Company is partnering with Clarity IA to allow users to design, build, and deliver customized portfolios
While there are many ESG methodologies and vendors in the market, YieldX has developed “a transformative way to deliver income portfolios” with an ESG component, and advisors are beginning to embed it in their systems, Stewart Russell, its Chief Investment Officer told Wealth Professional.
“We’re partnering with Clarity AI to create these portfolios, while taking into account the ESG scores and metrics that are associated with all the bonds and funds that are in our platform and database,” he said. “We have roughly two million securities in our database and on our platform.”
YieldX wants to be the “portal to liquid global yield-driven opportunities”, so it has built a platform that allows users to design, build, and deliver custom income portfolios at scale. Users can customize portfolios for given objectives and eliminate certain sectors or portions of the results.
“We allow somebody who’s customizing their portfolio to eliminate the oil and gas sector or manufacturing sector. Because we’re scoring every bond, they can just eliminate the bottom third of the weakest ESG-scoring bonds in a given portfolio and we’ll use all the other available sectors,” Russell said.
“So, it’s really up to the user how they want to take the data that we have and customize their own portfolios.”
Russell says the next step is to import impact scoring, so investors know they’re reducing global emissions by owning bonds in companies that do that, but he doesn’t yet know what the timeline will be for that.
