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.
Most firms think they are ready for the ultra high net worth market. Most are not.
Stifel has paid or is on the hook for close to a staggering $200 million in damages and settlements to former clients of Chuck Roberts.
UBS also expanded in the Southeast with six advisors overseeing more than $2 billion, while Osaic lured a $300 million family-led practice from Wells Fargo's FiNet.
The new AI workspace rollout promises to automate the full advisor workflow just as third-party tools wage a turf war for central control of wealth firms' tech stacks.
Mega-RIA picks up $250M advisor, while three firms head for &Partners.
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.
As $84 trillion prepares to change hands, advisors who treat estate planning as peripheral are quietly building a sieve, not a book.
