Water Risk Index Launch – smart beta for a water-secure world

Water Risk Index Launch – smart beta for a water-secure world

Content Marketing

Water Water Risk Index Launch - smart beta for a water-secure world

Finscoms are delighted to support Thomas Schumann Capital LLC (TSC) and the launch of the Water Risk Index – smart beta for a water-secure world.

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Water risk is the biggest risk facing people, planet and profit. $145 trillion in assets could be under threat by 2025.

Thomas Schumann Capital LLC (TSC) is a FinServ company providing FIs, investors, asset managers, insurance & risk with a smart beta index solution to mitigate water risk in securities and financial asset portfolios. TSC’s market strategy targets both active and passive investment managers in the global water indexing market (28% CAGR 2025).

Financial water smart beta: Manage Water Risk Exposure in Portfolios

Water Risk Index is a smart beta solution for asset allocation, based on sophisticated and proprietary models. It informs asset owners and investment managers of the water risk to equities in their financial portfolios. Rather than forcing asset managers to make their own interpretations of operational reports and resource management scenarios, our index translates the key metrics of water risk into financial measures that can be accurately and effectively incorporated into financial models.

Asset managers require transparency to make decisions. Typically, water risk transparency is based on share pricing, curated corporate financial accounting and voluntary disclosures of environmental risk attributes. Water Risk Index allows the asset manager to extract a probabilistic financial indicator of corporate and portfolio risk to facilitate allocation decisions.

Data and Smart Beta Facts

Developed using six NAICS sectors (utilities, food & beverage, household products, semiconductors, steel, and precious metals),  our smart water beta algorithm has the following features:

  • Normalized to industry-specific indexes (e.g. utilities, semiconductors, food and beverage).
  • Can be directly integration in portfolio asset allocation strategies; no interpretation required.
  • Time granular value-at-risk (VaR; volatility) metric based on 3-month intervals for 10 years
  • Geographically granular asset risk and productivity/revenue impacts from water exposure
  • Corrected for operational efficiency using asset intensity metric (assets/enterprise value; PPE/EV)
  • Integrates correction factor for water impact on “intangibles” (IP, brand, value chain position)
Thomas-Schumann-bio-pic-2 Water Risk Index Launch - smart beta for a water-secure world

Schumann’s business and investment philosophy values “People, Planet and Profit”, in exactly that order.

Water Risk Index licenses for the ‘500’ companies are available August 1, 2018. A global equity index version is available December 1st, 2018.

As population pressures create competition for water, global groundwater supplies are declining and climate variability is increasing — leading to longer droughts and more intense flood events. All these factors pose risks that are hard to ignore. Water risk analysis happens at different stages of investment decision making, from the initial asset allocation strategies, to portfolio level analysis, through to the buy/sell decision. portfolio water foot printing can be helpful in flagging companies and sectors with high water risk exposure relative to a benchmark and highlighting where further analysis is warranted.

At the individual security level are three critical research steps to obtain a comprehensive picture of water risk exposure:

1) Understand Corporate Water Dependency

2) Combine Water Dependency Data with an Assessment of Water Security

3) Get a Sense of Corporate Water Risk Awareness and Response

Water500-300x180 Water Risk Index Launch - smart beta for a water-secure world

Water risk analysis is conducted on a corporation or security by integrating water into the research processes. Our target clients and  fund managers use this information in a variety of ways, from avoiding high water risk industries or companies, to influencing internally created company environment, social, and governance (ESG) scores, to clarifying corporate engagement priorities.

Corporate water risk assessments influence or modify financial projections or their weighted average cost of capital assumptions. Scenario analysis modeling determines how much the market cap of companies would be impacted if they had to absorb more of the costs of treating their wastewater discharges, especially as drought intensifies and communities and regulators become less tolerant of water use and pollution. a deeper understanding of the probability of large financial losses due to strategic risks related to water, such as not being able to grow revenue, access new markets, or develop new facilities.

Begin including water risk analysis into your portfolio management practices.

Ken Carmody

KMCauthor Water Risk Index Launch - smart beta for a water-secure world

For more information about the Water Risk Index Launch and how to invest please contact info@thomasschumann.com

If​ ​you​ ​would​ ​like​ ​to​ ​learn​ ​more​ ​about​ ​how​ ​Finscoms​ ​can​ ​help​ ​with​ ​your​ ​fund​ ​raising please​ ​do​ ​make​ ​contact​ ​with​ ​Edward​ ​at​ emds@finscoms.com

Digital Marketing: is it worth the investment?

