Qontigo, a provider of risk, analytics and index solutions, has extended its offering, incorporating ISS ESG, Clarity AI and Sustainalytics data within its financial optimiser, Axioma Portfolio Optimizer (APO).
Sustainalytics will also be integrated into Axioma Portfolio Analytics (APA) for performance attribution and reporting as well as Axioma Risk Model Machine (RMM), which allows users to create custom risk models.
The wider data set into the Axioma portfolio construction tools enables asset managers, wealth managers and asset owners to construct portfolios actively tilting towards a combination of ESG attributes and identify point-in-time ESG exposures.
It will also help create desired hedges; develop custom risk models that explain risk and return as well as run performance attribution based on ESG attributes.
Using its proprietary Risk Entity Framework, Qontigo said it is able to consolidate and normalise sustainability-linked content from multiple sources, ensuring consistency across multiple asset classes.
It added that introduction of sustainability content into Axioma multi-asset class, cloud-native platforms will enable investment managers to also manage their portfolios with respect to a wide spectrum of sustainability-linked investment targets, as well as generate output that helps with sustainability-linked management, investor and regulatory requirements.
“We know that there’s a great need for sustainability to inform the investment process and so it’s important for us to offer clients a breadth of best-in-class content,” says Chris Sturhahn, Chief Product Officer, Analytics at Qontigo.
He adds, “Clients running strategies with ESG-linked goals – from climate to impact – may already be working with a number of vendors, but they can now benefit from more seamless data integration with leading analytics tools for portfolio construction, risk and reporting, which could result in lower total cost of ownership.”
Dr. Maximilian Horster, head of ISS ESG, the responsible investment arm of Institutional Shareholder Services, said their data services through the Axioma Portfolio Optimizer, will initially focus on climate and encompassing emissions data, physical and transitional risk metrics, and scenario data across approximately 28,000 issuers.
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