Minerva and Ryedale: supporting sustainable investment portfolios
Ryedale, the international portfolio optimization software solution, and Minerva have established a collaboration designed to harness the growth in demand of sustainability-related data in the fund management investment process amongst asset owners, investment managers and regulators.
“Minerva is delighted to be partnering with Ryedale to support investors sustainable investment ambitions. Where stewardship, proxy voting and sustainability were once considered “post-trade” activities, we believe that Ryedale’s innovative approach to holistic portfolio construction is the way forward.”Sarah Wilson, founder and CEO, Minerva
In the face of extreme weather, resource scarcity, changing societal attitudes and regulatory pressures, investors are demonstrating their willingness to take on board ESG-driven risks and sustainable business practices.
Meanwhile, governments and corporates globally are committing to the transition to net-zero greenhouse gas emissions by 2050, consistent with the Intergovernmental Panel on Climate Change (IPCC) 1.5C target. Estimates suggest that up to $93 trillion of investment is needed to enable this capital re-allocation and transition to a low carbon, climate-resilient economy.
The Global Sustainable Investment Alliance reported that sustainable investment assets in Europe, the US, Japan, Canada, and Australia and New Zealand were USD 30.7 trillion at the beginning of 2018, a 34 percent increase since 2016. This trend continues along with increased legislative frameworks and regulation with regards to responsible investment principles across multiple geographies.
The risks associated with these trends are likely to have a significant impact on asset pricing and the overall investment opportunity set. It is also acknowledged by institutional investors that capital markets may not be fully pricing issues like climate change and that ESG risks will materially impact the bottom line.
As a response, asset owners and investment managers are looking for ways to integrate ESG issues at all points of the investment process, including stewardship and active ownership. What’s more, beyond managing risks it is also about delivering impact alongside the financial returns of the portfolio.
“Global demand for delivering differentiated ESG data, analytics and tools is growing and driven by the regulations and investor acceptance of the significance and materiality of sustainability factors.”Jon Rushman, founder and CEO, Ryedale
“Having the ability to drill down into the portfolio and better understand ESG profiles, thereby identifying companies that are better positioned for future challenges, is increasingly seen as a necessary aspect of a portfolio management system, in order for investors to be able to manage and monitor the risk and opportunities associated with these megatrends. Ryedale is helping to shape such solutions by integrating sustainability capabilities across the investment asset classes.”
The connectivity between Ryedale platform and Minerva’s data will help to create better portfolios for investors – in keeping with Minerva’s mission “better data, better stewardship”.
- Ryedale delivers a new, cloud-based, full-service IT platform for serious investment businesses
- Our software provides industry-leading support for model-driven and quantitative investment strategies, embracing index investments, smart-beta, custom indices, asset allocation, overlays and hedging
- Our customers include several globally recognised asset management firms and institutions, and a growing number of smaller asset managers who find our ‘Software as a Service’ to be cost-effective and a great fit to their needs
- Ryedale’s founders bring deep knowledge of the investment process built from years of experience as in-house software developers at top investment firms, whilst embracing the latest cloud technologies
To find out more about how the Ryedale system can improve your investment process email us at email@example.com
- Minerva Analytics provides Proxy Voting, Research, Ratings & ESG Data
- Empowers professional investors with tools and critical data to make informed, sustainable stewardship and proxy voting decisions
- Provides full-service electronic voting platform including data and research covering voting results, governance, remuneration and sustainability
- Provides customised voting policies as well as a number of proprietary ESG benchmarking solutions for up to 6,500 global companies
To find out how Minerva can help you make the most of ESG metrics and data support decision-making call us on +44 (0)1376 503500 or email us at firstname.lastname@example.orgLast Updated: 4 May 2020