Sustainable finance: how to stand out in the market?

Sustainable finance: how to stand out in the market?



Article sponsored by AMINDIS

What are the main activities of AMINDIS?

AMINDIS offers a software platform producing analyzes and reports suitable for asset managers and insurance companies and enabling them to support them in the management of investment portfolios. Until the 2000s, we mainly focused on portfolio analyzes in terms of performance compared to market indices. After the crises of the 2000s (internet bubble, subprime, public debt), we took greater account of the assessment of the level of risk of investments. And since 2015, we have been interested in a third axis, that of sustainability. We observe and analyze the choices of managers, for example: will they choose stocks in companies that attach importance to climate and environmental issues? If so, what will be the impact on their portfolio? This is what we call ESG, for Environment, Social and Governance. This is the market trend today.

Tell us about your performance analysis solution: risk, impact and return. What is it exactly?

Often, reports and analyzes of performance, level of risk, and sustainability are studied and presented separately. We consider it coherent to present them together, to have a global vision. With the IRR (Impact-Risk-Return), we combine these three axes of analysis. We have developed our own methodology, which we published 2 years ago, in order to show our clients the impact of ESG constraints on the performance of their portfolios. For example, if a client expresses the wish to no longer invest in companies related to oil, our tools are able to provide a complete analysis of the impact of this choice on his portfolio. It is a complete and effective tool that allows in-depth analysis.

What is the key to your success? How do you stand out in the market? ?

We have two major strengths. The first is our company itself, which has always been dedicated to portfolio management. Our employees come from the finance field and are therefore in the best position to understand the workings and dynamics of the sector. It also facilitates communication within teams and with customers, because we all speak the same language. Then, our solution is a configurable and scalable product. For twenty years we have been offering reports adapted and personalized to the needs of portfolio managers and clients. Our customers have the choice between more than 150 analysis criteria that they can configure according to their needs. Since managers see their investment process as a means of differentiation, having a solution that can replicate this process is essential.

What is the next step for AMINDIS?

We had already published a few years ago an ESG portfolio management methodology, implemented in our solution. We are preparing a forthcoming publication on our new methodology for measuring the impact of climate risk on performance, and more particularly the carbon impact. For example, if I choose to take shares in a company that seeks to reduce its carbon emissions, what will be the impact on my portfolio? With the new standards following COP26, the price of carbon will increase, which will represent a cost for companies, and therefore impact their performance. These are effects that our solutions can anticipate. It is an innovative methodology, which makes it possible to communicate relevant information to managers and customers. AMINDIS is a Belgian company, present in Benelux, France and Switzerland. We offer innovative and competitive solutions. Our goal today is to position ourselves as a European player and benchmark compared to our competitors in North America.

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