The boom in sustainable investing has brought challenges to the process of fundamental research. One of these key pressures is data-related, due to the fragmentation which still exists in this part of the market. Uniting datasets in one place can prove to be a very powerful tool for managers looking to make an impact in the ESG arena.
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The boom in sustainable investing has brought challenges to the process of fundamental research. One of these key pressures is data-related, due to the fragmentation which still exists in this part of the market. Uniting datasets in one place can prove to be a very powerful tool for managers looking to make an impact in the ESG arena. More broadly, the market volatility has underlined the need for modern research management and financial research software.
“Funds source and monitor ESG ratings from several 3rd party data providers but need to be able to review and monitor those datapoints in context with one another,” outlines Andrew Robson, CEO, Verity, “We help them unite those datasets in one place with, for example, integrations with Sustainalytics, and others.”
Verity won the 2022 Hedgeweek US Award for Best Data Provider – Overall.
Robson details another challenge in relation to ESG and data: “This is related to ESG engagement tracking and reporting. It’s a matter of time before funds must disclose how sustainable they are. In July, we released VerityESG, a reporting and engagement tracker that gives asset managers an efficient way to build their engagement narrative and prove stewardship.”
This is particularly relevant given the growing need for funds to prove stewardship by tracking and reporting on engagements. Robson comments: “Up until recently, these activities have been managed manually. It’s slow and time intensive. As regulators in the U.S. are catching up, funds are realising they need to formalise how they tackle this.”
The VerityESG tool was launched specifically to help funds automate and streamline engagement tracking and reporting.
The data provider also supports managers in tackling the ongoing talent wars and cementing of the new hybrid workplace.
Robson comments: “Many financial services IT and business decision-makers expect more than half of their workforce to reman hybrid after the pandemic. Further, most financial services business decision-makers believe hybrid work environments help them recruit top talent and remain competitive in the future.
“Funds can’t miss a step. Our cloud-based and mobile-friendly research management software enable funds to hire talent where it lives and then keep their teams connected — whether they are in New York City, Chicago, or Tokyo. In addition, a research management system that stores all a fund’s research accelerates onboarding of incoming talent and protects against potential IP losses when talent leaves.”
While the volatility over the past year has had major impacts on markets, Verity’s clients still must develop winning investment ideas and do so as quickly and efficiently as possible. In many ways, the fluidity of the current moment has only elevated the need for modern research management and financial research software, both of which help fund improve performance and build market resiliency.
Andrew Robson, CEO, Verity
