About you & your needs
Primarily, SRI-Connect seeks to understand the needs of all participants in the sustainable investment value chain and either deploy our own (technological and networking) resources to help them to meet these needs or to direct them towards others that can provide appropriate support.
SRI-CONNECT is one of the largest global networks for sustainable investment and corporate governance. Investors and analysts that engage with each other and with listed companies via the site build a reputation in the global community for a sophisticated investment-orientated approach to SRI & corporate governance.
In brief...
SRI-CONNECT helps asset managers deliver value to their clients by:
- Helping them to source the research that best delivers sustainable investment ideas
- Improving the efficiency and quality of their access to companies
- Raising their profile with potential clients and the wider professional SRI & CG community
This can largely be done for free using the tools and features available on the platform.
Tips for doing this effectively can be [found here].
Asset managers that particularly value SRI-Connect's contribution to sustainable investment value chain can become an SRI-Connect supporter via here. This not only supports our work but also boosts their industry profile. Thank you for becoming a supporter today.
In detail...
What asset managers need to deliver...
Asset managers aim to deliver sustainable outperformance and display responsible ownership to their clients. To do this, they typically need to:
- Receive high-quality research from a diverse range of sources that is targeted at their specific needs (Research Access & Efficient Resourcing)
- Obtain regular, efficient access to strategic decision-makers within companies (Corporate Access)
- Raise their profile amongst clients, within the professional SRI / CG & wider investment community (Professional Profile)
How SRI-CONNECT helps...
We describe below how SRI-CONNECT helps asset managers to meet these objectives and deliver value to their clients:
Research Access & Efficient Resourcing
Traditionally, asset managers have sourced SRI & CG research from one or two ratings providers, supplemented this with in-house analysis and ad hoc research from brokers before bolting it onto their financial analysis and portfolio management processes.
- This has worked for cosmetic engagement activities and basic screening purposes.
- It will not work for strategic engagement or integrated investment analysis.
Client interest, cost pressures and demand for quality now mean that more sophisticated asset managers need:
- to select, combine & use different research resources effectively
- so that they receive a flow of high-quality, in-depth research from a diverse range of sources
- that presents robust and challenging investment ideas
- that are focussed on their specific needs and those of their financial analyst and PM colleagues.
Ultimately, this requires asset managers to set their own research agenda, to take control of their research budget and to manage pro-actively the interplay between diversity and focus.
SRI-CONNECT is explicitly designed to help analysts & PMs manage their research resources:
- Market Buzz enables analysts and PMs to tailor the flow of research that they receive to match their interests and to come from the most interesting analysts
- Research Market enables asset managers to tender, commission and buy research (over-the-counter or by subscription) that is precisely matched to their needs at appropriate prices
- Interest clusters enable asset managers to track developments across asset classes, themes and markets
To take advantage of these services, analysts and portfolio managers should:
- Update their personal profiles so that the site and its other users recognise their interests
- Connect to people in the industry who write the most insightful research
- Use the research market to buy research (whether subscription services or individual pieces) to ensure that the competitive global SRI research market works to your advantage
- Ensure that 5% – 10% of your annual research budget is available to be used for (non-subscription) bespoke and over-the-counter research purchase
- Update your organisational profile to disclose what research you require and how you pay for it
Corporate Access
As described above, asset managers are moving beyond ‘cosmetic’ towards ‘strategic’ engagement and beyond screening towards integrated investment analysis.
Inefficient access to the junior CSR manager who completes questionnaires no longer works. Nor does sporadic access to the board.
Instead, SRI & CG analysts and PMs now need regular efficient access to strategic decision-makers within companies. And, they need these people to be prepared to discuss the investment materiality of sustainability issues.
- SRI-CONNECT has > 700 company users; in time, we aim to attract > 3,000
- We improve the quality of corporate access by briefing companies extensively on how to shape sustainability messages around investment materiality
- We improve the efficiency of corporate access by encouraging companies to be organised and pro-active in reaching out to SRI analysts and portfolio managers – rather than waiting for them to get in touch.
- Shifting the responsibility for outreach from investor to company will:
- Save time for the companies – who can manage all of their SRI communications in one efficient process
- Save time for the asset managers – who no longer have to do all of the running
To take advantage of these capabilities, analysts & PMs should make their interest in individual companies clear by:
- Listing these companies as interests in your personal profile (update personal profile here)
- Sending Mike Tyrrell a list of your focus / priority companies; we will send you back, for free and in confidence, a list of relevant (IR & CSR manager) contacts at these companies
- Updating your organisational profile to describe how you like to hear from companies
Professional Profile
SRI analysts and portfolio managers typically need to raise the profile of their SRI activity with two audiences:
- With clients and potential clients
- With the professional SRI community - the better you and your needs are understood by peers, suppliers and partners; the more efficiently and effectively these needs can be met.
