Alternative Data > Best Data Analysis Tool
Founded in 2015, Ethic is a technology-driven asset manager focused on accelerating the global transition to sustainable investing. The firm leverages data science, technology, design, and deep expertise to simplify the entire spectrum of environmental, social and governance issues for the financial intermediaries it serves – and, by extension, for their clients. Advisors can subsequently differentiate themselves with custom ESG portfolios that align clients’ impact and financial goals.
This is thanks in part to Ethic’s health check tool, which empowers advisors to provide clients with unparalleled sustainability insights and engage them around the issues they care about most. The first step, of course, is defining what these issues are – a deeply personal decision, and an opportunity for the advisor to forge a deeper connection with their client. Ethic can screen for issues such as climate change, human rights, racial justice, gender equity, animal welfare, corporate ethics and more.
Once the priority issues have been identified, Ethic’s health check allows the advisor to conduct a real-time diagnosis of a benchmark or existing portfolio, and the degree to which it reflects the intended values. This can help clients to understand whether their underlying holdings align with their impact goals and – perhaps most importantly – why certain securities present a sustainability risk. Some investors have, to their chagrin, discovered they are unwittingly invested in companies that directly undermine their beliefs.
The next step? Creating a cleaner portfolio, powered by multi-factor optimization, that better reflects the client’s values. But that’s not all!
Advisors are afforded access to Ethic’s innovative strategy back-testing tool, which allows them to estimate the new strategy’s tracking error and performance against the selected benchmark. Additionally, Ethic’s visually compelling impact reporting uses simple and straightforward real-life examples to demonstrate how the new portfolio is primed to make a difference.