The expansion of the SEC’s Rule 35d-1, the “Names Rule,” to include ESG terms has led to the launch of a new tool to help asset managers and financial advisors assess compliance.
Technology firm Reflection Analytics’ new Reflect platform provides an investor-focused rating using 250 data points across 18 ESG sub-themes and also helps asset managers to remain compliant with the Securities and Exchange Commission’s requirements.
Although asset managers have 24 months to begin reporting their compliance, Reflection’s founder and CEO Jason Britton says the big ratings agencies are only evaluating firms from a corporate management standpoint, not for investors.
“With existing rating methodologies, a company like McDonald’s could have a higher ESG rating than a business focused on reducing greenhouse gases and cleaning up waste,” he said. “With Reflect, asset managers have, for the first time, the ability to assess investments from the investor’s perspective and at a more granular level.”
The new platform also benefits those seeking values-based investing by enabling them to review portfolios by selected ESG criteria and screen out those companies that are associated with industries they wish to avoid.
And the range of investments covered includes 6,500 companies or 98% of the global market capitalization, with almost any asset class able to be analyzed including individual equities, bonds, and investments in various structures, including ETFs, mutual funds, and SMAs.
A trustee says it has no record of the investor now suing it for $50 million
Legislation seeks to loosen access to private markets to include professional advice from RIAs and broker-dealers, not just income or net worth.
"I just feel like I can get a lot further [by] opening a 529 account," said one respondent to the BabyCenter survey on Trump accounts.
New ICI research shows these retirement savers pay expense ratios nearly matching industrywide averages, extending years of fee declines
UBS data show American net worth is shifting from property to cash and funds faster than in seven other wealthy nations.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
