducing costs while implementing solutions with highly customized and automated workflows. The natural option would be to develop proprietary solutions leveraging internal teams and/or external contractors. While this gives full control of the development process and eventually ensures the highest possible level of customization, this implies high direct and indirect costs due to the: Learning curve on new technologies and… Read More »And if, Cost Reduction and Automated Solutions were both at the Tip of your Fingers!
On a normal day, portfolio managers and analysts receive dozens if not hundreds of pieces of financial and ESG content in the form of emails, calls, documents, etc… shared by the sell side, internal colleagues, issuers, and others. This overload of content is often impossible to organize and make sense of through human cognitive acquisition. Naturally, critical insights that can determine the outcome of an investments are missed. This represents… Read More »Unlock the Full Potential of Your Financial and ESG Research for Better Investment Performance