For clients and potential clients: A number of institutional asset owners, investment consultants and financial advisors use SRI-CONNECT; we aim to attract more; profile on the site therefore translates into profile in front of a self-selecting and engaged potential client base
Professional SRI community: The various posting options enable asset managers to showcase their research capabilities and strategic understanding of the SRI market and to influence the direction of SRI. (Showcase research: Post quick buzz here | Shape market opinion: Post blog here)
To take advantage of these services, analysts & PMs should:
- Profile updates: Update your organisational profile and encourage all of your colleagues to update their personal profiles
- Connections:Make ‘connections’ with opinion-leaders and interest-sharers in the SRI market
- Contribute: Research from your own website: Post to Market Buzz and Blogpost your thoughts on SRI strategy & sustainable business
Also...
Advertise and view jobs | Vote & be voted for in the IRRI survey | Host & attend events | Understand the fundamentals & market dynamics of SRI | Meet others in the market ...| Trend tracking around interest clusters (asset classes, markets & interest areas) and much more...
SRI-CONNECT is one of the largest global networks for sustainable investment and corporate governance. Investors and analysts that engage with each other and with listed companies via the site build a reputation in the global community for a sophisticated investment-orientated approach to SRI & corporate governance.
In brief...
SRI-CONNECT helps 'sell-side' brokers deliver value to their clients by:
- Extending their research distribution
- Facilitating the delivery of corporate access through origination, preparation & execution
- Improving analysts’ own access to research
- Helping them get paid
- Supporting profile raising, trend-tracking and a range of other activities
'Sell-side' brokers upgrade to subscribe here in order to improve:
- their profile in the global SRI & CG industry
- their accesss to the industry, its individuals and their ideas
... and also to support the industry's development, to be supported by SRI-CONNECT's team and ... because it's the smart thing to do
See: Subscribe to boost industry profile and access
In detail...
What 'sell-side' brokers need to deliver...
SRI & CG analysts, salespeople & corporate marketing execs on the ‘sell-side’ typically aim to:
- Deliver SRI & CG research and related services to specialist buy-side analysts and PMs
- ... as profitably & efficiently as possible in order to...
- Open up much larger markets for this research amongst ‘mainstream’ investors’
How SRI-CONNECT helps...
We describe below how SRI-CONNECT helps brokers to meet these objectives and deliver value to their clients:
Research distribution
Brokers have exceptionally good research distribution systems (both automatic and human). SRI-CONNECT makes no pretence to supplant these – merely to bring four small enhancements that, we suspect, will bring a 5% improvement in client impact
- Analyst sector coverage – Buy-side SRI analysts are bad at updating brokers on their interests & sector coverage; SRI-CONNECT strongly encourages sector coverage updating – thereby increasing the likelihood that your research is highlighted to the right analyst
- Issue-based distribution – Some sell-side research distribution systems are not built to distinguish between analysts interested in climate change adaptation and analysts interested in human rights; SRI-CONNECT makes this distinction; again increasing the likelihood that your research posted on the site is read by the most appropriate person
- Second bite at the cherry - in a multi-channel world, people typically need to hear about something six times before they engage with it. Brokers probably tell clients about their research in three or four ways. SRI-CONNECT puts one more channel at your disposal and gives you one more chance to ‘hit’ your clients
- Secondary clients and the SRI diaspora of influence – the sixth route to market is provided by the wider SRI diaspora of interest and influence that ensures that research is mentioned, discussed & recommended in different for and via different channels. Why not use SRI-CONNECT to engage the companies, the other research providers, the consultants, the asset owners in promoting your research
Control is critical
Importantly, when posting via SRI-CONNECT, brokers retain TOTAL CONTROL OF THE COMMERCIAL CONTENT & COMPLIANCE ASPECTS of their research.
Brokers have three options when posting research on Market Buzz
- Author & Title only: e.g Rabobank: Research Special SRI Investor Conference
- Author, Title & Exec summary: e.g. HSBC: Oil & Carbon revisited
- Author, Title, Exec summary & hard $ sale: not currently used (you set price; we sell for you and send you the full proceeds)
Most research in the second category is currently (Feb’14) receiving 30 – 70 hits within the first week.