Digital Marketing: is it worth the investment?

Financial Services Updates, Funds, The View

Humming-1 Digital Marketing: is it worth the investment?

Other industries have benefited from Digital Marketing, should the fund sector follow suit?

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HummingBird Digital Marketing: is it worth the investment?
111fundicon Digital Marketing: is it worth the investment?

Is there truly a positive return on investment? Are the results quantifiable?

Today if you are not engaged in Digital Marketing you are considered out-dated and failing to embrace technological evolution. The next generation coming through are all using smartphones, are you prepared? Everybody from investors, to fund managers should be a part of the digital world and use it to reach potential new clients. We all invest time and money in creating and maintaining our digital presence, some are truly effective with their digital marketing, have clear goals and achieve them. Many however simply follow the herd with no clear strategy, for example a law firm builds a new shiny website, and as time goes by they refresh it after 24 months.

At Finscoms we work with our clients to design & implement effective digital marketing and strategies to show immediate returns, we differentiate ourselves from others, as in the example above re the law firm website we would first work on the function of the site, what is it their to do?

Digital Marketing covers an immense area, with so many components, where does a fund start? Is it actually worth investing time, money and effort?

I’m afraid to say that for funds, the answer is…not always!

Why is this?

A fund doesn’t need to adopt the many components of Digital Marketing to show ROI, a Rolls Royce looks the part, but a mini gets does the same job in getting you from point A to B. From our experience we see that in the majority of fund’s & their objectives have not been defined clearly or that the ambitions set were too grand…or too humble…or that the budget was not sufficient.

Here are a few examples to illustrate this;

  1. A fund with relatively few investors, & with a very long investment term, should not implement a highly demanding digital marketing strategy. To the contrary, you must make the most of your resources and invest them at the most decisive times; at the end of an investment term, or when launching a new initiative, we know when is the right time, to target inbound investors, existing investors, your contact base.
  2. A fund that wishes to engage in a Digital Marketing campaign but does not have sufficient resources to enact optimally. To proceed could actually be counterproductive, create a bad image of your brand. In this case your objective is right but the assigned resources are not commensurate. We are experienced in where to invest and when with Digital Marketing.
light-bulb1 Digital Marketing: is it worth the investment?

Define your objectives for the short when commencing with a Digital marketing campaign.

Our advice is always to define objectives that will really support your current state of business, and not to project too far into the future as to what your communication strategy should be. Digital Marketing is flexible and you can leverage on this flexibility. But don’t forget: being efficient in a Digital era doesn’t mean you can avoid asking the right questions (and finding the right answers!) on your added value, your brand and your audience, prospects and clients.

Contact us to ​learn​ ​more​ ​about​ ​how​ ​Finscoms​ ​can​ ​help​ ​with​ ​your​ ​fund​ & ​digital marketing please​ with​ ​Edward​ ​at​ emds@finscoms.com

ISFIN and Finscoms Announce Partnership

ISFIN and Finscoms Announce Partnership

The View

ISFIN ISFIN and Finscoms Announce Partnership
We are delighted to announce the collaboration between the highly regarded ISFIN and Finscoms.

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ISFIN and Finscoms announce partnership to integrate marketing and communications amongst the ISFIN banking and finance community.
ISFIN and Finscoms today announced the launch of their partnership that will ensure ISFIN clients across 75 countries will have access to effective and innovative marketing and communication tools provided by Finscoms. Both parties recognise that in an overly congested market it is vital to utilise strategies that will highlight your company’s strengths and create distinction amongst peers.

Significantly, ISFIN wants to help clients in creating a greater awareness of their businesses and through Finscoms this reach can be truly global.

Prof. Laurent Marlière, the founder and CEO of ISFIN, venerates this new initiative: “ISFIN has a substantial amount of clients among professional firms, banks and investment funds. Businesses are increasingly entering the digital world, they require a global marketing strategy to empower them. Their services or products are usually excellent but not sufficiently market-driven. Our partnership with Finscoms offers a unique understanding of both the legal and accounting sector and the corporate finance sector.”

