Wealth manager offers free ESG investment tools

By Christine Dawson

Wealth manager Arvella Investments has launched a range of professional ESG investment tools that can be used free of charge.

Arvella Investment’s website ESG for Investors provides access to the 3D (Risk-Return-Impact) Portfolio Optimisers and the ESG Engagement Maximiser.

The tools are designed to allow the use of impact to boost risk-adjusted returns or maximise impact without hurting risk-adjusted returns, according to the firm.

The 3D (Risk-Return-Impact) Portfolio Optimisers, Arvella Investment said, brings impact in as the third dimension to investors’ use of best-in-class and screening. They can be used in isolation or alongside other sustainable risk rating and analytics solutions.

From a universe of around 2,200 companies, the ESG Engagement Maximiser is designed to help investors prioritise two or three ESG improvements to engage companies on in order to achieve the best increase of a business’ value. 

The average potential share price upside is 20% if all firms in the database brought two of their most relevant ESG metrics in line with peers’ best practices, Arvella Investments said in a statement.

Benoît Mercereau, CIO, said: “This tool is a potential game changer for effective engagement. Not only does it sharpen investor focus, but the notion of ‘more money’ is likely to prove more persuasive with management and shareholders than ‘more impact, creating a virtuous circle between impact and returns.”

Fulcrum Asset Management has joined Arvella Investments as a user of the tools and a contributor to the research.

“We’ve been delighted to work with Arvella over many years, including for the launch of the Fulcrum Climate Change Fund in July last year. We’re proud to be ESG for Investors’ first investment house partner and are contributing an ongoing research resource to this important project,” said Fulcrum Asset Management deputy CIO Nabeel Abdoula.