Help yourself
- It takes 30 seconds to post a piece of research on SRI-CONNECT; make sure that all of yours is posted (Post quick buzz here | Post full buzz (with exec summary) here
Corporate access efficiency & quality
This one is complicated. See separate article: How SRI-CONNECT supports sell-side corporate access services
Research access
So much focus is placed on the distribution of research by the ‘sell-side’ that is is sometimes forgotten that ‘sell-side’ analysts also need access to a diverse range of challenging independent SRI research.
SRI-CONNECT is explicitly designed to help analysts manage their incoming research flow:
- Market Buzz enables analysts to tailor the flow of research that they receive to match their interests and to come from the most interesting analysts
- Research Market enables brokers to tender, commission and buy research (over-the-counter or by subscription) that is precisely matched to their needs at appropriate prices
- Interest clusters enable brokers to track developments across asset classes, themes and markets
In addition to this, SRI-CONNECT actively encourages companies to communicate their sustainability activity pro-actively to sell-side SRI & CG analysts.
To take advantage of these services, analysts should:
- Update their personal profiles so that the site and its other users recognise their interests
- Connect to people in the industry who write the most insightful research
- Use the research market to buy research
- (whether subscription services or individual pieces) to ensure that the competitive global SRI research market works to your advantage
- Ensure that 5% – 10% of your annual research budget is available to be used for (non-subscription) bespoke and over-the-counter research purchase
- Use the research market to sell research - by responding to research tenders that are issued via this process
- Update your organisational profile to disclose what research you require and how you pay for it
- Search the buzz – previous research (the buzz) can be searched by sector, issue or stock
Getting paid
The debate over how asset managers should pay for investment research will continue. Eventually and inevitably, SRI & CG research & services from brokers will be paid for in the same way as other research & services from brokers.
However, this evolution will take time and we do not believe that wider industry development should distract from an ongoing focus within SRI & CG on transparent payment for valued services.
Various initiatives are underway in various parts of the world to encourage transparency around commission payment for SRI & CG research; SRI-CONNECT’s approach can best be characterised as ‘behavioural’ and ‘market-orientated’. As a result it fits nicely alongside other (typically) more policy-orientated approaches.
SRI-CONNECT delivers:
- Continued commentary on the subject to maintain awareness
- Sustainable Research; Sustainable Revenues: Value and Money from Sell-Side SRI Services project will explore the behavioural issues around commission payment
- Space within asset managers’ SRI-CONNECT profiles for them to disclose to brokers what and how they pay for SRI & CG research
- Research marketplace enables brokers to
- Explore new business models
- Sell research for hard $$$s to asset managers, asset owners and others
- Respond to tenders for research – the first one of these issued was met by two brokers
- Continued promotion of the ThomsonReutersExtel survey and use of the IRRI survey to raise questions about the economics of SRI research
To help themselves,'sell-side' analysts can:
- Post a blog with your own thoughts on the subject
- Sponsor the Sustainable Research; Sustainable Revenues project
- Cost = £1,000; payback = 1 quarter - if raising the issue encourages one asset manager (or more) to start paying commission one quarter earlier than they would otherwise have done
- Register yourself to receive notifications of new research tenders posted in the Research Market
Professional profile
SRI analysts and portfolio managers typically need to raise the profile of their SRI activity with two audiences:
- With clients and potential clients
- With the professional SRI community - the better you and your needs are understood by peers, suppliers and partners; the more efficiently and effectively these needs can be met.
For clients and potential clients: A number of institutional asset owners, investment consultants and financial advisors use SRI-CONNECT; we aim to attract more; profile on the site therefore translates into profile in front of a self-selecting and engaged potential client base
Professional SRI community: The various posting options enable asset managers to showcase their research capabilities and strategic understanding of the SRI market and to influence the direction of SRI. (Showcase research: Post quick buzz here | Shape market opinion: Post blog here)
To take advantage of these services, analysts & PMs should:
- Profile updates: Update your organisational profile and encourage all of your colleagues to update their personal profiles
- Connections:Make ‘connections’ with opinion-leaders and interest-sharers in the SRI market
- Contribute: Research from your own website: Post to Market Buzz and Blogpost your thoughts on SRI strategy & sustainable business
Also...
In addition to the points above, SRI-CONNECT enables brokers to: Advertise and view jobs | Vote & be voted for in the IRRI survey | Host & attend events | Understand the fundamentals & market dynamics of SRI | Meet others in the market ...| Trend-track around interest clusters (asset classes, markets & interest areas) and much more...