 

“ISFIN are dedicated to making the business world a more navigable place for their clients. At Finscoms we know how to make the world smaller and more open.” said Edward Simpson, Finscoms CEO. “We have a particular track-record in assisting corporate finance players and funds. We help them achieve their objectives. We look forward to helping ISFIN empower more professional firms and clients in the investment fund industry. Our joint offer to the market will help clients achieve strategic objectives, promote their services and get more deals successfully done. ”
Prof-copy ISFIN and Finscoms Announce Partnership
“Businesses are increasingly entering the digital world, they require a global marketing strategy to empower them.”
About ISFIN

ISFIN -Emerging Markets Advisors – is a global advisory active in 75 countries. It acts as a business facilitator between East and West and has a unique knowledge of the Middle East, African and Asian markets. The organization is supported by a network composed of the most innovative and highly regarded independent law, audit & accounting firms. It has a dealroom offering off market investment opportunities to clever investors.

About FINSCOMS

Finscoms is a full marketing services agency. What we do is help structure and implement efficient marketing strategies. Through us you can create a marketing resource that encompasses everything from strategy definition to day-to-day marketing operations, from thought leadership to Business Development/sales approach. We become your differentiator, your marketing support, contact us to see how we can make an immediate difference.

Contact Information:

Laurent Marlière, CEO ISFIN
+(32) 475422149

LM@isfin.net

www.isfin.net

Edward Simpson, CEO Finscoms

mkt@finscoms.com

+353 1295 3844

www.finscoms.com

If​ ​you​ ​would​ ​like​ ​to​ ​learn​ ​more​ ​about​ ​how​ ​Finscoms​ ​can​ ​help​ ​with​ ​your​ ​fund​ ​raising please​ ​do​ ​make​ ​contact​ ​with​ ​Ken Carmody​ ​at​ mkt@finscoms.com

Future of Fund Distribution Under AIFMD

Future of Fund Distribution Under AIFMD

The View

Cartoon Future of Fund Distribution Under AIFMD

Veneziano & Partners published a white paper for US and non-EU Alternative Investment Fund Managers on the developments and future outlook of fund distribution and private placement under the Alternative Investment Fund Directive (AIFMD).

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London, UK (24th Oct) – Veneziano & Partners

The white paper addressed to US and non-EU Alternative Investment Fund Managers entitled “Future of Fund Distribution under AIFMD”, describes the current status and foreseeable developments in the regulation governing distribution and private placement of alternative funds in Europe.

The Alternative Investment Fund Manager Directive (AIFMD) provides authorised European Alternative Investment Fund Managers (EU AIFM) with a marketing passport. Leveraging on the very successful experience of the marketing passport introduced by the UCITS Directive, the AIFMD marketing passport allows for the marketing across Europe of EU Alternative Investment Funds (EU AIF). The AIFMD indeed contains provisions also for the extension of such marketing passport to non-EU AIFMs, upon release of positive advice from ESMA on a list of non-EU domiciles and ensuing delegated acts from the European Commission. Whilst two sets of advice were issued by ESMA in 2015 and 2016 respectively, there is still at the date of this paper no delegated act from the European Commission on the extension of the passport, nor we can predict when any such act will be issued, if at all.

Private Placement

Also, after the initial enthusiasm for the extension of the marketing passport fizzled out – says Attilio Veneziano, founder of Veneziano & Partners – it emerged in more details that the process for the granting of the right to passport, once available, will entail a complete authorisation of the third country AIFM with the authority of the chosen Member State of Reference in Europe. Thus, the extension of the passport becomes the consequence of a full scope AIFM authorisation in Europe of the third country AIFM. Private Placement under AIFMD remains the most viable option for the time being.

Attillio Future of Fund Distribution Under AIFMD

“Private Placement under AIFMD remains the most viable option for the time being.”

About Us

Veneziano & Partners is an international consulting boutique specialised in the European regulation of cross-border fund distribution. In catering to a selected group of investment managers, hedge fund managers and financial institution worldwide, the firm offers a custom-made global fund registration service, enabling its clients to gain competitive advantage in an ever increasingly regulated environment.

 

Ken Carmody

Download the white paper here

www.venezianoandpartners.co.uk

MiFID II headache? Take these.

MiFID II headache? Take these.

Funds, Marketing, The View

BirdMobile-1 MiFID II headache? Take these.

A Finscoms Director said to me the other day,

“Chairman, the hugely frustrating reality is that not many players, particularly funds, in the impacted industry will realize how well placed we are to help them be MiFID II compliant and indeed strengthen their offering.“

“So get out there and tell them what you can do to ease their pain and stress” says I.

EUFlag1080 MiFID II headache? Take these.
samuel-beckett-bridge MiFID II headache? Take these.

We fundamentally believe that Finscoms can be an important part of the solution.

We fundamentally believe that Finscoms can be an important part of the solution. Indeed this could perhaps be a Eureka moment for a fund, who together with fund lawyers represent our key client base, must now list under ‘’key appointments’’ in ıt’s prospectus various parties such as auditor, legal, investment manager etc. With MiFID II would it not be advantageous for funds to include under said key appointments ‘’communications’’ and/or ‘’marketing’’ listing a firm, such as Finscoms, as the specialist in this area just as for audit, legal etc? Or to include as a NED someone with requisite industry marketing and communications skills to navigate the MiFID II world. We believe that the fund will benefit from demonstrating to an investor, current or prospective, that they have clearly understood the importance of marketing and communications in their strategy. That’s what Finscoms does, that’s what Finscoms can offer.

MiFID II/MiFIR/MAD/PRIIPS:

All these new regulations are creating a new level playing field for all actors in the investment products value chain, from the value creator to the client, including the processing and market. The objective is clear: a better protection of the investor. All firms will be ready (or should…..some major ones seem to be in a difficult situation with regard to achieving compliance as of Jan 3, 2018). Processes, risks, information, communication etc have been framed by the different regulation levels, their local implementation and interpretation by control authorities.

TMFinsBlog MiFID II headache? Take these.

This new level playing field brought about by these regulations will create more comparability with a number of elements and the communication of technical characteristics will be ‘’standardised’’.

January 2018

But what will be the real challenge in early 2018? In only 3 months the question will be: how to do business in this new environment? How will a firm differentiate from it’s competitors? To be or not to be, that is the question!

From a business perspective, the benefit of this new regulation is that it will bring the spotlight on THE key element, that’s to say the strategy of each player, fund managers, private bankers etc etc. The newly adapted and adopted strategy will be communicated, internally and externally, with the express objective of differentiating the offering from the competition. The highly visible components of the strategy–product offer, brand and image, sales methodology, innovation–will be key to the success of each market participant.

Communication Requirements

Among other pressing requirements, fund managers, of all sizes, will be obliged to improve and enhance their communication with their target audience. This brings enormous challenges particularly for the smaller market participants. And fund management is a very, very competitive industry. Happily, and at very affordable cost, Finscoms can, based on significant experience and expertise in the fund management industry, including fund lawyers, with which we wish to cooperate to the benefit of clients, and not compete, help professionals to define their all important communication and marketing strategy……and even better to implement same! Problem solved! Well, perhaps not quite but a great leap in the right direction, I would venture….

Looking at the link between the communication imposed by regulation and the newly adapted and adopted strategy ( 3 months to go and lots to do–not to put anyone under pressure!), data can be used to illustrate compliance with the new regulation but, depending on the firm’s strategy, a fund manager can also demonstrate and highlight that they are ‘’best of breed’’. This can be a risky path to tread for those that may not be totally compliant, including with the spirit of the new regulation but for those that are it can be used to give confidence to their clients that they have nothing to fear in terms of their fund manager having everything in hand and everything in place in terms of their protection.

Who Pays?

It would be wrong not to emphasize the increasingly competitive marketplace that is the fund management industry. Fees are under pressure and costs are mounting, as we all are well aware and probably would prefer not to be reminded. It appears that some fund managers were looking to have their clients bear the additional costs whereas others have come to the conclusion that they should bear, and indeed need to bear, the costs if they are to remain competitive. Some, who want the client to bear the cost, will be able to pull it off but they will need, I think it’s safe to say, an excellent communication strategy in order to explain to, and convince, their clients of their value added compared to their industry peers.

Wallstreet500 MiFID II headache? Take these.

Once again Finscoms can come to the fund managers aid by providing a broader view of what’s happening in the industry and seek to identify and implement efficient and effective communications and marketing approaches for strategies selected…And please do remember that a fund cannot simply add marketing to it’s offering; it has to be communications and marketing that has to be MiFID II compliant. As you will see from the Finscoms website, communications and marketing for funds were our specialisation long before MiFID came along…

In summary, as MiFID II draws ever nearer, Funds and other industry participants will inevitably be getting more and more concerned about becoming MiFID II compliant. Finscoms proven USP is that we can, based on significant experience of the fund management industry and a clear understanding of the regulatory environment, provide thoughtful input and valuable contribution to the formulation of an effective and efficient communications and marketing MiFID II solution/service at a very affordable cost particularly when compared to the cost of getting it wrong. I hope this missive will be helpful to those working their way towards MiFID II compliance.

We would be very happy to converse with anyone who would like to talk more about how Finscoms can help…

Thank you.

The View, Finscoms

arm@finscoms.com